The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-08-10
First Time in Thirteen Years
White Metal Will Be Bought
for Coinage.
DENVER MINT WILL BE
ONE PLACE FOR DELIVERY
Amount Required Under New
Decision VIII Approximate
100000 Ounces Weekly.

WASHINGTON, Aug. 9.-For the
first time in thirteen years, the Govern
ment announced today its purpose to
purchase silver for coinage purposes.
Tenders are invited at the Office Of the
Director Of the Mint in this city on
Wednesday, the 18th instant, up to
o o'clock p. m., and every Wednesday
thereafter until further notice These
tenders are to be for delivery at the
Philadelphia, New Orleans or Denver
mints, settlement TO be on the New
York basis Of bullion guaranteed 099
fine The treasury reserves the right
to reject all tenders or accept such
part of any tenders as may suit its
convenience. It is understood that. an
ticipating that its temperance as a
purchaser might temporarily disturb the
market unduly, the treasury has OBJ
tanned control of considerable amounts
for future delivery, so that it is in a
position to drop out Of the market for
several months if desirable.
The average requirements of the
treasury throughout the year will prob
ably not exceed 100000 ounces per
week, and it will be the policy Of The
department, while keeping reasonable
amount on hand, to so distribute its
purchases throughout the year that its
demand will be uniform and not an ele
ment OF uncertainty in the market.
More Coinage Required.
From the resumption of specie pay
ments in 1879 down to the year 1900
the constant increase in the stock of
,hetfl lt1,-,
ing population and trade Of the coun~
try was supplied by the recoinage of
old and uncurrent subsidiary coins
which accumulated in the treasury un-
der the resumption act. In 1900, as
this stock was running low, authority
was granted in the monetary act of
March IA to the Secretary Of the
Treasury to divert bullion purchased
under the act of July IA, 1890, In the
age Of Subsidiary pieces. Under this
authority about S33,o00,00o has been
coined since 1900
The stock Of bullion in the treasury
was exhausted more than year ago,
and since then no bullion has been
available for the subsidiary use.
The stock in the treasury had be-
conc so low that it was apparent, ac-
cording to the department, that the
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 tins purpose, and moreover,
was of the opinion that it would be
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, having failed to act upon his
recommendation, Secretary Shaw re,
quested an opinion from the Attorney
General as to authority to purchase
bullion for this purpose under existing
laws, and he received favorable re-
ply, based on section 1926 of the Re-
vised Statutes. The policy now an
nounced was accordingly determined
upon,
Began Many Years Ago.
The United States Government has
been i'll 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 following
the Civil war, it began in January,
1873, series Of purchases ending in
February, 1878, which aggregated 81
603,905 fine ounces, which cost $37,-
57l, lis IL gold, or an average Of
SIls1So per ounce, nnc.
The next appearance of the Govern
ment in the silver market was under
the Bland Allison act of February 2S,
1878. The purchase under this act was
made at $l,21 SIG per fine ounce, and
the total expenditure for bullion under
this act was S30s, ,260. The total
amount Of bullion required was 29l,-
272,0lS fine ounces, or an average for
the whole of $105s.
The Bland-Allison act was succeeded
by what is popularity known as the
Sherman act, approved July ID, 1890,
which enlarged the purchases of the
Government TO 100000 ounces per
month. The total purchases under this
act amounted to 16S, ,682 fine ounces,
costing $i53,9Sl SOP, or an average Of
$l294 per ounce The last purchase
under the act Of 1890, made on October
50, 1898, was at 72 cents per ounce.
From that date until the present the
Government has been out of the mar
ket for the purchase of silver except
as the agents of the Philippine gov
crnment in the purchase Of a little
over l3,5O0,000 ounces, costing 81 ,376,-
995, or an average of $034h. The
lowest prico for silver was touched on
December 3, 1902, when the price on
the London market was equivalent TO
S0.047S per fine ounce; the average for
last year on the London market was 81
cents per ounce. and for the month OF
.Iulv last GIG cents per ounce