Arizona silver belt. [volume] (Globe City, Pinal County, Ariz.) 1878-19??, 1906-08-09
COPPER SITUATION
REMAINS SOUND
Consumption Of the Red Metal COntin-
ues to Equal the Large
Production
(Ry Dwight E. WOodbridgel

ues 10 equal the Large
Production
(By Dwight f. Woodbridge
Walker, of the Boston Commercial,
and certain Wall street spectators,
have been talking lately of declines
that are sure to come in the copper
market. Doubtless declines will come,
they do after every period of high
prices in every industry. But they II
probably not come soon. People who
have hardened to stories about declin-
ing prices for raw copper metal should
talk with some of the great buyers of
copper, such as the managers of the
American Brass company. They will
find that the price of copper for domes-
tic delivery is still even for distant
months of the year 1873 cents pound.
The same story of prosperity and undi-
minished consumption of all goods and
materials comes from every state.
Declines Unlikely
The fact is that so long as the world
continues its expansion in electricity,
in long distance transmission, in the
development of water powers, and in
the electrication of steam roads, which
is now in it's infancy, any considerable
or more than brief decline in copper
prices is unlikely.
And to these arts of peace must be
added the consumption by the arts Of
war, a really enormous item and one
not diminishing.
Careful judgment of the chief cop
per producers and consumers is that
today the output and the consumption
of the red metal are at an equilibrium
in other words, that there is an even
demand for all copper supplies sufficient
to prevent any accumulation. The
consumption of copper in this country
today is at the rate of 62,000.000
pounds per month, against less than
50,OOO,OOO pounds during the year
1905.
Movement for 1906
At the moment the export move
ment is slow, and it remains for the
home demand to keep up to its best
figures to prevent some accumulation.
From considerable study of the stu
alton, the following estimated figures
covering the American movement of
copper for the year 1906, in pounds, are
given:
United States production. loo, 900, 900
Imports ......................." 220, DOC, 600
Total supplies ............"... 1,230, 900. 900
Exports ........ ...........,... 400, 900, 900
For United States con-
sumption ................... 740, 900, 900
Equals per month. $4,000, 900
These are large figures, and it is
needless to say that consumption of
$1,000, 900 pounds per month of copper
in this country surpasses all previous
achievements.
Producers Would CurtaiI
Should the demand slacken sufficient
ly to threaten the stability of the
market, it is likely that some large
producers will agree to curtail their
output in an endeavor to prevent any
radical price fluctuations. There have
been conferences with this end in
view. The argument of those in favor
of an adjustment of the supply to the
demand is that it would require only
very small curtailment by each, so
to regulate the output as to permit an
indefinite continuance of lS-cent copper
and prevent the inevitable demorali-
cation which follows the cutting of
prices.
One of the interesting features of
the situation is the fact that while
the production has so greatly increased
in the past year or Two, as witness the
expansion of almost every productive
area, consumption has kept pace, and
has also melted down reserve of
200, 900, 900 pounds that hung over the
trade two years ago. Another thing
the almost daily reports of new copper
mines of great size must not be consid-
cred too seriously. There are in 800
cases of every thousand, the results of
combinations of excessive imagination
and greed with credulity and desire
for news. They don't pan out; they
are never heard of again, but the crop
continues indefinitely and regularly.
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