The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1907-10-03
Outlook is Hopeful for Better
Price Soon
late PRICE WAS TOO HIGH
Persistent Attempt Of United Metals
Selling Company to Maintain II
Was Chief Cause Of Panic

~ ~"PA""oeioH VI Inc general Tea
lures Is unnecessary. The readers o
the Journal who have followed IT
market reports during the last 81,
months are thoroughly conversan
with the developments which led t,
the present situation. The latter /.
not sudden denoument, but is the
result OF causes which were clearly
In evidence as long ago as last March
and were doubtless in operation con.
siderably before that time. A few
details may now be added to the his.
torical record.
Amalgamated Somewhat to Blame,
The distressing effect of the great
fall In the metal upon the stock mar
ket has led to much Incorporate
criticism of various parties which are
held to be largely responsible for the
management of the Amalgamated
Copper company. We do not, by any
means, hold that management blame
less in the matter. but nevertheless
1t must be recognized that 1t was
largely the victim of circumstances;
in other words. the causes leading
to the present situation were entirely
beyond its control. Such blame as is
to be attributed to the Amalgamated
must be confined to It's failure to
recognize the situation that was de-
veloping; or its attempt to conceal
from the public the dangers which it
knew to be impending.
No Real Trust in Copper.
The Amalgamated Copper company
itself is not trust" it Is simply
big mining and smelling company,
the biggest individual producer of
copper in the world, but not suffi-
GENTLY big to control the market for
the metal. The product of the Amalg-
amated Copper company is sold by
the United Metals Selling company,
which also has contracts with many
other producers. These contracts are
of various nature, but In general they
give the United Metals Selling COM
pany the uncontrolled disposition of
the metal, and thereby this company
is a far larger factor in the market
than its agency for the Amalgamated
alone would make it.
During the period when the price
for copper was rising, the manage
ment of the United Metals Selling
company was firmly convinced that
the statistical position justified the
large advance, eliminating last
spring. The other large interests, in
GLIDING Phelps, Dodge & Co., and the
Calumet & Hecla, conceded in this
view. But although the policy adopt
ed by the selling agencies promoted
the scare among the consumers which
caused the wild buying of the latter
and the consequent runaway market,
there was never any combination In
restraint of trade among the pro
ducers or the selling agencies Sus-
picion as to such a combination was
common but incorrect.
Tried to Play Cincb.
However, when the demand for the
metal began to become slack, last
March, the United Metals Selling
company attempted to hold up the
market to its previous high level. 1t !
openly pursued the policy of staying
out Of the market until the half
starved consumers would be COM
PEELED to pay its monstrous price, and
while other dealers were liberal sell.
ers Of copper at gradual concessions,
1t connived at, II it did not inspire,
attacks upon the Metal Exchange,
which was quoting the actual mar
ket with substantial accuracy, which
the United Metals Selling compan,
knew to be the actual market, and to
give verisimilitude to these aspersions
1t compelled its own president, who
was also president Of the Metal Ex-
change, to resign the latter position.
Domestic Consumption Trifing.
As far back as last March the buy.
ing Of copper, for domestic consump-
ton especially, began to fall of heav-
lily and soon dwindled to small pro-
portions. The consumers have re.
NAMED generally out of the market
up to the present time, and this near,
ly complete cessati OF business has
been the most remarkable feature Of
the recent history of the market The
explanation is, of course, the init
mate connection between some of the
largest uses Of copper and the con-
dition OF the money market. The
fact that the trouble in the latter was
due to the expansion of industrial I'M
beyond the present capital
resources OF the world has been re-
peatedly pointed out. The producers
had largely sold their output up to
July 1. and 1t turned out that the
had over-prOvided for
their requirements.
Some Sold IN E,,rO,,c