In their report of April 7 on the silver situation Messrs. Samuel Montagu & Ca. state:—The market has been rather inactive during the week. The Indian Bazaars have made small purchases; China has not been much in evidence either way. The Continent has sold moderate quantities. The tendency is still for stock in China to augment, a condition of affairs which, taking into consideration the continued lack of demand for Eastern produce, does not conduce to confidence in the prospects of silver.
The preliminary official estimate of the United States of America silver production in 1920 is 56,564,- 504 ounces, a slight falling-off of 117,041 ounces as compared with that of the preceding year.
The native view as to the re-imposition of an Indian import duty upon silver can hardly be ignored. It is urged by the natives that the bullion markets of India should be free—so that the precious metals can be imported_and exported without the fiscal interference which would naturally hinder such operations. Whilst there is no import duty, no artificial value is imparted to stocks held in India, and therefore silver can be re-exported as a commodity when India's trade balance is adverse, in similar fashion to gold.
The following official statement indicates that, in addition to the three lakhs of rupees mentioned t week, a further quantity of six lakhs has been minted during the last week of March. The form in which the return is drawn up does not differentiate between holdings of silver coin and holdings of silver bullion therefore it need not be assumed that the Indian Mint is working fresh material. The new coinage may be minted from meta] already in reserve or from worn coins withdrawn by the Treasury. The fact that the total of the silver holding has. doubled since January, 1919—in about 26 months—seems to dispose of any idea that augmentation of the silver coinage is necessary.
Text read from the printed page and cleaned; old type leaves the occasional error.