Provincial Governments in China.
1 am to. (ŝa.) E.E. blake.
Messrs Pixley & Abell to Crown Agents.
26th May 1908.
Gentlemen,
We beg to acknowledge the receipt of your letter
of the 25th May, enclosing copy of a telegram received from the Government of Hong Kong with regard to the proposed disposal of subsidiary Silver Coin.
The present price of Silver is 24 11/16d which is 11/16d. higher than the lowest this year.
There is nothing encouraging in the future of the Silver market under present conditions.
The Indian Government are not likely to want any silver for at least two, and possibly three years, and the present mainstay of the market is the Indian Bazaar buying.
india has bought on an average £700,000, every month this year, which is considerably more than they have taken during past years. These purchases have no doubt been stimulated by the low price of silver, but we cannot think they will continue, and we see no other important buyer to
take their place.
On the other hand we do not see any heavy fall at present. There is a chance of the German Government buying though this will not be we understand for any important amount, and there is a prospect of some demand for China; further, there is no likelihood of any important movement taking place until we get news of the Indian Monsoon, will not be for a few weeks. if the news is good, then we think the market will keep steady at about this level, or perhaps improve a little; if on the other hand the news is bad ve seo much lower prices.
which
There is no doubt that the present level of Silver
-5-
is
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