The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-04-26
HIGH METAL PRICES ARE
EXPECTED TO PREVAIL
HELD BACK ORDERS OF METALS
WILL MAKE STRONG
DEMAND.

Chas. A. stoneman & c., Chicago'
"While it is true that the abnormal
demand for raw and manufactured
materials produced in the United
States has created abnormal prices
and profits, there is Il more material
consideration that should be given to-
the impetus of consumption, which
has again been accelerated by the
entrance of the United States into The
war. This is the exhaustion of natural
resources, more particularly mineral
resources. Metals are now being
mined that it was planned to extract
several years hence, in order to secure
the benefit of the high prices. In many
cases, ore reserves are being exhaust
ed to a degree where some properties
will be forced to suspend operations
altogether because of exhaustion. III
Others, many years of development
work must replace the huge eXtrac
ton campaign under way for the past
two years. In other words, the time is
coming when the extraction of min
erals must show a decrease, on the
part of many of the producers.
Increase Values of Ore.
1T will be seen that such decrease
must increase the value of the an
mined ore of those companies which
are fortunate enough to have a sub
stantial tonnage blocked out ahead
for it is not to be expected that there
will be any material reduction in con-
sumption for several years to- come
and that the relationship between pro-
duction and consumption will become
more strained, rather than show any
Improvement There is no question
that railroads and industrial compan-
les, having expansion plans on hand
involving a great use OF raw copper,
have come to the conclusion that they
will never get the metal at the prices
anticipated when their plans were
pigeon holed at the time the big rise
in copper metal began to get under
way, but it is equally impossible for
them to face the increased cost of IN
itial investment wrought by the ad-
vance in copper to above 30 cents
pound. 1t is figured, therefore, that
with copper between 20 cents and 70
cents pound, zinc at around cents
to cents pound and lead at cents
to cents pound, there will be made
actual a great latent demand for base
metals that has been accommodating tor
the past two years.
Decreased Production.
1--WE face therefore, a decrease n
production, and a probable increase
in consumption, which ought to do
much toward stabilizing the profits Of
many of the copper producers, more
particularly the porphyries, over sew
eral years to come, and in view of The
fact that present earnings are already
two or three times dividend require
ments, there is abundant reason to en-
pect no reduction in the various diVl-
dend yields for some time to come
an connection with the effect OF
the forced decrease in production, ana
a corresponding increase in the value
of sunmined deposits of base metals. IT
is well to note the effect of such influ-
ences on the newer mining properties
where the greatest values are yet in
the ground Few investors appreciate
that the value of the unmined copper
ore, which has been demonstrated in
many of the younger mines, has been
materially increased through the con-
ditions outlined above, and that the
properties are now arriving at the
producing and earning stage and
practically guaranteed record break
ing profits for the next several years.
Effect of Government Order.
"At the present moment, there IL
more serious consideration being Civ
en- to the recent government order Tor
copper than should be the case. In
some quarters, the professional bear
interests profess to believe that bad
example has been set, and that the Al
lied powers will require American pro
ducers of copper to supply them with
raw copper at the figures That patrl-
otically offered the metal to the gov
eminent. One large copper interest
however, has pointed out the fallacE
of the argument, in stating that the
allied powers are buying copper t'r
domestic purposes, as well as TO De
manufactured into munitions OF war;
and that, while concessions might be
given, it is unlikely that any contracts
would be accepted for large tonnages
of the metal under 27 cents pound
The Kaiser Stands Alone.