Bisbee daily review., 1908-01-12
PRODUCERS
NOW CONTROL
SITUATION
Copper Metal Showing Strong
er-curtaiIment of Produc-
ton Being Felt-Walker Is
Very Optimistic.

Copper is decidedly stronger. Lake
is l3% to IA cents and electrilytic
l5A to 1873 cents per pound. Domes-
TIC consumers are buying a little
more freely than heretofore. but in
small lots only. The bulk of the cur
rent demand comes from abroad. Ap-
parently foreign manufacturers are
looking forward to a fair volume of
business during 1908, and are buying
copper as rapidly as they can con
yeniently, believing that current
prices will be the lowest of the year.
Domestic consumers, as a rule, con-
tinue in a discouraged frame of mind.
The few who are hopeful find it SO
difficult to obtain credit that they
are harboring their resources in every
direction.
The curtailmeRt of copper produc-
ton which began in September and
| October is now beginning to be FELT
and appreciated. Until a few weeks
ago the monthly output of the refin-
cries were up to the high mark of the
year, as copper which came from tae
mines in October was still in pro-
cess. The December output of cleo
| troiytic copper. however, must have
shown shrinkage of 400 to 500
as compared with November's total.
This curtailment, so far as the refin-
cries are concerned, win continue in
force for at least three months, even
though the big smelling plants of the
country undertake to resume opera
tions to their full capacity immedi-
ately, as at least that length of time
would be required to get back to
normal producing basis, ship the cop
per east, treat it and get It in shapes
ready or the market.
All testimony to the contrary not
withstanding, the worlds copper sur
plus is considerably smaller now than
it was three months ago. This is
true of the refined copper ready for
consumption; and the amount of cop
per in process, between the mines
and market, has decreased at least
$50.
More copper is being purchased
and consumed at present than is
coming from the worlds mines 1t is
expected that there will be a consid-
cradle increase in consumption after
| the 18th of this month, If the money
! market is easier, and it is very gen.
orally believed it will. If confidence
returns sufficiently to warrant a re-
sumption of railroad, railway, tele-
| phone, electric light and power con-
| struction, ali of the producing mines
will be operating in full three to six
months hence and selling their entire
output at approximately 10 cents per
pound.
1t must not be supposed that the
current depression in copper is pc
culiar to that trade alone, or that il
reflects coming change in the COP
per business. There is relatively as
great or greater curtailment in the
iron and steel trade; and lead, zinc
and silver are in exceedingly poor de-
mand though much lower in price
than a few months ago. Substantial
ly all lines of industry are suffering
proportionately. With the coming re-
vival in general trade, there viii be
a resumption of the demand for the
cheap and convenient power which is
furnished by electricity; and the
work of equipping water powers and
concentrated steam power plants will
go on again as formerly. The copper
trade should be the first to reflect the
business revival
The tone of the copper share mar
ket is showing decided improve
men. 1hs rallies ar stronger, and
the coppers do not go down when the
New York market develops weakness.
There is a pronounced scarcity of
floating stocks. Only a little buying
is required to advance pieces. Nearly
all of the coppers are now near the
highest prices reached since the
panic.
That the entire financial situation
is improving is shown by the indif-
ference with which the market takes
bad news. pointed out some time
ago that railroad common stocks were
insthe weakest position of any secur-
tiles on the market Exceedingly I'M
favorable statements of earnings
have been issued since by two or
three leading companies and the Sea
board Air Line has gone into the
hands of a receiver. Notwithstand-
ing all this, there has been no mate
rial decline in the railroad stocks as
a whole. The Seaboarf Aair Line
CO1idDSt NOuiQ ndFC BAEC1pAldtcQ
10-point decline a year ago.
One of the most favorable features
of the situation is the announcement
of q reduction in the bank of England
discount rate. This is undisputable
evidence that the acute stringency of
the money market has been relieved,
and that rates viii work easier from
now on, both abroad and at home
! cannot impress it too strongly
upon the readers of these letters that
the coppers are the cheapest and
50 fest stocks to buy. The bad news
affecting them is all out; taeir earn
ingc cannot decrease any further.
Practically all of the producing com
pauies have large treasury surpluses;
and with two OF three exceptions,
there are no bonds OF preferred
stocks ahead of the common stocks.
All OF the coppers are cheap from Al
louez throughout the alphabet to Vol
VERNE. In my opinion, however. the