Cheap Silver and Its Consequences - 1905 Article

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THE SILVER REVOLUTION; CHEAP SILVER AND ITS CONSEQUENCES

BY OUR BRITISH CORRESPONDENT


During the past few years a remarkable change has taken place in connection with the Birmingham jewelry trade in consequence of the cheapness of silver. Certain branches of the industry have, in fact, passed through a complete revolution. The movement is still in progress, and is quite likely to yield still more important consequences.

Birmingham is the home of the electro-plating industry. Many years ago the clever metal workers of the city discovered the vast variety of uses to which electro-plate in various artistic forms could be put, and owing to its comparative cheapness, as well as to the appeal of such articles made to the popular taste, electro–plated goods found their way to all parts of the world. The popularity of these goods facilitated the building up of hundreds of establishments large and small, practically all of which have enjoyed a remarkable run of prosperity. Now, however, owing to the cheapness of silver, electro–plate is being largely superseded as far as the old uses are concerned, and if the manufacturers had not been resourceful enough to adapt their plant to the more valuable metal and to devise new uses to which the cheaper ware could be put, they would have had to shut up their establishments.

The latest returns of the Birmingham Assay Office are very significant of the change that has taken place. Last year the silver goods hall-marked totalled 3,682,000 ounces. Ten years ago the amount was 1,796,000 ounces, while twenty years ago the total was under a million. It must be remembered that last year was a bad year for jewelry and plate generally. Any revival of trade in the coming year will drive the trade forward by leaps and bounds. It is material to notice that it is substantially pure silver, and not alloys that are being sold. The Birmingham standard requires that the silver to qualify for the hall-mark must contain 925 parts of pure metal out of 1,000. Anvthing below this standard is destroyed without compensation to the owners, by the Assay Master. The German standard, it may be noted in passing, requires only 800 parts of pure silver per 1,000, and a curious circumstance is that foreign goods sent to the Assay Office and coming below the standard are scrupulously returned to the owner. These details of Assay Office procedure go to emphasise the significance of the great growth of the returns. Hundreds of articles of pure silver are now submitted for the hall-mark which were formerly unknown at the Assay Oflice.

The following is a list of silver articles, taken at random, now popularly sold, which a few years ago were unknown except in a very few instances as silverware: Ring stands, bon bon–, pomade–, hair pin–, toilet- and puff-boxes, hat-pin stands, prayer-book cases, spectacle cases, clothes brushes, sweet-trays, bon bon dishes, chain-purses, card cases, silver belts and watch stands. It will be seen that the demands of the luxurious lady’s toilet table are mainly responsible for the above demand. To this list must be added miniature five o’clock tea-sets. Silver napkin rings which are very light and can be had at about Is. 9d. each are also very popular with the ladies.

Probably no article has seized the feminine fancy like the silver-backed hair–brush. As the silver can be made as thin as tissue paper, no thicker than two or three thousandths parts of an inch it can be produced very cheaply, and consequently has a great sale. It will not stand much rough usage, but while it lasts it may be depended upon to keep its color. Other nick-nacks extremely popular are cigar ash trays, cigarette and cigar cases, and tiny stamp boxes, with trinket receptacles of every imaginable description. Local show-rooms simply glitter with the display of silver of innumerable descriptions, from manicure sets and button-hooks to tobacco bowls, pipe-stands, rosebowls, shaving sets, and epergnes. Probably the highest demand has been in what is known as photographers’, hair-dressers and druggist’s branches. comprising photographic frames, purses, brushes. combs, button hooks and toilet-room nick-knacks which are cheap mainly because of their shadowy thinness.

To a more limited extent the change has affected articles of general domestic use such as ordinary tea-sets, coffee-sets and spoons and forks. Practically the only branch of the electro-plating trade which has remained unscathed through the trial is the trade in heavy goods. It is still necessary, for instance, to make dish covers and large trays weighing from three to four pounds from electro plate. Such goods in solid silver would be so expensive as to be out of the reach of the ordinary purchaser, $75 being a common price for a solid silver tray of small dimensions. All hotel ware also is made out of the cheaper metal. This is partly due to considerations of price, but another very important element entering into the consideration of the hotel proprietor is that of risk. Silverware offers much greater temptation to thieves and burglars than electro plate. while adding enormously to the responsibility of those charged with the safe keeping of the goods. In this connection it is clear that the present epidemic of burglaries in the jewelery quarter has a direct relation to the silver revolution. The question of wear and tear also is one that can hardly be ignored. Electro plated ware is more durable than silver for the rough and tumble usage of the kitchen and the dining table of the boarding house and hotel, or even of the large family.

The electro plate manufacturer has also found means of recouping himself by turning his hand to other goods formerly for the most part made of different material, such as bread boards and knives, cheese scoops, cruets, butter dishes and flower stands. The result is that taking the trade as a whole it is doubtful whether in bulk the electro plate output has really diminished, and every credit is due to the local manufacturer for his enterprise in rising to the occasion, and turning apparent misfortunes into sources of profit and income. For such substantial family articles as tea pots the difference between 7 shillings for electro plate and 30 shillings for silver will still give the commoner metal a good lead over its richer competitor. But, on the other hand, buyers are fully alive to the superior advantages of silver when the necessity arises for rejuvenating an old tea pot by repairs.

The question whether the trade has benefited by the change is one not altogether easy to answer. The goods sold are nearly twice the value, and as this increases the amount of income in relation to the dead charges, this is so far an advantage; but on the other hand. the manufacturer turning out electro plate and having no severe Assay Office test to face, has much greater freedom in regard to quality, and could leave himself a greater margin of profit. The rigid necessity to give to his customer a high intrinsic value leaves the margin of profit narrower, while on the other hand, the customer, having to pay prices relatively so much higher, demands that the rate shall be cut down to the lowest possible figure. In one direction, the manufacturer has benefited, as he has found it possible to employ machinery to a much larger extent.

Silver is a much softer, and generally much more manageable metal than electro plate, having nothing like the same liability to crack under various forms of pressure. Consequently, stamping machines can be used, employing a lower and cheaper grade of labor, and in this direction some little saving has been effected. It would seem that on the whole the manufacturer and the Birmingham trade generally have benefited. It seems inevitable that prices will still further cheapen, thus increasing the bulk of trade. In the largest houses. the system of producing single articles is dying out, and goods are now commonly turned out and sold by the gross. On the other hand, heads of households are taking more kindly than ever to silver. In this line, it would seem that price is very far from being a prime consideration, and purchasers, who on various sentimental grounds would do without an article rather than buy electro plate, find genuine silverware an irresistible attraction. At present, the selling price is from one-third to one-half more than electro plate, but the margin of difference is certain to be reduced at no distant date, and there seems no reason to doubt, that in the future an industry will be built up on a more extensive scale, than was ever known in the palmiest days of the Birmingham trade.

The change has worked rather hardly in certain directions, particularly in regard to those, who, when it commenced, had on hand stocks of old silver. Formerly this would very easily fetch 10 shillings an ounce; now the outside figure is 5 shillings. This about represents the relation between the old and new prices. Raw silver, formerly selling from 5s. 6d. to 5s. 9d. per ounce is now about 2s. 9d., and the tendency seems to be downward. The development of the silver industry has figured somewhat in the widespread fiscal controversy, owing to the coincidence, that the greater cheapness of silver, with its far-reaching consequences, commenced with the abolition of the duty of 1s-6d. per ounce. It is recognized that, owing to other causes, a vast amount of stored silver came on to the market about that time, but the influence of the removal of fiscal restrictions is generally recognized. There is no doubt that while a proportion of the jewelers are disposed to support Mr. Chamberlain’s fiscal reform proposals, any experimental duties on silver will meet with strong opposition.

While Birmingham jewelery houses have been rather severely hit by heavy importations of cheap artificial jewelery, it is generally agreed, that in regard to genuine silver goods, the home makers are practically in possession of the field. A certain proportion of American goods pass through the Assay Office, and receive the local certificate of merit, but the proportion is relatively small, and local manufacturers profess to regard any such importations with equanimity. On all hands, it is agreed that the silver revolution, wide as are its ramifications, is only in its infancy. With unlimited cheap labor available, and the possibility of large extensions of machinery, no doubt is entertained that in the future cheap silver goods will be used for a great variety of purposes now served by commoner, less ductile and less showy metals.

Source: The Metal Industry - July 1905

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