Evening star., 1932-02-05
PRICES FOR SILVER
IN STEAD|ER TREND
Activities of Spectators and
Hoarding Abroad Have
Strengthened Market.
Special Dispatch TO The Star.

Special Dispatch to The Star.
NEW YORK, February 5-Firrner
quotations in silver futures and spot
metal here recently mirrored the activt-
ties OF local spectators, while the shad-
Ing OF prices in London reflected con-
tnued offerings there for Chinese
account.
The demand for silver from Europe
the accumulation of stocks, both sycee
luncolned silver and dollars at Shang-
hal and a probable decline in silver
output here and in Mexico along with
possibilities that the Indian treasury
may stop selling the white metal, were
discussed freely by bullion dealers in the
financial district today.
The worlds leading bullion handlers
Samuel Montagu & Co. cabled from
London that silver stocks at Shanghai
on January 30 aggregated 55 100 900
ounces IN sycee and Sl69 100000. These
ngureS have been unchanged for the
past four weeks. Apparently the Chi
nese are selling stocks held abroad. On
January 80, 1881, stocks at Shanghai
amounted to 80 100000 ounces in sycee
and $l55,000,0OO.
Bombay Exchange Closed.
AT present two of the important world
silver markets are having comparatively
little effect on prices The Bombay
Bullion Exchange has been closed since
January l because of the political dis
turbances of the NationalistS, and spec
ulatlOn in Shanghai says such meager
cables as have come through to the
Street in the last week is at low ebb, If
existent
The unusual feature Of the present
silver market Srlnivas Ram Fagel
manager of the silver department Of
II, Hentz & Co, remarked today, is
that Europe is its main support, taking
not only the output of the mines, but
also occasional sales of the Indian gov
eminent. European countries are suf-
ferlng from an msufflciency Of subsid-
larry coinage. because since 1920 they
have been demoretizing silver too fast
Nov owing 10 the uncertainties OF
the political situation. extensive hoard
ing Of silver is taking place in Germany.
Austria, Poland and other countries
The current reduced output for 1882
will be barely sufficient for the coinage
demands of Europe and the regular de-
mandS of the arts-that is. without the
aid Of the normal consuming markets
of India and China.
AT the present rate of production
the output for 1882 will be under 16O,-
100000 ounces, as against 248139.133
ounces in 1880 and 26097O O29 ounces
in 1929 The prospect for 1882 is for
a further Curtaument Of United States
and South American production, for
there is no sign Of improvement in the
base metal prices.
Mexican Output.
Mexican production for December
and January tOtaled 8,5O0OO0 ounces,
or less than so per cent of normal. Few
companies are operating now. Mexican
labor collects and wells ore to the smell
ter. In this manner the companies are
relieved Of meeting pay rolls. while
labor gets a meager measure of subsist-
enCe. Hence, only high-grade ores are
being worked. 1t will make future costs
Of mining silver higher than before.
The China-Japanese situation has
naturally led to boarding. Paper money
is now at a heavy discount in Shanghai
and the Far Eastern ports Much of
the boarded silver will not return to
the banks. The civil disobedience move
ment in India has shaken confidence in
the Indian governments paper cur
rency. From now on silver will go out
of the treasury of India very fast The
government will no longer be able to
sell silver; probably it will have to pur-
chase more. 1t is noteworthy that Siam
Cancelled a shipment of 100000 ounces
which she had arranged to ship to Lon
don in January