Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1890-10-29
REPLY TO A CRITIC.
Mint Director leech on the Sill
yer, Market.
CRITICISMS OF A CONGRESSMAN.

OF the Metai ana HOW IL Came About
Some Mistakes of the Spectators
WASHINGTON CITY, Oct. o9-Edward
o. Leech. director of the mint, has made
public the following statement:
My attention has been called to certain
stat ments attributed 10 Mr.. Roswell p Flow
er in an interview on silver which appeared in
an interview In the Sunday edition of The
New York World Mr.. Flower ,ritieises the
treasury method of purchasing silver in these
particulars:
First, that the large purchases by the de.
partment do not include all the silver bought
second, that the London price Is used as a
basis of government purchases: third. that the
bids TO the government are on a decimal sys-
tenn and tend TO favortism."
The Criticisms Replied to.
Mr.. Leech says as to the first criticism
that the only silver purchased by the gov
evernment not included in the large pur-
chases are those made for the benefit Of
the small producer. and from him direct,
by superintendent OF the minis, at a
price fixed daily by the director OF the
mint corresponding with the market price
OF silver. They average possibly SOC. 900
ounces per month. Regarding the sec.
ond complaint Mr.. Leech says it is untrue
without the least foundation in fact.
the New York price being taken always
as the basis: but the treasury will not re-
fuse, q bid because it is lower than tie
New York rate This was not the case
under the last administration, which
always used the London price As the basis
and tried TO get the silver at that
price minus cost of shipment and insur-
etu kot ell l.
in New York than in London.
As to the Decimal Basis.
Director Leech then proceeds: In gard to
the government quotations being on,a dec
imal basis, Mr.. Flower is made TO say: The
suspicious and significant fact in regard TO
the governments purchases, of late is that
houses offering large lots have been underbii
by the hundredth part of a cent. The govern.
ments quotations are on a decimal basis,
which is a great advantage to those who may
have advanced information in regard to the
pr &c the government is willing TO pay on a
given date" In regard TO this il NAV be said
that the government has no scale of its own
and biiders use whatever scale suits them
best Any person who has 81 yer may offer il
at any p'ice he sees fit If one house happens
10 bid decimal lower than the other is the
government TO decline the lower bi because
OF the decimai The idea of any seller having
advance Information" as TO tae price the
government will pay is ridiculous and impos-
sible. The offers for the sale of silver are all
made by telegraph within a few minutes OF |
O'Clock and tn treasury has no Idea OF what
1t will pay until all the offers are cp.ned. its
acceptsnces being governed entire by the
offers. These offers and acceptances are en-
tered in book, and the records are open for
pubic inspection The whole business does
not take fifteen minutes.
Recent Decline in Price.
In regard To the recent decline in the price
II silver, the causes which have operated to
produce II are so apparent that they need only
Re stated that their full force may be meas
ured- In the first pla the visible stock Of
silver in New York has not sensibly decreased
notwithstanding the purchase By the govern
Iaent OF l2,?15,4,s ounces of silver sine, Aug
Is. This large and undiminished stock
amounting to-day 10 7,2l6,se6 ounces 1.-THE
amount covered by certificates, is a standing
menace 10 the price Of silver. and has OF itself
been sufficient TO shake public confidence in
silver.
Corner in the Metal.
IL the large western refneries had allowed
their pro net TO take its usual course that is
offered IL for sale TO the government at cur
rent Price and sold the remainder abroad
tl1s stock would not have a cumulated. but
IL the hopes Of realizing a larger proit they
held their silver for months prior To the pas-
sage II the new law, or deposited it in New
ork for certih. ates, and the result has teen
the accumulation OF a visible stock Of such
m aptitude as to deprec ate the price. 1t IL
very unfortunate that this stock Was allowed
To accumulate, and espe tally that certificates
were allowed to be issued on il and guaran-
ted by a Rational bank and listed on the
ST ock Exchange TO be dealt in on margins A.
other stocks.
Result of the Operst ion.
II has made a football of silver, to be kicked
or ralao .Nfh hill. \ =
my Judgment there should be a law enacted
ag inst dealing in money metals on margins.
Also, the usual demand for silver 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. This
Is shown conclusively by the fact that the i'm
ports OF silver into the United States from
May TO Sept. 81 OF the present year have ex-
ceeied the exports by SAVE, l55, whil- for the
correspondents period Of last year the exports
OF silver exceeSe the imports by $685. o-a
difference a 81 81, les.
Reduction of Sh ipments West
Dirins the same period the shipments of
silver To India have not sensibly decreased, al
though lstterly they have been below the usual
arno unit. Hence the supply for India has been
oots ined in Europe, or al least elsewhere than
the United states. So, 100. in regard to the
natural moveme { OF silver to China, Japan
and the straits from San Francisco. Not one
Orien from San Francisco since May l OF this
year, while over 81, 0o,0OO worth was shipped
duril g the same period OF last year These
fact OF themselves sufficient to account
for the decline which has taken place.
some Other Influences.
Tie director then refers to .'roor back 81
teleeraphed from London to the effect
that the gold standard was to be adopted
oy some nations, and paper money by In
dia, and other similar reports ~ addi-
tioDtl reasons for the decline in silver.
He says also that We are in the midst of
the most active silver mining season, and
that many mines are being worked which
have bsen shut down. He gives the sill
yer en- some hope in stating that no new
finds are reported, and that unless tn il
should occur the stock of silver can not
be materially increased. Silver is not
ike cereals or manufactures When a
vein Is worked out another one can not be
produ ced in the same place.
A Defence of the Treasury.
Conc fuding. the direo tor says: No sensible
person likes TO make prophesies especially on
q subject which has proved so Elusive az sil
yer, but certainly one who has made a { lose
study Of the liver question" referring TO Mr.
tioweIl Ought to md in the facts mentioned
sufncent causes for the re emit decline without
seeking immaginary rea ons and casting slurs
on the treasury method OF purchases The
new silver law has been executed by the
treasury department In the utmost good fai tn
and in he same friendly spirit towards silver
which characterize ID tho passage of the act
and the manner OF its execution has not had
the mni remote bearing upon the recent de-
cline In price.
Gladstone has written a letter to Mad
anne Patti complimenting her on her per-
formRn ces in song.
The Granger Was in Lack
BCRL NGTog, Ia Oct 2g-H Il MuIIen