The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1890-10-29
THE DECLINE OF SILVER.
Mr.. Leech, the Director Of the Mint,
Makes Labored Ex-
PLANTATION.
Carters Defeat Of the Free Coin
age Bill Omitted by the
Apoloaiet.
The Document Evidsntly Intendled to Dis
tract Attention From the Murder
Of That Measure.

L
| WAsHnoroN, Oct. 2e.-Director Leech, oi
the mint. makes lengthy statement in re
gard to the treasury purchases Of silve,
bullion, aud cause OF the recent decline il
tho market prioe Of silver. He says: TIKI
treasury method Of purchasing silver hal
bsen criticised in these particulars: First
that the large purchas . by the department
do not include all the silver bought; second
that the London price is used as basis oi
government purchase; third, that bids tc
the government are on the decimal system
and tend to favoritism. In regard to the
first criticism he says the government pur-
chases silver as it does bonds, and indeed
any article required in considerable quantl-
tiea, by public competition, she lowest ofFers
being always accepted, provided they dc
not exceed the highest market price. Fol
the benefit Of small producers, however, 50
perintendents OF mints are authorized "a
purchase small lots at the price Axed from
day to day by tho director, corresponding
to the market price. These purchases aver
age, possibly, half Z million ounces 4
month. As, to the second, it is moi
true that the London price is used
az basis Of silver purchases under
the new law. During the last administra.
tion not only was the London price the
only price used but the department. did moi
pay the equivalent Of the London price,
but 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 gov
erned in purchases by the New 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 accept
ances to London prices. In the third place,
IN regard to government quotations being
on the decimal basis, one of the critics
says: The suspicious and significant fact
IN regard to government quotations ID they
are on decimal basis, which is great ad-
vantage to those who may have advanced
information in regard to the price the gov
eminent is willing to pay on given date.
Ths governments. .haa oscalaof its own. and
bidders use whatever senle suits them best. =
II one house happens to bid decimal
lower than another, il the government to
decline the lower bid because Of the deci-
NAL? The idea Of any seller having 'ad-
vance information" as to tho price the gov
ernment will pay is ridiculous and impossi-
pie. It there can be any fairer method de-
vlsed Tor purchasing silver than by open
competition 1t would be difficult to conceive
OF such method. It is the method which
has been pursued by the treasury under all
administrations since '78.
In regard to the recent decline in the
price OF silver, the causes which operated to
Rloonoe u: M. Leech says, are apparent.
In the first place, the visible stock Of silver
in New York has not sensibly decreased,
notwithstanding the purchase by the GOV.
ernment Of II, 276, ,478 ounces Of silver since
August 18th. This large and undiminished
stock is standing menace to the price Of
silver. The large western refneries, in
hope of realizing large profit, held silver for
a% On pe9I s9 the Of the b,
tifcates. and the result has been
an accumulation Of visible stock
OF such magnitude as to
depreciate the price. It is very unfortunate
that this stock has been allowed to accumu-
late, and especially that the certificates
tsed BY the national treasury and listed on
the stock exchange. to be dealt in on mar
gins. 1t has made foot ball OF silver, to
be kicked around at the pleasure Of bulls
and bears. I'm my Judgment there should
be law enacted aRains dealing in metals |
VsA AAA04 &A00s u0 USUAL OeIUuu0 IOE 8lIV0f /
for export has almost entirely ceased. Not
only is this the case but large quantities Of |
foreign silver have been shipped to the
United States. The imports Of silver from
May TO Sept 30 Of the. present year, ex-
oesded tho exports BY $4,928176, while for
the corresponding period last year the ex-
This accounts for tho fact that while the |
government purchased an amount equal to |
the current production Of our mines |
the stock was not diminished. Dur
ing the semo period the shipments of |
silver to India have not sensibly decreased,
although 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,
10 regard to the natural movement Of silver
g China. Japan and the straits, from San.
! EEanc1soo. Not one ounce Of silver bullion
1es been shipped to tho Orient from San
100000 worth was shipped during the
same period last year. These facts, Of
themselves, are sufficient to account for tho
ae0nne which has taken place.
Inen again. all scrts Of roorbaoks have
9een seleeraphsd from London to this
vas 70 weaken the prices Of silver, Il is
veil known that We are in the midst OF q
most active mining season. Undoubtedly
ne production OF silver has BEEN stimulated
y t0o peeoage OF the new silver Law. But
must be remembered that we are al.
'roachlnR period of the winter months
vhen mining 10 not 90 active, and. more
'ver. that the present activity in working
mines naturally resulted in more rapidly
these lodes. So far as my infor-
nation extends. there have been no new
liver bonanxas discovered and aside from
he discoveries of valuable silver-leed prop-
rites in Australia, am not aware Of any
arge deposits Of silver discovered within
he past year or two, certainly none re-
emily. So that il 10 fair to assume that
he silver product for any considorahIe
eriod, unless there are new dieooyeriea (.
nil mot b materially increased by m
resent active working Of mines. No ssoai-
10 peEson Likes TO make prophec3ss, e.
eoially ON subject which has proved 60 !
lusive ~ silver, bnt certainly one Who
- made close study Of ths silver Ques- !
ion ought to dnd in the facts mentioned I
nlRsient cause for tho recent dealins With
at seeking for imaginary poasons and !
Astiqg aluss upoa the treasury ulsthod of I
Guna EeuaA Near tAe 6oena.
Nxw O1I1Axs. OF. 8.-Ths preliminary
IN ths Hannss1sy aasassiuatiou /
~ vas postpoosd indefinitely On motion !
the dist5iet attornsy. Ths peisnneEs