New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-29
Speculation in
Europe Curbed

London had thus controlled prices
all over the world because all the
world did business with confidence
in the London market, and no rival
market could capture London's
good will" in the whole worlds
commerce. If a sale Of tons of real
copper was being negotiated in New
York, the basis of the price-Axing
was the London speculative price,
based on largely fictitious trading.
J But even if fictitious, the trading
was based upon a careful judgment
of the whole worlds situation in re-
gard to copper, and so an economic
service of great value was done for
the copper mining and copper con-
suming industries.
To-day neither the German world
wide control of metals nor the specu-
lative market control of London ex-
lists. The war has seemingly
smashed the German organization.
Throughout the British Empire Ger
man financial interest in mines and
contracts for output have been an.
nulled. Steps are being taken to in
sure permanent freedom from Ger
man control. The same thing is true
in Russia, Italy and France. 1t
looks as if Germany would have to
go into the worlds markets and buy
with no means of exerting pressure
or market control. II will probably
be Of serious meaning TO Germany's
metal industries after the war.
And England has, as war meas.
ure, given over the power once ex-
ercised through London's commodity
exchanges. 1t is unlawful to make
fictitious purchases and sales. I'M
mense tonnages Of copper and
spelter are going to Europe, sold
at prices fixed upon a purely mer-
chandising basis here. 1t is said
that there is no speculation in New
York. In the first place there is
no organized market here where the
public can buy and sell contracts.
There is no public interest in specu-
lation in metals. And speculation
is otherwise impossible now, at least
in copper. The market is absolutely
controlled by the copper producers.
Nobody but bona.fide consumer can
buy copper. Not a single ton could
be acquired as a ''long" specula-
ton. And obviously a sale for
future delivery would be extremely
hazardous.
A very great increase in the pro-
duction Of metals has come about
in this country through wartime de-
mand and, as indicated by the ex-
port figures given above, 1t has been
marketed at high prices. These
facts have bearing upon the future
control Of markets. They apparent
ly put tho Woodworking industries
of the United States upon & stronger
basis even than before. We are pro-
ducing 40 per cent more iron and
nearly so per cent more copper than
before the war. The manufacturing
capacity of the United States Steel
Corporation alone equals that Of all
Germany.
A very interesting outcome of the
situation of the last two years is the
growth of the production Of tungsten
and the high-speed steels in this
country. We had healthy industry
in these before and we're not COM
pletely dependent upon Germany.
The demand for tungsten right after
the war came produced a panicky
scramble for the metal. Prices rose
abruptly. A tungsten-steel tool will
keep cutting metal in a swift-turn-
ing lathe even when it becomes white
hot. II is so hard that it scratches
glass like a diamond. Our factories
had all gone upon high-speed
basis. Going back 70 carbon steel