The copper era and Morenci leader., 1912-02-16
IN THE N | N ES
WALKERS WEEKLY
 COPPER LETTER.

to 14 3-S cents a pound. The report of the Copper Producers association was unexpectedly favorable, showing decrease of 23,174,052 pounds in the American surplus. Including the worlds copper supplies were reduced 27,011,172 pounds during January. The total visible surplus now stands at 190, 0,757,443 pounds, which is less than four weeks consumptive require ments.
 Production and imports, however, amounted to only 119,337,753 pounds. which was less than the monthly av- craze of the past two years. Un- occasionally the mine and smelter out put has increased S,OO0,OOO or 1O,OOO,- 900 pounds monthly, and as this has not yet begun to show in the returns, l it indicates some delay at refinery points. There was good reason to ex- pect that production and imports for January would be approximately 13O,- 00O,000 pounds. Both domestic deliv- cries and exports considerably exceed ed the average of the two past years, furnishing unquestionable proof that consumption is increasing steadily.
 The buying demand for copper has been very slack for three weeks past; but consumers are again in the mark ct, and it would not be surprising if they forced the price up to 15 cents. The general improvement in the situa. tion has been so much more rapid than anyone had reason to expect that consumers are now showing disposi- ton to abandon their bearish position and buy sufficient copper to cover their immediate future requirements.
 Even assuming that the present dullness of general business is to con- tinue, there is no reason to doubt that this country will consume con- siderably more copper this year than it did last. Each of the big electri- cord business in 1911 and they now anticipate a further increase this year. This is due to the fact that so- called public service corporations are prosperous and are experiencing less difficulty in raising new capital than any other line of industry, and also to the remarkable progress being made in the development of hydro electric power.
 Another factor that will help to in- crease the consumption of copper this year is the promised activity in the building trade. Construction mater ials are cheaper than they have been for several years, and there is an abundant supply of labor available. Contractors are taking advantage of these potent factors to encoura ge. the building of homes, etc. The public is not in the stock market, and it's sur plus, therefore, is available for real two cents pound in the price of cop per from 12 IA to IA IA cents, will not add over per cent to the cost of covering a roof.
 A considerable increase of produc- tion is under way, such as always characterizes the first year of period of advancing metal prices. There is no instance in the history of the trade however, where a growing volume of output has any more than temporarily checked an advancing tendency in the price of the metal. Extreme declines in the price of copper have always followed periods in which 1t has sold so high as to discourage largely, if not prohibit, it's general use. Low prices of copper have been traceable at all times to this cause and to busi- ness depression, when it has been more or less general all over the world.
 Whenever long continued cheap ness has popularized the use of cop per it has never failed to lead up to prohibitive prices ultimately. The ex- planation is that there never has been enough copper to supply for any con- siderable length of time, the enormous demand which a low price creates. If all the copper the world would con- sume could be supplied for 10 consecu- tive years at 12 cents a pound the consumption would not simply double, it would multiply.
 With 50 or more men selling copper directly to several hundred consum- CTS, no two of whom have any under standing or agreement as to what price shall be asked or paid from day to day or week to week, fluctuations are unavoidable and to be expected Supply and demand, however, never fail to determine the general tendency of prices. For year or two past the demand has been gradually overtak- | ing the supply, and during the con- ing six or eight months these two