El Paso herald. (El Paso, Tex.) 1901-1931, 1911-05-17
WHY COPPER METAL
DOES NOT ADVANCE
Domestic Producers Hold
Price Up While Stocks
Increase

This week there was circulated a
story that the Amalgamated Copper
company had broken away from the
long-established rule of naming fixed
quotations for its product. and would
enter hereafter. into direct and unre-
strained competition with its rival pro-
oueers- While later this story WIS
round to have no foundation II gave
Wall street new angle from which r,
view the present complex copper trade
situation. says the New York Evenfng.
Post -----7
Copper Is now being produced in un-
precedented volume, with stocks in
creaslng despite the periodical buvin =
movements We're the trade to- be plac-
ed, through action Of the Aroalgaunafa<
on a purely Competitive basis = ffnaIs
solution Of the problem Of growing
STOCKS would be found One Immediate
effect would be a drop in the price OF
copper from the present 12-cent level
TO II cents, and possibly 10. as the
producers forced their supplies on con-
sumers- The next thing would be a eue
IN rate OF output, as the high-cost
mines found the balance between ex-
pense and income already small. tr1rnS
ed against them As matters are now.
both the low and h1gh-cost mines are
turning out copper in larger amounts
to sell at II cents pound, regardless
OF the supposed agreement of last sum-
meri whereby organized curtafimenE
was to have been undertaken
several explanations OF the faflur5
10 bring about curtaflment have been
offered; they all resolve Themselves.
however, into the one explanation that
loW-eost mines do not have TO curtaif
at present prices. while high cost mines
cannot afford to. Regarding this sit
uation. writer in the London Ffnan-
cial Times observes that our big pro-
ducers, even those operating high-cost
mines have found no encoura cement IN
persist in restriction. for the reason
that their smaller competitors have
shown themselves only TOO ready TO
take advantage Of such action and push
their own output TO the utmost This
writer goes on to say:
AT S275 a ton the cash price is ad-
mittedly low as compared with the past.
but regard must be had TO the steady
Increase Of the production which is
proceeding more rapidly than the nat
rua1 expansion Of the demand. The
advent Of several Important new pro-
ducers among porphyry mines is fore
Swallowed for this year, and in addition
TO the substantial increases which they
will contribute. new sources OF supply
in other parts Of the world. notably
al ia anu O1DCIlds are Oel0E opened
up with every prospect Of yielding i'm
portant contributions 10 the worlds
total before long. In the case OF the
former, at least considerable quantf-
ties will be available for marketing
during the current year
TT may be argued that consumption
is also growing. but, so far as Europe
is concerned, 1t is already on a large
scale. the expansion Of which to any
great extent is doubtful On the other
hand. there may be an Improvement IN
the consumption on the other side OF
the Atlantic, but in ali probability this
can be met for months 20 come out OF
stocks which have accumulated
1T has all along been suspected. and.
indeed, in trade circles Lnquestionably
accepted. that considerable proportion
OF the American COPPER exports were
being made not to satisfy a Legitimate
trade demand in Europe. but tc relieve
the American market Of a portion OF
its surplus stocks This surplus was
said to be finding its way into ware-
houses which do not come within tho
puTxiew Of the European statistics