Douglas Island news., 1920-12-17
QUEER QUIRKs IN
 SILVER MARKET
Continuing Downward Trend ls Looked for by Trained
 Observers

Tbwo hayo been more queer w.rbs in lhc action Of tho commcr- .caI aIycr market In recent months hm i'm amy other world market.
 ys tbo AuualIst Q financial maea- l zinc published by Che New York Times Prices bavc Ououated moro chan oyer before and Ono ueat sEeop In Che carly '90s ioIoaug Che 8l- yer Purchase act has been made to appear only a mild wruon an com- pared wIth Che tremendous aueop Of Che vor period and tho uos-war rc- aimmcnt ln Che present caao there h.s been decline of fur rrolcr pro- portion thm either tho rise or Che mI of Che '9os. and in One laco Of a now purchase ocl which should have stabilized prices at high levels .if it was to have amy influence on tho mmho. at ail
 Tho present demoralmtiou of Che market ha ia origin in tho Orient China. Ono uoat consumer oi .IF.r s mot buying. It was Chinese buy- nr. nude possible by Chinese war; umc prosperity and Che dcnudue of nat country of la silver iu Che Grt years of Che war; which acc counted Ior thc rcat rIso Now Il  . .s Chinese ralu.m.rt. which Is un- cher and poUtor way ol saying Chi- uoso hard times. which is occasoH- ing One decline Thwc are other inc adua Go Che nu Of course but mos. ol them arc incidental
 I,a am oId story of how Che AL lilies. chiefly Britain took from China mos. of hor circulating lvor u Che or.y part Of .ao war to ad- m. balance. with Brul poa- Ion. In Che Far Eat Also. .t H an old tory Of how the United satcs alter Ia entry into Che war; ad uhs British burden by reIaas- ur under Che Putnam ac. some ..rUU00UU ounces of Uuo silver 'h.l in ho United States Traw.
 security for Che silver certificates and In hc form o- silver do1ar Nov ho United su,aH H buying ba.E n equivalent amount Of .ar,. from American mines and r.auor.o .o r...oc Uat which was smt u Che orient
 This operation. In Che opinion Of most competent critics. .s one Of the mos. uno.ouom.c che eovorumen. haa .gor mweoI i'm Tho Treasury i- ..r tr boon n evil influence on hn nror market for yoau and whom ho government took aIran- a.o o0 Ils onnu,m., To dispose ol It's holding. at Che very good price .ut a douar m ounce in laI1 taUu VII. general rco..r. both h0re and abroad Unfortunately however ur. wore political considerations
 ud ou account ol these vae.hc
 H.y wore ro.I or merely unuo d l. ]. m..r l0r Ichate- provision was uaIe for tl purchase of oliver "rom
 American mines and reduction uarH at ue price, which HoI. .Hm ad "ua oaIr n.r equal |.o m. r.uue price. or Sl nm om.e
 m June o. lHa year, because ol Ihc slump m Che open market tao
 Mint ru. into eGer, I.s regulations for buying American silver a. tae dollar price and thereby committed fsa. 10 thc m.1mI practice oi par. ne far above ,lo mar.e. for come moate Thus. in June Che areraeo was saUs51. which mean. chat tle Nn. paid am average premium of more hm Q cents am ounce. u July he Hut paid a nreu.um o. slightly moro hm s ccuts an ouu.. n Au- gust bceau.. of lae r.l.y ho rre- mum average was reduced .o about
 renH but t grow to 6 oean m September. to nearly l7 cent. m o.. .ober and to more .lau 22 c"s In Nuember For hc uuan. month he premium s likely to bc around 50 cents.
 And na practice of paving pre- mum for American silver a likely to run un for years Under Che forms ol Che pIumm act tacro are .amc eul0.0000 HH. ounce. to loo ron.cci in Che Treasury Thus far n. purchases have toallel more chan e0O00.0o0 unc ounces and In
 lc .Iy.r radc it is estimated chat t win uEc at lca.. four gears 'o an ue Tlcuurys requirements. provided. of course. Che opou market nrea stays under a dolIar am ounce lar tba. length ot ume t thc price exceeds dollar Uu ounce n lhe open mrta. tlo American proc duo.r naturally win acl there wd rot to hc government Only whom |thc open market price ia under a dollar ia It profitable for The Amer- .Ian minor or rcfuor Go seu to Che eovrnmm. and it Is therefore