There has been recently in the columns of the Daily News considerable discussion ing the fluctuation in the value of silver and the probable effects of the proposed legislation on this subject now occu-Pying the attention of the United States Congress. The increased value of silver as compared with gold is perhaps not difficult to explain, but why should there be at the same time a fall in its value as estimated in copper cash? Or, to put it in another way, what is the cause of the rapid rise in the value of the cash, that it should not only keep pace with that of silver, but overpass it? This is a very interesting phenomenon. To an expert it may be easy of explanation. If s0, not a few of us would be glad to get some light on the subject. The observation of the writer has extended only to the immediate vicinity of Nanking, and it is possible the same phenomenon' may not be noticeable elsewhere in so marked a degree. This fall in the price of silver as estimated in cash has apparently kept pace with its rise as estimated in gold. Two years ago $100.00 U.S. by purchase of a draft on London would realise in Shanghai some $133.00 Mexican. With some fluctuation there has been a steady decline until recently the same amount could purchase but $117.00 Mexican, This difference is due in part no doubt to the changes in the currents of trade and in part to the speculation occasioned by the pending legislation of the United States Congress. But we should naturally expect as a consequence of this that the cash would decline in value, and each year a larger number be necessary to the purchase of a Mexican dollar or a tael of silver than in the preceding twelve months, The facts show just the contrary. Three or four years ago a tael exchanged for 1,700 cash la Nanking; some months later for1,600, last year for a little more than 1,500 and at'present no more than 1,470. The value of the Mexican dollar here has declined in the same time from 1,200 cash to 1,000. What is the cause of this phenonienon? Has any copper syndicate managed thus to so greatly enhance the value of this metal? There was, I believe, some months ago some such combination in Paris, but it was generally understood a good while since that it had failed in its designs, The bankers explain it by saying there has been an increased out-put of silver and a falling of in the supply of cash. But of cash? It is not a convenient colt for what occasions any falling off in the supply hoarding and we have not heard that the Chinese government is imitating the example of the United States with regard to silver and storing away vast quantities of copper to increase the value of the people's coin. Had there been any improvement in the quality of the copper or in the minting, as with the new cash at Canton, this might explain it, but we all know there has been a gradual debasement of the coin from the commencement of the present dynasty and none are so worthless as that of the reigning Emperor. And surely there has been no demand abroad for the cash—' hard cash" in the worst sense of the term. What then has caused this falling off in the supply? Another remarkable feature of the problem is this, that with the increase in the value of the cash there has not come, as we should expect, a fall in prices. On the contrary, prices in Nanking have been raised somewhat. The pu: chasing power of the cash has increased only in the silver market.
Will some one please explain?
Text read from the printed page and cleaned; old type leaves the occasional error.