The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1916-05-06
FAULTY METHODS
OF PRICE FIXING
EDITOR RICHARD DECLARES
QUOTATIONS FAIL TO REP
RESENT TRUE VALUE

Discrepancies In the QUOTATIONS.
for metals, especially copper and
zinc, have caused irritation and
created suspicion among those who
are engaged in the mining and
selling of them. In particular, we
have received letters commenting
upon the discordance between the
official prices published by the New
York metal exchange and those
quoted in the technical press, for
example, in our own columns. On
tically no metal is sold on the
so-called metal exchange in New
York, the quotations issued being
largely fictitious. q
At rare intervals a sale is re-
corded as having been made on
the floor of this exchange, but
when it happens the assumption Is
that the transaction is performed
for some sinister purpose, as when
spelter was offered by a broker.
not regularly engaged in the trade,
for the alleged purpose of breaking
the price then prevailing, a price
considered excessive in certain
quarters. 1t is a fact that this
broker was deputized to make the
Offering at a price lower than the
outside market. Again. spelter has
been sold on this so-called exchange
in small lots and at low prices
Tor the alleged purpose of obtain
ing a quotation hat could BE
telegraphed to the west with a
view to influencing ore prices,
Only the other day. April 5, a
dealer in tin made a bid of 55c
for spot tin, receiving no accept
ance, and later in the day he Of
fered to sell at 53c; the inference
being of course, that the high bid
was made merely to boost the
price. As regards copper, only the
so-called standard variety is sold
on the exchange, on those rare
occasions when there is a sale.
This material is of no value to the
consumer of refined copper. AS
far as we can learn, this exchange
serves some purpose in the col
lection and distribution of sundry
statistics; it is a receiving and dis
tributing point for the daily cable
grams from London; and when
united action is demanded, it
serves to bring the members of the
trade together and furnishes a
medium for the expression of their
policy.
Thus the habitation and the name
may be useful on occasion. This
happened recently when protests
were lodged with the British Il
thorities by the tin committee OF
the metal exchange, thereby secur-
ing a modification of the drastic
regulations governing dealings in
tin. Years ago a good deal of real
business was done on the exchange
and some of it's members still
cherish the hope of a revival, but
it is clear that unless there is some
assurance of bona flde prices, 1T
were better to give the thing a first
class funeral. AS now conducted
it is a sham and a snare, as is
evident from the confusion it has
created among mine operators.
A dealer rises and asks what
shall we make copper today" to
which another so-called broker re
plies Il bid 26" and a third Il ask
IS" %whereupOn the average is
called market. Even this hollow
mockery is enacted irregularly. The
Official Daily Market Report of the
New York Stock Exchange, the
name is long enough to be pre-
tenrious, is a publication supposed
to give the quotations. We have
before us a statement for the week
March 2 to April 6 and note that
it is an elaborate blank, despite
the active dealings in these met
ais in progress during that period.
In short the metal exchange is a
fake and the time has come to
recognize it as such.
The daily press and many finan-
cial papers are not reliable sources
of information if precise figures are
required in regard to the business
done. 1t may be enough for the
general public to know that copper
is at the 26c or the csc level, but
the actual buyer or seller deals III
fractions of a cent. Some Of the
prices quoted in the daily press rep
resent what consumers are paying
for metal delivered at their own
plants. while others quote for mot
al at the refinery dock. This cor
responds to a spread of one-fourth
cen per pound in normal times. but
now that freight is so congasted
around New York the difference
is likely to be increased consid-
erably. In regard to spot cop
Der. either Lake or e~lectrOlytic, it