Bisbee daily review., 1907-12-15
CONSUMPTION
IS EXCEEDING
PR0lIIGTI0N
Walker, Well Known Copper
Authority Says More Metal
is Being Sold Than is Com
ing from the Mines.
by George l. Walker in Bosts. Com

I (By. George L. Walker in Bostss Com
mercial)
Copper continues firm and tke buy
/ ing demand is more active Lake is
! selling at 10 "a to IA cents, and cleo
1 trolytic at 10 SIS TO 10 "a pount
! There have been considerable salt
| at these prices quite recently. TT
! foreign buying demand is especial
| good.N Domestic consumers continU
to buy on a hand-to-mouth basis, bI
the aggregate OF this buying has been
( Increasing steadily for two or three
months past.
More copper is being sold tnan is
coming from the mines. Indeed, Oc-
tober and November exports from this
county were equal TO, or greater IN
the aggregate than the entire produc-
ton from American mines during
those two months. OF course a great
deal of copper was sold for domestic
consumption in the same period. With
such volume of business as this in
dicates, the surplus stocks of copper
are being reduced very rapidly. There
is good basis for the belief that even
with business cramped and restricted
by the monetary stringendy, fully as
| much copper is going directly into
| consumption as is coming from the
mines, which means that current buy
! ing is not speculative. II must be
understood, of course, that consump-
| ton has increased ia several lines
1 as a result of the very low price at
which the metal is now obtainable
The buying demand for copper i
/ coming from almost every quarter
the glGbe.e The market FOR this met:
( is worldwide. In this. respect co
per differs widely from iron, coal an
other like commodities. To ship
ton of iron. from Michigan to Chinl
you'd double its cost; but copper
from the Lake Superior mines can be
/ delivered in Hong Kong for about 10
per cent of it's production cost.
/ The outlook for the copper metal
market is decidedly brighter than It
has been since the price first broke
! below % cents, because it has struck
a price level where it mas found a
/ good buying demand. The situation
! Is not sufficiently settled as yet, how
! YER, to warrant the belief that the
I price would be maintained at IA to 3
/ cents If all the mines and smelters
NOV idle or partially closed down
! resume operations in full II the cur
! rent improvement continues, how
1 ever, conditions win soon be in shape
I to warrant general resumption OF
/ production everywhere.
! Politics and money are still the
dominating forces in the stock mar
ket. The promise Of easier money
/ rates and a very general anticipation
that the presidents message would be
conservative and hopeful in its char
acter, caused the sharp advance
" lich occurred early in the week.
After the weakness Of other secu-'
I ties l regret that / can find nothi
! in the message upon which to be
bUllish enthusiasm. ~
i The connars shnu1Z- -hialaaz.- l
cause they are extremely Zcheesu -
present prices and bece1se they har-
a worldwide market for their product.
( It seems to me, however, that they
will move with the general market
and will have severe reactions as
well as rallies until the political situa-
ton begins to shape itself for the ma
tional campaign next year. On good
rallies, Therefore, l think active
stocks should be sold, and that pur-
chases should be made only on re
actions.
It must beSborne in mind that mar
gined speculative accounts have been
very largely eliminated; that the
floating supply of stocks is very
small; that there Is large short in
terest, and that the prosperous con.
dition Of the people insuFes persist
ent investment demand for goC
stocks at current low prices.
would seem almost Impossible tn
there can be another severe break
| prices, even should political develc
ments be very unfaYoTable. On t
other hand. it has been demonstrated
this week that even the anticipation
of good news viii put the market up
( sharply It seems the part of wis
| dom, therefore, to buy good coppers
4 on reactions and hold them for in
vestment, or for the sharp TaIies
! which should occur from time to time.
! Old Dominion is entitled TO a con
siderably greater advance than it has
/ had since my letter of last week was
I published. In view Of the price at
which many other coppeTs are selling.
| Old Dominion should advance to
around $500 in the very near
| future. It is producing about 2,090.-
geo pounds OF copper monthly from
! It's own mines and about 100000
more from custom ores The COM
pauy is now adding 20 its force OF
miners by 100 zen and viz fErthe4
! Increase its output. ] feel satisfied
beyond question that Old Dominion
! has reached the investment stage, aud
that the stock should be bought and
held for dividends fer very much
4 higher prices.
G-a1by Consoifdated's directors
! have decided 70 postpone action On
the quarterly dividend at prcse3t
The date for the directors meeting
I came at a tine Ehen tie caEsp2nv's
mines and smelter were idle and =
l4houeb the company undoubtedly
earned another dividend. caadi'
existinz on the dav g 80 uar
1. were probably r1sHonsiEle ~ -
ton taken.
Il jay P. Graves Who T. vice-preait,-S-
and general manager OF the coupanys
gives oct the following statement
Since tie closing Of our mines and
smeiter about three weeks ago, be