Salt Lake Telegram | 1932-06-28 | Page 13 | Letter Explains Relapse of Silver

LETTER EXPLAINS RELAPSE OF SILVER What caused the recent decline of the silver market India has been selling a again ain the silver silo sil sil- sil ver vcr letter of ot H. H Hentz Co says Besides there has been congestion in Shanghai and Chinese business has been slack The letter says in part China has been a depressing factor factor fac fac- tor in the silver market As apar apart from the almost complete absence o of business in imports and exports China stocks have been increasing In April May and June there were heavy arrivals of silver in Shanghai The latest total of ot stocks on June 22 comprised bels Chinese dollars and bars While much of ot the silver is used as a are re reserve reserve re- re serve for the note issues of ot the various various va va- va rious banks as well as the Chinese government stagnation in trade anc and declines in prices have aggravated the weight of the new addition to the silver stocks The greater part of the total has been received from In In- dia In spite of the heavy stocks some of the Shanghai banks are arc reported reported re reo re- re ported to be short of ot stocks After an interval of ot nearl nearly ten months the government of ot India has again sold silver during the past three months the months the heaviest sales takIng takIng tak tak- Ing place in May The cond condition of the finances of the Indian government government govern govern- ment is such that in spite of possible ble dangers arising out of ot insufficient reserve for note issues the govern ment was probably obliged to sell silver sll sil- sil ver in order to obtain funds to cover cover coyer cov coy er the deficit which is now large Up to date this year the he total of sales is estimated at about ounces Although 00 rupees in gold have been added to o the reserve the reserve ratio is the lowest in years In fact it may safely be stated that they will have at least to buy back in the near future fu fu- fu ture turc all aU that they have sold this year An important development al al- thou thought ht it is not likely to have any effect on the market immediately is the he favorable report by the senate banking arid and currency committee on the he PIttman silver purchase bill which will take the output of the United States mines out of the mareL market mar mar- ket eL It is confidently expected that the he bill will become law early in December De cember with the amendment to limit its operation to July 1 1939 and some provision to prevent any undue rise in the price of the metal in this market Another attempt is expected to be made in the British parliament next week to force the British treasury to buy both silver and gold instead of gold alone in connection with the operations of the treasury to control contro sterling exchange e. e It is claimed that the purchase of silver will help toward toward toward to to- ward keeping sterling from moving up too high much more effectively than the present method