The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-10-31
ABOUT COPPER PRICES.

This mornings mail brought to the
Inter Mountain the following commune
cation:
To the Inter Mountain:
AS your paper seems to believe the
copper magnates are acting in the
public interest as we'll as their own by
reducing their product for time in the
hope of preventing disastrous effects
of or 10 per cent copper upon both
labor and capital" please explain how
the Butte mines kept going after the
Secretan failure and the panic of '93,
when copper touched those prices?
The above query is easily explained.
Many small mines in Butte closed at
that time, some barely paid expenses,
the rest cut expenses and kept going in
hope Of early improvement in the mar
ket. A few perhaps, like the Parrot.
B. & NJ. and Colorado. even earned a
profit by working high-grade ores. But
the cost of hosting then was less than
now: the ores carried more silver and
it was worth more per ounce than now;
the employees worked 10 hours per day
Instead of eight now and the percentage
of copper in each ton of ore was several
units higher than now, so that in ex-
traction, transportation, concentration
ana reduction the expense then was con-
siderably less than now 1t is the differ
ence in the average percentage of copper
which most largely accounts for the fact
that the menace of 1O-cent copper
now is far more serious than it was
years ago. 1t explains why smelters
could squeeze along on Decent copper
so long as they had rich ores and
a valuable bi-product, but might fail to
do so with grade ores and lower
priced bi-product in addition to the
changes above enumerated. It is true
that recent science has cheapened the
cost of treatment. but not sufficiently 20
offset the reduced average of copper in
the ore. For these reasons the Inter
Mountain has regarded a temporary
limitation of the output as possibly the
lesser of two evils, of which either is
most deplorable, and both of which
might have been prevented if copper
producers of other states had consented
to an equitable pro rata reduction of
output, instead of casting the entire ex-
pense of unfolding the market upon the
one concern which alone had made good
prices possible and brought about pros
perity in the copper states. Z.
The law of supply and demand is as
inexorable as fate itself. No company,
however powerful; no syndicate. how
ever rich; no industry, however well
managed, can defy its operation. It's
consequences may be postponed, but
they can not be prevented. Production
without demand means loss Increasing
production, with decreasing demand,
means loss in proportion to the extent
Of the disparity. That loss can be avoid
ed or reduced only by restriction OF
production or a decrease Of price to a
point at which consumption might be
stimulated. In the present situation
wisdom suggested restriction, because a
reduction in price might so demoralize
the market through the competition Of
rival producers that years would elapse
before present quotations could be re-
stored. There is no need for the Inter
Mountain to point out what or 10 cent
! copper would mean for Butte. Not only
would it affect business and labor but it
would mean disaster to the smaller pro-
! ducers, to the prospectors and leasers.
1t would lessen the value of copper
property and keep capital from invest
ment. These considerations may not
| have been the sole cause of the Anal
| gamated decision to keep up the price
even at the expense of a temporary
restriction-it may be that self-in-
terest largely dictated that policy; yet
the fact remains that all the people of
Butte get the benefit of it, and that II
| is preferable to a demoraMzed market
/ and the more injurious and permanent
results Of cheap copper.
| The people of Butte, however, while
they are deeply and intelligently inter-
/ to the copper crisis. and seriously de-
plore the situation which has resulted
in so much idleness, are still more d.
rectly concerned about the duration and
consequences of the present restriction
All the evidence gathered from a study
of the market conditions points to al
early improvement of the demand and 1
resumption of operations at full bias
and without reduction Of price. In thai
event the wisdom of temporary restrdc.
ton will be indicated and the district
of Butte will do more business than evel
before. A high price for copper mean!
new companies and new money for tn
region east of Butte. The indications
point to a steady market.
The news from Great Falls and Ana
conda brightens every local prospect.