The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1921-03-31

I
; normal exchange rates.
The fixing OF the price in London is
done each day by the four corners
which compose the London silver
market. namely Messrs. Mocatta &
lGoldsmid Samuel Montagu & Co,
IPAlcy & Abel and Sharp & Wilkins.
ia some recent correspondence to
which access has been accorded me,
the statement is made that all trans
actions and the fixing of the price are
confined exclusively to these four
firms, because of the fact that they
operate under patents from the
crown"
/ The corners named, or their repre-
sentatives, meet each day at about
200 p. m. or on Saturday at 1880
"a. m. and with the data in hand as to
supplies in stock and available, all
the way from New York to London,
Bombay. Calcutta, Shanghai, Hong
Kong and san Francisco disclose to
each other their buying and selling
orders, without however disclosing
their principals on taking stock of
he world situation, together with the
days requirements and any other
necessary items, the price for the day
then fixed Any excess Of de- /
mand or supply determines whether
the previous days price is advanced /
% rlowered. The dealings are closed /
ON the days official price so fixed.
The fixed price is then cabled to the
other markets. This fixed price in turn
governs the prices at the other points,
exchange rates. freights. insurance
and trade balances being considered.
Two prices are fixed each day-one
for cash" that is for delivery within
one week at the option of the seller;
The other price for forward" delivery
two months from the date of sale
The spread between the cash" price
end the forward price depends up
~ a variety of factors Options or
puts and calls on silver are also
freely traded in. The vendor pays no
selling commission. but the purchaser
pays commission Of one eighth of l
per cent
Government Profits in Silver Coinage
The price of any article depends
normally upon the demand for it. I'm
il silver was demonetized the market
or il was unlimited and the price
hoWed small fluctuation as previ-
'usy stated Since it was demone-
zod ITS market has been limited to I
he demands from the Industrial arts l
md TO such amounts the governments 5
If the world have seen ht to use for d
oinage. together with any amounts /
equired by China in settlement of a
rade balances. C
outside of the United States statis- j
les of the quantities used in the in Y
ustrial arts seem lacking. World 3
stimates have been made all the way $
rom 100000 ounces to 12O. 900. 900
unces per year Accepting even the
op estimate. it will be seen that there p
tim remains a considerable yearly
1rplus probably averaging fully 1OO,- p
10000 ounces which acts as a de-
ressing factor ]
1t is obviously to the advantage Of
ny government to purchase silver for 1
N NttNtiiAN as ilboHiDAFt lOi
be- government makes the seignior- i
eco. or the difference between the
'st price and its circulating value il
or example the cost price may be
lc per ounce. After being coined it II
rculates at the rate Of from S133 to
bout Sl45 per ounce according to i
be- coming ratio 1t will therefore
seen that if purchased at coo and II
'ined att say a s135 rate. there is a
rodt of 75c per ounce to the govern Il
ent doing the coming on this ba-
s. the government makes consider cs
bly, more profit than it has paid the OF
liver miner for the bullion Il
THE governments are very canny
lyers as is shown by the following ~,
.tract from a letter from a firm of
ondon bankers: very soon after the n
art of the war the demand for coin
90 slowly absorbed the floating sup n
y of silver Purchases for the gov
nments We're pooled. and were made n
ith such care that the price of sill
'r did not act on it, but actually de- N
Ined"
ttf itiiistH EtN tiflffitNt ana the
linese bankers and merchants are
e principal buyers Of silver In the
st sixteen years India has absorbed on
average of As per cent of the
orld's yearly production In 1919
e took 112 per cent Of that years
orld production. In the last two to
zee years China has absorbed sub ~
1ntially an amount equal to two
airs production. These excess de-
ands We're met by the treasury Of
e United States as a war measure.
is evident therefore, that to a de-
ee the price of silver is governed
ia requirements of the Asiatics.
To is palpably not to the interest of
G. Indian government which in turn =
controlled by the British govern -
emit to pay a high price for silver
ne Indian government has built uD
gold fund reserve Of about es5.OOO
from the profits from silver seign-
age. The government would be