The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1914-08-17
TAKES BRIGHTER
VIEW OF RED
METAL OUTLOOK
Unfavorable Sentiment 0ver.Ex-
aggerated-- Hayden, Stone & Co.

We consider that the unfavorable
sentiment toward the copper produc-
ing industry and the shares OF the
copper companies that seems to be
quite prevalent has been greatly over
exaggerated says Hawden, Stone &
Co. That the copper producing indus
try has met with a severe temporary
upset and that the income OF the pro-
ducing companies will, for the time
being, be materially affected. there is
no denying.
That we are in for any long-contin-
ued depression that will seriously af-
feet the value of the principal copper
shares. i'm addition To the severe de-
probation that they have already sus-
tanned, we strongly doubt.
We believe that there are substan-
tial reasons for this opinion.
In the first place, the copper COM
panies entered on this period OF
somewhat reduced consumption In
very strong statistical position. The
worlds stocks OF copper on July LIST
were about $50 million pounds; this
compares with 157 million pounds on
January /, 1914; 202 million, January,
1918; 247 million in 1912; S5s million
in 1911; Ss5 million in 1910 and 247
million in 1909.
The stock on hand, therefore, is de-
six years.
That the hoating supply abroad has
been reduced TO a minimum is amply
demonstrated by the sudden jump in
the price OF spot copper abroad, which
has recently sold at over IS cents a
pound. Secondly: although the first
effect OF the shock Of the declaration
of war was the withdrawal OF pract-
cally all orders for copper abroad,
there is no doubt that the actual con-
sumption, though curtailed. will con-
tinue is substantial volume.
As in the past, America will be in
much the best position TO supply this
demand, and where such demand ex-
lists unquestionably a way will have
to be found for supplying it.
considerable quantities renewed at a
very short date.
Third the producers OF copper have
met the situation squarely by reduc-
ton in output OF 40 to so per cent
The reflneries OF this country produce
about 10 per cent Of the worlds total
and this reduction in output would,
therefore, amount to very substantial
reduction OF the worlds total.
II must be remembered, moreover,
that quite n large proportion OF the
refinery output OF this country repre-
sents foreign material brought to this
country to be refined. In 1913, for in
stance, the refinery output was 1922
600, 900 pounds, while the smelter and
mine production was l223,000,000, a
difference OF about 400 million pounds,
representing substantially this foreign
material, and this source Of supply. ii
is fair To assume. will be almost alto
gether shut off.
1t should, moreover. be remembered
that though the income OF producing
companies may temporarily be affect
ed, the asset value Of the properties.
particularly those with demonstrated
tonnages, is not affected; the copper
remains in the ground to be sold in
future years at higher prices.
In short. though normal conditions
for month or two may be upset, there
will, necessarily. take place an econo-
mic readjustment that will permit the
production OF copper at a fair profit to
the producer.
We consider that the liquidation that
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