The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-01-29
WHY SILVER ADVANCED
Explains the Extraordinary
Rise of Last Year.
LOW PRICES STIMULATED
Consumption of Metal Was
Large and Demand Grew

London, Jan. S.-PlxIey & Abel, in
their annual London circular on the sill
yer market, outline in a singularly in
teresting way the reason for last years
extraordinary rise in the metal from
p Ills pence per ounce to 2S14. and the
subsequent fall TO 274. They write:
Low prices stimulated trade consump-
ton. which has been brisk throughout the
year. an d. material rise set in when it
became known that United states were
about to establish a new coinage in the
Philippines. The act Of congress author
izing this issue provided for the pur-
chase ofsiter sufficient to coin S75.oos. COZ.
equal in weight and fneness to the
United States dollar. these dollars 10 Be
circulated in the Philippines at 50 cents
each for the purpose OF foreign exchange.
It was estimated that $4,000 ounces
would be required and Of this amount
about 12,5o.o90 ounces have 50 far been
purchased between March and Novem
Der
There has also been a large demand
for Paris in connection with their east
ern colonial coinage, and $4,000 ks. have
been bought during the year
THE Indian government also has been
large buyer. Their reserve Of rupees.
which stood at about IS crores late in
1902. fell TO Crores early in 1905 and
purchases amounting TO e3o90o were
made in March. Purchases were. how
ever. resumed in October when gold be-
gan to be shipped in large quantities from
Australia TO India. and when it was
found that the crops throughout India
were unusually abundant and tina. the
treasury reserves were being RAPIDLY d.
pleted. So FAR about e2o0o Geo has been
bought, but IN spite OF this The reserve
IN the treasury Is under nine crores.
and it is felt that with the recent sharo
rise in the price Of cotton. and the ex-
pected large export OF al Indian produce.
the demand for new coinage Will continue
well into ISa. II is estimated that the
exports from India this season Will. in
value. be nearly 80 per cent larger than
usual Owing 10 the above causes. the
price Of silver rose steadily during The
carly part Of the year until in August
when there was also a brisk demand for
the Indian bazaars. and the supply from
Aemrica beinS reduced owing 10 the pur-
chases for the Philippine coinage. quo
tations advanced rapidly. and 2Sssd was
touched. We then began 70 feel the ad-
verse influences OF the change OF coinage
IN the east, for Mexican dollars which
were being demoneti=ed in the Philip
pines. found their way To this market
and the redundancy OF silver coin in the
Straits. proved great source OF weak
ness.
The position in China was also unsat-
fsfactory. and considerable sales OF both
eycee and dollars were made as a reuait-
tance against indemnity payments. =
was found. too. that the Indian Sazaars
were overloaded with silver. and there
were resales on this market. Further.
the United States government stopped.
for the time being. their purchase for
the Philippine coinage
During the closing weeks ot the year
there has been some recovery. awning to
the continued purchases by the Indian
government. 10 the storpage OF sales Of
silver by China. and the Indian bazaars.
and TO the fact that the Straits has not
bsen 50 eager 10 sell dollars