London, Dec. 28.
The reduction -of the silver content of the Indian rupee is of the utmost importance to the London silver market. This bullion market, formerly the world's main silver trading centre, lost much business after the ited States Treasury discontinued at the end of 1935. Trading was restricted further by the introduction of the British import and export licensing system late last year. The present narrowness of the market favours wide fluctuations in prices. On many recent Occasions lack of supplies caused advances in quotations on the slightest demand, says Mr. H. Heyman in the "New York Times.'
The British Indian Reserve Bank showed inclination in recent months to stop the rise in the London price at 234d a Troy ounce by offering its holdings. There was, however. speculation on the belief that minting requirements might limit India's offers eventually. This belief was ended by he reduction of the silver content of the rupee. The noper limit of the London silver price, therefore, is likely to remain 23%d for a long time, while the lower limit is based essentially on the United States Treasury price.
Text read from the printed page and cleaned; old type leaves the occasional error.