360 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,

facturers of silver. The eastern banks and the government representatives
 will not buy through anyone except members of the
fixing board, and at the fixed prices, because 1 they do otherwise
they take a responsibility which they do not seem to be willing to
take. In fact, if they should buy in any quantity from other parties,
 the fixing board would probably fix a price that would make
their purchase open to criticism. These four brokers, therefore,
have the ability, and exercise it, to absolutely fix every day the price
at which the entire product of the mines of the United States in silver
has to be sold.
This fixing board has, however, a much greater power than that
covered by the actual transactions in fine silver, for the reason that
the commerce of the East, India, and the Straits Settlements and
China is expressed in silver; in other words, the entire exchange
transactions of London, covering the entire commerce between the
sontinent of Europe and India, is expressed in silver values, and the
price of silver is the price of exchange. These exchange transactions
are at least ten times as great as the total value of ee purchased
and sold in London. The great eastern banks are the great buyers
not only of silver for export to the Fast but also of the exchange
sovering the commerce with the East. The silver value of the American
 mines is dominated not only by the London situation as to silver
but also the London situation as to their commerce with the East,
and the whole situation is dominated by four brokers, designated as
a fixing board.
CoppPER.—According to the statement of a large American concern,
 which exports about six-tenths of its copper output to Europe,
prices established by the London Metal Exchange determined to a
large extent prices of copper at any port in Europe. Since the
present war the British director of materials promulgated the fol
lowing regulations in relation to sales of copper:
(1) Orders up to and not exceeding 50 tons may be placed in the
usual way, without reference to the minister of munitions.
(2) No orders for best selected or electrolytic brands of copper
shall be placed at prices exceeding £100 per ton, without first consulting
 a director of materials.
Commenting on the effects of this order, the American concern
191d *

This action was taken January 5 last. The immediate effect of
this action with reference to copper was to stop the buying. The
British Government, stating that they were acting also for their
allies, Russia, France, and Italy, had previously negotiated large
purchases of copper in this country for delivery spread out over a
year. A very large proportion of the amount of copper exported is
now being purchased by Governments, all acting in conjunction with
one another, and is being distributed by these Be aayatis to their
manufacturers. Furthermore, we know that our sales of copper,
made to the largest consumer of copper in France, are being distributed
 by them to their normal competitors at the present time.