Bisbee daily review., 1911-06-15
COPPER SITUATION
 CHANGES ROR BETTER
Walker Looks for Steady lm- provement in Metal Mar
 ket from Now On
(By Geo. L. Walker1

Copper is firm. Lake is 12b and elecuolytfc 12 3-S cents a pound. Do
 mestic demand is showing an in-
 crease; but the best part of the buy
 ing is for export American consum-
 CTS are already feeling more cheerful
 and confident, due to the improve
 ment which is beginning to manifest
 itself in the general business situa-
 ton. Producers are not selling cop
 Der quite as freely as they have
 been flor some months pas. and
 there is now an excellent prospect that the price win gradually ad-
 vance around 13 cents pound
 and possibly higher.
 The Copper Producers association
 reports an increase of only i40 ,024
 pounds in the domestic supply Of
 copper during May. Production in-
 creased S,S77,319 pounds: but this
 was offset by a 15.000. 900 pound In- crease in domestic deliveries. while exports were approxima ely the same as in April.
 In view of the decrease of I2,22l.- 40 pounds in the foreign visible sup ply, previously reported. it would appear that the worlds total surplus underwear a shrinkage of 1I.7Sl.416 pounds during May. This reflects the fact that consumption is steadily gaining on production. The copper situation has turned for the better, and within wo or three years N again see very high prices for the metal
 The coppers are continuing to ad- vance and trading is broadening. The public is slow In coming into the marke'. but it nowrealizes it missed its opportunity to get in at bottom prices and is now beginning % buy 8 few stocks on the advance. There $ considerable accumulation of buy ing orders under the market due 10 the fact that he coppers were SO thoroughly liquidated when this Gd- vance began that remarkably lit le selling has been eeountered on the rise.
 A leading copper man says: When copper was selling at 26 cents and the coppers were declining we were wont to say hat anybody could sell coppers who wished, we would hold ours for all the uroducing companies wee rber earn.E- fsom 12 to l5 per cent on their market prices. The coppers continued 70 decline, how ever and ultimately there came a bad break in the metal For a year past the public has been refusing to buy coppers because hey were too high, figured on the basis of net earnings. I believe we shall continue 10 see prices advance. however, and before long there will be a decided change for the better in the metal sf uation. Then the public will come into the market and buy coppers al much higher prices"
 Paradoxical as it may seem, cop pers are usually a buy when they are selling for more than they appear to be wor h and a sale when they seem to be worth more than they are selling for When the metal is as low as it is now the coppers are always higher han they are entitled To sell on a strict investment basis. At such times investors and the pa bic argue hat mining stocks should earn at least 10 per cent on heir selling prices. When the metal Is higher and the coppers have had extreme advances he producers gre able to show earnings Of 10 to 20 percent even on high record quota lions for their stocks. At such imes .he coppers are usually sale.
 The most discouraging feature in the present situation is the continued depletion Of ore resources by Le various producers on a 12A cent met al market Copper is worth at least l5 cents a pound and it is extremely unfortunate that some arrangement cannot be made to hold he price of the metal up to that level A deplor- ble waste of valuable resources is now being witnessed.
 WI hin five years the world will begin to demand more copper 'han the mines will be able to produce. When that time comes the owners of copper stocks will have cause TO regret that theIr companies failed to curtail production when the price or
 he metal was around 12 cents.