Los Angeles herald., 1906-08-10
SILV VER is
REVIVED
Uncle Sam Again in
the Market
Bullion Needed at Three
U. S. Mints
For the First Time Since November
I, 1893, Government Becomes
Purchaser Of White
Metal
BY Associated Press.

first time in thirteen years the govern
ment announced today its purpose to
purchase silver for coming purposes.
Tenders are invited at the office of
the director of the mint in this city
on Wednesday, the 18th inst up to
o'clock p. M, and every Wednesday
thereafter until further notice.
These tenders are to be for deliv-
cry at the Philadelphia, New Orleans
or Denver mints, settlement to be on
the New York basis OF bullion guaran-
teed 500 fine.
The treasury reserves the right to
reject all tenders or accept such part
of any tenders as may suit it's con-
venience. 1t is understood that, an
ticipating that it's temperance as a
purchaser might temporarily disturb
the market unduly, the treasury has
obtained control of considerable
amounts for future Delivery, so that
1t is in a position to drop out of the
market for several months If desira-
BILE.
The average requirements of the
treasury throughout the year will
week, and it will be the policy of the
department, while keeping a reason
able amount on hand, to so distribute
it's purchases throughout the year that
it's demand will be uniform and not
an element of uncertainty in, the mar
ket.
Why Government viii Buy
From the resumption of specie pay
ments in 1879 down to the year 1900 the
constant increase in the stock of sub
sidiary coin required by the, growing
population and trade of the country
was supplied by the recoinage of old
and uncurrent subsidiary coins which
accumulated in the treasury under the
RESUMPTION act.
IN 1900. as this stock was running
low authority was granted in the
monetary act OF March IA to the Sec
retary of the treasury to divert bullion
purchased under the act of July IA,
$780, in the coinage of silver dollars
to the coinage of subsidiary pieces
Under this authority about $33,0O00O0
has been coined since 1900
The stock of bullion in the treasury
was exhausted more than a year ago,
and since then no bullion has been
available for the SUBSIDIARY use.
Stock in Treasury Is Low
The stock in the treasury had be-
come so low that it was apparent, ac-
cording to the department, that the
demands of a constantly enlarging
trade could not be met without addi-
tional coinage. The secretary of the
treasury was in doubt whether exist
ing statutes authorized him to buy
bullion for this purpose, and moveover
was of the opinion that 1t would be
a better policy to meet future demands
for subsidiary coin by the recoinage
of silver dollars in the treasury and
so recommended to congress.
Congress, however, failed to act upon
his recommendation. Secretary Shaw
requested an opinion from the attorney
general as to authority to purchase
bullion for this purpose under exist
ing laws, and he received a favorable
reply based on section 1926 of the re-
vised statutes. The policy now an
nounced was accordingly determined
upon.
The United States government has
been in the past an important factor
in the silver market. In preparing for
the resumption of specie payments and
the redemption of the fractional paper
currency issued during and since the
Civil War 1t began in January, 1875,
a series of purchases ending February,
1878, which aggregated 31,603,9 ,905 fine
ounces, costing $S7571,14S in gold, or
an average of $11.188 per ounce.
The next appearance of the govern
ment in the silver market was under
the Bland Allison act of February 18,
1878 The purchase under this act was
made at $121 5-16 per fine ounce and
the total expenditure for bullion under
this act was $30S, ,279, ,260. The total
amount of bullion required was
291, ,271, ,081 fine ounces, or an average of
the whole of $1.05S
The Bland-Allison act was succeed
ed by what Is popularity known as the
Sherman act, approved July IA, 1890
which enlarged the purchases of the
government to four and one-half mill
lion ounces per month.
The total purchases under this act
amounted to 16S,6746S2 fine ounces,
costing $153, ,991,6O2, or an average of
81. 924 per ounce.
The last purchase under the act of
1890, made on October 30 1898, was at
70 cents per ounce. From that date
until the present the government has
been out of the market for the pur-
chase of silver except as the agents of
the Philippine government in the pur-
chase of a little over thirteen and a
half million ounces. costing $7,376,955, |
or an average of SAY cents.
The lowest price for silver was
touched on December 3, 1902, when the
price on the London market was equiv |
alent to AIS per fine ounce. The ave-
rage for last year on the London mar
ket was 81 cents per ounce and for the
month of July last 66 cents per ounce. |