The Iola register., 1890-11-07
rHE DROP IN SILVER.

The Director of the Mint Tells why There
Has Been a Decline in Price-He Favors .
Law to Prevent Dealing I'm Money Metals
on Margins.
WASHINGTON. Oct 29-Directur of
the Mint Leech has made public an
elaborate defense of the Treasurer's sill
yer purchase policy. Speaking of the
recent decline in the price of silver he
said: '"The causes which have operated
20 produce it are so apparent that they
need only be stated that their full force
may be measured. In the first place,
the visible stock of silver in New York
has not sensibly decreased, notwith-
standing the purchase by the Govern
ment of IL, 2T6, 47S ounces of silver since
August IS. This large and undimin-
ished stock is standing menace to the
price of silver and has of itself been
sufficient to shake public confidence in
silver.
''If the large Western refineries had
allowed their product to take its usual
course, that is offered it for sale to the
Government at current prices and sold
the remainder abroad this stock would
not have accumulated; but in the hope
of realizing large profit they held
their silver for months prior to the
passage of the new law, or deposited it
in New York for certificates. and the re-
suit has been the accumul alton of a
visible stock of such magnitude as to
depreciate the price. 1t is very un-
fortunate that the stock was allowed to
accumulate, especially that certificates
were allowed to be issued on it and
guaranteed by National bank and
listed on the Stock Exchange, to be
dealt on margins like other stocks. 1t
has made football of silver, to be
kicked around at the pleasure of bulls
and bears In my Judgment there
should be law enacted against deal
ing in money metals on margins.
''The usual demand for silver for ex-
port has almost entirely ceased Not
only is this the case, but large quanti-
ties of foreign silver have been shipped
to the United States. This is shown
conclusively by the fact that the inn
ports of silver into the United States
from May l, to September 80 of the pres
ent year have exceeded the exports by
81, 923. It's, while for the corresponding
period of last year the exports c silver
exceeded the imports by s5,94s, 900, a
difference of SO, s72, 165. This accounts
for the fact that, while the Government
has purchased an amount equal to the
current production of our mines, the
stock has not diminished. During the
same period the shipment of silver to
India has not sensibly decreased, al
though latterly they have been below
the usual amount Hence the supply
for India has been obtained in Europe,
or at least elsewhere than the United
States So, too, in regard to the natural
movement of silver to China. Japan and
the Straits from San Francisco.
$50 far as my information extends
there has been no new silver 'bonanzas'
discovered, and aside from the discov-
cries of valuable silver-lead properties
in Australia am not aware of any large
deposits of silver which have been dis
covered within the last year or two
certainly none recently. So that it is
fair to assume that the silver product
for any considerable period, unless
there are new discoveries, will not be
materially increased by the present act
i've working of the mintS"