Omaha daily bee., 1888-05-04
BUYING THE COPPER OUTPUT.
A Combination to Control the Big
Mines of the World.
a FRENCH AuTHoRlTYs VIEWS
He Does Not Think There Is Much to
Fear. But VIII Not Predict a
Collapse Equal to tho
Failure in Tin.
A Big Copper Syndicate.
tCorrioht fsQs bv Jomes GorGon Renn,,

u
PARIS, May B. New York Herald Cable
Special TO the BEE. The movements Of
the copper market are exciting great deal
of attention. Herald reporter was esI
pecially commissioned to interview one OF
the highest authorities of Paris
" am quite willing to give you," said he,
"all the information possible. You know OF
course, copper is now quoted at say ESQ
ton. This, of course, makes 25 per cent
backwardation. Copper had fallen at tho
end OF last year $40 ton. AT this move
ment there was rush of buyers and copper
began to rise"
"Who were these buyersm
VI cannot say, but they certainly are sum.
ciently known to any observer Of the copper
market A great fact TO remember is that
they were not satisfied with buying in the
ordinary way. They supposed the price
could be maintained at that high level, and
acting under this influence, closed copper
contracts with the principal mines of the
world, including Rio Finto, Taris Pernun-
clio, and Vignoes in Norway. AS the field
cooperation grew larger they formed a syn
dicate for buying the whole production of the
mines, and engaged to take all the copper tor
two or three years with the obvious purpose
of mastering the market Now these specu-
lators, whose names purposely omit, are un-
doubtcdly strong ana we fully recognize
their strength, but our theory is they have
done too much. They begin by buying at an
allround price of e65, and give up q part of
the eventual profits of the metal sold at 915
or ESQ"
'Where is their weak pont"
"Well, it may be said that they have for
gotten certain mines, and notably the Calu-
met and Hecla. l could mention others, Of
course, in Chill, Australia, Italy and at the
Cape, but have my own reason for not doing
so. just reflect whether the mines which
could not produce profit when copper was
at e40 cannot take advantage of the rise
to ESQ. l will explain myself as clearly as I
can. Probably what has occurred with tin
will occur with copper. The same syndicate
began operations with tin and this may be an
indication of what we have to expect in
copper. The market in tin rose from 91OO to
e167. That price was for delivery just as for
copper. This made g67 backwardaton for
three months, and even $50 backwardation
for week. 1t was at once evident that
this iumpy market showed an un-
sound state of finance. This was
proved yesterday by the fact that on the last
| day of April tin rebounded to the old price of
gl00." 90
"You expect a collapse thenl"
~ don't think that copper, which is large
market, will be so extensive as this, but
should like to remark there may be many
other secondary reasons contributing to
fall in copper. There are many industrial
enterprises now employing steel and iron in
stead of copper. l may say that while l own
that the copper buying agencies are astute
operators fail to see their sequence of ideas
in the present case''
'While speaking Of copper, may ask q
question about wheatr
"All can say is that there is every pros
pect of big rise. On crops in America the
forecast is large diminution in Ohio, Hi.
nois and Indiana and that will raise prices
all the more So because wheat is lower than
for the last two years and this does not in
clude European complications. Mo- if any
| thing were to happen to disturb the peace Of
Europe the rise would be enormous