Arizona republican., 1902-12-15
The Copper Market.

has not been a strong advance in the price of copper. Unquestionably. the visible supply has decreased to such an extent during the past year that. un- der normal conditions. much higher quotations should be the rule. One theory advanced is that the visible supply is not true index of the cop per actually available. The London Statist, in a review of the situation, in- clines to the belief that the true eN- plantation is the one here suggested.
 According to the published trade statistics" says the London paper III it's last issue the stocks of copper have been gradually dwindling away, owing to the consumption having been a; Il greater rate than the supply provided. and the outcome is that the stocks and visible supply are lower, we believe, than at any previous time in modern history-at November 15, 15,653 tons, or about three weeks deliveries. Under such circumstances, were the position to be relied upon. speculation would arise.
 With much larger stocks than now. the price of copper should harden. and at the same appearance of the con sumption exceeding the supply in 1S91- 9S there was brought about the mem Orable Secretan rig, lifting the price of copper from the 40s momentarily to more than HOO per ton; but invisible supplies poured out. and the rig broke up, copper tumbling to under 40 per ton, and remaining so for considera- ble time.
 Since that crash, a couple of years ago there was another huge specula tive combination effected in America, and its procedure has unhinged the le- gitimate course of the trade. Hence it is that now. with so remarkably low a state of visible supply as regards Europe, we have the price of the metal gradually dwindling. It is against all the canons for such to be the case. but there the fact is, and even the mos: experienced dealers confess themselves at sea as to what the real statistical position is.
 Whatever may be the case as re- gards this country and Europe, there is another very important factor which upsets all calculations. What is the position in America? It has for a long while past been suspected that tine European statistical position of copper is a manipulated one, and that there are considerable hidden stocks under American control.
 While there have been shots and guesses as to the extent of such invisl- ble supply, nothing of very tangible | character as to detail can be obtained, and it is as much due to this uncer- tainty of the position and suspicion of manipulation that users of copper reso- lutely continued the policy-and unGer the circumstances it is a wise one-of working from hand to mouth. Beyond the trade suspicion as 10 the situation, there is also the belief | that the market for copper shares has | been likewise subject to manipulation Considerable parcels of certain shares | in especial Rio Tinto, are believed tc | have been taken up with a view ;c bring about pressure to include the RiC | Tinto company, and perhaps other companies, in the American grasp.
 If there were purchases on a largf scale, and the aim of those purchase. has failed, one can readily understand 1 the weakness of the market for coppe, shares, despite the appearance of . strong statistical position as regard. Europe. And as to the market asser. | tions that in Rio Tinto shares there i. a big speculation for the fall, evidenced by the very low contango rates at eaci | carryover, those assertions, whe. looked into, have no weight
 "If an operator buys 10000 share.
 with certain object. and finds tha his object is not achievable, and desire
 to get out of his shares in perhaps
 limited market. he sells gradually, S,
 as not to disturb prices. and instea,
 of delivering what he has sold he wait
 to complete all his sales before he close
 up the transactions.
 Thus if he has sold 5000 of his 10.
 900 shares he has 1000 still to sell. B
 his non-delivery of 5000 shares tn
 market has the appearance of beini
 oversold. But it is nothing of the kind for there are still 7,0u0 snares nor
 hanging over the market The numpe
 of shares is only taken to illustrate tn
 feature.
 Tn regard to Rio Tinto shares. i
 especial, the relative position, outsid ; big purchases with an object to whic we have referred, appears to be som speculation for the fall on the Londo
 market. offset by speculation for tn rise on French account, and the Frenc operators hold on under the impressio } that with light continuation rates En glish bears will buy back The En
 glish speculation, however is not be
 lieved to be large"