MARKETS
Congress Heads for Showdown on Silver Treasury will soon make recommendation for dealing with supply-demand gap Congress is headed for a showdown on finding a solution to the silver shortage problem. Action will probably be kicked oft next month when the Treasury Department is expected to submit to Congress its long-awaited report on what to do about the widening gap between supply of and demand for silver. The House Banking Committee plans to hold hearings on the subject shortly after the report is received. Treasury is bridging the gap between supply and demand by selling silver to industry from its stocks, but the demand for coins threatens to deplete the inventory at a dizzy pace. This month, Treasury eased the situation by delaying for an indefinite period the minting of 45 million silver dollars. But Treasury silver is flowing into other coins, and to users and speculators, at an unprecedented rate. Other Investigators. The Battelle Memorial Institute, Columbus, Ohio, is investigating the use of metals other than silver in coins for the Treasury. Nickel alloys are probably high on the list. Regardless of whether or not silver stays in coins in reduced percentage or is replaced by another material, the factors to be accounted for are cost, wear characteristics, minting properties, and adaptability to coinoperated machines. Treasury silver reserves of 1.6 billion troy ounces at the beginning of 1964 dwindled to about 1.2 billion ounces by the end of the year. Of the record-high outflow of silver from the Treasury last year, about 200 million ounces went into coins, and about 150 million ounces were used to redeem silver certificates. This year, coinage and other withdrawals could consume 350 million ounces, according to Sen. Wallace F. Bennett (R.-Utah). Behind the expanding demand for coins is greater use of vending machines, parking meters, coin telephones, and coin-operated washing and dry-cleaning machines. Also contributing to the coin shortage are in-
creasing numbers of collectors, as well as coin hoarders. Though the U.S. Mints at Philadelphia and Denver are operating without pause to fill demand, coin shortages persist. World Output. Free World silver production totaled 215 million ounces in 1963, only 37 million of which were produced in the U.S. Silver sales by Red China to the Free World (totaling 55 million ounces in 1961, and 25 million ounces in 1962) were halted in 1963 and cannot be counted on for future supplies. Free World silver consumption in industrial uses grew from 213 million ounces in 1959 to 247 million ounces in 1963. Thus, in 1963 industrial consumption outstripped production by 15%. Silver going into foreign coinage averaged 60 million ounces in 1962 and 1963. Last year, Free World silver demand was more than double production. Monetary value of silver in silver dollars is $1,293 per ounce, and in dimes, quarters, and 50-cent pieces, $1,382 per ounce. Treasury price for sale against silver certificates shot up to $1,293 in 1963 and has remained there. The price is being held at this value to avoid accelerated hoarding and melting of coins for their silver content. There has been much speculation as to what will happen to silver prices if the silver content of coins is reduced or eliminated. Some opponents (including silver users) of continuing silver in coins at reduced content say that if silver content were halved, the silver price would immediately follow the doubled monetary value. Silver producers, who favor continued use of silver in coins, generally do not agree that such a drastic price increase would occur. However, whatever decision is made about silver in coins, it is clear that the Treasury will continue to have a strong influence on price. Easing Shortage. The courses open for alleviating the impending silver shortage are to increase silver production, reduce or eliminate silver in
SILVER BARS. Newly mined silver is cast in bars weighing 1200 troy ounces each and valued at more than $1550
coins, and substitute other materials for silver in industrial uses. In addition to these possibilities, incentive for new silver exploration increased last October when the Department of the Interior announced it would cover 75% of search costs, instead of the previous 50%. Most silver is produced as a byproduct of copper, lead, and zinc. Thus, silver output depends upon the outputs of these other metals. Nevertheless, Robert M. Hardy, Jr., president of Sunshine Mining Co., estimates that Free World silver production can be increased 38 million ounces per year by 1968—an 18% increase over 1963 production. Realization of this increase depends upon fruition of more than two dozen new projects and expansions now in exploratory and developmental stages throughout the Free World. Two of these are Texas Gulf Sulphur's copper-zinc project in Timmins, Ont., and Kennecott Copper's lead-silver project at East Tintic, Utah. Early this month, the Department of the Interior forecast a more conservative growth in Free World silver production. Ry 1969, it says, silver output will be 23 million ounces above the estimate of last year's 220 million ounce output (a 10% increase). Industrial Use. Even an 18% increase in silver production by 1968— if it materializes—would not avert a JAN.
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C&EN Price Lists
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479,322 ...one of a set of Beckman UV Cells ordered recently by a major Southeast research laboratory for use with a DB® Ultraviolet Spectrophotometer. They were delivered almost immediately. Since then, of course, we've topped the 480,000 mark by several hundred cells...all shipped off to owners of all makes of ultraviolet spectrophotometers and colorimeters around the world. Sometimes we're amazed how fast you buy them. After all, we are not the only manufacturer of cells. But you do get flawless and consistent quality, which minimizes matching and gives reliable and reproducible results. And you can select from a complete line of rectangular, cylindrical and demountable gas and liquid cells; liquid micro-cells and micro-aperture flow cells; plus cell holders and other attachments. And we manufacture a complete line of UV spectrophotometers, giving us first-hand insight into your cell requirements. For a detailed, illustrated catalog of nearly 150 cells and related accessories, contact your local Beckman Sales Engineer, or write for Data File LUV-365. And ask him about Cell No. 479,322... not because it's unique, but because it's such an ordinary case history of availability and quick delivery.
Beckman
I N S T R U M E N T S , INC. SCIENTIFIC AND PROCESS INSTRUMENTS DIVISION FUUERTON, CALIFORNIA • 92634
INTERNATIONAL SUBSIDIARIES: GENEVA, SWITZERLAND; MUNICH, GERMANY; GLENROTHES, SCOTLAND; PARIS, FRANCE; TOKYO, JAPAN; CAPETOWN, SOUTH AFRICA
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C & E N JAN. 18, 196 5
After having published extensive quarterly and, more recently, semiannual reports on current prices for chemical and related products for about a decade, C&EN has decided to end the project. We are reluctant to do so, because it is hard to stop a going project. However, we do feel that the resources involved per year can be put to better use. The chemical industry today is vastly different from what it was when our first price lists appeared. With the industry's growing sophistication, the proliferation of formal market research organizations, and the like, price information has become much easier to come by via other organized channels of communication. Thus we have decided to devote the 60odd pages used for price lists each year to news of broader interest. We look forward to serving you in a different way with expanded news coverage in the pages thus freed.
silver shortage unless use in coins is cut back. Over-all industrial use is growing in spite of decreases in some applications, such as sterling silverware, caused by the rapid rise in silver price since 1961. It is likely that silver uses in photographic and x-ray films, electric contacts, electronic circuits, batteries, and aerospace applications will grow enough to overshadow shrinkage in other uses, regardless of price. Eastman Kodak has long worked on finding substitutes for silver in photographic film, but has yet to come up with a satisfactory alternative. In the U.S., industry consumed 110 million ounces of silver in 1963; for 1964 the amount may have reached 115 million ounces. Silver consumed in photographic paper and films, x-ray plates and photocopying paper, came to about 35 to 40 million ounces last year. Electrical contacts and brushes required about 25 million ounces, solders and brazing alloys 23 to 25 million ounces. Electronic data processing equipment and batteries continue to be growing markets for silver.
