, 1889-02-21
CONCERNING COPPER.
The Situation Described by . Mining Cor
respOhdent.


rsspohdent.
The Boston correspondent of the Portage
Lake, Mich, Mining Gazette. writes TO
that paper:
The copper situation is enveloped in so
much uncertainty that it il difficult in the
extreme to outline speculative course for
any time ahead. During the week there
has been constant Offering of copper
stocks in odd lots with the evident urpose
of making lower prices. There IL no sup.
port to the market from those in the best
position to know the merits of the whole
position. Naturally enough there is more
or less steady realizing by holders. The
Lopdon papers continue to belabor the
French copper spectators. Reports from
Paris tell of failures of SPECTATORS in cop
per company shares. Statistics Of supplies
are paraded with increasing frequency.
Those $50 600 tons are made to do much
duty. What wonder that with all these
factors copper stocks have declined some
what. The main feature of the copper sit
uation is that supplies exceed consumption
in 1888 by 10000 tons. IL is estimated
that about 30, 900 tons Of the supplies of
1888 came from a now exhausted source.
old copper. 1t is, therefore, to use q cop.
per company treasurer's figures. said that
production exceeded consumption in 1888
strained to what IL was In 1893, less CO..
900 tons, consumption would probably pre-.
vent further increase of stocks. 1t ia
not unlikely that the consumption in 1889
will be u triHe greater than in 1888. 70.
gardless of price, and 80 1t would not be
necessary to restrain production TO the full
extent indicated.
In order to prevent further increase in
burdensome and costly stocks of copper. it
will be necessary to do two thiDRs; first,
to induce present producers to reduce their
output by some 10000 tons in the aggre-
gate; second. TO prevent An increase in
supplies from new sources. The frat ne
cessity could be easily handled. were il not
for the second. The second is the problem
which cannot be solved In one way only;
a reduction in the price of copper. There
is every reason to believe, reasoning from
analogy, that the copper resources of this
globe are, for this generation vt least,
practically inexhaustible.
At 10 cents for copper, history teaches
that the supply will not equal the demand.
But even that ground 10 far from estsb-
lished. The revelations within . few
years of the cheaPly. worked deposits of
Montana, New Mexico and Arizona open
= possibility Of another and longer era
Df 10.cent copper than We have yet known.
The extension of railroad facilities 10
chiefly responsible 70 Ithe addition to the
worlds resources OF 30 much cheaply pro.
duced copper. Outside OF this country
this general proposition might set hold,
because IL is here that railroad facilities
are being 80 rapidly extended.
II would be as absurd to say that 10
cents pound should be the ruling price
of copper. as it has almost proved to be
i'm possible to maintain the price ct 161S
cents. Enough 10 already known TO war
rant the copclusion that 161S cents 10 90
high price thai no syndicate car hope 10
make profit by contracting TO maintain
It. That l61S cent price should be aban-
doned.
The radical evil of the situation lies in
a too high price. The rumedy, to be per-
msnentiy elective, must De 70 reduce the
price. Restriction Of output will not af-
feet new enterprises, save to stimulate
them. and will involve Losses ON the re-
strictinR companies.
lam informed that the reports hereto.
fore given out - TO the character of the
new contracts between the mining com.
panies and the French syndicate are alto
gether misleading. It 10 proposed to form
what will best be understood ~ trust"
or pool" OF copper producers. To this
trust or pool the French syndicate will con.
tribute capital and Q load Of 10000 tons
Of copper. The pool will be managed by
Representatives OF the mining interests.
and the price will be regulated by the bar.
nony OF the pool and the necessities Of
fresh competition.