The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1890-10-30
MANNER OF BUYING SILVER
BULLION BY THE Gov
ERNMENT.
NEW YORK AND LONDON PRICES.
Indian Intelligence Matters and Things
at the Federal CapitOl-The Hen
messy Assassination Trial at
New Orleans.

WASHINGTON, Oct. 28.-Mr. E. o. LEIGH
director of the mint, makes the following
statement in regard to treasury purchases
of silver bullion and the causes of the re-
cent decline in silver. The treasury method
of purchasing silver has been criticised in
these particulars.
1. That large purchase by the depart-
ment does not include all the silver bought.
2. That the London price is used as a
basis of government purchases.
3. That bids to the government are on
the decimal system and tend to favor
itism.
In regard to the first criticism, may say
that the government purchases silver as it
does bonds or indeed any other article re-
ouired in con nslderable quantity by public
competition, the lowest offer being always
accepted, provided they do not
exceed the highest market price. l. For the
benefit of small producers, however, who
would otherwise be Obliged to sell through
middle men, the superintendents OF the
mints are authorized to purchase small
lots at price fixed from day to day by
the directors of the mint corresponding to
the market price of silver. These .Pur
b. chases average possibly half million
ounces month and are reported to the
treasury weekly.
Q. 1t is not true that London prices have
been used as a basis of silver purchases
under the new law. During the last ad-
ministration not only was the London price
the only price used in making purchases
but the department did not pay the equiva.
lent of the London prices as the records OF
the mint bureau will show, but made
counter offers to bidders The present ad-
ministration has been governed IN its pur-
chases by the New York price and has paid
an excess of the highest price at which
certificates were sold in the city the same
day Of course the government accepts the
lowest bid for the sale of silver, but it does
not reject bid for the reason that it ex-
ceeds the London price and II there are no
lower bids will accept any bid within high
est New York prices.
At no tin since the passage of he new
silver law-indeed for some months before
has the treasury felt itself limited Ill Its
accession to London prices.
3. In regard to the government quota
tions being on decimal basis. 1t may be
said that the government has no scale OF its
own and bidders use whatever scale suits
them best. Any person who MS d silver may
offer it at any price he likes. If one house
happens to bid decimal lower than an
other is the government to decline the
lower bid because of the d'cimal
The idea of any seller having
advanced information as to the price
to the government is ridiculous and inn
possible. The offers for the sale of silver
were all made by telegraph within few
minutes of 10 o'clock, and the treasury has
no idea of what it would pay until all the
offers are opened, its acceptances being
governed entirely by the, offers These
offers are entered in book and the offers
are passed on by directors of the mint, who
recommend what ones he accepted or re-
iected and the book is then taker
to the secretary of the treasury
and each is then passed upor
separately and personally by him and bid
ders notified by telegraph of the accept
ance or rejection of their bids. The whole
business does not occupy fifteen minutes.
II there can be any fairer method devised
for purchasing silver than by public compe
titiop it would be difficult to conceive o
such method. 1t is a method which ha
been pursued by the treasury under all ad
ministralions since 1873.