Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-09-16
MINING, BUSINESS AND STOCKS.
INTERESTING FACTS
IN COPPER STATISTICS
Increase of surplus Nomination.
Price Stimulates Use OF Metal
Abroad.

The general feeling toward the copper
metal situation Is 20 pessimistic TINT
It's favorable features are often ovei-
looked The low prices for copper are
takon as the best index 20 the real con
ditions by most men, ana 10 must be
admitted that. as rule. this. IS the
safest basis on which To make estimates
Of the future There are, however,
grounds for believing that the current
prices for the metal are due TO condi-
lions that are past rather than to those
now existing or indicated for the future,
says the Boston Financial News
The reports OF the Copper Producers
association for the year 1909 show that
the compined surplus here and In Eu-
rope was increased 20 the extent Of
1877 9a3 900 pounds while the same
statistics for the first eight months Of
1910. show that the surplus has IN
creased only l.356,OOO pounds II Is OBJ
vious that a great change for the bet
ter has taken place in the Industry
since the first of this year. notwitn-
standing the metal prices have declined.
The production this year has averaged
above that for 1909, so the fact that tho
surplus shows only an lnhnitestmal in
crease this year as compared with 1909,
can only be explained on the ground
that consumption has increased to the
extent OF the difference between the in
creases In the surplus for the two
years.
II Is understood that President Ryan
Of the Amalgamatcd made a more thor
ough inves tigation Of the conditions In
Europe. as they bear on the probable
consumption OF copper, than ever be-
fore, during his recent trip, and also
that he was most agreeably surprised.
both at the present rate ~ consump-
ton and the prospects for the future.
The larger use OF the metal abroad,
particularly IN Germany has been par
TALLY due 20 the extension Of the use
Of electricity for traction purposes. hut
tho low prices have stimulated con-
sumption abroad as well as here. and
were undoubtedly the main factor in
the present enormous consumption,
which Is larger abroad than ever be-
fore and as large i'm this country as
during the period prior 20 the panic
when we experienced. practically speak
ms, a copper famine.
CAUSE OF THE DECLINE
The knowledge that production was
running ahead Of consumption caused
the decline In metal prices during 1903 |
and the knowledge that producers were |
ttAI 9liE an tHtTD0uN surplus nus Htlu |
them down during the current year. |
In both cases the. information has been |
freely given by the producers them |
selves through the monthly statements |
OF the copper Producers association |
This has apparently worked a hardship |
on the producer and benefited the con- |
sumner but IL is evident that the larger |
producers are taking long range view |
OF the conditions and realize that after |
he exigfing g1Irpiug has boa, ttaaI nm
that the monthly statements win help /
10 keep the Industry on an even keel |
and that Is the end most sought
There Is no doubt but that the low
prices for copper are doing more at |
the present time 10 use up the surplus
than any other cause. and for that rea- /
son the larger producers would not. II |
they could, rush prices up. The policy /
II To allow prices To remain as low as a
natural market Will force them in or
der to stimulate consumption both
here and abroad, and when the time
comes, to advance the price 50 gradual
" that there will be the least possible
disturbance TO the demand This is one
phase Of the policy agreed upon by the
larger copper interests.
Another is TO restrict the production
30 as to cause 2 slow but steady reduc-
lion in the surplus. The effects of the
curtallment policy will not be seen
before October. perhaps not until Mo- |
yember. owing to the time that elapses
before the output Of the mines be-
zones the output OF the refiueries. The
strongest feature of the policies adopt
"a Is that the Industry Is to be given
1 natural cure, for time win he given
'or the surplus to be actually con-
iumed.
OUTLOOK BETTER.
The outlook for the copper industry
= better than II has been for the past
Wo years. First, because one-half the
product Is sold abroad and conditions
here are extremely favorable now and
more so all the time Second
y. because the record for 1910 up 20
late shows that consumption has, prac-
ically, edualed production. Third, be-
'ause consumption is gaining rapidly
Lbroad and with a return Of normal |
conditions In this country IL would soon
'un beyond the normal production.
Fourth. because the larger interests
AVE got together and made begin
ling that will eventuate In working
ontrol Of the industry. Fifth, because
here is the best OF expert advice TO the
fleet that the mines now In sight rep |
.esapt tho total pOgslhlN addition 70 |