The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-08-29
WEAKNESS IN SILVER.
Influences That Indicated Another
Advance in the Price of
White Metal.
The Expectations of a Rise, How
ever, Failed of Mater
ialization.
Causes of Decrease in the Visible Supply
= Action of the German Minis
try of Finance.

Not 30 many weeks ago the silver market
seemed likely to be subjected to another
demonstration of advancing tendencies.
AS stated in these columns at the time, a
combination OF circumstances appeared to
be working in that direction, says Br adj
streets. The expectation of a large and
early demand for silver in eastern eoun-
tries, allegations that the governments of
several European and South American
countries. would take steps to augment their
currency BY increased employment of sill
yer, and reiterated statements In regard to
a renewal under favorable auspices Of the
agitation for free coinage in this country
all had an influence. Indeed, it will be re-
membered that silver prices were but a
short time ago the subject of q sharp ad-
vance, and that the movement was accom-
panied by a revival of speculative activity
in silver bullion certificates, carrying prices
up considerably from the low level to which
they had fallen in the early portion of the
year.
The expectations in regard to silver have,
however, failed of realization. While the
decline in the price of commercial bars has
not been excessive. there has been an ND
parent decrease of demand and q complete
cessation of speculative activity in bullion
certificates. The present price of bar silver,
40 5-l6d. III London and $3.50. per ounce
in New York, is rot a serious decline; but,
on the other hand, while the speculative
share market has for the past fortnight
shownn no small degree of activity, coupled
with advancing tendencies, it has occurred
on several days that absolutely no trading
IL, iu Hin, rt,f,,+ . r,o rno.~ll ~
New York stock exchange. A circum-
stance which renders this the more sur
prisinR ia tho steady decrease in the amount
of silver bullion stored at New York repre-
senting certificates. Az short a time ago as
Aug. l, 1891, the amount of silver bull
lion so held amounted to almost exactly
5,52o, 600 ounces. The figures for the pres
eat week snow a stock on hand of only
4, 100000 ounces, or a decrease in three
weeks of about 900, 900 ounces Current ru-
mors of the existence of a large amount OF
silver bullion outside of that represented
by the certificates find no confirmation
among those conversant with the bullion
business. In fact a limited export demand,
coupled with the regular monthly absorp-
ZION by the United States mint under the
act of 1880, accounts for this decrease in
she Visible supply. At the same time the
temporary s%hutting down of one of the
sarge snelters has naturally tended to
cheek the flow of bullion from the western
producing regions, which at any rate has
aot recently attained dimensions at all
above the normal.
ihis failure OF the silver market 70 act in
accordance with what may be termed the
siatihtlcal position is, however, accounted
Tor On other grounds. 1t is believed that
me indian demand for silver. though some
Hhtt backward IN inserting itself, will,
when it makes IT'S appearance, produce a
stimulating effect upon the market, But
as yes the silver prices have not received as
distance from that quarter, India exchanges