The morning call., 1890-07-26
TIE SILVER MARKET.
Great Bfitain'S Unsuccessful Effort to
Reduce Current Prices.

NEW YORK, July 25.-Zimmerman &
Foshay, large exporters of silver, predict
that the price will not fall in London below
the price existing before the passage of the
Silver Bill.
The Mail and Express says: Since the
first movement in silver during period in
which the price has risen 10 cents an ounce,
Great Britain sold us little less than two
million ounces at prices or cents below
the current quotation. During the present
week we have shipped back again almost as
much as that at an advance of current
prices, and the effort to break our market
has proven an ignominious failure. There
is now no chance whatever of our losing
control Of the silver market, which has
been so suddenly taken away from Great
Britain.
special to the Evening Post from
Washington gives an interview with Mint
Director Leach. He says that the Depart
ment will not take advantage of the dis
cretiOn vested in the Secretary, but that the
law will he carried out to the letter and
SPIRIT just as congress intended it should
be. We shall buy 100000 ounces of sill
yer every month without reservation, and
shall pay the full market price for it, what
ever that may be, provided only that 1t falls
within the limit set by the terms Of the law.
Congress Intended to eXpend the volume of
IuUuty III ClECuldIlUu, duu IUdb emu Is dC-
compllshed BY the new silver law as we in
terpret that act here is the Treasury. The
currency in circulation, or perhaps l had
better say the money in circulation, for
Treasury notes will not be mere prom
ises to pay. but the legal tender
amount of the Governments outlay
in its purchases every month. Those who
hold contrary view proceed upon the as
sumption that we shall use the money now
in the Treasury to purchase this silver.
That is mistake. Under the act Of 1878
We purchased silver bullion with the money
in the Treasury and immediately replaced
it with silver dollars coined from the silver
so purchased; but, although under the new
act we could, if the law so provided, pur-
chase silver bullion with the surplus money
in the Treasury, we should thereby reduce
the amount of money which could be- put
into circulation by the purchase of bonds
for the Sinking Fund and the retirement of
the public debt. As it is we shall add to
the currency of the country by the whole
amount of purchases required by this new
form of full legal tender money. leaving
the money now IN the Treasury for the pur-
pose already mentioned.
by way of Illustration, the situation is
the same as if the Government were COM
mltted to the purchase OF say one ship every
month OF the value of 600 or 50, 000,-
600, the currency paid for each Of those
ships, if not drawn from the stock on hand
but issued directly and expressly for these
payments, would go into circulation and in-
crease the volume OF currency atloat just
that amount"
rs there any apprehension of failure
of the law when it comes to the redemption
of these silver notes in gold cOin?"
" We do not anticipate any stress on that
account. The notes issued will have basis
satisfactory probably to the mass of the peo-
pie, ana | doubt whether there will be any
demand worth mentioning for a redemp-
tiOn in gold. | may say this, however, that
the Secretary will meet every demand for
gold as long as he has dollars worth left
that he can use for that purpose. If the
supply runs dry he will resort to the means
provided by law to replenish his stock or
appeal to Congress for further legislation"