New-York tribune., 1919-08-24
Slump in Exchange
Hits Market for
Non-FerrOus Metals
Labor Situation a Big Fac
tor in Holding Down
Trade; Expected Buying
Wave Fails to Matcrialize

Inc slump In exchange rates, com
bined with uncertainty attaching to the
labor situation last week, resulted in
slackcning of buying of non-ferrous
metals. According to "The Daily Iron
Trade and Metal Market Report" the
labor situation overshadowed even the
declining exchange rates in it's effects
on the market.
"Shortage of labor" this journal
states, "has curtailed production of COP
per, zinc and lead, while the critical at
t'tude Of labor in mines and sme lters
IN many districts threatens furthe,
to lmperil supplies. On the other
hand, manufacturing consumers OF
metals have been more influenced by
the possibility of labor trouble at their
own plants and, consequently, have not
raw materials as they might otherwise
have done. Each of the months of May
June and July saw. good, strong buy
ing movement by consumers, who welN
covering their requirements for two
months ahead. But August is nearing
an end and has not yet witnessed a
similar buying wave. Thus, in July
brass mills and wire drawers bought
their September copper, but at the
close of the third week of August they
have bought little of their October cop
per. The tendency in many quarters
has been to wait and conserve, rather
than buy metals.
Check to Exports
"The sharp decline in sterling ex-
change rates has erected a barrier
against exports Of zinc and lead to Eu-
rope. Despite the current low price
Of fhn Corrnor III ono+hor
of copper has been sold to Germany
through the Copper Producers Asso-
citation, making the second such sale
reported since the armistice. England
has bought little copper lately. The
copper industry normally disposes of
half its output abroad, but until some
broad financing plan can be made eff
fective the low exchange rates promise
to limit effectively European buying to
the barest needs"
President Wilson. in his statement to
the Senate Foreign Relations Commit
tee this week, made the following;
remark:
"'The copper mines of Montana, Arj-
zona and Alaska, for example, are be-
ing KEEP open and in operation only at
great cost and loss, in part on bor-
rowed money; the zinc mines of Mis-
souri,, Tennessee and Wisconsin are
being operated at about one-half their
capacity; the lead of Idaho, Illinois and
Missouri reaches only portion of it's
former market
while President Wilson is justified
in saying that the delay in signing the
peace treaty is interfering with ex-
ports of these metals, nevertheless, the
low coss copper producers of the coun-
try operate the districts he mentioned
and their costs run we'll below the cur
rent quotation of 23.50c. pound
for cleo .rolytic copper. The zinc in
dustry of the country is running about
one-half capacity, due partly to short
demands, but also partly to insuffic-
lent labor supplies The lead market
is experiencing better demand than
supplies, due to labor conitions cur
failing output.
Little Outside Selling
THE outside sellers who had sold
electrolytic copper from the producers
price Of 2350c. for spot, August and
September, to 2l.25c. on the recent
movement. cut less of a figure in the
marses this week. Some outside busl-
ness in clectrolytic was done rs low
as 25c, for spot, but dealers and small
Ter producers generally advanced their
quotations early in the week almost to
the 23.50c. level, which has been main
tanned by the copper producers for a
month. On Friday second hands Of
fered odd lots of copper as low as
22.50c. The large producers have
opened their books for October, but are
not selling beyond, indicating their
nope that present surplus stocks of
copper will disappear when more nor
NAL conditions prevail in Europe and
foreign credits are available. Casting
copper prices ranged from 22c to
casting selling in small lots as high
as 22.75c. Lake copper was maintained
by producers at 23.50c to 24c
he sterling exchange slump created
much uncertainty in the tin market,
with prices for future shipment Straits
Whereas Straits tin for july ship
ment from Singapore, now afoat and
due in October was offered at 5450c
on Monday, by Thursday this position
was down to 53c to $780, due solely
to the, exchange situation. On the
other hand, there was considerable
activity in spot tin here, bo h dealers
a. and a;1 consumers buying, due to the
England to arrive. Ships which had
been scheduled to bring tin came light,
probably owing. to lack of labor to
handle the shipment on the other side.
Spot Straits and electrolytic tin sold
at 55.75c on Monday, and at 56.25c
on Friday. Spot SO per cent sold at
sac OH Monday, and at 54.50c to 55c
on Thursday.
Export Inquiries
Further export inquiries for lead
were in the market invOlvinr love-,
tonnages, from Japan, China and South
America. The producers of Mexican
lead, which is largely applied on
foreign contracts, owing to the fact
that tariff of 25 pei cent exists on
imports in this country, are we'll sold
up for August and September, partly
due to curtailed production. Con-
sequently, the bonded lead stu
alton is strong. In fact, some
export inquiries have gone to produc
crs OF domestic lead, but it is doubtful
II they will be closed. 1t is estimated
That Japan has bought fully 10000
tons tons of lead in this market this year.
Inc outside lead market stiffened ma
terally this week, dealers and specu-
iators having liquidated most of their
holdings. which previously they pressed
on the market in their efforts to take
Proflts. Some lead was sold by sec
ond hands as low as $500 and $3.50.
but the general quotation by smaller
producers and dealers was around 5.9Oc
to $3.50, New York. The large pro-
Queer maintained its quotation of &c.
New York, for prompt, and was not TAX.
ing business ahead.
The zinc market eased off again. de-
spite the stiffening in zinc prices. The
producers have manifested lit+lo in