Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-07-20
PURCHASING SILVER.
Not Likely for the Treasury to Sc
cure This Months Quota.
THE RIGHT TO FIX THE PRICE.
Controller EckeIs Will Aid the Dem
YER Banks to Resume.


NO CAUSE FOR ALARM.
The continued failure of western banks
causes real alarm ct the Treasury De-
partment, nor is there any apprehension that
the disasters will spread toward the east. The
causes which have led to the failures are con-
sidered to be local ones, though due In
measure to the generally unsettled condition Of
finances. and the panicky feeling among de-
positors, especially in the silver states, where
the public mind has been disturbed by
conflicting and extravagant public statements.
Controller Eokels appreciates the existing
conditions and is doing every thing he can to
alleviate them and restor . confidence. He be-
ieves that the banks throughout the United
States are really in good condition and points
to the last returns as bearing out his position.
Zone must consider" he said this morning
to . STAR reporter, 'the tremendous pressure
which they have all had to bear recently, .
pressure which, under the circumstances, I
think they have met very generously.
''ln the case Of the Denver banks which were
compelled to close their doors, not through any
lack Of business methods reckless manage
ment. but on account of tho loss Of confidence
run, it is my purpose to aid the banks with all
the means that control and to assist them to
resume business rapidly possible where
they can do SO on a good financial basis =,
II have issued instructions to Mr. Adams. the
examiner at Denver. 70 do all he can with this
end in view. He is authorised to employ
extra mon connected with the banks to make
collections of notes and debts. And the same
thing applies to the Kansas City bank. As the
citizens themselves have precipisated this
A~Nvx Ia htrlx d hH,t &,sok lat AkAwv
should take hold and assist tho banks and this
department to again place these instis utions in
position to resume where they can do % on .
firm financial standing"
viii Not Resume.
The Chemical National Bank Of Chicago,
which recently closed its doors. will not resume
business, and Controller Eckels will appoint
receiver as soon as he has An opportunity to do
so. This is the institution which had Q branch
at the worlds fair. II was at first thought
that the bank would be able to meet the condi-
controller OF currency, but the receipt Of the
following telegram this morning dispe!led this
hope:
committee OF the stockholders of the National
Chemical Bank Of Chicago has concluded that
resumption is not practicable at this time At
first the problem seemed easy, but the many
financial disasters throughout the country
have excited the public and produced unusual
caution and made it very difficult to collect out
standing bills or raise money by the usual pro-
cesses. The conditions imposed by the oon-
troller were we'll received, but the present
stringency seems an obstacle too serious to be
overcome.
Buying Silver.
The Treasury Department yesterday added
1928, 900 ounces Of silver purchases to their sup
ply. This amount was accepted in responss to the
counter offer Of the acting director Of the mint
to purchase at his figure Of nv. In each month
there are usually thirteen days upon which sill
yer is bought, and this month there now re-
mains but five days upon which the treasury
will accept offers Thus far there have been
bought about /, ,45O, 900 ounces. This includes
the purchases at the various mints throughout
the country, where offers Of less than 10, 900
ounces can be made. The purchases by the
mints have thus far been larger than usual, in
dicating desire on the part Of small holders to
sell ut the price offered by the government
It would seem. therefore, that it will be
nearly impossible for the treasury to obtain the
full quota Of 4, 500 900 ounces this month unless
the offers for the remainder OF the month are
unusually large and at the figure that the Treas
ury Department considers to be the true mar
ket value. II the department does not for the
FIRST time since the passage Of the Sherman law
obtain the entire amount Of silver authorized
by the law an interesting question will arise and
| possibly some action will be taken which will
definitely settle the question as to whether the
present policy Of the administration to accept
| the silver only at the prices which the depart.
ment believes to be tho true market value is
valid.
Secretary Carlisle will probably be at the de-
partment tomorrow, and he will no doubt act
on this matter, either indorsing or reversing
what has been done. The present plan is be-
lieved to be q proper and legal one by the Off
cials Of the treasury, and it is thought that the
| step has not been taken without first consult
ing the Attorney General to its constitution
ality. The stories that have been foated to the
| efeot that the officials who have been instru-
mental in causing this action unless the full
amount Of silver is bought by the treasury
| this month will be liable to impeachment Is
ridiculed at the treasury.
| The story Of the decline of silver since the
latter part Of last month is interesting. The
government made its last purchase during July,
on the 21st Of that month having obtained the
full amount of 4, 500. 600 ounces. So soon as the
demand by the government ceased the price Of
| the white metal fell Of until on the Gath ii was
two points lower. On that day there reached
| the London market the rumors Of the intended
action OF Iudia, and on the 26th the price in
| London fell to SO. On the 9th the official an
nouncement came and silver dropped another
point. From then the decline was rapid until
| on the 30th the price reached 3O1&
| From the London financial papers which have
Just reached here 1t is seen that on that day the
information reached London that the Colorado
| and other western mines in this country in
tended to close. This had the effect of creating
an impression that the output would be SO much
smaller that the price would naturally go up and
spectators bought until silver climbed in the
London market to 331S. The sales for these re-
| newed purchases were made from this country
and thus 10 explained the continued demand in
London for silver, though India had closed her
mints. 1t WAS a speculative sale which did not
last. and 80 soon as they were covered the de-
mand fell off and today the price il again down
| to almost the lowest point.
| The Chilean Claims.
Although it has not been officially com.
! municated to the Secretary Of State, It Is