Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1907-08-10
MARKET VIEWS ON
COPPER MARKET
CONDITIONS CONSIDERED FAV-
ORABLE FOR RENEWED
STRENGTH.

E1dJuen olOue * 70. VI bOnlOu iS-
views the copper metal and share
metal market as follows:
I'VE are receiving continually SO
many inquiries regarding the general
copper metal situation that we think
a short resume of the metal situation
as 1t has appeared to us during the
past eighteen months may be Of gen
eral interest. We do not propose to
speak from the standpoint of either
the producer or the consumer, but
to give an unprejudiced view of the
facts as we digest them from nve
sations during that period of time
with people who we believe know,
and in whom we have confidence.
up to about eighteen months ago,
owing to what we then considered a
fairly high price for copper, around
is to 1871 cents, the manufacturers
were purchasing in rather small
quantities, that is, no large amounts
in advance. Along in the summer of
1906 there was a general feeling
among this class of people that con-
sumption was rapidly increasing
without any corresponding increase
in production, and the price rapidly
advanced with increasing excitement,
eliminating March, 1907. This rapid
advance, however, we do not believe
was especially welcomed by the pro-
ducers and was brought about by the
competitive bidding of consumers.
Business continued very large un-
til the recent monetary disturbances
of last March, when business fell off
almost Immediately to a very great
degree, and this falling off was es-
pecially noticeable in the wire mills.
A group of three of the leading sell
ing agencies seemed quite generally
to concur in the view that general
business was SO large and the pros
perity of the country so great that a
lapse of a few months would rectify
the monetary situation and bring
about a resumption of consumption to
a volume similar to what had been
existing during the last year.
THE question of production does
not need to be considered until 1908.
There have been no large new pro-
ducers enter the field, nor will there
be for some time, and in fact the
question of transportation of coal,
coke and supplies, the inferiority of
labor and, in some cases, the last
years heavy production of high
grade ores, which has lead to the ne
cessity of treating lower grade ores
this year. has resulted, in the north
west, at least, in an actual decrease
in production.
Nearly four months have elapsed
now since the falling off of business
in March and consumption has not re-
sumed its former volume, and there
fore copper has been accommodating
at refineries and the present cut in
price, while done in the hope of in
creasing the present volume of pur.
chases, has not internally increased
them, and we do not believe that G
cut of two or three cents more woult
materially increase them, as at thii
time of year we believe the big bull
of manufacturers will make theil
so to speak, supplying merely thu
actual demands of the retailers foI
immediate delivery. One disastrous
effect of this advance in the metal il
shown in the loss of position which
this country holds in the eXpor
trade. The net exports for clever
months ended May. 81, 1907, wert
1S9, 100000 pounds, against 26S,
900, and the bulk of this decreas,
came during the latter part of thii
period.
ut will not surprise us if the di
rectors of several good copper com
panies vote to sell their product a
the market during the next sixty OF
ninety days, and under these condi
tions we believe there will be sales
Of moderately good-sized amounts o
copper at from 81 to 20 cents.
"Of course, on any sharp breal
certain manufacturers have enough
OF speculative blood in their veins t
take on moderate lines, say for thirt,
or sixty days supply, but we believ'
that the ultimate price of copper
whether higher or lower than tn
present arbitrarily arranged price
will be based on the question o
whether, with the success of tn
crops this fall and taking into con
sideration the prosperity of the ives
and its wealth of money, there vii
not be a sufficient increase in bust
ness to once more make the consum
ers come into the market on a liberia
basis.
I'm other words, money Is th,