Evening star., 1932-04-08
SILVER SITUATION
MORE FAVORABLE
Plan for Government Pur-
chaseS of Metal Pushed
in Four Countries.
BY JOHN L COOLEY,
Associated Press Financial Writer.


NEW YORK, April s.-Favorable
aspects of the silver situation are being
stressed these days in quarters which
closely follow the white metals for
tunes.
A plan for Government purchase of
current silver production for the pur-
pose Of working it into circulation,
either through coins or certificates, is
being brought forward in the four coun-
tries most directly interested, the
United States, Mexico, Canada and
Australia. But several more immediate
factors have developed to which con-
siderable significance is attached by
friends of silver
Prices Have Been Steady.
Silver prices on the New York mar
ket have f1uctuated roughly between %
and 81 cents an ounce since Decem-
ber l last. Reasons for this steadi-
ness-it might be called firmness if
comparison was made with the acute
weakness prevailing a year ago-are
numerous. One of them is doubtless
belief that silver will work itself back
into monetary systems Another is
speculative accumulation in anticipa-
ton OF sharply rising prices at some
later date. Still another is the marked
decrease in production.
Output of silver last year by the
four countries above mentioned was
LAT, 7,449 300 ounces, while total world
production was 1926, 700 ounces. a
drop Of more than 100000 ounces
from the 1880 total. There has been.
moreover, a larger curtailment this
year. Production in the United States
during january and February, 1882,
was 3,563 600 ounces against 6,667 COO
IN the same period of the previous year.
II Is hardly expected that silver out
put VIII exceed, or perhaps even equal
1881 volume for some time, inasmuch
as about IS per cent of the metal is
mined with copper, lead and zinc, and
the statistical position of those three
commodities is so unfavorable that
production will be held down until
large surplus stocks are either elm
mated or substantially reduced.
With output curtailed, the worlds
silver requirements have been met in
large measure through sales of accu-
mulated silver in the Indian govern
ment treasury, and that source of
supply, which once was 100000. 900
ounces, has been cut to approximately
$50, ,0o0. 900 ounces as a result of paper
rupee conversion inspired by India's
lapse from the gold standard.
1t Is pointed out that if the de-
mand OF the Indian native population
continues the treasury's silver reserve
will be greatly reduced, necessitating
extensive purchases.
Mexico recently announced that she
would buy 100000 900 ounces this year,
or, roughly. third of her estimated
1882 production. Cuba is coming into
the market for 10000 900 ounces.
How far agitation for subsidiary
silver coinage will get in the United
States or in Canada and Australia is
said to be pTohlematieal. Senator Key
Pittman Of Nevada has introduced in
the Senate bill proposing that this
Government buy whatever silver is
currently produced In this country at
the prevailing market price, making
payment with silver certificates and
retaining the metal in the Treasury
for coinage and for security against
the paper money.
A similar plan. modified to meet the
monetary systemS of those dominions.
Is being advocated for Canada and
Australia, and there is a belief that
the question will be brought before
the British empire economic confer
enee, which meets this Summer in
Ottawa.