Dodge City times. [volume] (Dodge City, Kan.) 1876-1892, 1883-07-26
Gambling I'm Iron.

There is probably no American in
dustry whose qualifications extend in as
many directions and upon the condition
of which the prosperity of the country
80 greatly depends as that of iron. That
this great commodity should be made
the subject of marginal speculation is,
therefore, of no little interest to all
readers. This sort of gambling is as
easy in iron and steel as in New York
Central stock, and the public with dol
lars to spare are fast learning that it is
as possible to gamble by tons as by bar
rels or shares.
A 'gentleman interested in this matter
said to-day: 1.-THE brokers and specu-
latOrs behind this new movement are
using every means to tell the public
that the heaviest metal can be bulled
and beared with as much agility as cot
ton and wheat futures. Brokers who
know as much about pig-iron, or any of
the metal industries, as they do of the
capacity of the Cincinnati Music Hall
or the Brooklyn bridge. are sending to
their tailor, the clerk, the milliner, or
anybody else with a few hundred dol
lars, admission cards, setting forth the
possible profits in one hundred tons of
pig-iron, resulting from fiuctuation of
SO much per ton. The card fails to state
the possible losses.''
is gambling in metals new in this
country?" asked.
YES" was the reply, "but in pious
old Scotland it is common enough.
There it is made easy by several condi-
tons, none of which exist in the United
States.''
"What are they?'
"Well, for example, the surplus pro-
duction of Scotch furnaces is. stored.
There is a regular warehousing system.
For this iron in store warrants are
issued, somewhat resembling, in their
uses, a warehouse receipt for whisky in
store or pipeline receipt for petro-
leum. Moreover the grades and CLASH
fications of Scotch pig-iron are much
more exact and uniform than in this
country. A warrant stands there for
something specific. 1t means 500 tons
of pig-iron, of which 800 tons are of No.
and 200 tons of No. grade, but the
brands of iron-that is, the iron made
by the different furnaces which are
listed as mo. l. and No. care
definitely known and do not vary widely
in value. Again, iron in Scotland is
made for export, so that if prices are
stimulated by speculation and sudden
break leaves great surplus on the mar
ket it can be shipped at ruling prices and
sent beyond the sea-"
"What is the difference in American"
'All in the world. In this country
there is practically no pig-iron in store
and no warehOusing system. Conse-
quently a marginal sale to-day on the
floor of the exchange, say 1000 tons of
No. pig for October delivery, was pure
ly a transaction in token. No actual de-
livery was contemplated. The whole
thing was simply bet. The seller bet
the buyer that the price would be lower
in October, and the buyer bet that it
would be higher. When the specified
time arrives the loser will pay the diff
ference between July and October quo
tation, less, of course, the broker COM
mission
~ That" said my friend, ''is one diff
ference"
There are others?''
Eyes; another difficulty with this sort
of speculation in the United States is that
it can not be made for export. Compe-
tition in foreign countries is difficult
when Scotch pig-iron can pay duty at
an American port of seven dollars ton
and still compete in this market with
the domestic product. The result of
this condition is evident"
''What will the effect on the market
of large dealings in these margins be?"
''Well, if the outside public goes in
very largely OH this sort of thing the inl-
mediate result will probably be a rise in
the market and an increase in actual
production.
''What will be the ultimate result?'
''The demand will soon prove ficti-
tious. You see, only so much iron can
be actually used. The tailor and MILL
ner will soon begin to unload their sham
purchases, and then will follow a sud-
den fall in quotations, consequent upon
its surplus stock, and the effect upon
the furnaces will be disastrous. All the
time. however, the brokers will have
been swelling their pockets with double
ended commissions upon paper sales
and purchases, and they can laugh at
enforced 'blow-Outs.'
when did you become interested in
this thing?" asked.
'Only short time ago, and deter
mined to investigate the history of the
New York Metal Exchange, which l
think the public will be interested in"
'Does iron vary much in price?''
Every widely at times,' was the re-
ply. Last week it advanced $3.50 per
ton. Between August, 1879, and Feb
ruary, 1880, it advanced one hundred
per cent, and the next three months
receded forty per cent"
1.-The necessity of stricter classified
ton of pig-iron will be necessary" con-
tinued my broker friend. "before any
systematic gambling can be INDUCED
in. 1t will be necessary to know, when
a man makes contract to deliver No.
l. pig at certain price, just what
No. / pig isl
"What do seats in this exchange sell
for?" was asked.
"Seats in the new exchange are gen.
orally sold for 500. The present price
raises week by week from $3.50 to
$4.75. Bulling the stock of the ex-
change itself seems, so far, to have been
the most active pursuit of its members.
Firms of solid standing declare that
there has not been SO far, to their
knowledge, single actual transaction
on Change in any kind of metal. The
entire business has been in paper
futures but members of the exchange
will tell you with great gusto that it
will yet prove great business. IN. Y
Cor. Chicago Tribune.