The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-04-07
The BIG DROP IN SILVER.
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Coincidence Between the Defeat of
Free Coinage and the Fall
in Prices.
Much to Sustain the Conclusion
That They Are Cause
and Effect.
Final Collapse of Speculative Factors That
Have Influenced the Market far
Final Collapse of Speculative Factors That
Have Influenced the Market for
Two Years Past.

The co incidence between the virtual de-
feat Of free coinage in congress and the
fall in the prices for silver TO the lowest
figures ever recorded in modern times is Of
the most striking character. says Brad
streets of April 2. In fact. the conclusion
that the two circumstances bear the rela-
tion of cause and effect has much to Bus-
tainit. While the speculative spirit in re-
gard to silver, which was aroused by the
agitation for favorable legislation in this
country and which reached it's climax at
the passage BY congress of the silver pur-
chase nct OF 1890, has evaporated. its resid-
uary effects were apparent even throughout
eAs steady but marked depression which
has ensued. In spite Of increasing produc-
tion and decreasing demands for the metal,
it has been apparent that a measurable
support was still exercised by the anticipa-
tions that the monetary policy Of this
country would afford q basis for at least
a temporary improvement in the posi-
ton OF silver. The question of the demand
has to a certain extent been governed with
reference to such q contingency, and there
Ia no doubt that. to at least some sxtent.
supplies and stocks, which otherwise wonld
have been pressed upon the market, have
been held back. The waning chances Of
such favorable action as was contemplated
in the Bland bill had, it would scem. been
correctly calculated even before the check
which was last week administered n tho
hopes Of this supporters of free coinage.
While the bill was under discussion tha
market price OF bar silver continued to do
cline, 2 y needed only the actual display
of the fact that the silver men were With
out a majority. in the house of represen-
~tatives to accelerate the tendency that Was
no plainly ut work. The decline Of Tho nrica
of bar silver which has been noted this
week to 39d. per ounce in London and 95lYcs
In New York, may DO regarded as the tinal
COLLAPSE of the speculative factors which
for oyer two years. past havo been influence
ing the silver market.
There is certainly room for the supposi-
tion that the renctionHry results OF the re-
cent developments have been, al il often
the case, disproportionate to their actual
resulted in any severe liquidation of silver
holdings. The stock of hars held at New
York against outstanding bullion deposit
certificates is by far the largest available
accumulation now in sight in the world.
Tbs past fortnight, however, has seen no
6asnsibls diminntlon of this amount, which
lie now 3,250.0 GOO ounces, against 3,6OO.OO D
ounces 4 month ago, nor have holders
shown amy extreme disposition TO unload.
~ was natural that such 4 violent fall from
SO. or zoe. por ounce to BOD. and B516c. in
plondon and New York respectively should
demoralizs the eastern buying demand ut
me former market. Momentarily, indeed,
tie decline wax followed BY hesitation and
absenoe Of buying support, II WINS, how
pyor, noted that in The latter days OF the
week = renewed buying demand appeared.
which, though Of limited dimensions, wac
eI1acisnt 70 rally commercial prices frso.