Evening star., 1933-11-03
METAL LIST KEEPS
FAVORED POSITION
Special Interest in Silver
Laid to Expectations
of U. S. Help.
Special Dispatch to The Star.

NEW YORK, November 3 (NA
N.A).-All through the irregularity In
the stock market the metal shares have
given a good account of themselves
They have been firm when the rest
Of the list was weak and most Of them
are now at or around the best prices
Of the movement.
The speculative favorites have been
the silver issues, displacing the gold
stocks which were so popular when the
new gold-buying policy was first an
nounced.
Not only the silver stocks, but the
metal itself. has been in active demand.
On Thursday spot silver, fractionally
under Al cents an ounce, made a new
1888 high. The previous high was made
July 18, just before the big break in
the stock market. Last December sill
yer at 24A cents was quoted the lowest
In the records of the New York mar
ket. It is. true of the commodity as of
the stocks that it has been strong while
other commodities were declining.
United States Action Expected.
The reason for all this interest in
silver and silver stocks is the report,
unconflrmed but widely credited, that
Washington plans some announcement
that will be of benefit to the silver pro-
ducers. The latest suggestion is that
the Government will agree to buy newly
mined silver at fixed prices. presumably
above the market price, and issue paper
money against the metal SO acquired
That would mean greatly increased
profits for the silver mining industry
and. to the extent that currency based
on silver was issued, would depreciate
the dollar in terms of gold.
whether this would be economically
sound does not interest the spectators.
They are content to leave the matter
OF legality with the authorities in WASH
lngton. confident that a way can be
found to do anything that Is wished
TO be done. Their ranks have been
augmented by those who are always
looking for hedges against imitation.
The result is the building up of a long
account in silver stocks and in silver
itself, which, if the predictions do not
sharp break.
OF the other metals, the position Of
gold is well understood. Domestic nro-
ducers can sell their OUTPUT to the Re-
construction Finance Corporation at a
price which is advanced daily. On the
face of it, the longer the gold mining
companies wait before accepting the
government price, the better off they
Will De. They take gambling chance
on something happening, but miners are
used to that.
IhlS increasingly favora BILE position
OF the gold mines no longer appeals to
wall Street. The gold stocks are SUBJ
Jected to realizing in every advance and
range well below their high.
Copper Shares Watched.
The copper shares have their friends.
although the copper market is not quite
SO hrm. The quotation for the metal
cropped TO 8 cents pound this week
anc the market has not been helped by
the controversy over the code for the
INDUSTRY. However, so many copper
companies produce silver as a by-prod-
uct that their shares also have spec,,-
lative appeal. Then. the financial nosi-
tlon OF the leading producers has been
vastly strengthened since the banking
holidays. Copper stocks also are rec
commended as insurance against infia-
tion
There Is not much speculation in tin
in this country. The market for that
metal Is in London. Tin is not only at
the high of the year, but 100 per cent
higher than it was a year ago. Last
month the worlds visible supply de-
clined to the lowest since November,
1929. In the last two years surplus
stocks have been cut nearly in
half. Canada is the outstanding pro-
queer OF nickel. and in that metal there
is practically no opportunity for specu-
iatlon. although there has been some
buying Of the nickel stocks.
Copyright. 1893. by the North American
Newspaper Alliance. Inc.)