The copper era., 1904-03-03
The Future of Copper.

1 The following Is from walker .
 weekly copper letter to the Boston l Commercial.
 The consumption Of copper depends
 very largely on is price, 6 I have
 previously pointed out. For illustra- tion we had I-cent copper for three I years. 1899 to 1901 inclusive, and a surplus of about 300, GOO, 600 pounds, ! equal to 10 per cent. Of the world $ output for that period, accumulated The price dropped to about l2-cent average, and in eighteen months the surplus was used up and copper sold again at 15 cents per pound. Con- sumption during those eighteen months Of low prices apparently must have eX- ceeded production by approximately 20 per cent. While this quite clearly shows that the price of copper was not as much too high at T. cents as it was too low at l2 cents, it also Illustrates the tremendous influence that prices have on consumption.
 The uses. advantages and possibili ties of copper, and its relative merits to other commodities are so well known to manufacturers that they are always ready to buy when prices de- cline. At certain price brass or cop per is more economical than lead pipe for plumbing, than tin for roofing and cOrnices, than wood. iron, zine, alumi- mum or anything else for almost in numerable other purposes; and the tremendous increase in demand that always comes in when prices cOnsti- tutes the very effective safety-valve Of the copper producing industry. On the other hand, the greatly reduced use Of copper for plumbing, roofing, etc. when prices are high, will al ways serve to prevent copper famine, as it will make substantially all Of the worlds output available for electrical and other essential uses when tempo rary scarcity and abnormal demand force the price to around 20 cents per pound
 The exhaustion of timber supplies has beyond any doubt permanently ad- vanced the price of lumber; and the gradual depletion of the coal beds and iron deposits is sufficiently pronounced to guarantee that steel products will never be low again for any consider able longtn of time. Higher average prices for these commodities will in- crease the consumption of copper in all kinds Of building. The frmer market for coal is encouraging the generation of electricity by water power. More warships will be con- structed as a result of the war between Russia and Japan, and greater per- centage of copper will go into every new vessel that is built.
 Copper consumption will continue to increase because of the great utility of the metal; and production will in crease because of the great profit ac. cruing to those who own the best mines The laws of supply and de- mand and of substitution of commodi. ties will defeat any effort that may be made to hold up the price of copper by articfcial means. and the consumers Of copper and competitive materials will quickly check any and all efforts that may be made to unduly depress prices, because they know that copper bought at below l2 cents can always be manu- factured and sold at a big profit. It is even doubtful if it would pay the largest producing interests to under take the work of steadying the mar ket by buying aud carrying ihe sur plus when prices arc low and selling it in boom times. IL is matter Of great cost to carry copper in consider able quantities. and the existence Of susplus destroys the confidence Of manufacturers. and by so doing al ways reduces consumption.
 The prospect is that in the future copper will continue to take care ot itself in the markets of the world, as it is so satisfactorily doing at present. At the end Of year of business cur iajlment, declining prices for com modjtics and securities and business unsettlemeut there is no surplus cop per in existence. and the market price shows an average profit if fully g. per cent. 10 10 per cent. to producers. The history of the trade demonstrates very conclusively that copper is entitled 10 sell in normal times al between 13 and II cents, and normal times will soon