SILVER POLICY

Hokitika Guardian, 13 December 1935, Page 5

SILVER POLICY

U.S. PURCHASES CEASE

(United Press Association—tiv Electri Telegraph—Copyright.)

NEW YORK, December 11

News from London that United, States Treasury purchases of silver had enabled the fixing of the price at. '■"i pence per ounce has had a- firming effect on the silver market here, spot silver being quuted at (j2| cents per ounce.

There is a variety of causes attributed to tlie C.S. Treasury’s sudden cessation of its silver purchases. Among these.was one that the Chinese Government had offered to sell at Washington two hundred milion ounces of silver that it has commandeered in China.

It is understood that the Washington Government then intimated that this metal should be used by the Chinese Government :as the basis for a managed currency, rather than tne sterling currency recently adopted by the Nanking Government. Upon’this China is reported to have stated that the metal would be offered on the London market.

The United States Treasury then stopped buying silver in London. The Treasury also intimated that this step might he construed as a warning to other Governments, such as that of Hong Kong, which are allegedly contemplating following the Chinese ex-‘ ample in the matter of managed currency.