Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-09-11
George L. Walker Says Money
Situation is At Bottom of
Extreme Reversal.
CONDITIONS WILL BE NORMAL
But May Take Two or Three Months
NO Big Accumulation of
Copper Exists.

Alutntf drop IN the price or copper
was reported today and accordingly
the owners OF copper mines as well
as the holders OF copper stocks are be
ginning 20 wonder where 90 ls an going
90 end. Those who made the perdic-
tiou few weeks ago to the effect that
the metal would not drop below ~
cents have been disappointed. Others
have said that the decline would not
end until 10 cents "a pound was recahed.
and then they would look for @ gradual
recovery until the metal settles around
ls cents again.
George I4 Walker. the Boston coppe-
authority. and editor OF the Boston
Commercial looks 90 the future, how
ever, with "a great deal OF optimism.
and his last letter on the subject OF
metal markets says
All the large producers are now
unit boo asking 1873 cents for lake and
rs cents for eleCtyOlytIc copper. They
have maintained This position for "A
week or Two past and a considerable
volume OF business has been done.
quite heavy sales of elcctrolytIo have
been made IN Europe at rs cents. and
domestic consumers quite generally
have been buying for September de-
livery. sales of lake have been made
recently at lSie cents. These prices,
therefore. make the market for the Time
being, and o. is very good opinion that
they viii be maintained throughout
the remainder of the year
The money situation is at the bot
tom Of the extreme reversal Of DHudi-
lions which have come about in the
metal market an the past six or eight
weeks. When the American Telephone
company failed to raise money for the
usual yearly extensions 81 its lines and
the Western Electric company was as
"a result forced TO close down its W.re
mill the change from am excess OF cone
sumption 70 an excess Of production
began The money market must Dee
blamed. Since then &c has been prlC-
tlcally impossible for Independent tele-
phone companies. street railroads, and
q very great majority Of other cleo
trical enterprises TO raise money Tor
new construction work The consump-
tion Of copper has thus been arrested
temporarily, probably 70 the extent OF
rs per cent This condition win con-
tinue until money is easier; and money
win grow easier very rapidly II the
retrouchmcut IN general business con-
ditlons continues. It was the abnOrm-
al volume OF business that used up tho
worlds money supply. Business con-
dltlons are getting back 20 normal, ana
within two or three months We shall
surely have normal money market con-
Gitious again.
.The claim that there Is an accumula-
ton Of 200. 600 900 70 800 000. 900 pounds
Of copper Is absurd. II is possible that
producers hold a total Of 10000 600 TO
$50. 600. 900 pounds OF unsold copper
which IS refined and ready for consump-
ton. TO claim that tho amount is great
or than this, however, IS 10 argue that
consumption has decreased IS per cent
within three months, which. Of course
is impossible. The limited amount of
Investigation which I have been able
to make since my return from the west
convincos me that all the unmanufac-
tured copper above ground rs held by
producers. Under normal conditions
consumers would be carrying at least
100 100000 pounds IN their working
stocks. As soon as money conditions
ease up slightly this copper viii change
ownership. In the meantime there Is
no other class OF corporations In exist
ence. not excepting the banks. which is
ion as good a condition % finance loo,-
600 900 10 200 600 900 pounds Of copper as
Tho producers themselves. Their treas
urlcs are strained 20 the bursting point
with profits which have accumulated
during the past three years OF high
priced copper.
''Tho reversal Of conditions has given
tho trade "a severe Jolt" and 20 ls nat
ursI. therefore. that pcssimistlc opin-
ions should be heard ON every Side. IL
Is not Impossible. Of course. that "the
worst is yet 10 GOMEZ But I feel per-
fccuy satisfied myself that the worlds
copper production during the coming
two or three years VIII BE- absorbed
and consumed az rs cents per pound,
provided producers axe wise enough 10
h. united and firm masking that price.
ID must Dee remembered that electrical
development the world over has only
lust begun"