Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-10-05
MR.. CARllSlE'S POLICY
Fully Stated in Regard to the Purchase of
Silver.
He Believes That the Government
In Buying Other Commodities.


In Buying Other Commodities.
The silver purchase policy of Secretary
Carlisle was set forth in letter which he
sent yesterday addressed to the Speaker of
the House and which is as follows:
nave the honor to acknowledge the re-
cei,t OF the following resolution passed by
the Louise Of Representatives on September
e. 1sss:
Resolved. That the Secretary Of the
Treasury be requested to inform the House
why silver bullion was not purchased in the
months Of July and August. 1883. TO the full
amount provided in the act of July A. 1880. -
/ respectfully submit the following reply:
On August 10, 1880, the date the act of July
Il. 1850 went into effect, the equivalent of
the London price for silver 1000 fine in
United States money was S.l24. The
amount Of silver offered to the department
on this date was $4,000 ounces at prices
ranging from Glib to s1-14 per ounce fine.
of this amount $4,000 ounces were accepted
at N-B
On the 18th of August the London price
was N-l42. the New York price 81 IA IS. The
amount offered the government was 70i 40
fne ounces at prices ranging from S.l4 to
Sllo25. The government purchased AZ 77O
ounces at prices ranging from 81 IA to lll9o
On August Is the New York price was
N1S TO N-19 "a The amount offered the
aepar tment was $4,000 fine ounces at from
sLlo 10 I'D per ounce. OF this amount
S4ouo ounces were purchased at prices
ranging from Sl.16 to Ills "a
On the 10Th of August the price ranged in
New York from $40 IA to N.2O "a, while
the London price was NlSO The amount
offered on this date was ,364 900 ounces, of
winch there were accepted $4,000 ounces at
prices ranging from 81 1916 to S1-2o IA.
On the I'D the London rate was 81 1876 and
the New York price N.19. The amount Of
Tered was 1.520. 900 ounces, of which rs, 0o0
ounces were purchased at from sl.193 to
N-l95.
On August 25 the London price was 81 1S2
and the New York price s1.1s75. The amount
offered the department aggregated 1.02o.Ooo
ounces. of which IL purchased $4,000 ounces
at from s1.1e50 to S1.19 "a.
On August q the London rate was $1.1767,
the New York price S1lS 81 to N.19 Ia.
The department was offered 900 ounces,
Of which II purchased $1,000 ounces at from
$1-19 to S1.19 IA
The London price on the 18th of August
was A-1s2, the New York price N.l9 Is to
N1s So The department was offered
amounts agg-egating l.g53.OOO ounces. of
to S1.1s "a
The prices quoted in New York on Septem-
Der 5. 1890. were over a half cent less than
the London rate. The offers made the de-
partment ranged from N.172 to s1.l9 IL
Two small lots were purchased at from
H-172 to N-17 3-s.
Inc MARKET Price.
The practice of accepting the lowest price
as fixed by the bidders. which was almost
without exception in excess of the prices
quoted by the daily press. continued until
June II, 1888, when the system of making
counter bids in cases where the prices
asked by bidders were regarded as more
than the market price was inaugurated
The department completed the purchase
OF 10000 ounces for the month of June on
the list day of thatsmonth. and announced
tnat no further purchases would be made
until July After this announcement 1t ap-
pears that dealers in silver bullion in New
York commenced to sell very freely In Lon
don for future delivery.
AS is well known. on June Is the legisla-
tive councils of India enacted a 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 d:sorganized the
price in London declining from 81 pence to
90 l-2 pence and in New York from $0.S4 to
SOC per ounce.
On the LIST of July the price commenced
TO advance on speculative buying on Ameri-
can account until the 5th the price in Lon
don was equivalent to $0.75Si while certifi-
Gates for silver deposited with the Mercan-
tile Trust Company of New York were
quoted at 075 per ounce.
Offers aggregating $4,000 ounces at prices
ranging from sO.7545 to so7S were made the
department on this day. but owing to the
unsettled condition of the market and the
belief that the price had been bid up for
speculative purposes in anticipation of the
resumption of purchases by the department
II was difficult to fix price. and all offers
were declined and no counter bids were
made
On July the offers of silver aggregated
1.l7S.O0O ounces at prices ranging from 50 Y
to S.76. The equivalent of the London
price was s.T4iS. The quotation for bull
hon certificates In New York was S72 3-s
An offer of 10000 ounces at " cents was
accepted. and the same rate rendered for
the remaining 1.07S.0uo. the offer of the de-
partment being accepted for 4ss.O00 ounces
On August %. 1885, the London rate was
equivalent to D.7S3S per ounce fine, and the
New York rate as quoted ranged from
s0-76 IA to O76 L. The offers this day ag-
gregated 636UOC ounces, at from $0.16 to
S-76 3i per ounce. all of which were de-
clined. and s0.75 IA rendered. which rate
was accepted by bidders for $4,000 ounces
IL Is difficult to fix the market price of sill
yer. especially as the prices vary constant
ly from day to day. and in fact. almost
hourly. and when the sellers dealers
themselves differ so widely in the rates al
which they offer silver to the government
In view of these facts ii seems eminently
proper that as the government of the
United States Is the largest purchaser OF
silver in the world the Secretary of the
Treasury. after an examination of the Of
fers and quotations of each day. should de-
termine what. in his Judgment, is a fair
market price. especially as the act of July
II, AcSV expressly prONlucS Tor the purchase
Of '4.0OOOco ounces, or so much thereof as
may be offered in each month at the mar
ket price thereof
The Government Has Rights.
II is e.ident that there are but two courses
open to the Secretary of the Treasury I'M
der this statute. He must purchase 4.5OO. OOd
ounces of silver each month at whatever
price may be asked by the dealers. no mat
ter how unreasonable or extortionate they
may be. or he must employ 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 ii
is simply because the dealers are not will
ing TO accept what was considered a fair
>Inarket price that 4.5O0.0G0 ounces were not
purchased during the months of July and
August
There is valid reason why the govern
ment should pay for silver bullion higher
prices than are paid by individuals, or why
one refiner or dealer should receive price
for his silver greater than that pail TO
another on the same day and in the same