Arizona republican., 1916-12-25
PEACE TALK
 CANNOT HURT
 COPPER PR|CE

were Tn the lnrOeS or d SeFlOuS ue- cline. caused by the heavy liquida- tions of all classes of securities that was induced by the Teutonic peace proposals. the market for copper metal remains firm as q rock, says the Journal Miner in New York ulS- patch. Quotations from 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 lndustrlai condition of the country II IS convincing argument that producers of metals have nothing to fear by a cessation 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 TO question Whatso- ever that copper metal dealers and producers are well sold out over large part of next year. Copper pro- ducers regard the eventual termina ton of hostiities in Europe-whether near by or distant-with equanimity. flO 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 a high range of prices for copper metal must ensue for a num- Der of wears after the war is over. Other noted copper authorities agree with Mir. Ryan.
 A price of even 20 cents per pound In metal producing companies on 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 a 20-cent copper metal market.
 The copper producing companies have adopted policy of conservat- ism and established a dividend rate which it is expected to maintain years after the demand fer war munitions shall have rassed and the needs for ne"ceful industries will he 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 he able in the future to finance their own stocks of cooper 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 iudg- 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 resDonsible for baout 60 per cent of the worlds output of copper At the present time We are producing better than so per cent of the worlds output DesTite 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 quotations which were manipulated. not to ihe advantage of the Ameri- can producer, but to his disadvantage. 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. particularly that from Germany. Ger man metal interests may be said to have controlled backed as they were with the finarcial support of the Ger man government. The present strong financial position of the American producing comDanies. due to the con- servative policy of withholding a large part of their profits as bull wark against evertualties, is a guar antee that henceforth the American producer will have the upper hand in the copper metal markets of the world and will set the price. He will not submit to having the price set foi him. The American copper producer now has the financial backing to hold his metal until such times as the Flu roDcan consumer comes into the mar ket to meet his own legitimate re- qurements.
 There is no gainsaying that large amount of copper is being consumed in the manufacture of war munitions and war supplies of all kinds. but it is evident to arv one who has made a study of Jhe situation that very large supplies Of the metal will be needed for reconstruction of the destroyed towns and cities and hanllets of Eu- rope. In the meantime prosperity based on bOuntiful croDs and a store of gold never before known in this conntry means continuance of pros peritv in the United States and the eXparsion of works of construction requiring copper metals, all of which means a big demand
 The ending of the war. whenever it comes will undoubtedly mean a re- adiustment Of business conditions. but in all probability this readjust- ment will come about gradually and not suddenly. and ii will have been discounted when it does happen There are armies of ! nAn 900 ar 9n 000.000 men at each others throats on the European battlefield. It is im- possihle to cOncieve that these armies will be disbanded at one time. Even after the actual signing of peace it will Unquestionablv take months to disband these armies, because. if for no other reasons than economic ones the respective countries could not properly take care of the immense number nf men suddenly released from military operatinns and return them to ordinary pacific pursuits.
 In addition 10 this it is certain that 'arDe standing army will be main tained bv the victorious in the terri tory of the vanGuished and until the very last 1t is certain that certain amount of munitions will be manu- factured. It is absolutely certain that war supplies other than munitions will be required until the very last soldier is sent back to his home.
 in the period of this gradual dis handment of tho arres the manu- factures and industries of the dis tracted countries will resume their normal sway. The work of recon struction will start and gradually in crea se in volurne and this work of reconstrrction. 1t is believed, will call for as large if not larger ouantitias