The copper era., 1907-09-12
Walkers Weekly Copper Letter.

All the large producers are now
unit in asking 49, cents for lake and
Is cents for electrolytic copper.
They have maintained this position
for week or two past, and considF
cradle volume of business has been
done. Quite heavy sales of cleo
trolytic have been made in Europe at
Is cents and domestic consumers
quite generally have been buying for
September delivery. Sales of lake
have been made recently at 1S4
cents. These prices, therefore, make
the maket for the time being, and it
is very good opinion that they will be
maintained throughout the rem ainder
of the year.
The money situation is at the bot
tom of the extreme reversal of con-
ditions which have come about in the
metal market in the past six or eight
weeks. When the American Tele
phone company failed to raise money
for the usual yearly extension of it's
lines and the Western Electric COM
pany was as a result forced to close
down It's wire mill, the change from
an excess of consumption to an ex-
cess of production began. The
money market must be blamed.
Since then it has been practically
impossible for independent tele phone
construction work. The consumption
of copper has thus been arrested
temporarily, probably to the extent
of % per cent. This condition will
continue until money is easier; and
money will grow easier very rapidly
if the retrenchment in general bust
ness conditions continues. 1t was
the abnormal volume of business that
used up the worlds money supply.
Business conditions are getting back
to normal, and within two or three
months we shall surely have normal
money market conditions again.
The claim that there is an accumu-
lation of 200,0OO,O0O to 100000, ZOO
pounds of copper is absurd. 1t is
possible that producers hold a total
of 0O,O00,0O0 to 150,0O0,00 pounds OF
unsold copper which is refined and
ready for consumption. To claim
that amount is greater than this,
however, is to argue that Consump.
tion has decreased 10 per cent. with
in three months, which, of course, is
| impossible. The limited amount OF
investiga tion which | have been able
to make since my return from the
] WOob OOh IAAht Oil SAN Ill
manufacted copper above ground is
held by producers. Under normal
conditions consumers would be carry.
ing at least 10000, 900 pounds in their
working stocks. AS soon as money
conditions ease up slightly this cop
! per will change ownership. In the
meantime there is no other class Of
corporation in existence, not ex
cepting the banks, which is in d:
good a condition to finance 100, 900 ,00C
to 200, 900, 600 pounds of copper as the
producers themselves. Their treas
uries are strained to the bursting
point with profits which have accumu
lated during the past three years o.
high priced copper.
The reversal of conditions ha
given the trade a severe "jolt," ant
it is natural, therefore, that pessi
mist ic opinions should be Leard oil
every side. 1t is not ir-possible, o.
course, that "the worst is yet t.
Gomez" but 1 feel perfectly satisfie'
myself that the worlds copper pro
duction during the coming two oil
three years will be absorbed and con
sumed at Is cents per pound, pro
vided producers are wise enough to b'
united and firm in asking that price
1t must be remembered that eleCtri
cal development the world over ha
only just begun.