The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1893-10-05
CARLISLE EXPLAINS.
Why He Did Not Purchase Silver
Bullion in July and August.
OWNERS REFUSED A FAIR PRICE.

No valid Reason why the Government
Should Pay Higher Prices Than Are
Paid by IndividuaIs-The Difficulty of
Fixing the Market Price of silver.
WASHINGTON, Oct. BIN response to a
resolution of the house of representatives
calling upon Secretary Carlisle for infor-
nation AS to why silver bullion was not
purchased in July and August last the
tecretaty replies in substance as follows.
The secretary quotes at length the fluc-
tuating prices of silver on different days
In the months of July and August. and
proceeds:
The prices quoted in New York on
Sept. 5, 1880, were over a half cont less
than the London rate The offers made
the department ranged from s1.l72 to
e1l0A Two small lots were purchased
at from 81, 1T2 to si.179s.
The practice of accepting the lowest
price as fixed by the bidders, and which
were almost without exception In excess
OF the prices quoted by the daily press,
continued until June 12 1893, when the
system of making counter bids, in cases
where the prices asked by bidders were
regarded as more than the marked price,
was inaugurated.
"The department completed the pur-
chase of 4, ,500,0 600 ounces for the month of
June on tho 2lst of that month, and an
nounced that no further purchases would
be made until July. After this announce
ment it appears that dealers in silver bull
lion in New York commenced to sell very
freely In London for future delivery.
"As is well known, on June 26 the legis
lative councils of India enacted bill clos
ing their mints against the free coinage of
silver Upon this action becoming known
there was great pressure to sell silver, and
the market became completely disorgan-
lied, the price in London declining from
81 pence to 500 pence, and in New York
from 81 cents to 62 cents per ounce.
1T is difficult to fix the market price of
silver, especially as the prices vary con-
stantly from day to day, and in fact al
most hourly, and when the sellers or
dealers themselves differ so widely in the
rates at which they offer silver to the gov
ernment.
''In view Of these facts, IL seems emf.
nently proper that, ms the government of
the United States Is tho largest purchaser
Of silver in the world, the secretary of the
treasury, after an examination OF the
offers and quotations Of each day, should
determine what in his Judgment is a
fair market price, especially as the ACT
of July II, 1890, expressly provides for the
purchase of 100000 ounces, or so much
thereof as may be offered in each month at
the market price thereof
1T is evident that there are but two cour-.
ses open to the secretary of the treasury
under this statute. He must purchase
4,500,0o0 ounces of silver each month at
whatever price may be asked by the
dealers, no matter how unreasonable or
pXtOrtinunip flaV he he net
ploy such means as are at his command to
ascertain what the actual market price is,
and make, or offer to make, the purchase
at that rate; and it is simply because the
dealers were not willing to accept what
was considered fair market price that
i,5OOO,OOO ounces were not purchased dur
ing the months of July and August.
"Thore is no valid reason why the gov
ernment should pay for silver bullion
higher prices than are paid by individuals,
or why one refner or dealer should re-
ceiye price for his silver greater than
u ~ 1n sne es srae v9 x aa ahd
Tor in silver the governing market OF the
world must be consulted. As the worlds
supply of and demand for silver meet in
London it is necessary to take the prevail
ing price there into consideration.
''What ia the market price Of given ar
ticle at the time of the negotiations be-
tween the buyer and seller is always a
question of more or less difference of opin-
ion between them, and it is question
which neither Of them alone can settle 1t
can be ad justcd only by mutual agreement,
and the effort of the government since
June l2 last has been simply to ascertain
the fair market price of silver bullion on
each day 1t was offered for sale, and when
ascertained to make its purchases at that
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