Montagu & Ca. discuss the silver situation as follows The market has been of a fairly robust character during the week, though the edge of the demand seems rather taken off. At somewhat lower rates there would be considerable inquiry. In reviewing the outlook, it should be remembered that China is really bearing the onus of supporting a market which comprises an increasing production and large amounts of demonetized silver.
The way in which these large amounts of coin have accumulated is of interest. Intelligent tradesmen, in the parts of Europe involved in the late hostilities and subsequent unrest, insisted, and are still insisting so far as possible on payment for their goods in actual coin, and are giving such change as required in the sadly depreciated paper money of these: countries. The stock of coin thus acquired was and is buried, or conveyed secretly to a distance _presumed to be safe. Money changers and bankers must have embarked upon similar practices either by buying at a premium or advancing: money upon coin deposited with them.
The limitation of the area of disturbance is now setting free gradually immense quantities of silver coin—a slow process, for the hoards are flowing in rivulets of varying dimensions into the hands of dealers, who retail the parcels, when of sufficient size, to the London market. News of the price of silver and the profit derived from realizing these hoards cannot permeate quickly into the eastern interior of Europe, and even when known, the collection of these coins must be slow.
Inasmuch as ordered security throughout the vast territory of Russia and many of the adjoining countries is not yet restored, the flow of silver, and to some extent of gold. coin may not yet have reached its full volume. In any case it can be expected to Inst for a very long time to come if Russia became tranquil under a stable Government. It is evident that currency will consist of material other than silver—paper or what-not—in these countries seriously affected by the srocoinia consequences of the Great far.
Text read from the printed page and cleaned; old type leaves the occasional error.