White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1911-08-06
SWINGS AROUND
COPPER CIRCLE
EASTERNER BELIEVES SURPLUS
OF RED METAL WILL CON-
TINUE TO DEMINISH WITH
CONSEQUENT RISE IN fKiCE.

otooJ VI a. NCPpNi
is closing a roundup of the western
mining camps. He makes a closer
observation of the metal situation in
reality than he does of mining condi-
tions, and it may be of interest to
notice The view he takes Of the fu-
ture of opper When asked for an
expression on conditions as he found
them he said
lone of the things that / have
noticed on my trip through the west
to the various copper camps is that
there are few signs of curtailment.
Most of the properties are running
we'll up to their capacity in output.
Such being the case with an added
demand in the market for the metal
these properties cannot greatly in
crease production. This means that
the surplus will continue to diminish.
| believe. Such diminution of sur
plus means higher prices. ] look for
advances in the selling price of cop
per within the next few months and
certainly in the present year.
There has been considerable talk
of the curtailment which has been
effected by the various properties.
Such curtailment as there has been
has not borne any important fruits.
While for the past two years there
has been a decrease going on almost
steadily in the surplus stock of cop
per, that has been occasioned more
by an increased demand for metal
than by a curtailment of output. Had
there been no curtailment the surplus
would have possibly remained sta
%tionary and possibly have slightly de-
creased. The surplus is not now
great. In the last half of the year
there is always an increase in metal
purchases over the first half when
conditions are normal. | look for
that increased demand this year, and
this will further reduce surplus stock
and tend to price advancement.
The metal situation now is not
dissimilar to those / noted in 1908.
Then there had been a long period of
depression in the market following
the breaking of the Amalgamated
pool. At that time / saw manufac-
turers and others buying and putting
away for future use and others buy
ing also, all in anticipation of higher
prices. That is what Is now going on.
AS this continues there will come a
time when some one goes in the mar
ket for copper and cannot get it at
low prices. Then will come urgent
demand from all sources and then
will come the advance that l consid-
err certain. OF course, ii is impos-
sible to fix a definite time when that
will come. but it looks to me close
at hand and | expect to see 1t either
the latter part of this year or the
first of next. ] do not look for SEN
sational advances in prices. but ! do
expect to see substantial gains.
THE copper producing business
seems to be in the shape that the gov
eminent thinks all business should
be in. without any understanding be-
tween the producers, with production
going on steadily at the same gait
irrespective of how great or how
small the demand is.
when the panic of 1907 came all
other lines of business %curtailed, but
not so with the copper industry. The
mines kept on producing at capacity
just as If there were the same de-
mand for the metal that there was
before. But there was no such de-
mand. Electriication of railroads
largely ceased and all manufactures
that used copper, reduced their pur-
chases at the demand for their manu-
factories decreased. With the mines
producing as before and with the de-
mand so greatly reduced the inev-
table result was the piling up of a
large surplus that has beer so dis
quieting to the industry ever since.
About two years ago this commenced
to decrease. and with some Interrupt
tions that decrease has since contin-
ued. That surplus is not now alarm
ingly large"