Walker Lake bulletin. (Hawthorne, Nev.) 1883-1926, 1891-04-29
OFFICIAL pAptR or ssmtRAlDA eessTY.
stagnatIon In the silver Market

suonpef leeIlhR anu nlghcT prices, u y
noticeable that the market both for
bnrs and for the more speculative deal
ing in bullion certificates has been
weak and unsteady for some time back.
The amount of bullion on hand at
New York against silver certihcat Is
outstanding hns during the last TWO
months been gradually lhoagh stead y
decreasing. On February it amount
ed to no less than G,5000 900 ounces.
This week the total Is in the neigbor-
hood OF 5000 600 ounces The abssrp-
ton of silver by the government pur-
chases is steady, and though exports #
bar silver, compared with tho move
ment of former years, are very limited
In amount, there is nevertheless n CON
siderable outflow Of silver bullion TO
Europe, which has aided materially in
reducing the visible snIqiy: for in
stance, this week some 300 600 ounces
in bars were shipped, and since Jan
uary tho silver exports have aggre-
gated n respectable amount. Notwiih-
standing these facts the price for bars
has declined from 1049so. at the open
ing of the year to 9715o. per ounce,
and speculative dealings in bullion
certificates are almost ut a standstill.
Taking the market as whole, it
would seem that tho circumstances
should insure a higher range OF prices.
As fact the market has been entirely
lifeless.
In searching for the causes OF these
manifestations due weight must, OF
course, be gwen to the cessation of the
silver agitation and the abandonment,
for the time being, of any expectation
OF either free coinage law or an in
crease of the government purchase
rhis fact practically accounts for the
disappearance of speculation in bar
SILVER. But the main feature OF the
situation in the silver market Is that
the course of prices is again governed
by commercial considerations, pure
and simple. In other words, prices
are once more dependent on the Lon
don quotations for bar silver and on
the condition of India exchanges and
the demand for silver at the East.
The existing circumstances furnish
a very adequate explanation of curreDi
manifestations At the moment and
for some time past, the demand for
silver tor export to the East has been
singularly limited in volume. The ac-
tive season in business throughout
British India is now drawing to a close.
Interest rates in that quarter of the
British empire have rarely been lower
than at present. In the last few weeks
money at Bombay has commanded
only per cent, against discount rate
Of 8 to 10 per cent, at the correspond
ing period year ago. This naturally
weakens India exchange, and decreases
the export movement of silver to eastern
countries. In fact, the bulk of the
silver that has been shipped from Eu-
rope TO the East during the last few
months has been in response TO
limited local demand from China and
Japan. India exchange has, of course,
been affected by these conditions, and
with the approach of the dead season
In India there seems to be very little
prospect of any immediate revival of
the demand.
A recent accident, which is entitled
to some consideration, is the inaugara-
rion In London of speculative transac-
tons in silver bullioa. The organiza-
ton which has undertaken TO supply
facilities of this kind is the Produce
Clearing House, an institution of
commercial character. The trading,
which is to be conducted in certificates
representing the deposit OF silver bull
lion, is, however, tor future delivery,
and up to this time it does net seem
That any considerable volume or trans
actions has been developed, la fact il
is intimated that the movement does
not meet the appreciation of the large
handlers of silver bullion, who have
heretofore made the prices of silver
bullion mainly on the basis CT actual
business. 1t might be noted, indeed,
that the same conditions existed here,
and that the firms which actually deal
in silver have considered speculative
transaction and bullion certificates as
on the Mhele an evil. Introducing a.