Walker Lake bulletin. (Hawthorne, Nev.) 1883-1926, 1892-09-07
Conspiracy Against Silver.

nt itcbhl dtClIbC ia SlINt1 has DCCI
noted in all the financial statements.
Within less than two weeks the price
of silver has sunk to 3778 pence per
ounce in London and 721s cents IN
New York, the lowest price touched
since history began. This price is
misfortune to the United States. At
such rate the larger part of thu mines
Of this country must shut down, and
the silver in the possession of the
Uaited States Government, the largest
holder OF silver in the world, repre-
senls loss on the buying price of
some. $40,000000.
The cause oil the decline has been
MYSTERY. There has been nothing in
the situation Ia justify it. There has
been no increase in the production of
silver. There has been no large stock
dumped on the market from any
quarter. On the contrary, the amount
of the silver surplus is smaller to-day
than In several years. The production
above the demands for use in the arts
has not been equal to the purchases of
the United States Treasury. Yet the
decline has been the most evident fact
Of the financial market.
Tue weli-known financial journal,
United States Investor, at hand oilers
plausible explanation of the phenom-
enon. The daily quotations GA the
ether side 1t says, IN referring 10 The
London market, "are the result of an
agreement between a clique OF bankers
who are shert OF India and ChIna ex-
change Furthermore, it explains:
This London Clique OF foreign bank
ers are leagued together for offensive
and defensive purposes. They have
their branch banks aud spohdsnts
in every city of note in the world.
They are the principal, and common
~ the only, dealers in South and Cen
trail American exchange and all COM
mercial bills sold 10y exporters In
Oriental and all other countries en-
silver basis Such bills are generally
sold on 80, 60, 30 days four months'
and six moHths' time, and are drawn
On English and European importers,
as well as Tia use of the United States,
who, when they receive goods from
Asiatic and other silver basis coun-
tries, receive drafts drawn upon them
accompanied by bills of ladng ob.
tanned when the shipments were made.
These drafts come through the bank
ers alluded to, who, as u rule, bought
them outright from the silver basis
country shipper. The banker borrows
the necessary silver to pay for such
drafts to this shipper, and besides all
the profit he can squeeze out of the
business in se-called Legitimate way,
which in itself is generally most
scandalous matter. According to The
reports of our Consular Department,
he-the banker-at once becomes q
bear an silver and does all he can to
break down its price on the London
exchange, because every cent decline
in the price of silver between the time
he borrowed the silver to pay the
maker of the draft, and the maturity
of the draft, is net profit to this banker.
When it is remembered that this for
eign exchange business foots up in the
hundreds upon hundreds of millions,
the profit of this clique of bankers
may be guessed at by netting the differ
ence in the present price of silver and
what it was quoted at in the fall Of
1890. Nor is this the whole story, for
this clique have their reasons for
wishing 10 get rid of all future posi-
biliiy of European nations and this
country ever again using silver at its
old ratio This point, however, for an
other occasion, The clique. having
determined TO bear the silver quota
tons, do not find the slightest difficulty,
as they are the sale bidders for the last
quantity offered for sale.
The power of the bankers clique is
undoubted, and IA there is nothing in
nature or the course OF events to &C
count for the position of silver in the
market the explanation is not improb-
able.
The ceming meastary conference is
doubtless another reason tor keeping
the price of silver at low point The
desperate goldhugs are convinced that
they must discredit the white metal
still further if the powers are to be
kept trem restoring it to its true place
in the finances OF the wsrld.