, 1890-10-30
STATEMENT OF LEIGH
Silver Purchased From the
Lowest Bidder.
CAUSES OF THE RECENT DECLINE
A Law Recommended to Prohibit
the Sale of Metals on
Margins.

IN reparu 10 treasury purCnuses ol siiNer
bullion and the cause OF the recent de-
cline in the market price of silver. He
says: The treasury method OF pur-
chasing silver has been criticised in
these particulars: first--That the large
purchases by the department does not
include all the silver bought. Second
That the London price, Is used MS the
basis of government purchase. Third
That bids of tho government nre on The
decimal system and tend TO favoritism."
In regard to the first criticism he says
that the government purchases silver as
it does bonds, and indeed any article re-
quired in considerable quantities,
by public competition, the low
est oilers being always accepted,
provided they do not exceed the highest
market price. For the benefit of small
producers, however, superintendcnts Of
mints are authorized to purchase small
lots ut the price fixed from day to day
by the director. CORES spending to the
market price. These purchases average
possibly half q million ounces u
month.
Second--It is not tho London price
that is used as q basis Of silver pur-
chases under the new law. During the
last administrator not only was the
London price the only price used, but
the department did not pay the equiva-
lent of tho London price, but made
counter offers to bidders, on the theory
that silver was worth less in New York
than In London by the cost of trans.
portation and insurance across the
Watar Tha praseut al m, 4 n istratinn N as
been governed in its purchases by tho
New York price. At any time since
the nasaaoe of tho ne,y .ilver law in.
-, G.
ueeu iof sono inon'ns oetoie, '"e 're"s'
ury mas Ieit itseii hniiteo IN the accept
ance of London prices.
Third-In regard to government quota
tions being on the decimal basis one of
tho critic. savs. at 10 n sns,,oions .rd
..-sa.. -. -. 80
"s"'' i"Ns AZ iebaiN w INC to'er"
ments quotations being on decimal
basis, which Is of great advantage to
those who may have advance informa-
ton I'm regard To the price tbe Govern
ma,, a. ,,iI,in, ., 80 ~, ,,ro, a,,s,,,
1. 30 WINS " p"y '" s''e' u"e'
Ahe government nus no sca'e oi its
own and bidders use whatever scale
suits them best, and if ono house hap
pens to bid a decimal lower than
anotbar is ,be govarnmsnt IN daclina +,
io,vsr h,d haoo,ss. g. - aao,,n,ts IT, a..
o'u because Vi ue'i'a.s Ahe iuea
" my sener nnVlng auvance ihiof.
.s ie,ioi us W tne price 'ue governments
wiii pay Is RIDICULOUS ana Impossible.
II tnere can De any iairer method de-
Viseu ior purchaslng siiner man Dy COM
Peu.Ioh, IL wouiu DC diinoui, 10 CONCEIVE
OF such method. IL IS the method
wnlch M mas Ieeh pursued Dy thc treasury
u',uer al auin'nistrations since 1910
IN IesnIo 10 .ne Ieceht ueSIihe IN lhe
" prouuse ~ nre apparen'' IN 'ne ntst
pince the visible stock Oh hIver IN New
,,,t,, aUtk nus no' sehsioly cecteaseo, not
M.hstahuihE ,ne purchase py the gov
elhineht it VI i-,.'osco ounces oi silver
sineo ',il hugust ~. Ihis Iargo ana un-
IN s'oeA sa s'ahoiHT menace
'o ,he price oi silver' Largs western
Iehner"s' ~ tho nope Oh reaizing large
nron.s. heio s'iver lot months prior TO
a., me PSssaEe vi 'ne new NV, or deposited
~ w Scw iork iot cerunca,es, ana the
~ ~iesui, has oecil tue aceuniuistioh OF
tisiote STOCK oi such magnitude as 10
uepIecia.e .ne price. itls very unlort,
uhate that this STOCK nus hecn allowed
W uGGcunlu.ate, anu Peelaliy mat
vertn'Sales were aiiowed 10 oe Issued on
unu suaIunteeu Ny huuphai banks
ahu Hs.eu on 'he s'ock eAchhhge 10 De
oehi' IN on margins.
~. ~ mas Inaue iootDail oi silver, TO be
hiIkeu i1 aIouhu at tne pressure OF the
puIis % ana oears. IN my J9oement, there
snou.u w law enacteu against zeal
y, inE III n,e'as on nlarGins. me usnal
ue,,nnu ior SILVER ior export mas almost
enu'eiy ceaseai hot ohiy Is this the
ense, ., pus large 1uah.nies OF foreign
e,sei S. have oeen snipPeu 10 the United
s,a'es' ing imports OF silver rom
10y Icy W SJpueihoel p oV VI tne present
ga, eAceeueu 'he Exports ny ef,oZ5, 40,
Mui'o ior tue corresponding periou last
ye"i tno n,o eSpoFts ocp eAceeueu the imports
~ oW. ms accounts lor the
iae' a 'na., muiie 'ue government pur-
ehaseu an amount eqnaI 10 the current
PIouus.ion oi our mines, tne STOCK mas
ny u~lilI'hisheu ~ uurIhe TUG same penou.
oh'Pihen.s oi siiyer 70 ihuia nave not
sehs'py sy deerenseu, aitnouBh latterly
mueS nare oeen peiow .he usnai amount.
it.n.e . .ue SuPPy ior ihuia nus Deen
oo.a'neu . ~ EuI9Pe, OF a' ieast elsewhere
nan .ne ohIteu states. oo, TOO, IN re-
6"tu " lho na'ural ihoyeiheht OF silver
SIina, , Japan anu the straits from
,.',,, sat : IuheiSSo. Ny one ounce OF SILVER
S Su,lio,i n1s oeeh snlppeo 70 the onent
rom M onh rrunoisco since dnn NAY May /, OF TINS
, eai. Mhiie over TiVo,Voo worth was
sn.ppeu uuli6 'no snthe peiiod last
ear, these iacts oI 'heihselves are sur
h ioient W aeGouIie ior 'ie ueeiihe which
.aAei pinee,,
.n aEai, III, soIlsol rooroacks nave
ue,,r, zen ,e,egtnpneu rom LONDON TO TINS
SSfy, 'ao uiPoSu uhu eieCt Vi WnlCn
wan wai nn "uamr' 'iG prices oi SILVER: ~ is