Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1877-05-25
THE LEAD
A Metal Broker Explains why 1t
Is Not Higher.

Is Not Higher.
We are in receipt Of a circular letter
from Edward A. Caswell, a metal
broker OF New York City, giving some
Of the causes of the present depressed
condition of the lead market. His re-
marks are directed more particularly
to the Missouri and Illinois lead
miners, but they are, nevertheless, Of
interest to the lead producers of other
sections. He says:
1.-THE fall in the price of lead last
Autumn was unex pected and I'M
usually rapid, but the cause was a
larger supply than the trade could alb
serb. The reaction from six cents cur
rency in November, the lowest point
touched, was slow, and as late as the
end of January the price had recover
ed only to 81 currency. AT that time
the apparent and prospective supply
was fair, and the legitimate price ac-
cording to the immutable law of sup
ply and demand should have ranged,
through the Spring, from 6 to 81
cents, and there were no valid reasons
for an advance beyond the latter
figure.
At the beginning of March a specu-
lative purchase was made simulta-
neously in st. Louis and New York,
amounting in all to nearly 1000 tons,
an insignificant quantity compared to
the supply and to the objective end
which the buyers had in view. The
price then advanced rapidly until it
touched ga cents, a figure which at
that time was only two dollars per
ton below the cost of Spanish lead laid
down in New York, duty paid. 1t was
therefore evident that speculation
could in no case advance the price any
higher and large buyers declined to
take lead at that figure. A few small
sales were made at the top notch, "a
cents, hut within three weeks time
owe 800 o n were sold in New York
at or about 61a cents, currency. The
parties who bought on speculation
''held the candle" sufficiently high
for other holders and agents to see
their way clearly to selling at
high prices, which they did
freely. These sales were distributed
among all the large consumers, and
gave them so sufficient a supply that
they were then satisfied to wait and
WdtCu lHb turn Vi dHdiTS. ntT6tolOTe,
the production of February, March
and April has been appreciably less
than the consumption OF those months,
and during that period all the surplus
was used up, II we began the sum
mer with very light stocks; but this
year not only has Missouri kept steadi-
ly increasing, but the output of argen-
tiferous bullion in The first four months
OF 1877 exceeded that of 1876 by over
1000 tons. The incoming supply was
ample for the spring demand (rather IA
light one), and the stocks held on spec
ulati0n proved to be a surplus, and
were consequently unsought for by
any anxious buyers. While the stocks
on hand January lst, 1877, throughout
the country were not much owe 5000
tons, they are to-day nearer 5000 tons.
1t has been stated that the decline in
price was owing to a 'bear' move
ment in this city, but the incorrect
ness of this statement must be evident
to any careful observer of figures and
facts. There have been 40 sales made
to depress prices, no rumors started,
no importations, nor in fact any extra
neous efforts to bring about a decline;
on the contrary, sales have been from
first hands and at the best price Oh.
tainable. The market has fallen of its
own weight, and must ecover either
by fresh speculation or when the price
gets so low that production is curtaIled.
[Mr. Caswell being a heavy buyer
of lead, might want to ''bear" the mar
ket. Who knows?-ED. SENTINEL