Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1907-11-10
one THIRD OF THE COPPER
SURPLUS IS ALREADY SOLD
Walker Figures That the Net Earnings of Producers viii Be
TWICE rs DfedI UTl Io-Cen AS On Iz-UCen copper
Panic Conditions No Longer Govern Stocks and Depres
sion Win Pass Away Before Long.

(By Geo. L. Walker in Boston Com
mercial)
Copper prices rebound very quick
" from the low level of II cents
reached a week or ten days ago. Lake
IS now selling at Is to 10 is cents
and electrolytic at IA 7-S to Il cents
l There has been VERY general and
heavy buying. but chiefly by foreign
consumers. Domestic manufacturers
have continued to buy very sparingly
They are now in the market. however
| locking for some of the bargains
which they allowed to pass UNDECIDED
two weeks ago.
/ estimate that the accumulation oil
| copper in the hands of the worlds pro
ducers reached a total of 500 600. OOe
pounds. This was properly a surplus
of about 20O,0OO,000 pounds, as under
normal conditions at least one-third of
this total would have been carried bv
the consumers who have been carry
ing practically no copper at all. An
proximately ia, 00O, 900 pounds az con
per was sold during the month of Oc-
tober, reducing the producers surplus
stocks more than One-half The min
ing companies had about $50. O00, 600
of their working capital tied up in cop
per. Assuming that the average price
at which sales have been made was
10 II cents, however, the past months
operations have released fully SO. 000.-
Gee. At least Sl5. 100000 worth OF this
copper will go abroad.
How much of the recent buying has
been for speculation is not known. As
practically all of the buying has been
for the account of manufacturers. with
those of Germany and China most ac-
tive, it must be assumed that only a
very small portion of the total amount
viii come back TO market II it is re-
sold, it viii he at higher prices. It is
more probable that the foreigners
have bought heavily to cover their fu-
ture requirements, being satisfied that
prices were low enough
The last of the copper produced in
Montana, Utah, Arizona and Mexico,
previous to the heavy curtailment of
production, which began in August,
has now reached the market For
at least three months to come the re-
ceipts of copper must be much small
er; for should the producers resume
production to their fun capacity at
once, the increased output would not
reach distributing centers inside of
80 to 120 days. 1t is believed that
consumption should overtake produc-
ton before the end of this three
months period. The Amalgamated
COle-Ryan and Phelps-Dodge interests
will not resume their full volume of
production again, | understand. until
there are unmistabable signs OF a de-
cided improvement in business. This
should mean that the price of copper
will hold around 10 cents per pound
Tor an Indefinite period.
Since the last day of the panic, Oc-
tobeT 81 the coppers have steadily
shown a better buying demand, and
less selling pressure than either the
railroads or the industrials On the
days that the railroads suffered very
serious relapse, October % and 80,
1..i.-l
saaEsce &c the ceiling pressure. ara
afterwards they recovered and ad.
vanced more readily than any other
group of stocks. AS I predicted g
week or two ago, there have been very
few sellers since the market started
to advance. Everybody who vas
forced to sell did so before the mar
ket reached the bottom of its decline.
Those whe were able to hold stocks
through the panic will. as rule, con-
tfnue to hold them until another bull
market comes and brings very much
higher level of prices. Even the sup
ply of floating stocks. which are pass
ed back and forth from day to day by
the traders, is very much smaller
than usual. The market is in very
strong position.