The Cordova daily times., 1917-11-06
WHAT OF COPPER SUPPLY

A expressing surprise at our article of last week which we ventured the opinion that 231a cents for copper might fail to maintain the production that is needed. Do not you know" says he. that producers will exert themselves to their utmost? Do you know that in 1916 producers realized stupendOus profits on 25 cents for cop per; and considering their magni- tude, how can you think that a cut of only 11a cents per pound will affect the situation materially"
 To these pertinent questions We re- ply that every producer with whom We have talked has expressed the inten- ton of exerting all possible efforts. And furthmorc, we are convinced that at 23ia cents there will be profits that will still be enormous, although not so large as in 1916. This answers the questions. However, what neither the questions nor answers have thus far brought out is a feature in our economies that has not been adequate ly considered heretofore.
 The imperfect view Of the situation in copper is due to attention being centered upon the big producers while the miscellaneous production has been disregarded. Now it is quite true that the big producers are responsible for the major part of the production, perhaps 90 per cent. but the output of the small producers is not inconsider. able and at any given time, when the market is in equilibrium, their output has a great deal to do with deternin- ing the price. It may be considered, moreover, that when the market is in equilibrium there are always some producers who are simply getting new dollar for an old one.
 Now it is, of course, impossible to was in equilibrium previous to the Governments intervention. Ever since 1916, when copper began to- be con tracted in stupendous blocks for ex- cessively long periods ahead, we have had an unbalanced market, l. e.. very large proportion of the supply was subtracted and quotations were subse- quently established on relatively small transactions. which became higher than otherwise they would have been. This was to the advantage of the small producers, who dispose generally of their product on the quotational ba- sis. Thus, in comparing with 1916, while the big producers set 2312 cents against p cents, the small producers set it against PIP cents. Just before the Governments announcement the price for copper had sunk to "A cents but had rallied to 261a on very small buying. Conditions for several months previous had been extraordinarily confused.
 There had been prolonged ab, sence of important buying, production had been seriously curtailed by the strikes and the uncertainty respecting the policy of Washington overshad- owed everything. It is probable that the market was not in condition of equilibrium for it did not exhibit the essential condition and infallible in- dex, viz, an accumulation of unsold stock, but at the beginning of 1917 there were plenty of signs that it was in the way to regaining a normal con- dition.
 The prices for copper that prevail ed in 1916 undoubtedly brought out a surplus production. This was mani fest in the statistics of blister-copper production and also in the reports of accumulatiOns of ore in the hands of smelters, so that the latter refused to take in any more ore.
 Since then. however, there has been change The cost of production has creased, the price of copper has stead fly shrunk, and smelters have report ed that the supply offered to them is less bountiful. This tends to indicate that under recent conditions the sun dry supplies of copper have shown a tendency to contract.
 Now, three years ago, even one year ago, any suggestion that a price of 25 cents would be anything but stimu- Jus to unrestrained production would have been regarded as humorous. It is not so today. We are informed res pecting at least one company of con- siderable output whose present cost is 23 cents per pound and it is not unlikely that one of our major dis tricts, viz, Clifton Morenei, is actually