The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-10-22
CONCERNING COPPER
INTERESTING LETTER SENT OUT
BY A BOSTON FIRM.
SITUATION FULLY DISCUSSED
Hayden, Stone & Co. Incline to the Be-
lief That the Amalgamated Com
pany is Master of the
Situation.

Messrs. Hayden. Stone & Co. Of Bos-
ton are sending their correspondents
and customers the following carefully
prepared review of the copper situation
and industry:
Feeling that the interest in Amalga-
mated copper is at the present time very
widely distributed through all the pGin-
cipal cities of the country. and receiving
innumerable inquiries regarding the
truth OF many of the widely adverse
public statements which are continually
appearing in print we have endeavOred
to get is as close touch with people con-
nected with the production. sale and
consumption of the meta! as possible.
and obtain a clear and logical explana-
ton OF existing conditions
Decrease in Consumption.
From these sources we are led to the
conclusion that the present disparity be-
tween the consumption and the produce
ton Of copper is due 30 a decrease in the
consumption rather than to an increase
in production. and that such decrease
is of only a temporary nature.
The production of the metal for 1900.
in this country, was 602.00o00O pounds.
and the figures so far as published for
1901, do not indicate that there will be
any increase During 1900 domestic con-
sumption was 34S.O00,0O0 pounds and the
exports $50, OOO, 900 pounds. amounting to
700. 900. 900 in all. and as the imports were
100. 00O, 600 pounds that accounts for the
entire production.
This year present figures indicate that
the exports for 1901 will not exceed 250.-
600. 900 pounds, and that owing to the re-
selling of stocks on hand, held abroad.
the imports will be from $50. 900 to
100. 600. 900 pounds. so that. whereas last
year there was a net export over inn
ports Of 250, 900. 900 pounds. this year the
net expectation will be less than 100000
900 pounds.
Exports to Germany.
One of the large items in this decrease
is in exports to Germany. The situation
there seems to us to be practically
parallel with the situation that existed
here eight years ago when the General
Electric company met with its disaster.
The electrical concerns throughout Ger
many are besieged with orders and
could easily obtain $30.0OO,O00 of new
business if they could swing it, but they
have already accepted between $4,000
600 and $50 600, 900 of business which they
have been filling where they have re-
ceived their pay in notes or securities
and they have burdened the financial
institutions of the country with the
carrying of these notes by discount Or
rehypOthecation as collateral. This has
led to the general contraction of leans
by many financial institutions which has
had a very depressing effect upon othe:
lines of mercantile industry.
We have no doubt that SO soon as these
financial obligations have been taken
care of by proper distribution and diges-
ton, that the demand for electrical ma
chinery will cause another period Of
prosperity in the trade such as the Gen
eral Electric company in this country is
enjoying today.
Price is Increasing.
The price of coal abroad has been in
creasing steadily. and it is bound to
have it's effect in forcing people to re-
alze and avail themselves Of the OPP
portunities they are continually missing
in not taking advantage of the great
water power which is so generally dis
tributed through the continent. This
means a very great increase in the use
of copper abroad over and above what
it has been at any time in the past.
There is no reason. outside of the tenn
porary financial depression. why the
natural increase in the use of copper on
the continent should not show steady
increase the same as in this country,
and this year the consumption appears
to show an increase of about 20 per cent
from year ago.
With this disparity between produc-
ton and consumption, there are only
two courses. either to increase consump-
ton or decrease production. 1t is the
opinion of a great many we'll posted men
that reduction in the price Of copper to
IL or even II cents. would not increase
the consumption except in a most linn
tied way other than such speculative
buying of the metal as might come
which. Of course, would not be true
consumption.
Demoralize the Trade.
On the other hand. such action would
tend to demoralize the trade. and men
prominently identified with the copper
goods business emphatically state that
they prefer a 17-cent copper market
and are willing to pay that for the metal
If they can only be assured of the ma in
tenance of prices to enable them to have
a true basis upon which to conduct their
business. They advance the same argu-
ments that they used at the time of the
late tariff discussion, that whatever the
tariff was going to be, they sincerely
prayed it would be soon settled one way
or the other so that they would know
where they stood. And so in the copper
trade. they merely wish to know what
the price is going to be so that they can
have free scope to do business on a lib
eral scale.