The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-08-10
Probable Requirements.


Probable Requirements.
The average requirements of the treas
ury throughout the year Will probably not
exceed 100000 ounces week, and 1t Will
be the policy of the department, while
keeping reasonable amount on hand, 10
so distribute the purchases throughout
The year that its demands will be uniform
and not an element of uncertainty in the
market
From the resumption of specie pay
ments in 1879 down TO the year 1900 the
constant increase in the stock of subsid
larry coin required by the growing popula-
ton and trade of the country was sup
piled by the recOinage of old and incur
rent 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 secretary of the
treasury to divert bullion purchased under
the act of July IA. 1890. in the coinage of
silver dollars to the coinage OF subsidiary
pieces. Under this authority about $780,,
0Oo,0O0 has been coined since 1900.
Stock of Bullion Exhausted.
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.
The stock in the treasury had become so
low that II was apparent, according TO
the department. that the demands OF
constantly charging trade could not be
met without additional coinage The
secretary of the treasury was in doubt
whether existing statutes authorized him
10 buy bullion for this purpose, and,
moreover was of the opinion that 1t
would be better policy to meet future
demands for subsidiary coins by the re-
coming of silver dollars in the treasury
and so recommended to congress. Con-
gress, however. having failed to act on
his recommendation, Secretary Shaw re-
quested an opinion from the attorney gen.
eral as to authority TO purchase bullion
for the purpose under existing laws and
he received a favorable reply. based on
section 1926 of the revised statutes. The
policy now announced was accordingly
determined upon.
Former Silver Purchases.
The United States government has been
in the past an important factor in the
silver market. In preparing for the re-
sumption of specie payments and the re-
demption of the fractional paper currency
issued during and following the civil war,
1t began in January. 1875. series of
purchases. ending in February, 1873,
which aggregated 3l,603,905 fine ounces,
which cost $37 81 las i'm gold or an aver
age of S1,lS per ounce fine.
The next appearance of the government
in the silver market was under the Bland
Allison act of Feb. Is, 1873 The pur-
chase under this act was made at
expenditure for bullion under this act
was S30S. 279. 260. The total amount of bull
lion required was @l, l2.OlS fine ounces,
or an average of the whole of s1.05S.
The Bland-Allison act was succeeded by
what is popularity known as the Sher-
man act approved July II, $780, which
enlarged the purchases of the government
TO 100000 ounces per month. The total
purchases under this act amounted to
les ga So fine ounces. costing 1888, 931. SOP,
or an average of 1924 per ounce. The
last purchase under the act of 1890, made
on Oct. 30. 1898. was at Y cents per
ounce. From that date until the pres
ent the government has been out of the
market for the purchase of silver, except
as the agents of the Philippine govern
ment I'm the purchase of Is, 10000 ounces,
costing S7,376995. or an average of s.54iz.
The lowest price for silver was touched
on Dec g. 1902 when the price on the
London market was equivalent TO $47S
per fine ounce. The average for last year
on the London market was 81 cents per
ounce, and for the month of July last,
&C cents per ounce.