The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-08-28
STUDY OF THE
COPPER SITUATION

The copper situation is most in
teresting. After months during which
tie metal has been steadily main
tanned at 25 cents with no apparent
cdrtaiment in consumption, though
in face of strenuous opposition from
consumers, the great selling agencies
tut the price three cents pound.
Promptly quotations on copper wire
vas reduced by like amount The
TACT that world production is below
normal while visible supply is small,
only adds to the puzzle. There is in
this an apparent conflict with the law
of supply and demand. That this is
not the case, however, may be con-
ceded-for the worlds supply OF cop
per is marketed by comparatively
few and very strong people, who can
not be accused of sacrificing any le-
ultimate gain needlessly.
When copper had reached ~ 12
cents a pound and the price was evil
IDENTIFY going higher, it was stated
editorially:
1--WE submit that copper, in all
probability, must go too high; and
that a reaction must occur before IL
can he known what the new level
at which the world can absorb the
output is to be-that without such
reaction, and perhaps several
swings up and down, producers and
consumers alike must remain in the
dark as to the true-strength OF the
demand.
st is evident that price at when
demand exceeds supply is not cor
rect price, nor one that can, by any
natural law, be considered stable
We do not, from this argue that
221b cents a pound is too low price
for copper, except for the time being
Demand in the compromising indus
tries is to a large extent cumulative
and much of the present need is tc
carry out plans made when the price
was lower. We do not maintain
however, that artificial bearing of the
market can be no more successful
than was artificial bolstering in for
smer wears. The metal must find its
level. and the price will probably de-
mend upon cost of production from
ore bodies of so low grade as TO nave
been hitherto unavoidable.
The downward swing has begun
and orr argument applies equally to
this present movement. Whether or
ders can he filled at % cents remains
TO be seen. If consumers purchase
heavily during the next few weeks
the price will probably stiHen. II
not, we may see further decline. IL
any event, the price at whlch the
market turns will probably be the
low limit for several years to come
BY their present Willingness u
sell at lower figure copper pro
ducers have admitted that consum
ers' arguments as to the world S pres
ent inability to use the annual out
nut at 25 cents are sound-Dut 'he!
have admitted only that. In the Ell
fort to determine that point at WhlcI
supplv and demand can be balanced
the price must go too low, must Hue
tuate more or less; until the lessor
Of experience is learned. We shall
nerhaps not see 25 cent copper again
unless production shall fall Off ma
terially or until a new Impulse o
prosperity shall cause consumptioi
to be heavily increased.
AS to copper output for the future
important increases do not seem ike
Nv. Though new mines and new dis
tricts will contribute, it must not ID
forgotten that existing mines ar
Welding metal at the rate OF Dlliloi
and a half pounds per annum AM
that every ton of ore raised from tn
earth is gone forever. Though re
duction plants and mining facilitle
have been greatly increased in TN
United States during the past eight
cen months, there has been no cor
responding increase in metal outpu
and the reason has been that aV