Depression Caused by China's Heavy Sales: Sterling Dominating the Situation Reporting from London on. August 13, Messrs, Samuel Montagu Ca. state:—
The market has been depressed by a considerable amount of selling on the part of China and of stale bulls. Without doubt the recent marked improvement in the value of sterling..has strongly conduced to this result, though the move. ments. eof silver may) with the fluctuations of the U. S. exchange. The relation between gold and silver is of such great interest to speculators in China that. no powerful movements in the gold value of the sterling exchange can occur without some repercussion in the business centres of the Far East. Hence it may be gathered that, for the time being, the sterling exchange with the United States dominates the silver market. 'To-day, the strong reaction of the U. S. exchange turned the market from' sellers to buyers and the price rose from 3312d. for cash delivery yesterday (the lowest quotation for that position since May 17 last) to 34d. The Continent has been the chief support during the week.
Apart from the vagaries of exchange the market appears to be, inherently sound, demand for] the Far East promises to be good and competition is likely to arise from Continental Mints. Further, the bear account has now become very substantial.
The silver quotations to-day for cash and two months' delivery are respectively ad. and vd. below those fixed a week ago.
Text read from the printed page and cleaned; old type leaves the occasional error.