El Paso herald. (El Paso, Tex.) 1901-1931, 1919-03-28
u S. DUMPS COPPER ON MARKET BUT
PRICES SHOULD BE AFFECTED LTTTLE|

ro3rFS now another aftermath Of the war The de-
- partment at Washington authorizes the sale Of 10o-
100000 pounds Of copper which 1t longer needs and the
almost countless investors in copper stocks are asking
rather auxiously whether this viii have much effect IN
still further depressing the copper prce ana IN eonse
duence the value Of their stocks Both pTloeetal anu
stos-have been hard hit since the armistoe was signed
Copper has dropped about II cents pound and the oe
prsiou in stocks while varying with the strength OF the
5idusI companies has not been inconsiderable. For
reasons which VIII appear later, the release OF copper BY
the var department should have little effect on
either copper prices stock quotations there IS any
effect It viii be slight and only temporary
The reason the department IS throwing this cop
per back on the market IS that it longer needs vast
quantities Of the metal for manufacture OF war ateIas
Il had stocked Up heavily in order to be assured Of sup
ply, whatever might happen 10 production degree OF
foresight was shown with which faux be found
Copper was indispensable IN the manufacture Of NUM-
tons and the making of them vast scale required the
possession Of equally large amounts Of the metal It IS
probable that 100000 pounds does not represent all
the copper the government controlled It IS likely that much
Of II under contract, for delivery as needed
So those agreements doubtless have been dissolved
Il would have been business sense for the war depart
sut held this copper longer The only excuse the
private investor has for unloading loss that he needs
TIE money The war department not thus pressed but
ike all government departments money saving Is not
cardinal virtue with it. IF the department bought its cop
per at 25 cents sells at cents the loss to the de-
parnent VIII be 100000. The loss ultimately reacts
the taxpayers Of the country OF course 1t would really
Be than s11oooooo for the department is TO allow
percentage for expense to the association Of producers
which VIII sell the governments copper Tor It. Instead OF
dumping the metal month by month stagnant market
would have been better for the department to have held
until the world demand becomes and the price ad
vano not to 20 cents, at least to higher level than
now.
But apparently the department is only anxious to get
nd Of its copper surplus and is willing to charge off the
loss.
The effect on the market ought to be negligible One
hundred million pounds Of copper is very large amount,
considered by ITSELF but not when compared with the to-
tai production IN this country period Of year In
fact equals only the production Of Arizona copper mines
for month and half in 1918 when thew were doing their
best The total production for Arizona last year soO
ooo, 900 pounds.
The war departments copper would be absorbed almost
unnot5ed the demand active It takes unnatural
importance because the market IS at sands; because
merely adds to other millions Of pounds which for
sale with no demand
To prevent any temporary decentralization arrange
1eut has been made between the department and the
copper producers association for the latter 10 act the
marketing agent This organization Of operating companies
vii parcel out the copper in small amounts selling It as
they can for much they get and sending
money to Washington less their percentage for handling
ducers except that It enables them feed It into the mar
et IN five and ten million pound lots and thus prevent any
further unsettIing Of prices.
The which has been adopted which viii rot
upset the precous market conditions though Of course
the knowledge that there Is much more COPPER for sale viii
not act a stimulus
There Is immediate prospect Of revival Of demand
for the red metal Just long the embargo is on there
seuTes at the peace conference are able to persuade
their colleagues Of the allied that lifting Of the
embargo and revival Of industries pressing needs the
way VII be opened to sell and ship the immense stocks
that have accumulated since the armistce Copper Is
the same predcament is cotton The only difference
tnar there IS always fair demand for certain amount
OF cotton while there is next TO now for copper e
oept IN the American commercial field and even that is be-
low normal
Germans IN the Cobenz region are reported to be hostile