The copper era and Morenci leader. [volume] (Clifton, Ariz.) 1911-1929, 1915-09-03

new capacity should soon become a
factor in the metal market.
There are almost unmistakable in.
dications that the British government
has for some time past been engaged
in a scheme to depress the price of
copper. By prohibiting exports of the
metal from Great Britain, putting the
stamp of its condemnation on specu-
llation and deferring its purchases
as long as possible It created a con-
Idition under which prices could be Of
lfered down on the London metal
Exchange to a point well below that at
which any American producer would
sell. From the standpoint of the
English it was good business; but it
will not be a success unless it results
in the government being able to pur-
chase the large supplies of copper it
will soon need at material saving
as compared with what it would have
had to pay without such market rig
ging.
Another factor that has operated to
bring about the very low prices made
in this market recently is the custom
which several producing companies
follow of selling their product through
metal agencies at so-called monthly
Averages. With little or no demand
in existence the selling agencies
conducting business on this plan
found it necessary either to take
over the entire output Of these pro-
lducers at 10 or 20 cents pound or
offer the metal down and sell as much
as they could, thus establishing
lafford to take over the remainder
without the prospect of sustaining a
considerable loss.
The largest producers, with few if
lany exceptions, have viewed this stu
q ton with equanimity, maintaining
their prices at II IL to Is cents while
the output of some of the smaller
mines was being sold at 16 IL down
to 16 cents a pound. If some of the
several producers who have held their
copper lose their nerve theu are pref
ty sure to have, within short time,
a market for their accumulations at
prices ranging from Is to 20 cents a
pound.
AS has been previously stated, the
production of copper for the present
is in excess of the existing manufac-
turing capacity; but there is nothingto
indicate that it would be more than
Sufficient to supply the demand exist
ing for ammunition, provided this de-
mand could be supplied by the exist
ing manufacturing capacity After
the great number of manufacturing
on orns heretofore engaged in other
II es have equipped their plants to
RI out the enormous orders for NUM-
ii MS of war which they now have on
ther books it is by no means improb-
tle that the mines will be unable to
surply copper fast enough to keep all
this munition making machinery run
fning.J
Seven or eight months ago the metal
trade was looking forward to the ter
.lfnatton of the war and the industrial
revival to follow to restore business
activity. It was then the common
1elief that the war demand. for copper
would be relatively small, and that
the tirre to make big purchases o.
:he metal would be indicated by the
tErst exchange of peace proposals.
More recently opinion in the trade
has undergone "a complete change
It is row believed that the war vii
make the big demand and the high
prices for copper and that a period of
trade stagnatfon will follow the es-
Establishment of peace. This latter
lopinion is probably as incorrect as
I.vas the one held at the beginning of
1.-THE year.
| Il brass and copper manufacturers
. lad realized, as they should have,
Tat the European war was certain to
cnsume enormous amounts of copper
lthey could have purchased heavy ton
Images in January at around IA cents
and thus saved from three to six cents
u pound as compared with the prices
, hey later paid The termination OF
he war undoubtedly will find them
, hare of stocks and the worlds copper
) surplus exhausted In such an event
, copper may sell higher when the
? worldwide indastI al revival occurs
l war.
< Whenever the price of the metal
3 declines it is quite fashionable to
= talk about the remarkably rapid in