clxxii UNITED STATES The Market for Silver during the Fiscal Tear 1898 The steady decline of silver which began after January, 1897, continued until the end of the first month (July) of the fiscal year 1897-98. This decline was caused, in great part, by the adoption of the gold standard in Japan. The causes of the decline in the first part of August continued throughout the month, at the end of which the lowest figure of the calen- dar year was reached — 23|(?. per ounce standard. The decline in August was caused by a species of panic. Speculators abstained from purchasing, while the American holder hastened to sell, so that in the space of three weeks silver fell from 27^^ d. to 23|f?. on the 25th of August. On Sept. 3 the Indian council announced that it intended to stop drawing on India for three or four months, and that it was ready to purchase bills on India in the market. It felt bound to come to this decision by the state of the Indian treasury, due to the revolt of the Afridis and other tribes, and the decline of revenues due to the failure of crops. The result was an immediate rise in exchange on India and silver. Silver was quoted Sept. 6 at 25^ d. and on Sept. 20 at 27^ d. It subsequently fell to 25 d. on the 29th of September, and rose to 27| d. on the Gth of December. On the 7th of December the Indian council decided to resume the sell- ing of drafts on India and the silver market remained firm between 26 d. and 26f d. During the first week in January, 1898, the price declined to 26j% d. , showed a slight recovery on the 6th to 26i d. , after which it gradually hardened, owing to special orders, and after touching 26|d. fell rapidly to 26|^. Considerable purchases were made for China and India, resulting in a rise on Jan. 20 to 26|d. Toward the close of January the plague in Bombay interfered to some extent with Indian sales, but there was a good demand for the Straits at 26y\ d. The silver market was very inactive during February, resulting in a decline as compared with prices in January. The decline was intensified early in March by the repeated circulation of Indian rumors that a prohibitive duty would be placed on silver, and to a momentary cessation of purchases for the Straits, rising to 26} d. on the 17th, after the Indian rumors ceased, but the im- provement did not last to the end of March, which closed with silver at 25j^(Z. Orders from India and the Straits and the cessation of American sales early in the month caused a rise in the first half of April, followed by a decline on the 21st and an advance to 2Q\d. on the 28th. In May a large coinage order from Paris raised the price to 26^'^ d. , but the price soon relapsed to 26 j\ d., owing to the United States selling freely. It rose again for like causes to 26 /^ d. about the middle of May and increased to the end of the month. In June the market fluctuated greatly, owing largely to the demands for Spain, beginning with 27^ d. and closing with 21f'^d. The highest price of silver during the fiscal year ending June 30, 1898, was 27f d. for silver 0.925 British standard, equivalent with exchange at par (4.8()6o) to $0.60831 per ounce for silver 1000 fine. The lowest mar- ket price was 23^ rZ., equivalent to $0.51789 per ounce fine, and the aver- age London market price for the twelve months ending June 30, 1898, was 26y^^ d., equivalent to $0.57675 per ounce fine. At the highest market price during the fiscal year the bullion value of tlie standard silver dollar was $0.47040 ; at the lowest market price $0.40055 ; at the average mar- ket price, $0.44607. At the highest market price, the commercial ratio of silver to gold was as 1 to 33.98 ; at the lowest price, 1 to 39.91 ; at the average price, 1 to 35.84.
