| Show 0 j I.- I. A f lA 1 r. r t f I i l' l I I I t o. o d t i. i t. t h S. S t 1 i I NOi I jI Yo I J 1 WAD E f T j I t k I f j. j t J Ir t II cem i I wi B 1 lt J r ue JI 1 I. I r Fl t lj b 4 y iI a W Lit ekl e 1 t I I e p t J f I I s us r I Lese 11 h o t 1 r 7 Stones D d t c. c c p published UD l fp 1 1111 ft A s I rc f i. j 11 I d J HJ Jitt 1 fJ J h. h b 1 ri i ro Iii I l. l 4 r i L U o 1 H i. i 2 I It- It I I bc ft b 1 t r q i. i k L I. p r i t. t a aI I if 4 j V i p 4 4 1 1 t f f i rH I i r 1 f hi u V l j OOL u Tj Typical i l em toy s of the g pe DeB Beers ers diamond nd m p s at Kimberley South So J ii J Africa The De Beers ers company has has more I e than names cs i Its 1 p payrolls Its greatest expenditure however hov the ta s the form pf ofa a. tax r. r o of Q per of its its' nt which mu must t. t be p i ito to the govern govern- t. t 1 T V. V annually r f f and ad Wheat i and tid Ild W EN r t mIll other commodities began Vegan egan to to t take Ke th r recent cent nt p price c slumps l p tab and a speculators tor and legitimate merchants mer met chants too c commenced mm to take great losses e everybody and ard his hI wife began t to wonder how muc much the price of ot diamonds would fall fall along with the sener general l re reces- reces essian es- es I. I LIon slon in In commodity prices r r I lIt oyer everybody bod end and especially ny thew the th w women womenfolk m n folk for tor II In that at time Imo of ot assumed Aplenty lenty following our en entra n o into the great war and particularly during that grand or orgy a. a of or spending that followed the thc down let brought about by the f t L armistice enormous numbers of dI dla- dla mD monc monds S w 5 bought b by aU ajl t not of ot people The c prices prices' paid paid- were 1 vory lush high compared with prewar pre prewar prices price's i j And hence th the thol v value in terms tenn of ot dollar of ot thc h an annual sales ales In in t the c United St States State's t s surpassed all f r records I. I t U the e diamond market had acted vA much like Ike other markets while Awhile the if t price rocket 1 t e-t spared merrily u upward It r was but natural for tor the tho public to to o as- as J V aume eume th that t diamond prices were duo for is i. a. a big tumble when the tho spent sUck stick of t l V the price r rocket ckel began elan Its Iong long 4 descent That which goes up must come conic down people all over the world said laid Now pw In in several cye important particulars fund fundamental differences exist between dl diamond mond prices prices' rind and nd the tho prices of ot most S 'S other commodities and It Is Important at I this time that all who ho have bays any prop prop- prop prop- erty In diamonds and that includes mot moat of or us should become n aware aware are of these dif teren es nn and act act cp Thus mistakes and in the tho mass enor- enor may be e avoided l v. v I n IT IT WILL WILI t therefore be the tte purpose UrpO ot of of this article to let et forth j nomo omo very important facts In regard to to the l- l pal pI factors that go to to make up diamond prices and then to to drat dra draw the most logt t I c cal l conclusions possible from the array ray of or facts presented It It MU III hen appear pp pp nr ar that there Is Is not only little JIk Hk likelihood of ot ota a n marked fall tall In diamond prices l but ut I that rather we wo may expect at nt 1 least liast a 4 potential if It not oven cn an actual rise in tho those e prices Now Nov for our facts tads First Fist It should be lie known that the m major jor portion of the present price of of ot ofa a n. diamond con- con slats sit l s of ot government nt taxes Many years ago South Sout African statesmen seeing whit what a 11 valuable property lay by in the tho remarkable bla diamond larn r d fields of those Brith Brit Ish hh h oss wisely decided m make use o of t them for the good of or all nl th thc tho In In- In habitant by causing such euch pr properties per I Jo joi i bo bl hen taxed It It was dc decreed feed that t any diamond mines which should bo be bo i. i d i thereafter r should houM pay pay to the tho go e t. t 60 1 r cent of or their net net 1 pr tl u cach er r. r I A W WHILE I th the measure asue was s. s not made 1 retroactive which h wO would ld have l he been n most most- r. r It nevertheless n now nov v applies S to the t e largest Jars an l richest of or tie the s l t tm m mines mine pes for most of or them h bave e bee been 41 dis discovered die die- covered ov red zin since e tho passage of dt the a act t. t v Th There There- Thereat r at al' al althe the v very ry outset of or tt Us Its caer car ca ca- career ca career r reer er your diamond 1 Iii Iq saddled ft n. heavy h avy burd burden n of ot taxation Th The l great rEat n diamond of or over three throe thousand thou thou- sand carat carats carat which was presented t l t to the tho British crown by the tho Tr Transvaal ns so government gov gov- nt nl after th the Boer war wart In rC recOgnition t- t of or the sp speedy granting of a con con- to the tho conquered state stater and ml w which ll h was valued at one million n d dollars l al' al cost coat the South African n s state nt muc that amount t In actual ca cash l hundred thou thousand and dollar was due the state as a tax Under tinder the the above act The Th few fow rem older mines do clo not h have he e to pay pay this this' tax tax- but ut being b under tho the amo Hama or similar ownership end and control as as the th newer newer imi mines mines' ties ties' the prices prices' of all diamonds are arc determined d by those of or the th heavily ta taxed e one ones AGAIN AGAIN there now how obtains In in lit South South t Africa a n recent war tax on tic tho exp export rt of ot the he TOUGh rough la 8 T This adds nad 10 per c cent nt to Jo the cost of or all rough r ush dia dla- monds thru that are arc shipped out of or South Africa After Arter the goods are atc handled by the sellin selling syndicate a arid and d' d cut rut by bym Vm- Vm or other cutters with consider r- r ablo able additions ns tp the the price which will vili be presently considered the tho cut dit- dit monds are iro ready our American Im in- in porters These latter Jatter must pay Un Uncle lo Sam Sarri 20 per per cent ent of the now w very ery m much ch increased Value alue Rt c of or all cut diamonds that they import This tn tax com s' s our our- regular prewar tariff brUt law If It the rough L J t I 2 f I. I b t t I L. L 1 S i i.- i. 11 I t J the marvelous t skill of the J u t. t diamond cutter rewarded JJ This expert exper is one of fhi thousands thousands' has S never been adequately I similarly e employed d Ant in I n rp 11 J lt St. S- S r 6 to t. t r j jS I c t I. I t 10 f.- f. ji f Ii c t f- f j T j I V tt t Iii N I I J l fI f. f L y V 1 I M Ji 4 J r 5 r. r LL e k I r I J r v I i I I t f r I tV 4 4 s. s t f i I Ido J do r Mealtime in t the e co compound poun of ot a gr at African rican diamond concern No matter how honest I they may be beall bF all miners miner ti live in in a a J carefully fi t t guarded re Many Jive th thus thus' s' s walled m their families s. s diamonds Imported 0 a 10 per per cent tax only Is Is' Is l J levied v ved d but the he e cost ost of ot e cut cut- ting tinS In Ame America m makes maes ke U up the 10 p per percent r cent difference Lastly at Jc least st st. for the present t. t nj- nj though congress Jias has evident designs dc on n the future diamond sales ales there is a sales siles tax of t 5 per per cent ent on oh the sale sale- saleby by bynn nn any dealer to any ny c consumer i of ot any diamond n. n This tax is of ot course brio of or our m ures for toI defraying the cost of or orthe the war wa It Is more Uk likely ly to lo b be Increased than to be e decreased Cr or remitted What for ra a a fall al ln In i diamond prices prices is there in this this' this array rray of ot tact facts about diamond t taxation What single Ingie one of OL r these duties Is Is' likely to be reduced or tem removed ed If It the goods goods' are sold the ta tax is collected Next let us us' consider the share in the price of ot diamonds which ic the lC two gr great t syndicates have ha There is JS a. a a n. mining miffing syn- syn n idl atc anti and a a syndicate While V th there re Is so much nuch of similarity between the he directorates directorate and tl the e ownership of or tho the two syndicat syndicates syndicates' that the thereal real difference between l them may be thought bethought to bo be alon along what th the school schoolboy bo boy c called the equator namely a line y yet th they y lave Jave separate separate legal egal egal existence B Uy lly a comparatively J recent ent year five ear agreement bet between the tho tho two two syndicates L the thc selling sn syndicate agrees to underwrite underwrite under- under S write the sale salo ot diamonds pro produced L by the mining mining- sn syndicate lIc t for tor the tv- tv year period at l net profit so so moderate modera 9 that not even evert a. a mUck raker m r ck-r lt r c could find fIrn I fault with It H. TilO Tho mining syndicate on or Its part Rs to tb- agrees mine In any three e months' months period on BO 10 many diamonds damond I as the actual sales of ot the previous f three months months' period indicate will In bo o needed ne Here Hex is wh where ic the Jaw a o of supply and nd I demand J comes comes- in liv In but bitt BO so complete is the thc I con control on oli th the art of or part syn ril- ril of or the the worlds world's of o diamonds diamond that that powerful law curb bitted and Od I hobbled d and made io o trot or r. r to pa pace e nt i t the merest suggestion f tho syndicate In confirmation of ot hl 1 fa 11 a re recent reo rt I from the American vice consul co sul at nt- Cape Town says says that the diamond mines Jr 1 South Africa have eU curtailed t production u in In every overy po possible ways Of or course courle If It tho the commodity thus' thus con con trolled w were a necessity In hi th the senco that society In our sent state o of or r evolution c ascribes ns to io that term no such uch control Wo would ld be But Dul L diamonds are ure generally rC regarded is us a I- I luxury and there is' is at t present rio no six of ot any public resistance tn the contro control t 01 IN their output by th the syndicate SI Mote rore over governments s aru auaS suc large Jarge l h re re- of ot the results of or th control o u that of or thero there seep to u be ho lItlo probability governmental tampering with it Jt When you stop to think about It Jt would I It not be bo extremely disastrous ln in Ina a far tar reaching way for tor suck a huge hugo structure of ot values a. a as th diamond d property of or tho flu w world constitutes to bo be overturned crt ci or even seriously ly shaken Many tany other commercial Structures would Inevitably P go with v it like tho the toppling of ot n a ro row roa P of bricks It would bring financial pan pan- And who wants that None but the bolshevik bolshevik- lI Hence ct We vo say that thai t the thing everybody from the government gO down or r up to to your our b best t girl wants wants namely namely stabilized d diamond I values if ir not not rising ever ones J 13 la the thc t tiling thing most ost likely to happen Sp 59 S much uch for tor the very modest syndi sy dt f. f cato cate sharo In the net retail prIce ot a L Lg 0 g 1 r t 1 7 f u 4 i I I f I i i di diamond ond f N Not t but 1 tho make big money They do But the the tho with with Standard thing Is' Is In gros gross r as OH oil or th the tho J Ii packing p houses W What at atthe the syndicate on each cach load of or diamond bearing nd- nd c earth washed by It would not not t tempt y jou you you- u to accept a 0 dozen loads load If lit you had to lO wash them out yourself 4 TF v T 4 i V v i. 1 C 3 V p I J 0 A D De Beers Beers' compound Were Vere it poss possible ble to Q uy J rP rough g di diamonds at U th Hip Jl nearby mines es if Jey y 1 11 f. f co t. t very much J Just st why they they-ara so o pr precious When they arc sold to the p public bl c day the authon of- of the accompany accompany- ing rone pf one f. f the worlds leading s. experts f erts-f fully 11 ex 1 ins After Ul the rough ro diamonds i nrc t graded a and d a very crY large larg pcr- pcr cent rejected as unfit for r polishing p the gem m material Is sold to to large largO cutting establishments for tor forcash cash ash at ht prices are atc absolutely set Jet by hy the tho hd s syndicate but which have never been too loo too steeply advanced l Following lg the C Rhode cn-Rhode who ho 0 said ald L id that diamonds itt tt tt high t tand and advancing ad prices would command more moro more respect In the tho worlds world's ma markets l ni than n cheap dla diamonds the thC syndicate has has has' c consistently advanced d dJ J prices t es fa for many any years cars c s 's and It still pro- pro PO potes pokes pokes' to do db BO so A The Tho next next Hem jn the cost of ofa t a a fin fin- diamond is the cost of of orl the cap cap- lt ital l' l required lr d to buy rough diamonds of ot tho theS syndicate syndicate- te and t to th the goods goode while cutting g and nd mark marketing them Ithem This I necessarily largo large arge capital investment In Is I no sm small li il t f factor factor- ct rJ In the thc final filial c cost st st. In h cost actual cut cut- ting H He Here e it it sh bo bo- that the marvelous skill of the tho diamond cutter r has never er been i adequately rewarded Since the Inter International atlo al union of diamond diamon cutters h has has- obtained d t for r the workers 3 considerable advances tho the men have havi more 0 nearly according to their deserts deserts but there his hs s. s never nex be been n an any O nt In Hi h their th lr case whatever may mal y be bo bet t tt true t of or the th big bit wages wase l paid during the war In tn other tr trades Hence we can can- V not riot now exp expect any marked ma recessions recession In the ates of pf pr diamond Iamond cutters cutler The Tho international with a u. strong finan turns cial rc reserve et e. e ag against times of or ment l nt nt will wili II not lIot be le likey c to accept an any marked wage age reductions r If It times o of or f black employment come they will merel merely bide their time Tho The good times will wil I V again return Hence the tho part art of or th the C co cost t oC ofa n diamond l which is due to th the cuttInG butting will cutting wiil n not t likely bet be educed More 9 over ocr the thc labor tabor cost Is Js s not ruoti l rge a as 18 compared c with the tax cost ps J let us consider the much 1 much abused m n While WhilO ht hi played a a. con con- part art during the period of or war prosperity rit- rit he Is being speedily noted durin during the tho quieter times f followed that have h d. d When hen people people- were demanding diamonds and everything everything- else regardless of ot price a i grand was opened up to to speculators and ind many irany diamonds changed chanced hands se er several 1 times at tt considerable considerable consider consider- able ups mark-ups before reaching the ultimate ultimate ulti ulti- mate consumer Those who bought thus d did did- not buy at market They must ex expect ex- ex peeL to take a loss loss' if it they sell at nt market in hi tho the near future Such a loss is the only only one on one t that tl t Is likely to occur to owners of ot diamonds s other than that al a always always- s 's to be difference between the wholesale wholesale- and retail the prices rc's of oC monds monds- dia dIa- dia- dia The Th consumer buys bus at at tet retail U. U Jr if r he hc sells diamonds unless he can cnn negotiate a J private private- lIe ie h ht he must sell at ao Or a n. little under current wholesale Jr I rates It S between ket-between time has cl oj p o 1 R a rising S mar mar- c a and d sale the pus pus- Chaser r nu not only get his his' money hl hi SS but |
