The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1916-05-04
Metal Prices--How Daily Quotations
Are Obtained Misleading To Public
mining and Scientific Press)

us the statement for the week March
20 to April and note that 1t is an
elaborate blank, despite the active
dealings in these metals in progress
elsewhere during that period. In
short, the metal exchange is a fake
and the time has come to recognize
il as such.
The daily press and many financial
papers are not reliable sources of in
formation IL precise figure are re-
quired In regard to the business done.
1t may be enough for the general pub
lie to know that copper is at the zee
or the csc level, but the actual buyer
or seller deals in fractions of cent.
Furthermore, a pegged price Is often
fixed tacitly and may be quoted long
after the market has sagged. Some
Of the prices quoted in the daily press
represent what consumers are pay
ing for metal delivered at THEN own
plants, while others quote for metal at
the refinery dock. This corresponds
to spread of " cent per pound in
normal times, but now that freight Is
so congested around New York the
considerably. In regard to spot cop
per, either Lake or electrolytic it
should be known that this product has
been so scarce Of late as to be desig-
mated speciality in the trade. Con-
sumers do not buy from hand to
mouth; they must rake their pur-
chases sufficiently ahead to ensure the
continuation Of their operations, so
that 1t Is with futures, near or other
wise, that the actual market Is con-
cerned in these days. Our New York
correspondent has reported repeatedly
that immediate shipments command
premiums and that these premiums
are paid by few important consumers,
The business recorded recently has
been mostly in June, July and August
deliveries. Sales have been put
through in large volume at from 1915
press and some Wall street papers
have proclaimed $3.50 as the price of
copper. 1t is, and 1t Is not. The fact
is that the daily press does not keep
in close touch with the market; in
this, as in so many other matters, 1t
is crudely careless about accuracy.
Further it may be assumed, for the
purpose of business, not philosophy,
that if a newspaper or other periodi-
cal has certain clientele Ii will lean
toward the interest of that clientele
In the same way broker that spec
ulates in metals is an unreliable ar
bitter of prices and metal selling
agencies in the east have to make
strategic movements that disregard
the welfare of individual producers Of
copper or zinc in the west. The sub
! ject is complicated by the interplay of
number of forces some of them sin
lister. Since the beginning of the war
there have been many disclosures at
Melbourne, London, and New York,
indicating that the owners and oper-
ators Of mines are sitting in a game
not conducted according to the rules
! of clean business, the essence of
which is that it is mutually profit
able. Again we suggest that one OF
our professional organizations, the
American Institute of Mining Engi-
neers or the Mining and Metallurgieal
Society of America, should appoint a
committee of investigation to inquire
ing and selling. No subject Is OF
more immediate Importance to the
mining industry.