Bisbee daily review., 1907-11-03
THE
BEST Of ANY
eTncKc
UIUUItU
Although Beset in the Squeeze,
They Do Not Show Effects
Like Other Standard Stocks.
Now Time to Buy.
(By George L. Walker

CBy George L. Walker.)
There have been heavy sales of cop
per at - IL cents for lake and II LIS
to II II cents for electrolytic. These
are the market prices now prevailing
\ very considerable portion of the buy
ing has been for foreign account The
large amount of copper now being ex-
ported is not going to Europe for stor-
lge, but for delivery to consumers.
Domestic manufacturers have been
considerable buyers. also. The fkEuiry
| sor copper Is very active, and were
the money market easier, it is proba.
| bic tpat every pound of surplus cop
| per could be sold at the prices named.
| have confirmed the report that the
| United Metal Selling company has
sold about 100000 pounds of copper
recently at a fraction above II cents
per pound.
The IL 1-2 cent copper market is the
| result of necessity on the part of
! few producers. These companies were
! obliged to sell as their working capital
was all tied up in their accumulation
of copper This weeks sales nave re
| lieved the strain / do not believe
the largest producers will continue sell
ers for long or to great amount at pres
refuse to sell there must be an early
advance, probably to IA or Is cents.
It is my advice to consumers to en-
gage their copper as far ahead as pos
| sibie at this level of prices.
| The clrtailment Of copper produc-
| ton, which has now reached very con-
siderable proportions, is certain to be
a very vital factor in the metal market
from December until June, a portion
of the year when purchases by consum-
ers are usually quite heavy. For in
stance, the Montana production is be-
ing cut down at the rate of 100000
600 pounds annually, and the curtail-
ment of all the districts together is
very nearly twice this amount, or be-
tween 80 per cent and 40 per cent Of
1.-The American output. In previous
times when there were sudden cuTtail-
meats iof consumption, there was no
General curtailment of production.
Small producers here and there may
have discontinued operation. but all of
the important producers always con-
tinUed the full volume of their opera
tions and sold copper in competition
with one another regardless of prices.
In spite of the almost disastrous
| policy described the return of the de-
mald for copper always came sooner
| than expected, and it never failed to
bring about q substantial recovery in
metal prices. The 00,000,000 pounds
Of copper accumulated under the OPP
| erations of the Secretan syndicate 20
years ago was quickly absorbed, though
the falling of in production consequent
upon the decline in the price of cop
per below an ll-cent average was less
Than 3 per cent.
To illustrate, the average price OF
copper in 1888 was 1G IL cents, and
tb4-Torld7 production was about AGO.
Una nnA Tss.zz11i:ls In 1855 the nrice Of
copper dropped as low as 8 ga cents,
and averaged only 10 as cents for the
year, and the worlds output mad mean
while increased to 460,000000 pounds.
In 1893 production, which had grown
steadily. reached total of 525,000,000
pounds. and notwithstanding this the
price Of copper advanced in that year
above II IL cents.
| Again in 1894, copper dropped as low
as cents, and averaged $50 cents
for the year. the lowest price in the
history of the trade. The year pre-
yious, 1898, the worlds production was
laScut Gao. OO0, 600 pounds. Again the
I ~
for there YVES an increase of 5 per
cent to 10 per cent in the worlds out
put every subsequent year until cop
lpe- sold at 10 cents in 1899.
The figures | have presented shoGld
make IL very clear that a copper sur
plus cuts very little figure when finan-
cial and business conditions have right
ed themselves and normal consump-
tion is resumed. Whereas in past times
il mas required from two to four years
to go from very low to very high
metal prices, it must be expected this
time that the recovery win come about
-, much more quickly, for when con-
sinners come into the market again
to obtain supplies, there will be at
Iooe- 200 900 .000 pounds of copper
missing from the worlds normal pro
~, non. the result of the curtaiiment
which is now going on. As result
there is unlikely to be sufficient COP
per TO 90 around, and the recovery IN
prices promises TO be a very sharp
one. - en-
Montana. Arizona and Mexico mines
viii not be able to resume operations
and iinr1ediately supply the copper
nroapeed n a. trade. Il is about 80
J DAYS from the time the ore cSz-Ts from
In Ground until the Gopher Is electro
ivticaIly refined and cast nze me ca
| r;ous shapes to meet the requirements
of the trade. In view OF this, 1t would
seem that those copper consumers
| who are maintaining an antagonistie
attitude and refusing TO stock up with
ccnpar Al the ridiculously low prices
now quoted are encouraging a centin-
,--ts~r - he e,--tailment Of prodnc-
ton and laying the foundation for an
l.,..yr p.nen little later on watch
lmay send prices inst as high as they
went earlv This year.
/ r-se s~-'aatSca in tAe coppeTs
seems to have been practically ccfr-
Il p,eted several weeks ago and the Sub
seouent selling has apparently er-9a
from weakened speculative
which must have been made up chief
ly Of railroad and Industrial stocks
A feature OF the market lately has
been the SPLENDID buying demand for