Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-06
Washington Ticker
BY CLINTON COFFIN,
Associated Press Financial Writer.

dustrieS and by Government, in the
United States and abroad, because the
silver attribute of preciousness which
has been held since the dawn of civiliza-
ton is now encountering challenge.
Current quotations place silver values
at under 40 cents an ounce and under
its regulations the United States mint
will now pay only 80 cents for it. This
means a decline in price of more than
one-third in about 18 months. 1t rep
resentS a price loss of more than 80
cents an ounce from the top levels at
which silver sold in 1918. Further, for
nearly two centuries, the price relation
ship between gold and silver shows the
latter metal depreciating. The famous
political war cry of 1896, "16-to-l,
represented demand for the fixing OF
silver values on the basis roughly OF
making one pound of silver equal to an
silver selling on the basis of five pounds
being equal to one ounce of gold. And
Lnere is no certainty that quotations
Will go no lower.
Most people assume there will be a
boLtom to the silver price reached some
time Robert j. Grant, Director of the
Mint, observed, land there is some
ground for believing that 80 cents an
ounce is an absolute downward limit
At that price the production of silver
from mines should be shut off to a very
considerable extent, even in Mexico,
which is the most important source of
ores mined chiefly for silver content"
Mines Worked for Other Metals.
Compilations of silver data under
taken in other Government quarters in
dictate that the metal is Characters
tically coming from mines worked
chiefly for the recovery of other metals.
Thus, about 80 per cent of present
world silver production results from
lead mining, Is per cent more from
copper mining and 10 per cent from
mixed lead-zinc ores. More is found
in association with gold, and less than
20 per cent of modern output is be-
lieved to come from straight silver
mines. This has so far prevented any
material shut-off of metal supply as
the price has dropped.
Further, while world output OF silver
in 1860 was about 100000 ounces, IN
recent years it has attained a total of
PSI 600, 600 ounces. In the last 10 years
India, one of the great silver coin using
countries, has been getting on a paper
currency base, while chronic Chinese
political disorders have limited the sill
yer intake of the other important sill
y. (,
the most important consumption Of sill
yer is in Photographic film, and it is
now estimated that as much as 80 per
cent of this is recovered for reuse. Sill
versmiths lately have instituted cam
paign for stimulating the usage OF
silverware, because it is con-
Sidered that newly introduced steel al
Toys have been cutting down that outlet.
Incidentally, the United States Gov
eminent is sharing losses with the silver
producers in the present price situation,
though to a limited extent, with the
additional fact that the Government
losses are rather a paper factor.
Latest Treasury reports show that
the Government holdings of silver dol
lars amount to $494 ,377,710 at face
value More than half of the metal
contained In those coins cost the Gov
eminent 81 an ounce, and the balance
was all acquired at market prices of the
last half century which average FAR
above present quotations. The Govern
ment-if obliged to sell its metal
would be heavy loser, but such sale
is not within the realm OF possibility,
and neither does the Treasury have to
inventory its metal at market levels.
Bills of Lading.
Congress is studying efforts to pro-
vide international shipments with the
same uniform facilities as to bills of
lading that have long been possessed
by domestic trade. This week the
House merchant marine committee, I'M
der Chairman Whites leadership. took
up a proposal which has considerable
support from shipping interests, and
treats the subject by incorporating
into American law uniform bill OF
lading forms drawn up by an interna-
tional convention held at The Hague.
The English government is said to
have taken the same course, and the
adoption of the legislation by principal
maritime nations would attain the end
sought.
At the same time there has been
counter project for dealing with the
subject by international treaty. The
question of which course to take is eX-
pected to be dealt with in the commit
tee report after study of the arguments.
In picking up again the very tangled
subject of railroad valuation, to carry
out the latest Supreme Court edictS on
the subject, the Interstate Commerce
Commission is issuing some surprising
figures. Last Spring the court, in re-
jecting a valuation placed by the COM
mission on the st. Louis e. O'Fallon
railroad, said that more weight should
given W SOot Va ANPlOdIIblOLi, H1AANAA
means that the constantly f1uctuating
cost Of materials and scales of wages
and salaries have to be considered.
Fluctuating Rail Values.
This week the commission tentatively
valued the Birthstone Railroad g. Canal
Co., short and moribund Sulpher line
in Louisiana, which was very profitable
a few years back, and carefully set down
cost of reproduction as a major consid-
Grafton in the process. In so doing 1t
disclosed the interesting fact that under
reproduction cost theories the values of
railroads have to be treated as fiuctuat-
ing constantly in accordance with the
changes in costs of materials and labor.
Thus the Birthstone line was found to
have been worth on February 30, 1920,
after depreciation, $241 600; while 10
months later, costs having gone up, it
was worth by the same standards $377,-
600. It's reproduction cost, less depre-
ciation climbed up to high point of
1898 900 in 1928, and then commenced
to turn downward. until in 1926 it was
worth but $325,000.
All this fluctuation has to be strictly
accounted for, since the Government, if
it once attains a satisfactory formula
for fixing final valuations, is entitled,
under the law, to collect half of all
money any carrier earns, or has earned
since 1920, in excess of per cent on
valuation. The Birthstone valuation is
IL