The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-10-11
Indian Purchases Made So as TO
Avoid Publicity and
Comment.
PECULIAR ACTION
OF METALS PRICE
Eastern Demand Not Relaxed
Yet Price Has Remained
Very Quiet.

The Wall Street Journal says that II
has long been suspected that the India
council. In making purchases OF gold
in London, takes steps 10 disguise its
operations In view of their intimate rela =
tons to the silver market Besides
'oarmarking" sold. which remains at the
Bank Of England until such time as the
council can ship il without attracting
special attention, there is reason to think
that gold engagement FOR Egypt" as
announced. are really intended for the
ultimate support OF tho Indian rupee. This
gold becomes the basis for shipments OF
silver TO the orient. and the council de-
slrcs TO secure its silver as cheaply as
possible.
The steadiness of silver. despite the
large and continuous demand from the
orient, has obviously not been LETT en-
tirely TO the natural forces OF supply and
demand.
value from SO 600 in the year ending
March 81, 1903, TO s5I .Olo.7l6 In 1906
vet the silver market remained compare :
lively apathetic. The average annual
cents i'm 1905 TO 6Sl cents In 1907: since
which time. although the eastern demand
has hardly relaxed. the price has grad
ually declined TO 81 cents. a phenomc.
non of tranquility that can only be ac-
counted for by turning back To the finan-
cial files OF that period The follow
Statist OF 1906;
September so 19O5-"The Indian gov
ernment is endeavoring 10 prevent any
one from ascertaining when II is MAX
marked G3,000,000 OF gold in the Bank
or England. ostensiby for the purpose OF
hiding Its silver transactions and pro
posing to 'earmark' another e2'ooo'ooo
October 1.-THE Indian government has
chosen the present time TO remit gold
from India TO London. 10 be 'earmarked'
in the Bank of England: and inasmuch
as this gold has TO pass Egypt en- route.
IL is profitable for the Indian govern
ment 10 sell this gold and 10 land it in
Egypt"
October 2S.-"The fourth million out or
the five millions OF gold TO he RENTED
ttrom India) to London on account Of the
marked by the Bank of Eng
land"
November 1S.-"There has been a good
deal OF bear covering. owing TO the
small amount of silver coming into the
market and the reason for the advance
Ito % 11-16 pence per ounce for standard
silver seems to be chiefly due 10 the
fact that on every lali buying orders
believed TO be on behalf OF the Indian
government
December 2-"No doubt it is true that
a considerable part Of the Indian imports
(of silverl are coined into trade dollars
to be sent farther cast"
December 2-'It is possible that tho
necessity OF the Indian government to
buy silver freely, TO meet the demand
upon its currency department for rupees.
may necessitate the withdrawal OF some
of the gold now 'earmarked' in Eu-
rope"
december 23-"The enormous sums
which the council Gor lndia) is rcceiv-
ing for drafts has caused It to car
mark another 100000 OF gold at the
Bank OF England"
January g. l9o6-'The advance Gin the
Indian discount rate) IS Of course due
to tho power the government now has
over the exchange market. In connection
with the recent currency reform.
January t3-"BankerS arc OBJ
tainlng transfers (silver council bills
against shipments of gold from Australia
TO London on Indian account
IT, as we are assured, large portion
OF the silver thus procured ultimately
finds its way to the monumental world.
to the native states OF India Interior
China and the islands OF the Pacific:
the American producer Of the metal
should feel considerable confidence in the
underlying strength in the price of sill.