The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1908-01-03
THE COPPER
SITUATION.
George Walker Believes
the Turn. In the Tide
Is Near.
SUGGESTS A REMEDY
Would Combine Producers In An
Agreement Not TO Sell at Less
Than Three Gents Profit.

hcOTRt W diktf Says Ill his weekly
copper letter in the Boston CONNER
elal:
Copper i stronger. Lake is selling
at 1874 10 13A cents, and electricity
tic at 10 * to 10 Y cents per pound.
The market is increasingly active and
more copper is moving than for a long
time past. there have been eonsid-
cradle sales this week to both for
eign and domestic consumers, and .
steadily growing inquiry is reported
by producers generallv. The prospect
now IL that metal prices will be
higher soon after the first of the year.
With the heavy curtailment Of pro-
duction IN Montana. Arizona, Utah
and Mexico. 1t is very improbable that
the price of the metal will decline to
cents again.
The question Of = rtailment pro-
duetion in times OF low metal prices
IS a very interesting one. The right
Way 10 view the situation is as fol-
lows. Copper ore insthe ground I'M
questionably is a valuable asset. 1t
does not deteriorate or go out of
style as merchandise does, and it does
not have to be insured. or charges
paid for storage II is not the part
of wisdom. therefore, to take good
copper ore out of the ground and con
vert it into metal unless il can be
done at fair margin of profit.
The old style policy of keeping a
company copoent eator and sr.elter
going as long as expenses of opera
tions can be paid Is not good bust
ness. The management of copper
mining companies sheulc loof twice
at the ton of ore in the ground. and
should go on principle that the
ore should not be removed until 1t
will yield q fair net profit for stock
1ol1ets.
II this principle were followed up
more faithfully, a number of small
mines whose aggregate production is
considerable would have had TO close
down mon1as ago, and the metal sit
uation would as result be stronger
than 1t Is ut present II would seem
that some agreement might be reach
ed among the various operating com
9anies by using production costs as
a basis. II could be agreed, for in
stance. that no company should pro-
duce and sell copper at any time at
smaller profit than cents per
pound. This would close down the
high cost producers automatically in
times of depression as the price of
the metal declined. ana would have a
very beneficial and steadyine effect on
the metal market
There is a feeling IN some well in
formed circles that the sudden and
unexpected decline which occurred
last Monday was in keeping with a
plan which is being worked ont by
very strong stock market interests.
rhe weakness became conspicuous
just at the moment when the boar
traders We're losing courage and get
ting ready 10 cover. II is figured out
that this sort of tactics will enable
the interests who are working for an
advance 4, accumulate good lines OF
stocks a. Comparatively low prices,
and also that it will encourage new
short selling. If the bears eaa be
tricked into holding their position UNI
Ill prices are 10 per cent to 20 per
cent higher, they Will help to make
the hull movement interesting and
profitable.
Immediately after the first of the
year money should work lower, and
be easier To obtain. If we drift into
per cent money market, as some
bank men predict. there will soon be
a considerable demand for investment
bonds and preferred and guaranteed
stocks. This VIII enable steam and
electric railroad and Industrial com
panies to finance their construction
requirements. It will give employ
ment to idle labor, and the business
situation will begin TO mend. The
first sign Of Improvement. however,
will be an advance in security prices
for the stock market will surely dis
count business revival Just as il
did the present depression.
There is reason for the belief that
the best of the eoppers are about to
begin diseounting a substantial inn
provement in the metal market. Prac-
tically every electric enterprise in the
! world needs a lot of copper wire now
and as soon as money conditions
show slight Improvement there will
be greatly increased buying de
mand. When metal prices advance
| and the mines and smelters now idle
resume operations. the coppers will
sell a great deal higher than they are
at present
All of the stocks of the producing
conner mines are cheap at present
prices. | do not expect them to sell
as low again as they did a few weeks
ago. | feel that the market has turn
ed for the better already. Prices
should gradually work higher. few
months hence we will be asking our
selves If II is possible that we shall
ever see another such an opportunit,
to buy good stocks as cheap as We
did in the closing months of 1907.