Huntsville gazette., 1893-07-22
THE DEP PARTMENT WINS
Wall Street Is No Longer Dictator
of Government Policy.
THE SILVER BULLION ACT.
Dealers in the Bricks Had Overlooked a
Saving Clause Which Gave the
Purchasers the Right to
Reject Smetimes. ss-s

WASHINGTON, July 21.-Matters have
advanced far enough between the treas
ury department and the bullion dealers
to warrant the assertion that the de-
partment has won. Monday afternoon
after small purchase OF silver had
been made by the department 1t re-
ceived several offers from New York
based on the actual market value OF
silver. The department refused them.
The director of the mint was in a posi-
tion to refuse them, because he knew fair
ly we'll that his determined stand
against the dealers had its effect and
that the dealers had come to the conclu-
sion that in order to sell to the depart
ment they must not expect a prlce
higher than would be paid by any other
purchaser of their commodity.
The history of this controversy be-
tween Mr.. Preston and the dealers
shows pretty we'll that the attempt to
force the government to pay more for
the article than 1t was worth was in
duced by the fact that the dealers We're
short" In other words, to use the
parlance of the street, an attempt was
made t6force the department to cover
the shorts of the dealers. AS the mat
ter stands at this writing there can be
no doubt but that the department will
be able hereafter to obtain al the bull
ion it desires at market price.
The dealers have been conducting
their operations upon the idea that the
department had to purchase 100000
ounces of silver each month no matter
what price it had to pay. Itwas pointed
out some time ago that there was a saw
ing clause in the act directing monthly
purchase of silver. The dictim of that
clause was that the amount of silver
should be purchased at the market rate.
Certain New York papers have been
for the last three or four days attack
ing Mr.. Preston because of the common
sense plan upon which he has been con-
Quoting the purchases. They have said
that Secretary Carlisle wnen he came
back to Washington would take Mr..
Preston to task and would undo all that
had been done under that gentleman's
direction. These attacks but voiced
the sentiments of the bullion dealers.
they will of course be discontinued
now that the dealers have been brought
to terms.
At any rate they will have no effect,
because, if the matter were brought to
his attention, Secretary Carlisle would
not hesitate to say that he upheld Mr.
Preston in everything that he has done.
When Mr.. Carlisle went away, it will
be remembered he gave Mr.. Preston au-
thority to use his own discretion in the
matter of purchases. He knew very
we'll what Mr.. Preston was going to do.
end he will be found to sustain hun at
every point.
This has been very pretty little war
and its outcome adds to the evidence
that Wall street is no longer a great
factor in debating the treasury depart
ment's policy. Furthermore it shows
that the department under the present
administration regards itself as perfect
ly independent of Wall street 1t will
do that which, after mature considcra-
ton, is deemed best. If Wall street
like it, well and good; if it does not like
it, it can put up such opposition as it is