Evening star., 1926-09-29
DECLINE IN SILVER
HASL|TTLE EFFECT
White Metal Almost By-prod-
uct Under Present Trend of
Mining in U. S.
BY j. G. ROYLE.

special IlspaICQ TO Inc star.
NEW YORK. September 29.--De.
spite the price recessions which have
struck the silver markets Of the world
in the last few days, it is unlikely
that the activity of the mining in
dustry of the United States will be
materially affected. Mexico will! prob
ably be keener sufferer than this
country. This is due to the fact that
production of silver alone in the min
ing States has become a minor in
duStry. The strong status Of the
other non-ferrous metals with which
silver usually is found will tend to
stabilize operations.
The sharp drop in prices for the
white metal which sent quotations to
the lowest point in years has been
blamed on the Chinese situation which
precipitated the suspension Of the
RuSSo-ASiatic bark, which is sup
posed to have heavy holdings of silver
which might be thrown on an already
overhurdened Oriental market. But
the real cause for the drop is author.
itatively declared to lie in the pro-
posal to place British India on a quasi
gold basis.
Depression Overplayed.
Officials Of companies in Nevada
which produce large quantities of
silver declared today their belief that
the depression is being overplayed.
They asserted that the placing Of
India on a gold basis is not yet GER
tain. although it has been recon-
mended by q British commission
yyyhinI, no ham CT, s.j<
ton. Moreover, under the commits
sion plan 1t is not proposed to with
draw any amount of silver coin from
circulation in that country.
THE masses In India" said one Of
fetal just returning from an inspec-
ton OF his companys property in
Nevada. have so long been accus-
toned to silver money that no sub
stitute can displace it. The natives
are loath to accept either gold coin
or paper money. Silver is more bulky
than gold and some of the natives
when they see a pile of silver money
are unable to realize that few gold
coins represents the same amount of
wealth."
In support of this theory he told a
story Of a prospector who refused
a certified check for $5O,000 for a
NeVd(ld prospect, DuL WHO dCCcpleu an
offer when $40 900 in silver coins was
piled before him.
Wouldn't Accept Change.
consequently a number of genera
tions would pass before natives of
India would accept the change. The
boards of their ancestors, added to
by each generation. would suffer tre-
mendous depreciation. So I am con.
vinced that, whatever the financiers of
London may think, they will not now
go so far as to attempt to force their
theories on India. Failing in this.
there should be a rebound in the mar
ket value Of the metal"
Whether this viewpoint is correct
or not, the mining companies are GO
ing ahead. The ma ajority Of them are
making excellent profits from their
copper. lead and zinc fields. If they
can make the silver content of their
ores pay smelter charges" they are
not worried. Lead demand Is eX-
pected to show a sizable expansion
shortly, since requirements Of con-
sumers for the Winter are still to be
covered Slab zinc values are likely
to respond to the record-breaking vol
ume Of consumption with equal readi-
ness.