El Paso herald. (El Paso, Tex.) 1901-1931, 1918-12-24

announcement came out Of Washington a few days
Aago that price fixing Of copper By agreement between
of the copper producers and the indus
tries board would January The statement was
amplfed and has properly given use to apPre-
henson IN New Mexico and Arizona copper producing
states Of the southwest.
The official Washington Interpretation is that the price
fixing viii stop because the industries board VIII go
out Of January l. That probably accounts for
the Of the price fixing far as copper IS concerned
Therefore it is certain that within few days the cop
per industry which has been resting securely on fixed
price of 26 cents pound viii be thrown back to reliance
the law Of supply and demand which may bring about
prices very much lower than 25 cents
This does not square with the last fan
the agencies above mentioned continued the liked
price until January / then declared that the fixed
price would be renewed often necessary until such
time the copper industry on firm peace basis
That time has not arrived.
No one is yet venuresome enough predict authori
atively how far copper viii slump when the fixed price
taken off That there will be decline IS generally be
heved The stock market already shows lnolcaons OF Il
Within the past week copper shares have registered
series of drops.
Gueses as to the extent of the probable slump in COP
per range from eight cents pound There is one
possible steadyng factor the Copper Export association,
formed last week and including in its membership all the
bly, have the financial strength necessary to carry the
copper surplus through period that otherwise would wit
many forced sales at low figures
Carrying Arizona copper alone at 20 cents pound
would advance of SIS 100000 month, it is esti
mated Cancellation by the government of copper con-
tracts for the last quarter means that approximately $780,
,
while prOpo1dOnately large doubtless being
NED By New Mexico producers.
While southwestern copper producers, especially those
able TO operate at comparatively low COSTS have been do
ing well, there is limit surplus accounts All the big
companies have established these surplus accounts as
tide Just such emergencies this though naur
ally they did not anticipate heavy call upon their
funds Although the LWW and other radicals have fire.
quentiy inveghed against these surplus accounts
against other of Capitalism nevertheless the need
for them, the wisdom of their establishment should
become apparent to the denses intellect the most
prejudiced
Although the sellers have established association
mentioned above the producers perfected
any plan for united action the face of surplus copper
stocks and lower prices.
Probably some of the mines operating at high costs
viii have to shut down for the time being Fortunately
Of these large producers employers large
numbers Of Their closing viii be regettabe but the
effect viii not be widespread What the big mines viii do
depends naturally the extent of any decline IF copper
drops very far the production viii to be reduced
and whether this cut in the high wages be-
ing paid remains to be Gov-eect Thos E. Camp
beh has laid down the principle that costs of living
come down before there is cut in wages He this
Tor general principle and such II has highly
praised Undoubtedly the mining companies are not going
to cut wages long there is any way avoid It They
viii op off expenses elsewhere Just as far as possible be-
lore they touch wages
1t Is gossip, however that they may be obliged
to eurta their production and curtang production ord
manly means laying off men depYing them altogether
wages rather than cutting the scale of an
Those companies which have large surplus accounts
may cut down production in order 10 work off their &C
cumuted copper before Tesumng production and they
may turn attention to Development thus taking care Of
the larger part Of their present operating forces
But would certainly relieve the copper industry on