Messrs, Samuel, Montagu &-Co.'s weekly silver circular says:
The tendency of the price to os-ciliate within narrow limits has again been demonstrated, and the figure 26} seems to be about the lowest point that the market touches in the present circumstances. Throughout the week the trend has been upward, mainly on account of the re-entry of the Home Mint as a purchaser. Whilst this is the case, demand for other quarters, such as the Continent, necessitates a hardening of quotations.
Supplies from America have been unusually small, but some profit-taking on the part of recent purchasers at lower prices has broadened the market during the last few days. The stock in London is now fairly large, rather more than seven fine ounces, but coinage orders, which as a rule demand prompt delivery, can easily reduce the amount to smaller proportions.
Operations on eastern account continue to be-slight. China seems more likely to sell than buy, should rates advance. The high rate of money in India still hinders dealers there from replenishing their stocks. Under date of February 5, advice has been received that Gold coin and bullion Gold in England The stock of silver coin in the Indian Currency Reserve has fallen almost continually since August 7, 1915, when the amount stood at 4,015 lakhs. The fall up to February 22 Jast amounts to 1,600 lakhs. This decrease is a noticeably large cne to take place within eight months, and compares with 346 lakhs in the similar period of 1914 and 1915.
It is quite possible that military operations in Mesopotamia and elsewhere in the East have some connexion with the outflow. The pay of the Indian native infantry sepoy is 11, and of cavalry 13 Rupees per mon: h, higher ranks being: paid in proportion. Allowing for the cost of food, and the expenses: connected with coolies and transport, each division of the native: army is likely to cost 5 lakhs a month, and each division of the British Army, exclusive of pay, 10 lakhs a month; thus 15 lakhs of Rupees a month are needed for each 25,000 men of the Expeditionary Force, composed of India and British troops in equal proportion, This being the case, prolonged hostilities, or an occupation of territory outside India, will cause a great demand for silver coin in connexion with military operations, and such a drain upon the available supplies of Rupees that the possibility of fresh coinage Required roust not be disregarded.
Text read from the printed page and cleaned; old type leaves the occasional error.