Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1879-01-31

The Market Controlled by-Ewreka
Companies.

Companies.
A circular issued by Edward A.. Caswell,
Of New York, on the lead production Of
1878, among other things, says
The total United States production was
81 ,304 tons, against 70, 125 tons in 1875. an
increase OF IL per cent, or 8,179 tons. The
home consumption Of the country has
been over 10, 900 tons, which shows our
producing capacity to have been more than
10000 tons greater than our demand.
About 1000 tons Of this overplus have
been disposed Of in foreign markets, and
the gains in stock, 5000 tons, have been
piled away in s~tore-houses.
With such existing conditions, it may
naturally be asked why the price, having
fallen to three cents in June. should there
after have advanced to four cents, with
very strong prospects at present of much
higher rates. The reply is easy. In the
month of April the New York market was
weak @3ss to 81 cents, and about that
time, over a period Of six weeks, spccula-
tive buyers took up over 1,500 tons, which
kept the market from falling, but in June,
when the spring trade was over, and specu-
lation ceased to lend q helping hand,
prices tumbled rapidly until several export
sales amounting to 700 tons in ALL were
made at $685. cents, which suddenly
checked the decline. Large be-
came convinced that the bottom had at
last been reached and bought freely to pre-
pare for the fall trade which was
then near at hand. Slowly the price re-
covered to nearly 3s cents until early in
September, when the Eureka Company
suddenly withdrew entirely from the mar
ket. Later in the month, speculation
again influenced the price, and the pur-
chase Of nearly a thousand tons gave the
market a sharp upward turn. The effect
of the withdrawal from sale Of the Eureka
product began by this time to be more
fully felt and together with a good fall de-
mand and the stoppage Through frel Of
the supply from the Richmond mines, the
price advanced to four cents. There is no
doubt that the Eureka Company has the
power to control the lead price for at
least six months to come. Our total yield
during the period cannot excel the rate of
900 tons per mum, and our c~onsumptive
demand cannot be less than at the rate of
10000 per annum. The Eureka mines now
contribute to the above named so, 900 tons
per year, about Is, 900 Of which leaves an
available balance Of only s. 900 tons, or
an absolute annua shortage for home de-
mands alone Of 5000 tons. 1t is impossi-
Bile to fsresee 20 soon the outside lead
production especially after the railroad
reaches Leadville next summer) will sup
ply the demand without any assistance
from the Eureka mines. The Eureka lead
now in New York is held very firmly at
five cents per pound, to which limit the
price is now rapidly advancing. Regard
ing Colorado and Leadville it becomes daily
more evident that its potential capacity is
and had not been overstatod.
The region has thus far been but s~parsely
prospected, and yet there are to-day ores
enough in sight to produce between ten
and fifteen Thousand tons of lead at the
lowest possible estimate, in 1879, and it is
hazardous to predict that within two
years Colorado will equal either Nevada or
Utah in lead ores, so rich in precious met
ais us to fear no rival.