The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-10-29
TLVER'S LOWER PRICE.
THE CAUSES THAT HAVE LED TO
THE DECLINE.

EXDialu6o AofoACo @A-OA A4oOAOA
Out of the Question.
WASHINGTON, Oct. 2s.-E. o. Leech,
director of the mint makes the following
statement in regard to the treasury pur
chases of silver bullion and the causes of the
receut decline in the market price of silver:
"The treasury method of purchasing sill
yer has been crit zed in these particulars:
~. That the large purchases Of the depart
ment do not include the silver bought.
SO. That the London price is used as the
basis of government purchases.
''S That bids to the government are on the
decimal system and tend to favoritism.
THE GOVERNMENTS METHODS.
"In regard to the first crisicism, may
say that the governm MT purchases silver as
itdoes bonds or indeed any article required
in considerable quantities, by public COM
netition, the lowest offers being always ac-
cented. provided they do not exceed the
highest market prices. For the benefit of
small producers however, who would other
wise be obi ged TO trade through middlemen,
the superintendants of the mints are author
lied to purchase small lots at the prices
fixed from day to day by the directors of
the mint, corresponding to the market
price of silver. These purchases average
possibly 500,0 900 ounces a month and are
reported to the treasury weekly.
LONDON PRICES NOT THE BASIS.
"2. 1t is not true that the London
price has been used as the basis of silver
purchases under the new law. During the
last administration not only was the London
price tho only price used in making pur-
chases, but the department did not pay the
equivalent of London prices, as the records
Of the mint bureau will show,
but made counter offers to
bidders on the theory that
silver was worth less in New York than in
London by the cost Of transportation and
insurance across the water. The present
administration has been governed In its
purchases by the New York price, and has
/ paid at times in excess of the highest price
4 at which certificates sold on that same day.
OF course the go yernmsnt eccepts the
lowest bids for the sale of silver,
but it does not reject a bid
for the reason that it exceeds the London
price, and if there are no lower bids, will
accept any bid within the highest New
q York price. At no time since the passage
of the new silver law, indeed. for some
months before, has the treasury felt itself
limited in its acceptances to the London
price.
THE GOVERNMENTS SCALE.
IS. In regard to the government quota
tions being on the decimal basis, one of our
critics is made to say: "A suspicious fact
u regard to the governments purchases of
late, is that houses Offering large lots have
been underbid by the hundredth part of a
cent The governments quota
uons are on basisswhich is a great ad-
vantage to those who may have
advanced information in regard to the
price the government is willing to pay
on given date Now, in regard to this,
1t may be said that the government has no
scale of its own, and bidders use whatever
scale suits them best. Any person who has
silver NAV offer it at any price he sees fit.
II one house happens to bid decimal lower
than another, is the government to decline
the lower Did because of the decimala The
laea OF any seller having advance informa-
uon as to the price the government will
81 pay is ridiculous and impossible.
HOW OFFERS ARE MADE.
OHers for the sale of silver are all made
# ov telegraph within a few minutes of
O'CLOCK, aad the treasury has no idea of
"ha5 IL Will pay until all the offers are
opeaeu, its acceptances beiGg governed en-
trely by the offers. These offers are en-
seied IN book and the offers are passed on
~ V1e ulrector OF the mint, who recon-
mends what ones be accepted or rajectad
+
~ tne treasury, and each offer is
passeu upon separately and personally
~ nlnl, aad bidders notified by telegraph
IA ~. 1ne acceptance or rejection of their bids.
nc "nole uslness does not oceupv fifteen
uGes' Inc uniform practice. as the
ecoras, which are open to the public in
"a .I WIN snow. is to accept the lowest
aus, 'he only question for the director and
ecieeary 10 determine being how much
+ KAOJ VIII DuV a
ISoIaoie the offers are as compared with
~ market prices If there can be any
S.ei Sne lnetnod devised for purchasing silver
" pubic competition, it would be
4 .bo uIV 70 conceive of such a method. It
sIe method which has been pursued by
ioeo 'reasury under all administrations since
=, CAUSES OF THE DECLINE.
,;oa III regard to the recent decline in the
Sno-a+e5 "a suVer, the causes which have
eIa1eo TO produce it are so apparent that
10y need only be stated that their fnll forcs
Ss;h, 10 measured. In the first place the
ns;SI GtI sVock OF silver in New York has not
,rnLty LSy decreased, notwithstanding the
MO "a4sa oy the government of 2, 75S ,621. .47S
"a sol Vi silver since Aug. 13. This large
enoon ouieullnlnlshed u stock is a standing
If 80 70 me price Of silver. and has of it
Sill oen Sut1cient to shake public confidence
hi ALL VIC large W6sUeTn r0uD6rleS
nret snowed their product to take its usual
ms so mat is, offered it for sale to the gov
ainSat az current prices and sold the re-
cnU1sI abroad this stock would not have
rsar ulaCed but III hopes of realizing a
p5th. 1 pront they held their silver for
de-. suo Prlor to the passage of the new law
~ ptosIIeu 1t In New York for certificates.
kiSibIo tesult has been the accumulation of
|ecste Ule tI sLock Of such magnitude as to de-
AN UNFORTUNATE CIRCUMSTANCE
owaS S very unfortunate that this stock was
ktifcato, accumulate, and especially that
Ie.es pneres were allowed to be issued on it
teS o~ o',' ea anteed by the national banks aud
mar; ~ Cue stock exchange to be dealt in
bthaiistlass gus as other stocks. 1t has made a
asnra VI silver, TO be kicked around at the
hpna9. lne bulls and bears. In nv
blnSt dsiere Vnere should be a law enacted
ing IN money metals on mar
IN, EXPORTS FALL OFF.
entiro1ua Usual demand for silver for export
bn. ceased. Not only Is this the
be I~S hoo large quantities of foreign silver
is "n sha,,n snlpped to the United States.
inn. "n conclusively by the fact that
n TsS OF silver into the United States
uay to Sept 80 of the present YEAR
6le froT1 f1eo ts the exports by S4,92S, 175,
b the az arn .ne corresponding period of last
ts bv 81 poTGs PTS OF silver exceeded the i'm
This SV,o1o,9SO, so, difference of 81. .S72.-