The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-03-11
Engineering and Mining Jour
nal Explains a Matter Very
Little Understood.
HAS APPLICATION TO
PRESENT AGITATION
Interesting Way of EIeyating
Prices of Metals Set by
the Trust.

''h'i'i III "ii'u VIC AIuppl Adlll IutNdlSs
! other than iron and steel are sold. says
| have many times printed articles on
| these subjects. but as new persons are
constantly coming into the business who
| are unfamiliar with it there is ample
| reason for republishIng information that
Is we'll known TO the majority. Gold Is,
! as Is well known. the standard OF value,
at us lo5d per ounce troy OF OOPS flne-
ness; and at the United States mint at
S9o.67lS per ounce troy. These mints
receive unlimited quantities nj those
| prices. However, there is nothing to pro-
! hiblt private banker from bidding
higher II he chooses. or course, no one
VIII pay much above the coinage rate.
| because geld can be obtained always
from the mints on the basis of It's 10 cd.
and S2O.67lS per ounce. respectively, but
gold coin loses something by abrasion
and is subject to further loss in ship
mcnt wherefore, there is margin for
| bidding on gold bullion. In December
1908, the price for gold bullion was 7Ss
God, the highest OF recent years. Ship
ments OF bullion 10 London by the gold
banks.
On the day OF arrival bids are asked
from the Bank OF England and from for
eien banks which may want tho gold
for export Tho highest bidder gets IT,
me market for gold lis intimately as
ISOLATED with the banking transactions
whereby International balances are set
Tied. In the purchase of ores. and for
an ordinary purposes. gold has only
the flNed coinage value, The silver mar
ket Is also intimately connected with
banking transactions, large exports be
ing made from London to the far East
IN settlement of balances. The silver
market OF the world, more than any
other metal market. is determined by
London. The silver brokers of London
meet daily at p. m. and fxe price
at the price thus fixed any quantity that
may be required, but are not bound to
take any quantity that may be offered
II the quantity offered is more than
over To the day following and then has
an effect In fixing the price for that
day. The London quotation is for stan
dafd silver. l. O., 0.925 fine.
The New York price for silver nuc-
tuates generally In correspondence with
the London price, being lower than the
London price by an amount representing
commissions. expressage. insurance, In
terest and other charges between the
two markets. and also is affected by
fluctuations In the rate OF exchange, Oc-
ows the London price for the follow
ing day. wherefore the difference be-
tween the two markets is not absolute
ly constant. The New York price is es-
tablished by the firm OF Handy e Har-
man. which handles the great bulk OF
the silver bullion business of the United
states. most OF the large refners selling
their product through IL. Silver is com
monty sold in ingots a little upward OF
1000 ounces in weight, Os99 fine. for
cash. immediate delivery The quotation
the official price" and is commonly
adopted In business and by the press
and Is the quotation which is published
In the journal
Occasionally there are quotations for
commercial bars" which are little
higher than the official price" These
represent the retail business that is done
with jewellers. manufacturers of silver
ware. etc. a hnalneSS Iptn which ko
large refiners do not enter, The large
transactions in silver are rather compll-
Gated. and as above stated are closely
Involved with banking. This is lilustrat-
ed by the transactions of the United
states mint In 1906, when II purchased
6,lbS.I2o ounces OF silver. Before invit-
Treasury department. anticipa ting that
such Invitation might have an effect
upon the market. bought about 2.50O, 900
ounces on the London market for future
deNNefy. These purchases were after
ward exchanged for metal In this coun-
Try, which was delivered at the several
mints as required The remainder was
purchased directly in this country. The
American purchases cost. In lots OF about
10000 ounces. from 10 i cent more
{ham {fao tne quotations for the same day.
ment included delivery, and also interest
which sellers have to reckon on account
OF delay In securing government settle
ments.
Because of the fac, that about 20 per
cent OF the worlds copper output is
produced In North America, the New
York market is the leading and govern
Ing one in this metal although II is
always strongly influenced by the Lon
don market, inasmuch as a large part
OF the American production is sold for
produced in North America is sold by |
seven concerns. but OF these two are
extremely small factors on the other !
hand the great bulk of the domestic /
q ht fAx..
concerns. Under these circumstance
the transactions are generally in large |
sots on a contract basis. There is no |
business 10 speak OF done on ans metal !
exchange, and little or no speculative I
business done in any way. Small re-
anlrements for copper are supplied by
sef1nr rno,o who purchase from the large
ness, SO TO speak, which is quite dis
tinet from the great wholesale business
me quotations which are reported in
transactions as made with consumers.
basis. New York, cash. The quotations
arc based ON transactions which repre-
copper sold. No distinction is made
among copper sold as spot" ''prompt'
'r ,Iuture but all the sales are taken
rs nearly as possible. The small lots sold
1t premiums figure almost disappearlnyIy
small when averaged In the great bulk
II the transactions. 1t is aimed to reDre
producers for their whole OUTPUT. as is
shown at the end OF the year by their
official reports, IT is a common practice. |
nowadays. for copper To be sold on the ?
,asis OF 80 days, delivered which means
nat the seller pays the freight TO the
,oint OF consumption and waits for the
money thirty DAYS after delivery, or else
discounts the bill for cash This Is com
monty ignored in many casual and inac-
urate reports OF the price OF copper.
The spsirer market is quoted I'm tho
ame manner as the copper market In
he quotations for copper and spelter two
'rices are commonly given. In order TO
epresent the range OF the market, but
he fun range Is seldom shown precisely
because the mean of the figures given is
Intended to represent the average which
you'd not always be practicable by giving
he extreme ranges
Upward OF 30 per cent Of the lead pro-
uced from domestic ores is refined and !
old by three interests, chief among
ihich is the American Smelling and Re-
ming company. The market for pig lead
largely controlled by the latter COM
an; and AT present the price Is controlled
v Il. inasmuch as the selling price fiNcd
y IL Is adopted by the other large pro-