Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1907-10-06
coRPER ANn MON

Il
COPPER AND IRON.
Some business interests have in the
past few days been drawing parallels
between copper and iron with view
of forecasting what may happen in
iron. based upon what has happened
| In copper.
The two metals have enough in
common 10 warrant these COMPARE
sons. Both metals are drawn from
isolated but rich deposits of ore,
i these deposits having come to DE held
pretty closely by rich and powerful
interests The use of both metals
| had increased very rapidly and owing
to the heavy demand there has been
tendency TO make profits out of the
presumption of the mineral lands. We
said use" rather than consumption,
because there is a great distinction.
Some metals. like platinum, are used
! merely. and not consumed to any
extent. In the case of both copper
and iron the employment is more
in the nature of use than of consump-
ton Both copper and iron come
back into the market as scrap, rather
than disappear entirely. II is true
that the tonnage coming back each
year is much smaller than the con-
rurrent production meanwhile grow
ing rapidly. Il Is evident that with
both metals there must be q time
at some indefinite distance ahead
when new production win be required
only to supply the unavoidable loss,
small part, Of the total, to supply
the increase in population, and to
meet new uses when the great uses
have all been exercised.
The replacement of metal which
has been absolutely consumed. hay-
ing been used in such a way that It
does not reappear at all, is vesg
small both with copper and iron. The
great bulk of the production of both
goes into new ventures. and these
new ventures are the result of capital
seeking investment and meeting prof
liable opportunities. If change oc-
ours in the financial situation where
by capital will be less disposed to in
yestment N new enterprises, it will
most seriously affect the demand for
both copper and iron.
The farther the analysis is carried
the more striking appears the par
alleiism between copper and iron,
and IL is fitting that copper should be
regarded as a possible source of light
in endeavoring to forecast The future
of iron.
It is objected that there has been
speculation in copper, and very IN
desirable mixture of speculation in
copper metal with speculation in cop
per securities. TAis statement is
true. but the logic is faulty in that
it does not show that there has been
the absence of this mixture with re-
spect to iron.
1t was speculation upon the value
of iron ore deposits and the hold
which the Carnegie Steel company
had upon the cruder forms of iron
and steel of the United States which
was taken to warrant the buying out
at very high prices of the different
consultations engaged chiefly in
making finished steel products-pipe,
wire, sheets, tin plates, etc. II was
speculation which moved the Steel
corporation. once formed. to lease the
Hill ore lands at an unprecedently
high rate of royalty. 1t is objected,
also, that copper prices were not.
Let us see.
The low point of copper at New
York In all history was the summer
VI 1cJf, when cents TO- Like was
reached. The low point n Northern
pig iron in the United States was
1897, when in the summer bassemer
pig. (. o. b. valley furnace, sold a:
sS.75.
Not taking extreme high prices, but
average high prices, the high point on
copper lately was March Of this year
when an, average daily closing at New
York was % cents. Similarly, the
aveSaee selling price of bessemer pig
in Nay ana June OF This ysa- was
s24.14. f. o. b. valley furnace.
Cents per pound in copper paraI-
leled dollars per tol Of pig irof, but
exactly in percentage the increase IN
copper has been 1S9 per cent and il.
pig iron 176 per cent.
Here is certainly a close enough
agreement between the advance IN
copper and the advance In pig iron
to convince even a yery particular
critic. but the statement has been
made so often that doubtless the ar
gunrent would be presented. against
this showing. that finished steel
products have not advanced IN pro
portion to pig iron. Let Us collect a
few low points In steel ard finished
products and compare them with
prices lately ruling: