New-York tribune., 1919-03-25
Copyright. 1919. New York Tribune Inc,

eiSSu q "cch dSO. lie SlIllple CfuCN
is that the market had got into
a technical position that was per-
nanently untenable and needed an
internal readjustment.
In the midst of reaction in the
rest Of the market the copper
group in the early trading was
strong. There were two reasons
for this. The copper group had not
participated in the recent advance
of the market; it had, on the con-
trary, met considerable short SELL
ing, and its technical position was
strong. But more important than
that was the news from the copper
metal market itself. Sellers of cop
per reported total sales ranging
from 35,O0O,OO0 to $4,000, 900
pounds of copper from Friday aft
ernoon to yesterday noon, and at
a basis price of Is to 1915 cents
a pound, which meant not only an
enormously increased volume of
buying, but firmer price. The
reduction in the dividend of the
Anaconda Copper Mining Company
from the $3.50 declared three
months ago to 81, however, led to
a reaction in the copper group and
a loss of most of the days gains.
But it is in the market for the
product which gives the clew to fut-
ure dividends rather than divi-
dends to future metal markets.
The decline in sterling exchange
threatens to harm our foreign
trade in two ways. The violent
fluctuations Of exchange in them
selves raise a formidable barrier
by deterring the merchant because
he does not like to gamble in ex-
change fluctuations; and they dis
courage our exports because of the
premium that the British, French
or Italian buyer has to pay. But
discussion Of the effect Of these ex-
changes on our foreign trade has
overlooked several factors. These
are revealed in an analysis Of our
enormous export trade Of January
and February. Most Of the goods
sent to the Allied nations were
foodstuffs, raw materials and neces-
sites. Those countries had already
import prohibitions in effect which
excluded luXuries. Their purchases
Of necessities can be cut down but
little bit, even if exchange raises
their price greatly. But the great
ness of our export trade in those
two months was due not to in
creased purchases by the Allied ma
tions, but to the increased pur-
chases of European neutrals. And
our exports to those neutrals have
been great for three reasons: (D
because until the war came to an
end we were unable to send them
goods, so creating an accumulated
demand for our products in those
countries; (2) because the pros
perity and consequent purchasing
power Of those countries have been
vastly enhanced by their profits
from the war, and 90 because the
American dollar is at heavy dis
count in those countries, just as
English, French and Italian cur
rency is at heavy discount here.
The discount has enabled European
neutral buyers to buy our goods
more cheaply and so has stimulated
our sales. 1t is the European neu-
trails who will take our surplus
"luxuries.
If you believe the public remarks
of the builders the cut in steel
prices has not been enough for
them. 1t is still too high to make
building profitable. Whether these
public statements will be verified
by the facts is something we may
know within few months or weeks.
But it must be admitted that the
position Of the building trade is
peculiar. Almost any other line
can add the higher cost Of produc-
ton to the price Of the article and
get it. This is most notably true
Of crops, which are consumed
every year as they are produced.
1t applied to munitions, which were
also consumed currently with pro-.
duction; it applies to the metals, to
steel and to copper. The old sup
ply produced at low costs is used
up and the new supply has no other
to compete with 1t. But the aver
age life Of a building stretches over
! decades. New buildings erected