The Calumet news., 1911-04-14
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COPPER CONDITIONS.
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The stocks of copper reported
Europe and the United States on IN
first Of April totaled 600 lbs
as against 373.l5O,OOO lbs. on the sam
day year ago, while on the first da
of last July the total reached 40l.
301 600 lbs. There has therefor. bee
a decrease in the stocks reported dur
ing the period but Notwithstanding
this, the price of the metal is nov
at the lowest point. II is Furthermore
believed in we'll Informed circles, tha
the stocks i'm the hands OF consumers
are smaller than they were year ago
and smaller also than they have been
since the copper famine period of 1906
and 1907. The situation is clearly not
as unfavorable as il appears on the
surface Of the Copper Producers Asso-
citation reports. and there is no reason
for the utter discouragement that
seems to prevail among the holders of
stocks in copper producing compa-
nies.
The trouble with the copper industry
is, Tor one thing, the fact that, while
the output Of steel was curtailed dur
ing 1908 when business was depressed,
there was no effort 10 hold down the
output of copper but on the contrary
new mines pushed production To make
a record. The result is seen in an ac-
Cumulation of red metal while the steel
industry is in comparatively good I
shape. Some interests claim that the /
output of certain mines was increased |
10 help make market for the stocks
or the companies, and others that a D.
maximum was arrived at for the pur
pose of securing good trading posi-
tion i'm case it was possible 10 bring
about a great merger or an effective
policy Of curtailment II matters little
why the production was made and it
is obvious. also. that the new mines
had a perfect right TO produce copper
IL they saw fit. so long as it was prof. q
table for their stockholders for them .
to do so. -
The situation now must be viewed
not only in the light of the increase J.
in production that has taken place dur
ing the past two years, but also with =
due regard for the production that ?
will be furnished by such mines as the
Miami Ray Consolidated and Chino y
as we'll as others. II is cOntended by ~
many that. IL the consumers were 10
stock up and carry as much copper as -
hey did formerly that there would :
PC no surplus in the hands Of the pro- ~
lucers, but il is doubtful If the con- -
umers return to that policy SO long -
Is the monthly statements are furn-
shed by the Producers Association -
here is no need OF laying in copper y"
or future use SO long as il is known "'
hat the producers have large stocks w
n hand and are mining approximately
s much as the market needs. Looked af
I in this way the monthly statements an
y the Producers have been Of dis al
met advantage to the consumer tr'
Now that the consumers are no lon
er In possession Of stocks of copper
, last tor some time they must come 'h
, tho r,arl,o+ co,ti,roiI,, for frosr at,
4 Ailt mar htl AhuAluudllg AOI AItsu
lppies, and eventually this will th
iaintain the industry on a more stable ~
,oting, if it is possible 20 hold the II
reduction down TO the demand The era
tuatiOn viii then be In the hands Of ue
le producers instead of the reserve 81
is true that the low prices will stim- pei
late consumption in many lines and
he producers that are selling without r,
.curing a profit will find a market W
n their output at a price. but wheth-
this is going on indefinitely re-
aims TO be seen. The stakeholder
ay decide that it is a foolish waste
assets and that no matter what the
ock market effect it is better TO
osc or at least curtail. The great am
ctor i'm the industry is however, the ma
'ndtions of the country generally, du
n the demand for copper will increase oul
ith that for other commodities as cia
.on as the people of the United States orl
row off the depression that comes lial
ON political agitation and litigation chi
,anst large corporations They may ind
me day prefer business to some of
nds of reform. me