Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-07-15
PURCHASING SILVER.
The Government Will Have Something to
Say About the Price.
Silver Men Will Try to Force the Purchase Of
the Full Monthly Amount, but Secrs-
tsry Carlisle Will Be Firm.

The Treasury Department yesterday &C.
cepted an offer Of 100, 600 ounces Of silver at
72]sc There were several other offers, but
the prices ranged from Il to ~ cents an ounce
higher than this, and the department
was unwilling to accept them, consid-
ering them to be higher than the market price.
The total amount of silver purchased by the
government thus far this month is S6s, 900
ounces. This is not one-fourth Of the amount
that has heretofore been purchased, 800, 600
ounces-and as a rule by this time in the month
almost three quarters Of the whole amount has
been bought.
The refusal of the department to accept
offers Of silver except at such prices rs they
deem the proper market price has brought
forth q storm of indignation from the
silver owners, who now claim that they can
more proftably sell their products else
where. These complainants are not. however,
likely to have much weight with the treasury
officials. as they have taken the stand that the
law only compels them to purchase at the
market price, and when the offers are above
this they are not justified In buying.
PROBABLE PURCHASES THIS MONTH.
It does not seem probable. therefore, that
the usual $500. 900 ounces Of silver will be
bought this month, although the treasury
officials are of different opinion. 1t is GER
tain that the entire amount will not be obtained
the end Of the month are more in accord with
what the department believes to be the true
market figures. The officials think that the
price Of silver will finally settle within a short
time at between seventy three and seventy Ave,
and that then the purchases will proceed without
diff Guilty. If silver should settle at such a
price the proper ratio between that metal and
gold would be about to 2s. instead Of the
declared parity, which is l to l5.96. or, as
usually stated, l to 16. Silver dollars coined In
accordance with this ratio would make the size
Of the coin almost twice as large rs it II al
present
EFFORT OF THE SILVER MEN.
There can scarcely be a doubt that during
the remainder Of the month there will be an ef-
fort on the part Of the silver men to force the
government to pay them their own price
for silver under the impression that
the government is required to buv at
least 4. SOC. 900 ounces Of the white metal This
Misunderstanding wus first pointed out in
The STAR Last week, when 1t was shown that in
the Sherman law there is qualifying clause
which states that 4,5o0, 900 ounces, "or 90
much thereof as may be offered at the
market price" shall be purchased each month.
1t has been usual heretofore to base
the calculations as to what is the
market price upon the price in Lon
don, but as India has closed her mint to silver
it is question as TO whether the London price
should be taken as a standard. The United
States consequently is placed in rather awk-
ward position.
The FIXING Of the true market price therefore
becomes an embarrassing point. and the question
that is perplexing is whether the sellers
will be allowed to fix their own price
or whether the government which buys
it shall have something to say about the
matter. The government takes the stand that
it Is well qualified to say what the market prics
10, while the sellers believe that the Treasury
Department should buy at Whatever the price
is quoted on change in New York. The CUES
tion stands in this form and until one or the
other yields there are not likely to be any very
large purchases Of the white metal.
Mr. sHERMAN's ACTION WHEN SECRETARY.
Even should the government not purchase
the full amount Of 4,5o0. 900 ounces it would
not be the first time in the history Of the gov
erumeut that this was done. When the
Bland act was passed 1t required tina,
the Secretary Of the Treasury should pur.
chase each month not less than 2OO0. 900 OF
more than 1000. 900 ounces OF silver. In that
law there WAS not even the qualifying clause
that the Secretary should take $50 much thereof
as may be offered at the market price" The Law
was mandatory, and the ma aximum and minimum
of the amount to be bought were fixed. Not
withstanding this, when Mr.. Sherman was Sec
retary Of the Treasury he unquslifedly dis
obeyed the law. The official statements show
that during the year of 1879 the government,
only purchased little over 2l.000. .00d
ounces and in 1881 only little over %. 900. 900
law was bought at least "a ,000, 900 ounces would
have been required.