OCR Text |
Show DIRECTOR LEECH ExprcMO Ills Opinion on tho Recent Decline in the Mirer Market. BALFOUR'S SYMPATHY 'FOR THE IRISH PEOPLE. A Remarkable Operation Takes riaea at the Roowelt Hoi pllal, Sew York: t f BARTELOTTS CHARGES AGAINST HENRY M. .STANLEY. The Union Pacific R. R. Dlfflcnltr. Down fad the Ticket Scalper. By Telegraph te the Nkws.l I SILVER. HfLI.IO.Y. Director Eefeh of the Jllnt Stakes m roll Statement. Washington, Oct. 25. Director Leech of the Mint makes a lengthy statement in regard to the Treasury, silver bullion and the causes or the recent decline in the market of silver. He says: "The Treasury method of purchasing silver has U:en criticised in these particulars: First, that the largo purchases by the Department do not include all the sliver bought. Second, that the London price is used as a basis of tho Government purchase. Third, that the bids to the Government are on the decimal system and tend to favorlteism." In regard to the first criticism, he says the Government purchases silver as it docs bonds, and indeed any article required in considerable quantities, by public competition, the lowest offer) being always accepted, ac-cepted, provided tbey do not exceed tbe highest market prices. For tho benefit of the small producers, the superintendents of tbe mints are authorized to purchase small lots at a price fixed from day to day by the director, corresponding to tho market price. These purchases average possibly half a million ounces a month. Second It is not true tbat the London price Is used as a basis of tbe silver purchases under the new law. During THE LAST ADMINISTRATION not only was the London price the only price used, but the department did not pay tho equivalent of tho London price, but made counter offers to bidders on the theory that silver was worth Ii ss in New York than In Loudon by tilo cost of transportation trans-portation and insurance across the water. The present administration has been governed in its purchases by the New York price. At no time since the passage of the new silver law, and Indeed for some months liefore, has the Treasury fell Itself limited in the acceptance of the London rrices. Third In regard to the government govern-ment quotations being on a decimal basis, one of the critics says: "Tho suspicious aud significant fact In regard to tho government quotations quota-tions are on the decimal basis, which Is a great advantage to thoso who may have alvanje Information in regard to the price the government is willing to pay on a given date." The government has no scale of its own and bidders use whatever scale suits them best If one house happens to bid a decimal lower than another, is the government to decline de-cline the lower bid because of the decimal. The Idea of any sellers having "ADVANCE INFORMATION" as to the price the government will ay is ridiculous, impossible. If there can bo any fairer method devised de-vised for purchasing silver than by competition, it would be difficult to conceive of such method. This method has been pursued by the Treasury under all administrations since 1S78. In regard to the recent dcc.Ine In the price of silver, the causes which operated to produce it are apparent. In the first place, the visible stock ot sliver In New York has nat sensibly decreased notwithstanding the purchase by the government Jof 12,278,173 ounces of silvor since August 13th. This large and undiminished undi-minished stock is a standing menace to the price of silver. Large western west-ern refineries, In hopes or teallzing large profit, held sliver for months prior to the passage of the new law, or deposited It in New York for certificates, aud the result re-sult Is the accumulation of a visible stock of such magnitude as to depreciate the price. It is very unfortunate that tills stock lias bean allowed to accumulate, and especially espe-cially that certificates were allowed to be issued on it and guaranteed by National banks, and listed on the Stock Exchange, to be dealt in on margin's. It has nude a football of silver, to bo kicked around at the pleasure of bulls and bears. In my judgment there should be a law enacted against dealing In metals on margins. TUB USUAL DEMAND for silver for export lm almist entirely en-tirely ceased. Not only is this the case, but large quantities of foreign sliver have been shipped to the United States. The Imports of silver sil-ver from May 1st to September aoth or the present year exceeded the exports ex-ports by $1,9.3,175, while during the corresponding period of last year the exports exceeded the lm ports by $5,913,033. This accounts far the fact that, while the government govern-ment purchased an amount equal to the current production ofourmlnes, the stock has not diminished. Djr Ing the same period the shipments of silver to India have not semibly decreased, although latterly they have been below the usual amount Hence the supply for India lias been obtained In Europe, or at least elsewhere than the United States. So, too, In regard to the niturol movement of silver to China, Japan and Australia from San Francisco Not one ounCe of silver bullion has been shipped to the Orient since May 1st of this year, while over four million dollars' worth was shipped during the same period It year. These facta of themselves are sufficient to account for the decline which has takeD place-Then, place-Then, again, sll sorts of roorbacks have been telegraphed from London to this country, the purpose ana eflect of which was to weaken the prices of silver. It Is well known that we are In the midst of a most active mining season. Undoubtedly Undoubted-ly the PRODUCTION OF SILVER has been stimulated by the passage of the new sliver law, but it must be jemembered that we are approaching ap-proaching the period of winter months when money is not so active, and, moreover, that the present activity In working work-ing the mines has naturally resulted re-sulted in Imoro rapidly exhausting these lodes. So fax as my informs-t"o informs-t"o t extends, there has been no new sliver bronze discovered; and, aside from the discoveries of valuable sliver sli-ver lead properties In Australia, I am not aware or any largo deposits pr silver tllseovere 1 witnln tho last year or two, certainly none recent ly. So It is fair to assume tbat tilt silver product for aDy considerable period, unless there are new discov-eries,will discov-eries,will not be materially increased by the present active working of the mines. No sensible person likes to make prophecies, especially on asub-Ject asub-Ject which has proved so illusive as silver) but certainly one who hae made a close study of the Silver question ought to find In tbe facts mentioned sufficient causes for tho recent decline without seeking for imaginary reasons and casting slurs upon the treasury method of purchaser. |