The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1890-10-29
THEIR REASONS FOR IT
Republican 0fncials Trying 10 Explain
The Decline In The Price Of SilVef.
THEY DON'T BLAME WINDOW
But Assign Every Other Imagin-
able Cause-Dlrector OF the
Mint Leech's Campaign
Manifesto.

OF the mint makes lengthy statement In
regard 10 the treasury purchases OF silver
bullion and the cause Of the recent
decline in the market price Of silver. He
says; "The treasury's method OF pur-
chasing silver has been criticized in these
particulars: first-That the large pur-
chases by the department do not include
all the silver bought. Second-That the
London price is used as basis Of govern
ment purchase. Third-that the bids to
the government are on the decimal sys-
TEN and tend 10 favoritism.
"ln regard TO the first criticism the gov
ernment purchases silver as IL does bonds
auc indeed any article required in consid-
erable quantities, by public competition
the lowest offers being always accepted,
provided they do not exceed the highest
market price. For the benefit of small
producers, however, the superintendents
of the mint are authorized 10 purchase
small lots at price fixed from day to
day by the director, corresponding TO the
market price. These purchases average
possibly half million ounces n month.
ut is not true that the London price is
taken as basis Of our silver purchases
under the new law. The present admin
istration has been governed in its pur-
chases by the New York price.
"ln regard TO the government quota
tons being on a decimal basis, one OF
our critics says: The suspicious and sig
niflcant fact in regard 20 the govern
ments quotations is that they are on the
decimal basis, which is an advantage TO
these who have advanced information in
regard TO the price the government is will
ing TO pay on given date The govern
ment has no scale of its own and the bid
ders use whatever scale suits them best.
The idea of any seller having advance
information as TO the price the govern
ment will pay is ridiculous and impos-
sible. II there can be any fairer method
devised for purchasing silver than by pet
nelic competition, II would be difficult TO
conceive Of such method.
I'm regard TO the recent decline In the
price of silver. the causes which operated
10 produce il are apparent. In the first
place, the visible stock OF silver in
New York has not sensibly decreased,
Notwithstanding the purchase by the gov
erument Of 12,276,47s ounces of silver
since August 13. This large and undi-
minished stock is a standing menace TO
the price Of silver. The dealers have
made football Of silver, TO be kicked
around at the pleasure of the bulls and
bears.
"In my judgment there should
be law enacted against deal
ing in metals on margins. The
usual demand for silver for export
has almost entirely ceased. Not only is
this the case, but large quantities of for
eign silver have been shipped TO the
United States. The imports Of silver
from May To September 30 Of the pres
en-, year exceeded the exports by Si,923,-
l75, while the corresponding period of
last year the exports exceeded the inn
ports 10y S5,9is, $3.50. This accounts for the
fact that while the government purchased
an amount equal TO the current produc-
tion Of our mines, the stock has not di-
minished. During the same period the
shipments OF silver 10 India have not
sensibly decreased, although latterly
they have been below the usual amount.
Hence the supply for India has been OBJ
tained In Europe or at least elsewhere
than in the United States. So, too, in re-
gard 10 the natural movement Of silver TO
China, Japan and the Straits from San
Francisco. Not one ounce of silver bull
lion has been shipped to the Orient from
San Francisco since May Of this year.
while over 100000 worth was shipped
during the same period last year. These
effects themselves are sufficient to &C.
count for the decline which has taken
place.
"Then again, all sorts of roorbacks
have been telegraphed from London 10
this country, the purpose and effect OF
which was 10 weaken the prices
of silver. II is well known we
are in the midstof most active mining
season. But it must be remembered we
are approaching the period Of the winter
months, when mining is not so active
and, moreover, the present activity in the
working mines will naturally result in
more rapidly exhausting these lodes
So far as my information ex
tends, there has been no new
silver bonanzas discovered, and aside
from the discoveries Of valuable silver
lead properties In Australia / am moi
aware OF any deposits OF silver discovered
within the last year or two, certainly none
recently. So II is fair 10 assume the sill
yer produced for any considerable period
unless there are new discoveries, will no
| no materially increased nv tho nrcsenI