The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-15

~ AAhg " AA1Aht hRNV - "" ~
90, Mt rate TO ~ per cent. would not have
placed the rate a. the high figure that IL
did had II not been for the unusually heavy
demands for money nov addrersed 10 tho
London market from ERypA. Egyptian nieT-
chants are at times hssvy speculator- IN
cotton. and thu Commotion on the worlds
cotton exchanges caueed by the reduction
Of tho estimates Of The seasons cotton crop
IN this country has led 10 active commit
ments for tho rise in the staple in Cairo and
Alexandra. There are. too. other reasons
why Egypt il asking for gold from London
AT his time. Sterling exchange here. in ocn-
sequence NJ all this. has risen 10 . point
that puts an end. for the time being A.
least, TO gold exports from London TO this
side: but inaEmrch as these exports have
on the present movement reached the large
sum ~ t4S. 200, 600, and since the first OF
june have amounted to over 800, 200, 900.
our bankers are by no means in a complain
ing mood about the matter. II Is believed.
too. that the Bank Of England will be able
to replenish her depleted Golfers in due
course and without any great difficulty.
The bank will now he in undisputed receipt
Of all the gold laid down in London from
the South African mines. which seems
to rim at the rate Of about ESQ., 900 a
week. and sterling in Paris has Tisen to a
point hat makes large remittanoee from
Paris to London unavoidable. In the mean
time. although the money situation " thus
bettered. there IL no doubt that the great
financial powers here are interested In pre-
venting a runawa market In Wall Street,
and while holding the market firm are in
tereeted in repressing undue speculation.
Every sensible person knows. too, that this
is the wisest counse to pursue and that il
will mean not only higher prices later on
but a stable stock market at this more
elevated range.
Meanwhile a third factor Of broad i'm
portance in the general situation continues
to be the stupendous and profitable volume
Of business that il now being transacted
over the entire country. A clear exemplif-
cation of what Is going on is afforded In
the state Of the copper trade. For a long
time back the price Of copper has been
steadily advancing. and the opinion pre-
vailed among many copper consumers.
due in great part to the mistaken views
urged by many influential trade journals.
that the rise in the price Of the commodity
was largely a matter Of speculation.
RUmors circulated that there we're great
quantities of copper locked up" some
where and that various large copper pro-
ducers had entered into a sort Of pool to
hold back supplies Of the metal from the
market, These tales were totally unsup-
ported fabricstions. yet they found be-
levers and led. on the part Of a certain pro-
portion Of consumers of copper, TO smaller
takings Of metal than their orders for the
manufactured article justified. In time.
however, the true facts regarding the
situation grew 80 clear that all question
as TO their reality vanished. 1t became
evident that. while the production Of COPPER
in this country. where Of course most Of
the worlds supplies of the meta. is brought
forth, would be increased in the calendar
year only by bout5 per cent, Consump tion
Of copper had increased between 30 and
40 per cent The normal increase in the
country's output OF copper is about
10 per cent. per annum, SO that the very
remarkable fact is that this year. in spite
Of all the stories about the working of large
new copper mines. &C. and the tremendous
impetus given to the production OF the
metal by the high prices obtained for il,
the production actually showed a relative
falling off. The enlarged consumption of
copper has been due in chief degree to its
use in electrical construction, and the con-
| sumption Of copper in this way is swelling
and developing in a way that would nave
| seemed incredible even a few years ago,
when the true meaning, in a commercial
sense, Of the use of copper and electricity
became emphasized. Similarly. views
about the future development of the iron
and steel busines have undergone great
modification. Less than ten years ago
great fields Of iron ore lands in the country
were considered practically worthless .inae-
much as il was felt that they were part Of a
supply that was boundless. To-day the
iron and steel manufacturers Of the country
are looking on ore fields as an almost price,
! less possession; and il is now some time
since the true value Of the anthracite lands
Of the country began to he appreciated.
The farmers OF the country are in turn
discovering that so great is the increase
Of population here and 10 much larger is
the per capita consumption Of wheat and
corn than il was a few years since that,
despite the rapid succession Of crops of
grain, al. these staples sell at a high price.
An increase in the consumption Of all arti-
cles Of produce and manufacture fully
equal to or even %outrunning their produc-
ton and due in great measure to the en-
larged population Of the country is, in other
words, the story still heard everywhere
in the business world; and the effect of
this, 40 lar az prices are concerned, il un-
uuestionably heightened by the lower pur-
chasing power of money hat has been
brought about in recent years by the vast
and startling increase in the worlds pro-
duction Of gold.