The San Francisco call., 1898-10-08
BRILLIANT
 EXCHANGE IF
 SILVER BARS A Financial Coup by the Seligmans. UNCLE SAM SAVES FREIGHT THAT TRAINLoAD OF SILVER
 WILL NOT START. A Quiet Deal With the Government Which Gives Tons of Local
 Silver to the

The Seligmans, bankers of New York, London, San Francisco and elsewhere, have just quietly effected quite big and brilliant deal in silver bullion with uncle Sam.
 By it the Government will probably be spared the cost of that spectacular trans continental shipment of seventeen guard ed carloads Of silver bullion to the San Francisco Mint and the smart bankers will turn few honest pennies.
 The revenue law, passed at the last ses- sion of Congress. provided for the addl- tional coinage of 100000 standard silver dollars per month. The tide of gold has been so great during the recent months and the demand for subsidiary silver so constant, owing to the business revival, that the three hints in commission have been crowded with work without this new burden. . coin 800 600 dollars a month along with the rest of it's work, and the big San Francisco Mint, which is breaking all mint records these days, was naturally turned to.
 But the silver bullion to be coined was all in the East. The San Francisco Mint has hardly any on hand. What it receives is quickly coined mainly in small change. The Government buys no silver. All 1t receives at it's hints is what comes mixed per cent or less The purchases are of gold and the silver parted from 1t Is paid for at about the market price of the commodity.
 So, if the San Francisco Mint was to coin silver dollars in large quantities the bullion would have to be shipped to 1t where it was piled up in the past. It was determined to send 10, 600 900 to 12,000 900 ounces out here. The news of 1t was ac- companied by the story that it was pro- posed to load special freight train, guard 1t with soldiers and send the pre- cious bars at special freight rates.
 The Seligmans control the Anglo-Cali- fornia Bank here which is the San Fran cisco agency for J. and w. Seligman & Co.,, and they are the heaviest dealers in the silver bullion which reaches this i'm finds market here comes from Pacific Coast points west of Denver, from Brit ish Columbia, Mexico and Central Amer ica. About S,000000 ounces a year are refined by SelbyS and by them sold to local bankers. Perhaps 100000 ounces in refined bars reach here from other smelters The silver coming to San Francisco yearly is thus approximately 10 1000, 900 ounces-about the amount of the contemplated Government shipment.
 Practically all of this silver goes di- rect to that great sink-hole of silver, the Orient, owing to the conditions of transportation and exchange. Shipments are regulated by the condition of the market and the price of exchange. One steamer will take l, ,000 900 ounces and the next little or none The New York mar ket Is too far away, and express charges are high. The Seligmans are credited with handling the bulk of this silver here through the Anglo-California Bank The Hongkong and Shanghai Bank and the Yokohama Specie Bank are also dealers.
 It was under these conditions that the Seligmans hoped on to the brilliant idea that had not occurred to the Secretary of the Treasury or anybody else, and the arrangement was made with the Treas ury Department at Washington the other day. They proposed that they deposit silver at the lint here and receive a cer- tif1cate therefor On the presentation of such a certificate at the Treasury at Washington or at the New York Sub- Treasury they would receive the exact amount of silver deposited here. No sil- yer would be bought or sold by the Gov ernment, but by this simple swap of the same stuff the Government would get its silver transported across the continent with neither cost nor risb, and the bank CTS would get their silver here trans ported to New York at the cost of a few postage stamps and with no express charges or exchange to pay.
 So the big shipment is off for the pres ent, and for two or three days heavy trucks have been carting silver. bars from downtown vaults to the Mint.