Daily Kennebec journal., 1910-05-21
Walkers Conner Letter.

Walkers Copper Letter in Saturday S
Boston Commercial will say: Copper is
quiet and firm. Lake is 13 to 1874 cents
and electrolytic 12?s to IS cents per pound,
In the furry of buying. which occurred
last week, approximately 900
pound was taken, transactions being
made at all of the prices mentioned
above. The Amalgamated interests have
been holding electrolytic copper at l3
cents and refusing to make concessions
to American consumers, though it is quite
reliably reported that some has been
sold by them in Europe on the basis of
12s cents. Some of the small producers
sold electrolytic as low as 1Z5s cents last
month, and lake was sold at 127s cents.
The Amalgamated people are talking
bullish on the metal, and putting great
stress on the fact that there has been no
increase in the worlds visible supply In
the past six months. Other American
producers appear to be pretty well sold
up to date, and some of them have sold
their June output. There is still con-
siderable copper held by two or three
large European speculative interests
but practically all the small holdings
were liquidated few weeks ago at a
loss.
The fact that the worlds copper surplus
has not increased in the past six months
is indeed cause for much encouragement.
The so-called invisible supplies. meaning
the copper carried by consumers In eN-
cess of their immediate needs, is be-
ieved to be a great deal smaller now
than 1t was in the closing months of last
year. If this is true. consumption is ac-
tually exceeding production. When the
difficulty of floating bonds for new rail
road, railway and power construction,
together with the relatively poor demand
for electric wire, are taken into consid-
GRAFTON. 1T is in a measure surprising that
the worlds consumption is able to alb
sorb the greatly increased output of the
mines at the present time. lin view of
this it is plain that should the financial
anl political situations SO change in the
near future as to make possible large
bond flotations for new construction
ton. which would follow Immediately.
WOULD quickly absorb the existing sur
plus and bring about a sharp rally in
metal prices.
1t has recently been stated in hnan
cial publication that the average price of
copper for the past 20 years has been on
~ - cents. am aware that Calumet
d Hecla officials have stated that the
average price received by that company
Tor the period referred to has been 1s
cents. To be absolutely sure. however,
have compiled the reports of the Quincy
Mining company from 1880 to 1909 inclu-
slve. a period of 30 years. This com
pany's yearly price for the period aver
aged about IA .46 cents: but going further,
| find that i'm the last 20 years Quincy
produced and sold 3s5,625,26S pounds of
copper for $a,543,398 an average of H,1A
cents per pound. This would seem to
make it plain that the real average price
of copper for 70 years has been better
than IA cents, and that the metal is now
selling about cent per pound below the
normal price. As other commodities in
general are now selling at Approximately
the highest prices of recent years, the
abnormal conditions existing in the metal
market are thus emphasized.
Copper. like steel. is one of the metals
of progress. When the world is going
ahead industrially. expanding and build
ing for the future. the demand for con
per is always very large but lust now
has been checked by a political
which has shattered Investment
confidence and made the financing Of new
enterprises and the extension of old ones
difficult. Copper Consume.
tion, therefore, is not increasing AZ i,
should, while production is
growing more rapidly than IL has nra
viously In 10 or IL years. pe
The copper situation is SO complex a.
present that it Is exceedingly difficuit to
figure out to ones own satisfactio,,
whether prices will advance. deciine ~
remain about stationary during the 70.
months of this year. If / were
asked to advise consumers. howevor
would say. Watch the financial sitna-
tion. As soon as you learn Of the s,,c.
cessful sale of large issue Of raiIroad
bonds. buy three montfs'. six ,nnnths'
or. years supply Of copper. Rir hond
sales will be followed BY a revival of
business In all lines.