The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-08-10
Enters Market for First Time
in Thirteen Years
100000 OUNCES PER MONTH
The Treasury Reserves the Right to
Reject All Tenders or to Accept
Any Part as May Suit
Its Convenience.

Washington, August 9-For the first
time in thirteen years the government
announced today its purpose to purchase
silver for coinage purposes. Tenders are
invited at the office of the director of the
mint on Wednesday the 18th inst. up to
o'clock p. m. and every Wednesday
thereafter, until further notice. These
tenders are to be for delivery al the Phila-
delphia. New Orleans or Denver mhts.
settlement to be on the New York basis
of bullion, guaranteed ss9 fine. The treas
ury reserves the right to reject all ten
ders or accept such part of any tender
as may suit its convenience. 1t Is un-
derstood and anticipated that its reap
pearance as a purchaser might temporari-
ly disturb the market unduly. the treas
ury having obtained control of consd-
erable amounts for future, delivery, so
that it is in a position to drop out OF
the market for several months II desir-
able.
Requires 100000 Ounces Week
The average requirement of the treas
ury throughout the year will probably
not exceed 100000 ounces per week and
It will be the policy of the department
while keeping a reasonable amount IN
hand to so distribute its purchases
throughout the year that its demands will
be uniform and not create an element
of uncertainty in the market.
For the resumption of specie payments
In 1879 down to the year 1900 the con-
slant increase In the stock Of subsidiary
coin required by the growing population
was supplied by the reooinage of old
and uncurrent subsidiary coins which ae-
cumulated in the treasury under the re-
sumption act In 1900 assthis stock was
I running low authority was granted in
the monetary act of March IA to the Sec
tretary of the Treasury 10 divert bullion
p,frchased under the act Of July A. 1890
for the coinage of silver dollars to the
coinage of subsidiary pieces. Under this
authority about s3s.0oOO0O 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 avail
able for the subsidiary use.
Additional Coinage Necessary.
The stock in the treasury had hecone
SO low that It was apparent according
to the department. that the demands OF
n constantly enlargng trade could not be
mel without additional coinage. The Sec
rotary of the Treasury was IN uoupe
whether existing statutes authorized MN
to buy bullion for this purpose ana more
over was of the opinion that It wouia DC
better to meet future demands Tor SUD
sldiary coin by the recolnage OF SILVER
dollars In the treasury, ana so ieoonf-
mended to Congress
c,onpress however having failed TO aei
mon his recommendation. Secretary
shaw requested an opinion from lhe AZ
torney general as to his authority lot tne
| purehase of bullion for this purpose unusr
existing law. and he received favorapie
,o,,I,, hased on section 3526. revised stat
utes The policy now accepted vas ac-
cordingly determined upon
The limited States has been IN the past
an important factor In the silver marhee'
In preparing for the resumption or specte
pay1ments and the redemption OF the irae
tiona1 paper currency issued during anu
Following the civil war, began In jan
nary. 1875. a series of purchases ending N
Trabruary. 1878, which aggregated 81 l,bz5i-
OK fine ounces, which cost sS151llB IN
gold.
Band-Allson Act.
The next appearance of the government
in the silver market was under the blunu.
Allison act OF FeDfhGIy 20 1910 -
purchase under this act was made at
Il .21 5-16 per fine ounce and the totai
expenditure for bullion required was Zsi,7
272 O1S fine ounces or an average price
for the whole of Sl.05S.
The Bland-Allison act was succeeded py
what Is popularly known as the sherman
act. approved July IA, 1890. which enlarged
the purchase OF the government 10 40o'-
COO ounces per month. The total pur-
chases under this act amounted TO loo-
474 $50 fine ounces. costing sl55,9Sl'boz' or
an average OF 1924 ounce.
THE last purchase under the act OF lSeo
was made on October 30, 1898, and was az
ID cents per ounce. From this date until
the present the government has been out
~ the market for purchase OF silver ex-
cent as the agents of the Philippine gov
ernment In the purchase Of a little over
n zoo 600 ounces. costing S376,o9o. or an
average OF 541z cents.
The lowest price for silver was toucned
on December 3. 1902. when the price on tho
London market was equal to ,4s7 per nne
ounce. the average for the last year on
The London market was 81 cents per ounce
and for the month of July last &C cents
per ounce