Aside from a three days' moderate reaction silver continued at its low levels. In order to see a decided upward movement it would Decome essential that either local silver stocks are being absorbed by the interior, or else that the Indian Treasury should announce its determination to suspend further of silver until times are more propitious. These are two obvious factors; possibly there are some others capable of causing a swing of the pendulum, but they are not apparent at the present juncture.
The pronounced weakness on Fri day afternoon was to be ascribed largely to cabled news from Bombay, saying that the Indian Treasury had sold 2,500 bars (weighing over 2,600,000 ounces) on the local market. While this news is subject to confirmation, its effects are plausible, It is believed that the recommendations made by the Simons Commission would possibly come up for discussion in the British Parligment in the course of the next fortnight. At this occasion it will be seen whether it really contains strong recommendations regarding the interruption of sales of silver by the Indian Treasury.
The rise in the official discount rate of the Bank of England. to 6} per cent, has an indirect, though adverse, influence on silver. Banks here will endeavour to remit" as much of their cash to London. The increase in the bank rate hits exporters badly, for the enhanced discount cart has to be included in bank's buying quotations. Simi-levily importers here, who are said not to be bedded on roses just now, will be called upon to pay por cent. interest on their import drafts.
'A feature which calls for attention is the fact that, despite exceedingly low, silver' levels, ports from China are not flourishing.. This fact may partly be accounted for by' th with which the native d to increase his pric ency, not merely in proportion to the fall of. local exchange rates, Dut in a kind of divine revelation to depth bordering on unintelligent anticipation, Years of close observation have convinced the writer that exports from China flourish only whenever silver prices are high. This statement, sounding somewhat anomaly bbe verified by: the Gold Embargo occurred during the week as far as facts are con-corned, for the value of the yen has remained practically unchanged. On the other hand, there is. news in connection of surmises and rumours. In November, we hear, an announcement might be fortheoming that in January, just before the dissolution of Parliantent, the embargo is likely to be lifted. The political cachet of the problem now mo more hidden; it is eve being pushed into the foreground. Now, that the former Minister of Railways has been accused of bri bery, the" embargo against the export of gold, and incidentally als> the return of the present Government party, is much nearer realization.
Japan is the only country, whose currency is based on the gold standard, which (after a temporary suspension of gold payments) has not yet resumed specie payment. The attempt to the return of nor-malay is s justified as necessary. That the embargo will be lifted some day is clear. Whether or not that day dependent on high polities, and less on prevailing eco nomic conditions, is another problem.
'Let us, man unbiassed manner, consider facts bearing upon the question. The motto of the present Government is retrenchment.' The first step' towards that goal has been' the cutting of next fiscal year's budget by yen 140,000,000. The budget of the South Manchurian
Text read from the printed page and cleaned; old type leaves the occasional error.