Depressed Prices: A Dull Outlook:
Better China Trade Essential to Save Farther Fall Reporting from London on November 9, Messrs. Samuel] Mon-taku & Ca. state:—Under the influence of continued sales on China account, prices have been subject to considerable depression. The weakness was aggravate ed by the fact that the Indian bazaars received substantial offers of silver from China direct, and therefore resold some purchases made here, and also practically ceased to support this market. The Continent furnished part of the supplies and America has been a good seller. As most of thei silver required for the December settlement in Bombay seems now to have been secured, the outlook is not very bright, for absorption of offerings can only be met at the moment by bears covering, and, conditions being in their favour, great eagerness to cover can hardly be expected. The weak tendency may continue until it is checked by, China. In that event trade relations of that country with world markets in food and other trade relations of that country with world markets in food and other raw products will have to alter materially, otherwise a still lower level of Prices may be touched.
It is reported from Washington, under date of October 25, that the total silver purchases - under the Pittman Act amounted to 138,645,- 576 oz., including 1,500,000 oz. purchased on that day.
We referred last: week to the svggestion that the Indian Treasury should sell some portion of its larg: silver reserve against notes. The "Times of India" has a carefully reasoned article in its issue of October 21, dealing with this matter. The writer considered thnt "India will never again require an immense mass of token rupees American producers are reported to be desperately anxious to sell as much silver og possible before the support given by the Pittman Act vanishes and the anticipated break in prices occurs. The Government of India is advised not to allow all this advantage to go to America, but to secure some of it for the benefit of their own reserves. For, it is said, even should the unexpected happen, and the Government of India need to replenish its silver reserves, it will be able to do so at prices below the present level."" He adds, however, that "the major argument against the proposal is that it involves speculating with the paper currency reserve, and that is not desirable, even though it should lead to an immediate profit. There is only one way of treating such reserves; it is to treat them as_ sacrosanct, save for their liberal employment aer the areas for which they were The conclusion seems to be sound, failing an effective attachniént to the gold standard (as officially fixed at 10 rupees to tha sovereign) any step which would tend to place the Indian. currency more upon a fiduciary basis is to be deprecated. The circumstance, however, that such a step as the partial demonetization of the rupee should be even mooted by the natives of India is a remarkable sign of the times, and cannot breed confidence in the future of silver as a material for currency. It is a very satisfactory circumstance that the people of India should prefer notes- to silver coin to such a degree that metal rupees should flow continuously into the Indian Treasury, although, as indicated in the last return, the note circulation. has actually been reduced.
The silver quotations today for cash and forward delivery are respectively id. and {d. below th fixed a week ago.
Text read from the printed page and cleaned; old type leaves the occasional error.