The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1915-10-23

ket dizziness always breeds pessimism, and this is prob
ably responsible for the opinion voiced by some that after
the war ends the price of copper will decline to a very
low level.
1t may be useless to attempt to explain away suci a
theory by reciting the facts that an enormous amount of
copper has been DESTROYED by the war; that all previous
wars have been followed by long periods of great indus
trial activity, and that Germany and Austria, having ex-
hausted their supplies of copper, will be obliged to come
into the market and buy heavily.
There is still! a simpler fact which will appeal to every
one who has business experience. 1t is that the owners
OF the copper and brass mills in Germany, Austria and
Belgium will certainly make a stupendous effort to regain
the foreign trade of which the war is depriving them, and
also to supply their own countries with all the copper and
brass goods they use. Prior to the war about 27 per cent
of the worlds total copper output was purchased and
manufactured by Germany, Austria and Belgium, and in
those countries only about six per cent of the worlds cop
per was produced. The closing of their ports and the d-
version OF their activities from that of supplying indus
trial demand to the making of war munitions has cut out
only six per cent of the worlds copper production and
p per cent of the manufacturing capacity. The Fl per
cent remaining, which is now deprived of raw material ex-
cept so far as copper previously in use is being reclaimed,
will be able after the war ends to manufacture nearly
6oo,ooo,ooo pounds of copper annually into brass, WIRE
sheets and other products. To get all these mills and fac
tories in full operation will require the purchase of APP
Approximately 2oo,ooo,Ooo pounds Of copper, and the only
reason anyone can have for assuming that this copper will
not be purchased is the belief that the German owners of
copper and brass mills will close up their plants and aban-
don all efforts in the future to regain the position they
formerly held in the worlds trade. OF course such an as
sumption cannot be entertained for a moment.
1t is impossible to estimate Just what the condition OF
the copper market will be when peace treaties are finally
signed in Europe; but if they were concluded tomorrow and
followed by an attempt to purchase 2OO,OooOOO pounds of
copper for immediate delivery that amount could not pos
sibly be supplied by the mining companies. The cam
collation. of war orders undoubtedly would release consid-
cradle copper which has been purchased for future deliv-
cry; but the owners of this are American brass and cop
per manufacturers who for the most part would be oblig-
ed to retain it to keep their own operations going.
In all of the buying countries of the world, aside from
those engaged in war, financial conditions have existed for
q year past which have greatly restricted their purchases of
manufactured goods and restrained them from proceeding
with important construction work, particularly in the line
OF electrical development and equi pment. The termina-
ton of the war will eliminate these financial handicaps
and make Immediately a greater market for the copper
and brass products of European manufacturers.
When all these factors are taken into consideration 1t
becomes clearly apparent that a stronger demand for cop
per will develop after the war than existed preceding 1t.
If the war continues another year the re-establshment of
peace will find the worlds supplies of copper entirely ex-
hausted and the rapidly growing industrial demand will
have to be supplied from the current output of the mining
companies. Such a condition as this could hardly fail to
cause an abnormal advance in the price of the metal. In
view of this outlook it does not seem bad business policy
for producing companies to go on operating their prop
ties to full capacity, even though it becomes necessary
for them to accumulate a moderate surplus of copper. They
should, if possible, be prepared to supply the worlds de
mand at a price not higher than 20 cents a pound.-George
l.. Walker in Boston Commercial.