The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-09-24
THE SLUMP IN COPPfRS.

If there is any lesson to be drawn from
the slump in copper stocks 1t is the Old
one which admonishes all men not to
buy on a margin. If they feel that they
must speculate in copper and can afford
to do so. the wise plan is to buy OUT
right, then they have a chance to get
their money back when the reaction
occurs, and in the meantime need not
worry over possibilities if convinced of
the intrinsic value OF their holdings. 1t
Is the man buying on margin who runs
the risk of being wiped out The other
can wait, with occasional ercoura ge-
ment in the way of a dividend, until
trade conditions adjust themselves AMI
the market for copper justides a rise in
stock values.
Touching the cause of the slump many
reasons are given, which may he true
Or false. Briefly they are as follows:
% An alleged over production as
stated in what is called the Casey cir
cular." Casey was formerly an employe
of the Copper Sellers company and Oh
being discharged issued a circular in
which he called attention to an alleged
oyer-supply of copper. Casey is prob
ably a romancer. It is possible there is
a surplus Of copper, but the amount is
overstated by Casey. His curcular was
sufficient, however, to alarm some tinil
shareholders, and they threw their
shares on the market.
(2) A reduction of "A per cent in the
European demand. This is based on
official information and may indicate d.
creased profits in copper mining. In
Germany there is a money stringency
and trade depression. In England the
Boer war seriously affects the manufac-
turing Industries, and naturally there is
a restricted demand for the red metal.
(3) The effect of the recent national
tragedy on public business and the de-
sire of investors to realize on their hold
ings from some vague apprehension Of
change in national policy. This appre-
Eension is as foolish as it is vague, but
capitalists are like sheep in one respect
they are easily stampeded.
Other reasons are given, but they are
hardly worthy of notice 1t is plain that
the slump is not a deliberate stock deal
on the part of the insiders. for their
losses must be greater than they could
hope to recoup in long time. The
whole collapse may have come about in
consequence of a general belief of mar
ket conditions which do not actually
exist, in which event investigation will
soon restore the normal tone of the
market
No hing is palmer than that We're an
over-supply such a terrible thing, it
could be counteracted in a few days by
limitation Of the production. Even il
the Casey estimate of $4,000 tons surplus
were correct, it amounts to nothing and
would soon disappear If the big pro-
ducers in Michigan, Arizona and Mon
tana were to regulate production for a
few weeks.
Naturally, however, each of the big
companies desires to produce an it can
while present prices continue. Some
look for no agreement to reduce produc-
ton, nor does there appear any need
OF " at present.
Possibly a leading cause for the de-
cline in the market value of copper
shares is the number of fairy stories
recently put out, alleging fabulous cop
per deposits all over the west, in Alaska
and in the Alaskan islands All the
liars of the earth seem to have been
prospecting for copper during the last
year. and each one of them swears he
has The biggest thing ever discovered.
Bodies of copper ore 100 feet wide and
avera ging from 10 to 40 per cent are as
common as leaves in a forest, according
to some of these copper cranks. Utah,
Idaho and California are full of them,
A man came down from Prince Edward 5
island not long ago who swore he had
enough copper ore to supply one half
the United States. He had a whole
mountain of it. Other mountains of it
have been reported on other islands, It
Is small wonder. therefore, that mas
much as the owners of some of thess
mountains are now in New York and
Boston organizing companies and maxi
ing promises-it is small wonder that
some of the copper shareholders have
sold their stock