White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1911-10-29
REDUCTION Of
COPPER SURPLUS
FINANCIAL WRITER GIVES OPIN-
ION On GENERAL SITUATION
AND SAYS VI HAVE STARTED
on ROAD To RECOVERY.

elined 10 still lower figures IS no
doubt due to the increased eOnsamp-
ton Of the metal abroad which has
been and is being stimulated b. the
low prices. The effect of the in
creased use OF the metal IN Europe
has been TO cause a large reduction
in the surplus that vas accumulated
during the business depression n
this country that followed the 1907
panic and Notwithstanding the large
production. there has not been any
Indication that a large further ae-
cumulation need be feared. There
was a let-up in the foreign demand
for a time owing 10 the strikes IN
( Germany and Great Britain and the
fear Of complications oyer the Moroe-
can situation. but nov that Europe IS
freed from these uncertainties. the
prospects are for . renewal Of the
large consumption and a still further
growth If prices continue as low Is
a. present.
The political uncertainties in this
country have prevented the Low
prices for copper having any materi-
al effect in increasing our eonsump-
tion Of the metal but in other direc-
tons il Is being found that the force
OF loR prices is increasing eonsump-
ton OF iron and steel in spite Of the
pessimism in financial circles and the
fear OF tariff agitation and eontinu-
ed prosecution of the trusts. II is
equally true that the small manufae-
turers as well as some of the larger
independent companies are feeling
the effects of the lower prices and
are already getting a taste of what
competitive methods really mean.
There is a prospect that a fight to
the finish may be carried on in the
steel industry that will lead to the
/ serious embarrassment of some Of the
smaller manufactures just as the low
prices for copper have crippled some
of the weaker mines.
The developments of the past have
shown that once a demand is stimu-
lated by low prices there is usually a
/ continuance Of the improvement in
I consumption wen after there has
been something of a recovery and,
for that reason. some good judges
of the situation believe we have
turned the corner even if the situ-
alton continues 10 hang fire for some
time 10 come. There is another di-
rection in which the price of the ra
material has prepared the way for a
decided increase in consumption
during the coming year. The price
of cotton is now at the lowest Ii has
been for years and We have raised a
record breaking crop after two years
of production barely sufficient to
supply the worlds demands. There
is every reason to believe that as
soon as the market for the manufae-
tured product has adjusted itself to
that for the raw material that there
will be a decided increase in the de-
mand for finished cotton goods.
The change in a business situation
invariably takes place very slowly
but 1t is the first signs that are
watched for most eagerly and there
is, therefore, some basis for the hope
that We have finally started on the
road to recovery. The improvement
will be held in check by the political
conditions of the day, and the ex-
p~ectation that the session of congress
which meets in December, will be
given up to agitation of the tariff
question which must have the effect
of still further r~etarding the i'm
proyement. The play of natural
forces. such as that of the increased
consumption that follows low prices,
is always going on. however. and as
We have pointed out, has already
made itself felt in the larger demand
for copper abroad and the better de-
mand for some lines of steel pro-
ducts at home. These may prove TO
be the %forerunner of better times
generally-Boston Financial News.