Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1906-08-13
TO WIN PEASANTS silver NOW NEEDED
Government PROPOSES TO PUR.
Chase FOR COINAGE.
Stock of Bullion Has Been Ex-
hausted for Over a Year---Pur.
chases to Be Distributed So
that Market May Not Be Un-
duly Affected.

Washington, Aug. 1l.-For the first
time in thirteen years the government
has announced its purpose to purchase
silver for coinage. Tenders are invit-
ed 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 fur
Their notice. These tenders are to be
for delivery at the Philadelphia, New
Orleans and Denver minis, settlement
to be on the New York basis of bullion
guaranteed 800 fine. The treasury
reserves the right to reject all tenders
or accept such part if any tenders as
may suit its convenience. 1t is I'M
derstood that, anticipating that its re-
appearance as purchaser might tenn
porarily disturb the market unduly,
the treasury has obtained control of
considerable amounts for future deliv-
cry, so that it is in a position to drop
out of the market for several months
if desirable. The average require
ments of the treasury department
throughout the year will probably 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 element of
uncertainty in the market.
Bit OF Monetary History
From the resumption of specie pay
ments in 1879 down to the year 1900
the constant increase in the stock of
subsidiary coin required by the grow
ing tade and population of the county
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 grant
ed in the monetary act of March II 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
pieces. Under this authority about
$33, 900, 900 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 be-
come so low that it was apparent, ac-
cording to the department, that the
demands of constantly charging
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, more
over, was of the opinion that it would
be a better policy to meat future de-
mands for subsidiary coins by the re-
coinage of silver dollars in the treas
ury, and so recommended to congress-
Congress, however, having failed to
acrt upon his recommendation, Secre-
tary Shaw requested an opinion from
the attorney general as to authority
to purchase under existing laws, and
he received favorable reply, based
on section 1926 of the revised statutes.
The policy now announced was accord
lubly ulucu upOn.
Factor in Silver Market
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 fractional paper
currency issued during and following
the Civil war, it began in January,
1875, series of purchases ending in
February, 1873, which aggregat ed =
COB, 915 fine ounces at an average OF
1.18S per ounce.
The next appearance of the govern.
ment in the silver market was under
the Bland Allison act of 1878. The
purchase under this act was made at
H.. 1 sic per fine ounce, and the total
expenditure for bullion under this act
was $3O9, 279. 260, at an average price
of $1.05S.
Government Purchases Increased
The Bland Allison act was succeeded
ny what is popularity known as the
| Sherman act of 1880, which enlarged
the purchases of the government tc
4, 5000 ounces per MONTH. The
total purchases under this act amount
ed to 1854, 632 fine ounces, at an
average of f0.924 per ounce. The last
purchase was made October 30, 1898,
and was at ~ cents per ounce. From
that date until the present the govern
ment has been out of the market fol-
the purchase of silver except as agents
of the Philippine government in the
purchase of little over IS, 10000
ounces, which was bought at an aver
age of *O.54ia. The lowest price fol-
silver was touched on December 3,
1902, when the price on the London
market was equivalent to $0.41S per
fine ounce; the average for last yeal
on the London market was 81 cents
per ounce, and for the month of July
last IS cents per ounce.