The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-10-28
THE PRICE OF DIAMONDS.
Importers Uncertain Whether They
Will Increase in Value.

New York Tribune.
There is theory in political economy
which, when stripped of verbiage, states
that the price of any article is regulated
by supply and demand. Possibly in modern
works on political economy that will be
modified to read that the price of a COM
modify is regulated by the man or men who
control that commodity. Just now a great
deal is being written and said about the
probable rise in the price Of diamonds ow-
ing to the war in South Africa. Now, ev-
erybody knows, or ought to know, that
most of the diamonds which come into the
markets of the world are taken from the
mines in South Africa, though a small per-
centage come from South America and
other places. The diamond supply of the
world is also controlled by a syndicate. of
which Cecil Rhodes is the head. and that
syndicate is in a position 10 say just about
what the diamonds shall bring in the mar
ket. This is the first step in showing the
fallacy OF the old economic law and its need
of amendment; but, coming nearer home,
there are other things to show it,
OF course, the fact remains that diamonds
are not absolutely necessary to existence,
but that is no reason why those who want
them should be obliged 10 pay more just
because there is a war in Africa and some
body wants to put the price up. There is a
difference Of opinion decidedly as TO the ne
cesslty for an advance. Mr.: Kahn, OF L. b.
Nj. Kahn II Co., NO. 1I3 broadway, Wnen
asked yesterday about the probable rise in
the price of diamonds, said: Il think there
will certainly be an advance, although 1T Is
impossible to say how much that advance
will be. The syndicate keeps no stock on
hand. All the diamonds that come to il are
sold at once. 1t is mistake to suppose
that there is any supply on hand, and II
the mines shut down there is bound TO be a
considerable rise. America imports about
$50 10000 worth of diamonds year But
she Is by no means the biggest buyer. There
was a time when l bought more than any
one man, but now have friend in Frank
fort, Germany, who outbuys me. l mention
that to illustrate the fact that this is not
the only country in which there is a keen
demand for the stones 1t is the same in
England, Germany and France; At the syn,
dfcates office, in London, buyer is told
that he may have "a sight of the stones on
hand. Thursday of each week is the day
set for that. Well, half a dozen men may
have come so Informed. One man sees
them at time. There is no haggling about
you must take all or none. If you don
some one else will. A man often has to
buy 800 caratS of stones that he does not
want in order to get half that amount of a
stone he fancies. That's the way the dia-
mond business Is done
At the office of Tiffany & Co. it was said
that they would certainly not advance the
price on diamonds unless the war goes on
much longer than is expected. The talk or
advancing is caused by some people who are
nifty to make added profit There is a
good demand for diamonds, and they are
firm. They may be q little more firm, but
the war in Africa is not going to affect us
for many months. OF course, ii is said that
the syndicate sells its diamonds outright,
so. No, think that all the diamonds that
are wanted may be bought as usual.