Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1890-10-29
Expresses His Opinion on the
Recent Decline In the
Silver Market.
eALFoUR's SYMPATHY FoH THE
IRISH PEOPLE.
A Remarkable Operation Takes
Place at the Roosevelt Hos.
pital, New York:
slRTELoTrs CHARGES AGAINST
HENRY N. STANLEY.
The Union Pacific II. X. Difficulty.-
Down on the Ticket
Sealpers.
By Telegraph t. the SEws.I
SILVER BULLION.

Scalpers.
By Telegraph to the NEws.I
SILVER BULLION.
Director tessh of the Mint Makes
Full Statement.
WAsHINGTON, Oct. 2s.-Director
Leech Of the Mint makes n lengthy
statement in regard TO the Treasury,
silver bullion and the causes OF the
recent decline in the market Of
silver. He says: "The Treasury
method Of purchasing silver has
been criticised in these particulars:
Fist that the large purchases by
the Department do not include all
the silver bought. Second, that the
London price is used az basis Of
the Government purchase. Third,
that the bids to the Government are
on the decimal system and tend to
favoriteism.s
In regard to the first criticism, he
says the Government purchases
silver as it does bonds, and indeed
any article required in considerable
quantities, by public competition,
the lowest offers being always ac-
oepted, provided they do not exceed
the highest market prices. For the
benefit Of the small producers, the
superintendents Of the minis are
authorized to purchase small lots at
4 price fixed from day to day by the
director, corresponding to the
market price. These purchases
average possibly half million
ounces month.
Second-It is not true that the
London price Is used as basis Of
the silver purchases 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 equivalent Of the
London price, bat 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
water. The present administration
has been governed in its purchases
by the New York price. At no
silver law, and indeed for some
months before, has the Treasury felt
itself limited in the acceptance Of
the London prices.
Third-In regard 10 the govern |
ment quotations being on decimal
basis, one of the critics says: "The
suspicious and significant fact in
regard to the governments quota
lions are on the decim1l basis, which |
is a great advantage TO those who
may have advance information in
regard to the price the government |
ia willing to pay on a given date"
The government has no scale OF
its own and bidders use Whatever |
scale suits them best. Ii one house |
happens to bid n decimal lower than |
another, is the government to de-
cline the lower bid because Of the |
decimsl. The idea Of any sellers
having
"ADvASGE INFORMATION"
as to the price the government will
pay is ridiculous, impossible. If
there can be any fairer method de-
vIsed for purchasing silver than by
competition. 1t would be difficult 10
conceive of such method. This
method has been pursued by the
Treasury under all administrations
since 1878.
In regard to the recent decline in
the price Of silver, the causes which
operated to produce it are apparent.
In the inst place, the visible stock
Of silver in New York has not
sensibly decreased Notwithstanding
the purchase by the government .of
IL, 276, AS ounces Of silver since
August 18th. This large and undi-
minished stock is standing menace
TO the price Of silver. Large west
ern refineries, in hopes Of realizing
large profit, held silver for months
prior to the passage OF the new law,
or deposited it in New YORK
for certificates, and the re-
suit Is the accumulation OF n
visible stock Of such magnitude as
to depreciate the price. 1t Is very
unfortunate that this stock has been
allowed TO accumulate, and espe-
cially that certificates were allowed
to be issued on it and guaranteed by
National banks, and listed on the
Stock Exchange, to be dealt in ON
margins. 1t has made football Of
silver. to be kicked around at the
pleasure of bulls and bears. In my
Judgment there should be n law
enacted against dealing In metals
on margins.
TIE USUAL DEMAND
for silver for export has almost en-
tirely ceased. Not only IL this the
case. but large quantities Of foreign |
silver have been shipped TO the
United States. The imports OF sill
yer from May LIST to September both |
Of the present year exceeded the ex-
ports by si,923,lT5, while during
the corresponding period OF last
wear the exports exceeded the i'm
1orts by S5,9is, 500. This accounts
Ter the fact that, while the govern
uient purchased an amount equal 10
the current production Of our mines,
the stock has not diminished. Oar
ing the same period the shipments
OF Silver TO India have not sensibly
decreased, although latterIy they
have been below the usual amount.
Hence the supply for India has
been obtained in Europe, or at leas,
elsewhere than the United States
so. too, in regard to the natural
movement Of silver to China, japan
and Australia from San Francisco.
Not one ounce Of silver bullion has
been shipped 30 the Orient since
Nav tst of this year, while over
four million dollars worth was
shipped during the same period last
wear. These facts Of themselves are
Sufficient TO account for the decline
which has taken place.
Then, again, al sorts OF roorbacks
have been telegraphed from London
to this country, the purpose and
effect Of which was to weaken the
nrices of silver. 1t is well known
nat we are in the midst Of most
active mining season. Undoubted-
ly the
PRODUCTION OF SILVER
has been stimulated by the passage
OF the new silver law, but 1t must
be remembered that We are APP
preaching the period OF winter
months when money Is not
30 active, and, moreover, that
The present activity in work.
ing the mines has naturally re-
,uited in lmore rapidly exhausting
these Iodes- So far as my informa-
to Ell tends, there has been no new
silver bronze discovered; and, aside
from the discoveries Of valuable sill
yer lead properties In Australia, |
am not aware OF any large deposits
OF silver discovered within the last
year or two, certainly none recent