The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-09-10
THE COPPER
SITUATION BY
ONE WHO KNOWS
METAL is NOT YET MOVING IN
LARGE QUANTITY-DEMAND
SOMEWHAT BETTER.
FAVOR A SHORT SHUTDOWN
Amount of Unsold Copper Is Said to
BE Greater Than Experts First
Thought.
FAVOR A SHORT SHUTDOWN

The Boston News Bureau states:
An interest actively identified with
one of the largest selling companies
in the copper industry says: Re
ports to the contrary notwithstand-
ing, | am reluctantly compelled to
state that copper is not yet moving in
large quantity
"Of course it does not require any
great intelligence to predict that the
time is gradually approaching when
Mr.. Booker and the many buyers who
are guided by his action, must be
forced into. the market.
"At the moment Mr.. Booker as
sures us that it is not question of
price: he is not disposed. to buy now
for further delivery at any figure.
He says that when the demand for
finished goods looks a little better,
he will then be in position to gauge
his requirements of raw copper.
when the long deferred buying
does come into the market and this
may develop at any moment, and as
sumo proportions seemingly larger
than they really are, it will only be
for such supplies as will take care of
the immediate future. No large buy
ing of futures need be expected.
The buyers will probably contract for
a sufficient amount of the metal to
keep their plants running say for the
next four or six weeks.
1.-THE copper consumer or manufac-
turer now has the whiphand. He
knows that the producer is facing
the problem of financing steadily
growing accumulation of copper at a
time of severe money stringency,
while the banks are not over anxious
to loan on copper collateral except of
course at pretty fancy rates.
"All of the large producing COM
panies, without exception, have
large amount of unsold copper on
hand, amounting on the average to
not less than two months production
or say 100000, 900 pounds in the
aggregate. According to it's con-
tracts with the producers, the United
Metals Selling Co. is obliged to adj
vance at least 20 per cent of the
value of this copper, on which ad-
vances the mining companies pay 5
per cent.
"Of course with it's strong interna-
tional credit the Metals Selling Co.
is not yet placed in an embarrassing
position, but nevertheless, it is not
altogether a pastime to arrange for
the financing of the steadily growing
accumulation in times like the pres
ent.
so long as all the producing COM
panies are in practically the same
predicament, | am of the opinion that
the wisest course for them to pur-
sue would be to shpt down for a
month or two, until such a time as
our accumulated supplies had salts
fled the demand. What is the use of
piling up unsold stocks and borrow
ing money on that growing pile at
any such interest rates as now pre-
vail? This may sound little dras-
tic, but the more it is considered, the
more reasonable, | think, will it ap-
pear Unless the copper industry will
so regulate the supply as to prevent
demoralizing over-production, we are
likely to have the price go as much
too low as it went too high.
Il do not recall, during the many
years of my experience in the copper
business, situation which paralleled
the present. Seven years ago, when
some of the producing and selling in
terests were endeavoring to maintain
fictitious market at II cents per
pound, it was a question of price. The
consumer needed the copper, and we
tried to make him pay Il cents. Had
we held to our course 60 days longer
we would have won out, but we be-
came frightened and down went the
price with thud.
"To day it is not question of
price with the consuming trade. They
are not in urgent need of copper,
and say they will buy only in suffi-
cient amount to cover orders for
manufactured goods. These orders
are slow in coming in. and I do not
expect radical change in the situation
until we see a better prospect of
easier money.
"Now all this may sound strange,
coming from one whose business de-
ponds upon good copper prices and a
good demand But what is the use
of fooling ourselves? For the mo-
ment we are up against it, and in
time we shall work out of it. Practi-
cally no copper has been sold for the
past three months. The Quincy peo-
pie say they have not sold since last
March
II fear we were deceived as to
the extent to which copper had been
sold up to the first of July. Now
that an account of stock is being
! -. Ifc