The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1890-10-01
The SILVER BOOM.
A Question Whether it will COL
lapse or Continue.
EXCITEMENT IN WALL STREET
Increased Charges for Storage-Threatene
Intl5x Of Foreign SiIver-The Home
Supply and Government Demand.

l5pecialto TIE HERALp--Examiner Dispatch
NEW YORK, Sept. 30.-There was con-
sternation to-day among spectators in
silver bullion. Soon after the opening Of
business the price dropped to Ill an ounce,
a decline of IL points since Saturday and
32s points within week There are held
altogether in New York for speculative
purposes million ounces The loss there
lore between Saturday and to-day to spec
ulators was 100000, and for the week
$3.50, 900. The average cost of the silver
was ll2]5, the closing price on Saturday. 1t
was bought at various prices between 95
and Eli. The highest price was attained
August 10. and held for two days; the
lowest price was recorded il March.
The boom in silver was started by the in
PRODUCTION of the silver bill in Congress-
and continued almost uninterruptedly until
The late stringency in the money market
occurred. Then not only did SPECTATORS
nave TO pay a high rate OF interest for
money borrowed TO carry their silver but
also storage charges. Over seven million
ounces OF silver held on speculation are
deposited IN the vaalts of the Mercantile
SAFE Deposit company which is a sort of
silver clearing house. The company charges
cents day per 900 ounces for storage.
IL Issues certificates for deposits No GER
tlhcltes are issued for less than .OCO
ounces.
Previous to July 18th the storage charge
was one cent day. Up to that time the
certlncates were brown in color. Since
then they have been green, that change in
color beng made to distinguish the differ
ence in the storage price. These certificates
are contracts and the safe deposit COM
pany can exact no more than one cent a
day Tor silver deposited previous to July
10, NO matter how long it NAV remain.
Inc difference In the storage price makes
fractional difference in the market value.
Inc total production of silver in this
country Tor the present year is estimated
at 81, OJO,UO ounces. Therefore little less
than one-slxth OF the total amount is held in
New York for speculation. For the wear
beginning August 80, when the silver
bill went into effect, the government. at the
present rate Of purchase, will take 1000
OOO ounces provided the price is nor car
ried TO S1.29 %. There is considerable
aouoG whether silver will reach s1.29-29
IN the coming year for the ma
terial advance in price would bring sill
yer from the other side. There are several
pools IN silver bullion. They may try to
bull the market by holding what they have
and buying more, but the danger of impor-
portations constantly menaces them.
Information was received III Wall street
TO -day that the government of San Saliva
dor had imposed an export duty of 10 per
cent on Peruvian and CHILEAN silver. in
order to keep it in the country The temp
tatlop TO export TO New Y ork on account
OF the nigh price was so great that it
threatened to deplete the store of that
country. Some alarmists in the street
thought the silver speculation might prove
as disastrous as the great wheat corner in
which James Il. Keene lost his colossal
fortune. AT days quotations the value
OF the silver in the silver dollar was So
cents. When silver was 12l4 the value
was 81 cents.