The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1913-08-07
COPPER MARKET LOOKS
GOOD FOR HIGH PRICES
WORLD NEEDS 20ooOoooo POUNDS
A MONTH-VlSlElE SUPPLY
WOULD LAST WEEKS.

\ Copper Special" sent oul by
Jones n Baker. New York stock brok-
ers, gives the following instructive in
formation concerning the present stat
u of copper the worlds consumption,
production and visible supply, and the
same With reference to the United
States
Lowest Surplus on Record
Since the first of July, labor trou-
bles IN Australia strikes here ia our
own country and refinery difficulties
have undoubtedly reduced the world $
supply until 1t is safe to say that the
total surplus stocks in sight at the
present time are the lowest on record
This is no imaginary or sentimental
situation Neither is it the result of
any sudden falling off in production Or
an extraordinary demand. 1t shows in
eVitably that the average rate of con
has been largely in excess of output,
notwithstanding the Balkan disturb
ance which has tied up European cap
ital and greatly curtailed buying or
ders from that source.
Present Surplus Less Than a Three
Weeks Supply,
AT the average rate Of consumption,
the world requires about 100000, 900
pounds of copper per month. The to-
tai visible supply on hand now closely
approXimates 135,00O,000 pounds. 1t
will thus be seen that If production
should stop today, the entire world
supply would be exhausted in Just
about three weeks. This accounts for
the head lines that appeared recently
in an eastern paper, Spot Copper Near
the Famine Stage London Buyers
Scared
High Prices Seem Sure.
1T is about time that users of the
red metal We're getting busy. With the
surplus stocks at practically the low
est point in history and siill on the
down grade. and a threatened curtail-
ment of IS to % million pounds month
Ily, as a result of the lake strike, what
| is there to prevent a sudden thrush of
buying orders that will run the price
up to II or Is or 20 cents pound?
wire manufacturers and other US
ers Of copper have already booked or
ders calling for hundreds of millions of
pounds of the metal during the next
six months. They have got to fill these
orders To do that they have to have
the metal. 1t will have to be procur-
ed at any cost.
Dealers Counted Upon Declining Prices
'If they could have foreseen the clos
ing down of the Mt. Lyell and Morgan
Copper mines in Australia, cutting off
5000, 900 pounds a month, or the con-
tinuaton of the Mexican disturbance
reducing the output there several mil
lion pounds monthly and the oncomns
trouble in the Lake region, they would
have stocked mp and been prepared for
a shortage But in their sublime con-
fidence in declining prices. they have
allowed their surplus stocks to run
down almost to the vanishing point. It
is reported that many of the heaviest
users could not raise full month S
supply of the metal to save their lives
without going into the open market
This hand to mouth policy which has
probably been more pronounced in
Europe than in the United States, on
account of the money stringencY
might very easily bring about STAN
pede in the metal market If the lake
strike is settled and mining operations
there are resumed Immediately, II will
help some. Even then the United
States production will be no larger
than it has been the past five months:
during that time the surplus decreas-
ed at the average rate Of 15,oo00oo
pounds per month. If the lake output
is cut off, the decrease on this basis
would average about 35 00o. 900 pounds
monthly SO that the entire United
States surplus would be exhausted in
six weeks