Show WORLD SILVER OUTPUT AND consumption DURING PAST YEAR REVIEWED AND ANALYZED the following article is the fifth annual review of the silver situation made by the statistical department of coleman reitz 50 broad st new york city it is commended to readers of the mining review as being a lucid carefully prepared presentation of a subject that will prove highly interesting it explains many things about the world production and consumption of silver that current reviews never mention and it indicates more clearly what is likely to happen in the future than anything that has previously appeared in print you can not fail to be better informed on the silver problem by reading it clear through editor annual reviews of the silver situation 6 generally ene rally refer to silver production but an actual examination of its many phases will throw more light upon the gold position of world nations than any ordinary report of gold rese reserves arves gold g old movements or gold g old production this year the absorption of silver and gald g ald by far eastern nations is the largest for any regular yearly period in their history it is also a verification of the predictions of the noted british economist moreton frewen that the far ear east would in the years 1921 22 and 23 exhaust the large supplies of silver thrown on the markets by the european countries and that at the end of this period the question of currency credit would rest with this country because of its large gold reserves and these asiatic countries which are still on a hard rather than a soft money basis in addition to the figures on silver consumption by the far east shown in this article b gold old exports to india alone during 6 the 1 year have been about 40 per cent of those received in this country the largest world production of new mined silver in many years fine ounces was turned out of the mines mills and smelters shelters sm elters of the world in 1922 almost the only big industry on earth outside of gold where customers buy and pay good prices for entire world new output in the years since the war is the silver industry there were fine ounces commercial silver metal taken out of the market and sold into consumption in 1922 this does not include many millions more in iff old coin that was re minted and put back into circulation in debased pieces by the british and dutch em empires pires not only did the market take the entire bumper production but over and above that an even fine ounces of the precious white metal in excess of whole world new production had to be sold to meet the voracious demand for commercial purposes especially in the far east and in the industrial arts in t the 11 e occident world coinage demand was very light in the occident last year almost non existent when it resumes how to meet this additional demand for silver and meet existing demands too will be a problem for the silver pro producing b industries dus tries and consumers the extra hundred million fine ounces si silver iver over and robve world new production from the mines that was needed in 1922 to meet orders from the worlds customers came from re melting old coin the supply of old mexican dollars which used to meet this extra requirement in bygone years has long since been exhausted and was replaced in 1922 by disposal of re melted old european mintages vintages min chief chiefly ay by the british government for the sheffield trades in india by the dresdner bank ban k and the bank for con tin europe and the americas and by the hongtong Hong kong colonial government and some old russian coins to meet extra chinese demand higher prices in past year better prices ruled for silver too in 1922 american mines received the an ounce fixed price under the pittman act it exceeds any prewar pre war prices since 1885 save only a few brief months in 1890 under the short lived sherman law american production has received per ounce or better continuously since april 1918 there are indications now that as a consequence of various plans now being 6 pushed american silver mines may continue contina e to receive a particular price for their production independently of whatever price silver may command in the so called open or foreign market the average price of 68 cents U S gold currency per fine ounce silver in 1922 in the so called open or foreign market at new york was more than five cents better than the average of cents in 1921 the prewar pre war average was 55 cents for five years 1909 1913 inclusive this open market price of silver in 1922 at new york exceeded anything prewar pre war since way back in 1893 the london average price was 34 pence per british ounce in 1922 this seems to show a decline of 21 pence from the average of 36 pence the year before but the decline is more seeming than real it was due to higher sterling exchange for british paper currency in 1922 not lower prices for silver the hard money price of silver was of course higher by nearly five cents an ounce over 1921 the london average prewar pre war price was 2534 25 pence for five years 1909 1913 the london average of 34 pence for 1922 was never equalled equal led for the entire quarter century between 1892 and 1917 chinas cainas markets regulated the immediately super inducing factors which most deeply moved the silver market in 1922 22 originated in china and were two in number one about april 19 the other in october the political civil war in china succeeded in installing in april a pro english regime in pekin and north china incidental to the financial operations connected with this coup the anglo chinese banks at shanghai were caught short of silver they had oversold in mid april they made frantic attempts to cover the price advanced from to in one day alone it jumped nearly five cents the greatest single advance since 1919 the price remained at or better till october the october coup installed a pro english regime in Kwang tung brovice canton or south china one of the first acts of which was to close the chinese mint at canton which had been consuming about ounces a month in manufacture of chinese dimes chiefly the price of silver thereupon fell from or better and reached under by december new regime in china with a free rein to the pro english regimes now in in loth both north and south china and a wide open door it may mean very much indeed to the future of the cassel concessions ces in Kwang tung and the future of silver and of currency and of monetary and financial affairs of all china three steps already have manifested themselves in such new english regulation first on april 18 1922 the english customs head at the chinese port of shanghai issued a notification no barring chinese silver coin minted at canton from entry and circulation in the shang hai district secondly a week later began a most extraordinary influx of hongtong Hong kong colonial silver coins into china over chiefly in hongtong Hong kong dimes had been minted up to 1905 the money had been rejected by the chinese a quarter century ago the british colonies and affiliations themselves rejected it notably the straits settlements federated malay states siam about 1903 india refused to take more than a small amount in 1916 the british stopped minting it in 1905 and the hongtong Hong kong colonial government has long been stuck with that silver on its hands about fine ounces silver representing tons of hongtong Hong kong dimes poured into shag hai and were dumped in that port alone from april 26 to september 15 and in only y registered consignments consign ments then thirdly in the first week of october the pro english government ern ment at canton or kwan Kwang tung province ordered the closing of the canton mint chinas cainas own foremost silver mint A fourth factor in silver in china in 1922 was revision of the 1864 charter of the hongtong Hong kong shanghai banking corp the so called bank of england of the orient world the bank is henceforth absolved from the former obligation to maintain certain large silver reserves at its hon hong t kong or chinese or other establishments and now enjoys enjoy s substantial carte blanche as to how much or how little and what kind of reserves it may maintain at a t any office or branch it proposes to greatly inflate its capital and note issues and secure the notes in china and hongtong Hong kong by british government lous IOUS extraordinary consumption in far east A most deeply significant and extraordinary feature of the silver market was and is the remarkable consumption of silver in the far east and in the industrial arts no less than fine ounces silver was consumed by the far east millions and commercial use in the industrial du arts in the occident world 63 millions this ounces a year in the far east and in the industrial arts does not allow one ounce for mint or coinage requirements in the occident yet the figure exceeds world production of silver from the mines of the globe in the very productive year 1918 it surpasses world production of new ne w mined silver any year in world history save only the four year period of 1910 to 1913 and even then it is 96 per cent of world output in those exceptional years the figures speak volumes for the extraordinarily favorable position of silver metal in the future when any kind of currency demand in the occident world may revive it will then be a hard problem how to meet such revived currency demands and meet existing demands too exports from london and america of commercial bar silver to the orient were million fine ounces of which london forwarded millions and america millions the total of in millions illions far over towers the figure of millions in 1921 and tops by ten millions the previous record in the boom year 1920 the prewar pre war record for all time was millions in 1912 india was a good customer the past year this belies the doleful pred predictions actions that india had been saturated with silver other far eastern demands other important far east developments were the resumption of specie payment in french indochina indo china after quiet purchases of 2412 million ounces in 1921 22 the philippine legislature authorized bond issue issue to rehabilitate the currency reserves but approval by U S congress is necessary the straits settlements continued contina i ed unable or unwilling to turn out the fine debased straits dollars minted 1920 21 it is is understood that the straits and siam may enter the market for silver to build up currency reserves little progress was registered in 1922 toward actual construction of the new shanghai mint the agitation for this mint seems to have subsided after the mint loan in april 1921 to buy the site it would appear that some modification of the hitherto directing interests aims and objectives of the shanghai free mint enterprise would be more conducive to promoting a bonda fide sound currency system in and for china and promoting chinese trade and prosperity silver in the industrial arts about 63 million fine ounces of new silver beside scrap and sweepings and other reused re used silver was consumed in the industrial arts in occident nations in 1922 several millions may have to be added to this estimate when fuller returns come from germany the figure 6 represents silver used in the sterling wares plated wares jewelry and photo film mirror and chemical trades exclusive of the mint coinages coi nages german germany y featured the industry with exports of silver wares far surpassing all prewar pre war records domestic consumption too was at peak heights german silversmiths enjoyed sc ac to che apter prices for raw silver in germany than the london and world market besides advantages of low german exchange silver sells under the world market in germany due to a law secured by the dresdner bank and bank embargoing the export of one half of silver production in german germany y this creates an of non exportable raw silver and helps the banks better to market their own silver already held abroad the british silversmiths enjoyed a good year espe bally sheffield spoons which iii lines ies cried all year for more hands in contrast with general unemployment in britain british treasury silver from re melted coin was fed to the trade coinage demands coinage demand for silver in the occidental world about 20 million ounces was largely negligible as in 1921 apart from purchases by the U S treasury under the pittman law pittman act purchases of near fine ounces slightly exceeded the 1921 figure of fine ounces in ift europe britain and the netherlands alone minted new silver coin but these used reniel melted re ted old pre 1920 high er standard coin not new silver france increased the output of the gold like aluminum bronze I 1 and 2 franc pieces which were also adopted by belgium the scandinavian din avian union issued nickel half kroneis decreed by the treaty of may 1920 rumania bulgaria and Fin finnland tiland issued nickel and aluminum substitute for old prewar pre war silver denominations english swiss innovation the british treasury increased from the silver coin in the metallic reserve to cover or secure near of paper pound notes of the british treasury the new sterling about fine ounces silver required for the increase represent surplus bullion from re melted old coin which is thereby kept off the market and at the same time strengthens sterling about the same date august 1922 it was reported that the bank of england had begun to utilize for the first time since 1861 a certain amount of silver in the gold reser reserve vely item to secure bank of england notes silver bullion at market prices may replace gold up to one fifth the amount of the legally required gold reserve according to the bank act of 1844 the swiss national bank in 1921 22 replaced the silver 5 franc piece by a 5 franc 9 gold old standard banknote ban knote but locks up over OW francs in in latin union silver 5 franc pieces reckoned on the books at bullion value as part of the gold reserve required world production in 1922 nearly all the world showed increased production over 1921 which had been the lowest since 1906 revived copper mining in america in the spring and summer of 1922 lifted U S production to about S million ounces a month from under 4 millions a a month mines output in 1921 mexico production established a new modern record in fact never at all exceeded save only the one year vear 1911 canada for the first time in ten years arrested its declining output and showed a gain cobalt and ontario rained gained t over a million ounces the premier mine in british columbia and keno hill and yukon districts showed a big west canadian gain new production developed in the transvaal Tran in the revival of old workings once operated before 1895 when the districts were then miles from rail now 13 miles the burmah corp Farther Tarther int ini india enjoyed one of the best years in history thanks to cheaper costs good prices and increased output this company is is working 6 some old prehistoric pre historic silver lead zinc mines mines the old mines in peru also had a fine year the old slocan star mine in british columbia was reopened and rejoined the ranks of dividend payers in 1922 in the united states new mills went up in the comstock candelaria and cortez districts in nevada and the randsburg brandsburg Rands burg district california the outlook for 1923 long distance forecasting is ever a dangerous and futile pastime but for the first quarter of 1923 current production figures indicate for the 3 months period about 56 million fine ounces new production of silver from the mines of the world this is at the rate of near fine ounces a year good market for lead and copper may increase the output of silver since near 70 per cent of world production of silver comes as a product byproduct by of lead copper and zinc mines not from silver mines mines proper no important decline in production of silver appears probable except in the event of a |