Weekly journal-miner., 1916-12-27
COPPER WILL NOT bE AFFECTED BY
 CLOSE OF WAR
HIGH RANGE OF PRICES WILL CONTINUE FOR SEVERAL YEARS, SAYS NOTED AUTHORITY.

the heavy liquidations of all classes
 of securities that was induced by the Teutonic peace proposals, the market for copper metal remained firm as a
 rock. Quotations for all positions of
 the metal at the end of the week
 were practically unchanged from
 those quoted on the previous Satur-
 day. Such declines as took place
 would, in ordinary terms, cause no
 comment whatsoever.
 Just now, the resistance of the metal
 market in the face of the break in the
 stock market must be accepted as a
 tribute to the sound industrial condi-
 ton of the country. It is a convinc-
 ing argument that producers of met
 als have nothing to fear by cessa-
 ton of hostilities in Europe and that
 the interests controlling the metal
 markets are better informed as to the
 actual trend of affairs.
 There can be no question whatso- ever that copper metal dealers and
 producers are well sold out over a
 large part of next year. Copper pro-
 ducers regard the eventual termina-
 ton of hostilities in Europe-whethcr near by or distant-with equanimity
 John D. Ryan, president of the Ana conda Company, the largest individual producer of copper metal in the world, went on record in a recent an nual report of that company to the effect that high range of prices for copper metal must ensue for num- Der of years after the war is over
 Other noted copper authorities agree with Mir. Ryan.
 A price of even 20 cents per pound for copper will mean profits to the metal producing companies on a scale that was almost undreamed of before the European war. It will mean the continuance of dividends at the ex- isting rates for practically all of the companies, because most of the cop per producing companies are earning several times their dividend require ments, and investigation shows that the amounts called for by the exist ing rates will be amply provided for with 20-cent copper metal market.
 The copper producing companies have adopted a policy Of conscrvat- ism and established a dividend rate which 1t is expected 10 maintain years after the demand for war munitions shall have passed and the needs for peaceful industries will be the only outlet The accumulation of large surplus cash reserves in the treasury of the copper producing companies are fortifying them so that they will be able in the future to finance their own stocks of copper metal, whereas in the past they have been under the necessity of seeking financial assist ance from the banks, with the result that, despite their own better judg- ment and under the pressure of for eign purchasers, they have been com pelled to liquidate their stocks of cop per at reduced prices.
 Before the war the United States was responsible for about 60 per cent of the worlds output of copper. Al the present time we are producing better than 80 per cent of the worlds l output. Despite this predominant | position, from the production stand | point, the metal producers in the past | have been compelled to sell their metal abroad on the basis of London i quotations, which were manipulated, 1 not to the advantage of the Ameri- 1 can producer, but to his disadvantage. i! The American producer, partly due to the antitrust laws of this country and partly due to the necessity of his seeking banking facilities in order to carry his metal stocks, was unable to withstand the pressure from abroad. that from Germany. Ger man metal interests may be said to have controlled, backed as they were with the financial support of the Ger man government. The present strong financial position of the American companies, due to the con policy of withholding a large part of their profits as a bulwark against eventualities, is a guarantee hat henceforth the American pro- lucer will have the upper hand in the copper metal markets of the world 1 md will set the price. He will not ( submit to having the price set for 2 lim. The American copper producer s low has the financial backing to hold lis metal until such time as the Flu ( opean consumer comes into the mar ( ct to meet his own legitimate require Y nents Ii
 There is no gainsaying that a large q