Bisbee daily review., 1911-05-26
BROKERS SAY NOW
 Is PURCHASING TIME
lBy Gay & sturg1s.)

1 cate tlelr creQlt beyond a Iedhon- able limit Many such periods have
 been seen in the last twenty years. during which the copper industry has grown rom one of comparative un-
 importance to a very large item in
 the economic world. These periods have been preceded by apathetic copper shares markets like the one a-e now have.
 The reason for the present stag
 nant market for copper shares is
 nrly found in the general lntlu-
 ences. largely political surrounding all securities. Other securities, how
 ever. are by no means so prostrat-
 eu and holders of them by no means
 SO discouraged as copper shares and
 :helr owners. The reason for this IS
 an oyer-production of the metal,
 caused both by the over-stimulation
 resulting rom the excessively high prices of 1906 and 1907, and by the
 discovery Of means for profitably
 treating the low grade copper depos'
 it's commonly called "porphyries-
 The oyer-production is real and
 tangible fact
 The result of the surrounding
 conditions and the over-production ff cooper. together with the painful
 fact. for holders Of shares, that dur
 ing the last year many of the older
 mines have given unmistakable signs of senile decay. is a market for copper shares only nominal in ex-
 tent. and prices for shares, while
 perhaps in many cases fully consist
 eut with present values, are on the whole very low In comparison with
 .he 'eXecnt or the industry repre- sonted.
 An upward stock movement usu- aiiv starts when industrial and laD- or conditions are at their worst. when mills are shutting down and labor is being liquidated until its huying power IS raralyzed. At the present moment we are in the midst of such a period. Mills throughout 1 the east are working on greatly re- duced time and many are idle. These conditions have grown acutely worse during the last month and there IS more idle labor than for urobably seven or eight years This restriction of output must make it self felt within less than six months at the consuming end, the shelves of jobbers and retailers will be clear ed, and within reasonable time the demand will compel the factories to return to full time, the idle labor |, will be re-employed and a period ot 'eood times will prevail This iney- table period, we believe, is now soon to be discounted in the stock { market
 Metal prices reflect from six months to a year in advance the 1 period of good times We feel that one Of these periods Of good times" is now not over twelve to | eighteen months away. and there [ fore this is close to the psychOlog- 1 cal moment when the metal prices 1 tend in sympathy the stock markep
 may be expected Co herald it's com l ing
 Liquidation has been almost con- ! staut since November of 1909, ex- 1 capt for a few short lived specula-
 tious in certain Lake Superior | shares. Prices today are only frac- | tions of what they were, speculation | is nil. the metal is very low and | optimism is almost lacking. Trans l actions are so small that it wOul1 | appear only odd lots are existent on | the street. Special lines have been | liquidated to such an extent that l those left are so nearly paid for as i to be almost non speculative.
 Iu other words. copper shares l probably are more nearly out of the
 street than ever before. This condi- 1 ton points absolutely to a period
 when ordinary purchases must be profitable.
 The reason that general opinion ! 6oes not accept this view is because
 of the surplus Of the metal and the l fear of new production. The surplus | is less than a year ago both at home and abroad; but this surplus lies in
 the yards and warehouses of the pro. l Gucers because of the publication of 1 definite statistics regarding it, ] which gives the consumer notice | that he does not need to stock up,
 and this has diverted the supply | from second 10 first hands. The new 1 production is now capable of actual l measurements. Tt consists of the ad- | 5itlonal production of only few mines which cannot be of import | ance for some time and the possible i increase in the production of some Of the older, if not the oldest, ones. II This latter is largely offset by the 1 constant decrease, now rapidly ac-
 tolerated. of the oldest mines. 1 On the other hand, TO new devel
 opments have been made in several 1 years. No less authority than NIT. J. I Parke Charming has testified pub
 iicly to this fact. The well authenti-
 cated report that the British Thar 1 sis Co., has been trying for a long
 time. without success, to discover a
 property or properties to enable it l 10 perpetuate it's existence is addi- l tional testimony. New supplies l doubtless exist. but they will ie quire years of search and labor. and | millions Of money, to develop them 1 Wallace Munro has joined the Do-. fF pa1ascO forces and is working on