Omaha daily bee., 1906-08-10
stock is Running Low.


In 1879 down to the year 1900, the constant
Increase in the stock Of subsidiary coin re-
quired by the growing population and trade
OF the country was supplied by the recoin-
age of old and uncurrent subsidiary coins
which accumulated in the treasury under
the resumption act. In 1900, 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, for
the coinage of silver dollars to the coinage
of subsidiary specie. Under this authority
about $SS, 10000 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
The stock in the treasury had become so
low that it was apparent, according to the
department, that the demands of a con-
stanuy enlarging trade could not be met
without additional coinage. The secretary
of the treasury was in doubt whether eX-
isting statutes authorized him to buy bull
Hon for this purpose, and, moreover, was of
the opinion that II would be better policy
to meet future demands for subsidiary coin
by the recoinage of silver dollars in the
treasury and so recomme ended to congress
Congress- however, having failed to act
upon his recommendation, Secretary Shaw
requested opinion from the attorney gen.
ersl as to his authority to purchase bull
lion for this purpose under existing law and
he received a favorable reply. based on
section 1926 of the revised statutes. The
policy now announced was accordingly de-
termined upon.
Governments Former 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,
/ It began in January. 1875. series of pur-
/ chases ending in February, 1873, which ag-
gregated 31,6O3sO5 fine ounces which cost
! S37, 81, ,14S in gold or an average of A.lSS
per ounce fine.
The next appearance of the government
I IN the silver market was under the Bland
! Allison act OF February 2S, 1878. The first
purchase under this act was made at
ST. q 5-l6 per fine ounce and the total ex-
penditure for bullion under this act was
! sos 279, $50 The total amount of bullion
required was 29l, OlS fine ounces or an
average price for the whole of Sl.O5s
The Bland-Allison act was succeeded by
what is popularity known as the Sherman
act, approved july IA 1870, Whlch enlarged
the purchases of the government 70 -four
and one-half million ounces per month
The total purchases under this act
amounted to 16S,6746S2 fine ounces. costing
S15S, ,6O2 OF an average Of s24 cents per
ounce. The last purchase under the act ofIS9(
made on October 80, 1898, was at seventy
two cents per ounce. From that date until
the present the government has been out
Of the market for the purchase Of silver
except as the agents of the Philippine gov
ernment in the purchase of a little over
100000 ounces, costing S7,3I6,s95, or ar
average of 4Izc.
The lowest price for silver was touched
on December 8, 1902, when the price or
the London market was equivalent tC
O4Is per fine ounce; the average for las
year on the London market was 81 cents
per ounce; and for the month OF July
last, 66 cents per ounce.