The copper era and Morenci leader., 1912-08-23
COPPER|SF|RMW WITH CONSUMPT|O
 INCREASING
Industrial Conditions In The Country Are on the Mend and Copper
 Shares Bouyant.

Geo. L. Walker writing in the Bos- ton Commercial last week says: 1 Copper continues firm Both lake and electrolytic are selling at IT A cents a pound. There has been good buying of the metal thus far this month by foreign buyers, and domes- tic consumers should again come into the market within week or two Practically all the producers are sold ahead, and some have booked two- thirds of their output for October Copper is being used in very large amounts in France, Germany, Aus tria, England and Italy in spite of the comparatively light sales to those countries of late.
 Industrial conditions in this coun- try are on the mend, and the bounti- full harvest which now seems pract1- cally assured should form the basis of a business revival.
 Production has been on good scale during the present year, last month breaking all records for a like period, yet consumption has absorbed nearly half the surplus on hand January 1 in addition to the new output. General business conditions for this year have not been above normal, some of the time being considerably below such a standard.
 It should be plain to all, therefore, what will happen once trade activi- ty broadens sufficiently to invite. ex- pansion. A refinery output of above 130, 100000 pounds of the metal month will be needed to keep prices from soaring to prohibitive heights.
 The copper shares have shown a buoyant tendency the past week. Commission houses report some pub lie buying and in every case the de mand has brought higher prices, there being no large amount for sale. When consideration is given to the fact that copper is now selling three cents a pound higher than the highest price of the last five years and the copper shares are on the average more than ten points lower than the highest prices at which they sold in 1908 and 1910, it needs no further argument to convince one that the copper shares are a good purchase.
 It should not be forgotten that i'm proved machinery has reduced the cost of mining in recent years and profits to the producers at 17% cents a pound today are larger than they were when the metal sold at the same price in former years. Producers prefer a stable market at this price much more than a runaway market which would carry prices higher and at the same time restrict conSump- tion.
 The average price of copper over the last five years has not been above 1874 cents and at this price the pro- ducing companies were able to pay dividends, so that the increase of 412 cents a pound which they are now receiving means more than a propor- tionate increase in profits. The com panies which were unable to produce at a profit at 1874 cents are now in a position to pay dividends, as is shown by the declaration of a dividend on Snapron this week after a lapse or five years.
 The uses of copper are increasing as long as the price remains at level which makes it's manufacture profita- ble; and the total visible supply Of the world at the end of July would only last 40 days at the present rate of consumption should no more be produced, from which it is evident that stocks are at present not as large as they should be to insure stable market. From every standpoint the situation is very strong and it is grad ually coming to be appreciated. Cop per shares are a purchase n every recession.