Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-12-14
How the Metal Market Is Made

In silver are rather complicated, and az
stated above. are closely involved with
banking This Is illustrated by the
transactions OF the United states mint
In 1906. when 10 purchased 6.l5l,1S5
ounces Of silver. Before inviting ton
ders publicly. last August, the treasury
department anticipating that such in
vitation might have an effect upon the
market, bought loco 600 ounces on the
London market for future delivery
These purchases were afterward eN-
changed Tor metal In this country.
which was delivered at the several
miuts as required. The remainder was
purchased directly in this country. The
American purchases cost. In lots OF
about 100. 600 ounces, from y TO y cent
more than the quotations for the same
day, However. the prices paid by the
government included delivery, and also
interest which sellers have 90 reckon
on account OF delay IN securing govern
mcnt settlements.
WORLDS COPPER MART
Because Of the fact that about 70
per cent OF the worlds output OF COP
per Is produced Ia North America the
New York market is the leading and
governing one In this metal although
Il is always strongly Influenced by the
London market inasmuch as a large
part OF the American production II
sold for export. Practically all OF
The copper produced in North America
1s sold by seven concerns, but OF
these two are extremely small factors
on the other hand, the great bulk OF
the domestic consumption is by "a few
manufacturing concerns. Under these
circumstances. the transac lions are
generally In large lots on a contract
basis There Is no business 20 speaN
OF done on any metal exchange. ana
little or no speculative business done
IN any way. Small requirements for
copper are supplied boy brokers wh3
purchase from the large selling agcn-
Giles and do a retail business, so TO
speak. which 10 quite distinct from the
great wholesale business.
JOURNAL QUOTATIONS.
The quotations which are reported
In the Journal represent the bulk OF
the transactions as made with con-
sumcrs. basis, New York cash. The
quotations are based on slctiOns
which represent very large proper
lion OF the total copper sold. No dis
tiuction Is made among, copper sold
as spot" prompt" or future but all
the sales are taken as made Tor con-
sumption and averaged as nearly as
possible The small lots sold az pre-
AIlAlIAH AkAAN hlAAhaA AAaaa lNAhN -
small when averaged IN the great bulk
of the transactions. II is aimed to rep
resent the average actually received BY
the producers for their whole output
as Ia shown al the end OF the year b.
their official reports. II IS common
practise noWaway, FOR copper 20 be
sold on the basis OF 80 days deliver
ed which means that the seller pays
the freight 10 the point OF consumption
ana waits for the money 80 days after
delivery. or else discounts the bill FOR
cash. This Is commonly ignored Ia
many casual and inaccurate reports
OF the price OF copper.
sPELTER MARKET
The spoliCr market is quoted IN the
same manner as the copper market. In
the quotations for copper and spelter'
two prices are commonly given IN
order t0 represent the range u the
market, but the FUN range rs seldom
shown precisely. because the mean 0f
the figures given ls intended 90 repre-
som, the average. which would not
aleays practicable by giving the ex-
lrHo ranges
HOW LEAD FIGURES
Upward of so per cent Of tHo lead
production from domestic ores De- re-
lined uud sold by tHrae iuterrr's. chief
among which i8 the American Smelling
and Eslu.ns company Tho market
Tor pig lead is largely controlled by
tho latter company and at present. the
price Is controlled by o. inasmuch az
the selling price nxcd by 90 b. adopted
hy tho other larre producers
Tine price established hy tho Ameri-
cam smelling ana r. dning company 10
f.T nearby shipments of 0rs'INrrlzed
ltfd lu lJ-tou lots. or larger. THE bulk