The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-07-16
GAMBLING IN RED
METAL AND EFFECT
Engineering and Mining Jour.
nal Does Not Sanction This
Amusement Much.
Is REALLY NOTHING
so VERY NEW ANYHOW
But Effort to Increase the
Gambling Spirit Is Not Fav-
orably Received.

We have at several times during the
last year referred 10 the unusual specu-
lation in copper that has been going on,
and its effect upon the market Specu-
lation in copper is, of course. no new
thing. The copper-seliing agencies of
this country that buy and refine crude
copper habitually take advantage of the
London speculative market to sell
Standard against purchases here if mar
ket conditions indicate this TO be a wise
policy; or. on the other hand, they may
purchase Standard in London, take de
livery and bring the material to this
country for refining. The London
Metal exchange, which in effect is IN
ternational, inasmuch as a large part
of its business emanates from this
country, serves, therefore. as a balance
wheel, and the prices for copper at New
York and London can never be for
long time out Of Joint, says the Engl-
neering & Mining Journal
The unusual feature of the last year
in copper speculation has been the par
ticipation of outside interests that have
no direct concern with the metal in
dustry, Just as they have previously
done in grain and cotton. Another class
the copper market on the ground that
il experiences a more active movement,
and affords greater opportunities for
profit than do the shares of the cop
per mining companies; well-known
American, brokerage houses have pub
]icly stimulated this speculation Still
another class undertakes speculation IN
the metal in London for the purpose of
influencing the stock market here. From
this it has resulted that the copper
market. both of New York and Lon
don-which, as we have previously
pointed out. are practically the same
is swayed by many conflicting influ-
ences.
There is even some speculation in re-
fined copper in the New York market,
but this is generally discouraged by
the selling agencies for obvious rea-
sons. Copper sold to n speculstor is
destined to be put on the market again,
and the resale may spoil the plans of
the original seller. 1t is indeed con
ceivable that an agency might come
into competition with speculative cop
per held IN storage ut It's own refin-
cry. Nevertheless. there are apt TO be
some overtures looking toward specula-
tion of this kind that the agencies can
not we'll decline and. indeed, upon oc-
casions such transactions have actually
been inspired by them. There is, more
over. a constant speculation in refined
copper by the smaller fry OF the metal
business. while now and then manufac-
turing consumers cannot resist the
temptation to take a FLYER. and buying
for more than actual requirements may
offer their surplus i'll the market under
certain conditions.
All of this injects a gambling spirit
into the business i'll a staple commodity,
which tends 10 upset calculations. As
is well recognized. modicum of speeu-
lation is by no means n bad thing, serv-
ing to temper the natural fluctuations
and generally steady the market. The
speculative purchases Of the man of
large means, who reasons from good
grounds that copper is cheap and is pre-.
pared to finance his purchases for the
long pull are of that character On the
other hand, the transactions Of the
speculator who buys or sells upon mar
row margin with the expectation that
copper is quickly going up or down, and
otherwise with no particular considera.
ton of conditions, are fraught with con
siderable danger We saw in the early
part of this year how the liquidation
of such speculative commitments pre-
cipitated sharp decline. and lately
there has been something similar We
have repeatedly been surprised by evi-
dences of the extent to which this specu-
lation in copper has lately been car
ried. 1t is condition that is ominous
for the stability of the market. The
latter will be assured only when actual
consumption begins to check the accu-
mutation of supplies, and the large
transactions in the metal signify more
than the mere transfer from one hand
to another That there will be any
restriction of production there appears
TO be no hope, the output having in
creased steadily on a l3.cent level We
can, therefore, look only TO an increase
in consumption.