Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-10
BUY SILVER BULLION
TREASURY DEPARTMENT IN
VITES TENDERS NEXT WEEK

1t has been announced at the Treasury
Department that the department would at
once resume the purchase of silver bullion
for the subsidiary coinage. Tenders are
invited at the office of the director of the
mint Wednesday, the 18th instant. up to 1
O'Clock PM. and every Wednesday ttei e.
after until further notice. The tenders are
to be for delivery at the Philadelphia New
Orleans or Denver minis. settlement to he
on the New York basis of bullion guarGn-
teed $40 fine. The treasury reserves tie
right to reject all tenders or accept such
part of any tender as may suit its con-
venience.
Anticipating that it's temperance as a
purchaser might temporarily disturb the
market unduly, the treasury has already
obtained control of considerable amounts
for future delivery. so that it is in position
to drop out of the market for several
months if desirable. The average requii E.
merits of the treasury throughout the year
Will probably not exceed 1CO.IO ounces per
week. and 1t will be the policy of the de-
partment. while keeping reasonable
amount in hand. to SO distribute is pur-
chases throughout the year that Its de-
mandS will be uniform and not an ele-
ment of uncertainty in the market. THESE
purchases will be made under authority of
section 5o2j of the Revised Statutes. These
are the first purchases made by the gov
eminent since the repeal of the purchasing
clause of the Sherman act, November l,
1893. =.
Statemnt by the Treasury.
The following statement relative to the
matter was made:
From the resumption of specie payments
in 1879 down to the year 1900 the constant
increase in the stock of subsidiary coin
required by the growing population and
trade of the country was supplied by the
recoinaSe of old and uncurrent subs. diary
coins which accumulated in the treasury
under the resumption act. In 1890 as this
stock was running low authority was
granted IN the monetary act of March IA
to the Secretary to divert bullion purchased
under the act of July "a. 1880. for the coin
age of silver dollars to the coinage of sub
sidiary pieces Under this authority about
S'3.O0O.oOO has been coined since $500.
The stock of bullion in the treasury was
exhausted more than year ago and since
then no bullion mas 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
constantly enlarging trade could not be met
without additional coinage. The Secretary
of the Treasury was il doubt whether ex-
listing statutes authorized him to buy bull
lion for this purpose, and moreover was
of the opinion that it would be better
policy to meet future demands for subsi
diary coin by the recOinaSe of silver dol
lars in the treasury. and so recommended
to Congress. which. however. failed to act
upon his recommended ton. Secretary Shaw
then requested an opinion from the Attor-
ney General as to his authority to purchase
bullion for this purpose under existing law
and received favorable reply, based on
section S526 of the Revised Statutes. The
policy now announced was accordingly de-
termined upon.
Government Purchases Silver.
The United States government has been
In the past an important factor in the sill
yer market. In preparing for the resump-
ton of specie payments and the redemp-
ton of the fractional paper currency issued
during and following the civil war. it be-
gan in January, 1875, a series of purchases
ending in February, 1878. which aggregated
II ,GG3.S&o fine ounces, which cost S37.o71.-
las in gold, or an average of S1.1SS per
ounce fine.
The next appearance of the government
in the silver market was under the Bland
Allison act of February s., 1878. The first
purchase under this act made at
1.21 5-16 per fine ounce, and the total ex-
penditure for bullion under this act was
$'OS2'0 30 The total amount of bullion
required was POI 2I2,01S fine ounces, or an
average price for the whole of 81 05S.e
The Bland-Allison act was succeeded by
what is popularity known as the Sherman
act, approved July H. 1890. which enlarged
the purchases of the government to 400 900
ounces per month. The total purchases I'M
der this act amounted to 16S.674.6s2 fine
ounces costing S1JJ, 931 coz. or an average
OF S0J24 per ounce. The last purchase I'M
der the act of 1880. made on October 20,
1893. at ~ cents per ounce. From
that date until the present the government
has been out of the market for the pur-
chase OF silver except as the agents OF the
Philippine government in the purchase of
a little over thirteen and one-half million
ounces costing $7,376g@5, an average OF
50 IE.
The lowest price for silver was touched
on December 3, 1862. when the price on the
London market was equivalent to sO.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 GO
cents per ounce.