The copper era and Morenci leader., 1919-02-07
COPPER SITUATION
 C0MPELS REDUCTION
(Continued from Pas


 month, but we can hardly expect the sales to warrant production of two hundred million pounds per month. as during the destructive consumption of the war.
 The adjustment of operations in the near future will be confined to the more favored operations of low cost producers with modern equip ment.
 The problem now before us is how to best safeguard the industry to in- sure continued operations and a liv- ing wage. The terms of the various sliding scales automatically regulates wages according to the market price.
 Current wages for January 1919 on the terms of the sliding scale are paid on a basis of 30 cent to 32 cent cop per, although the December market price for copper was 26 cents as fixed by the War Industries Board but no sales. Wages are therefore 50 cents to 75 cents higher on the on peace basis, according to the sliding scale.
 The absence of any market ne, cessitates reduced production. Only the most favored operators, could continue operations on the IS cent copper at the present cost-and then only if a market can be found for production, as all have reached the limit of their ability in carrying surplus stocks.
 Both production and consumers representatives of the industry are ! strenuously endeavoring to improve the immediate maret for their pro- duct. They are receiving the hearth est cooperation of Sec. Wilson of the Department of Labor, Sec. Hedfield. | of the Department of Commerce, Secretary Lane of the Department of the Interior, Sec. Glass. of the Treas ury, and Eugene Myer. IT,, Manag- ing Director of the War Finance | Corporation. Sec. Baker and Secy. Daniels are being asked to cooperate ] with the industry in the handling of the government supplies of copper and scrap copper and brass. It must be realized that the end of the war destroyed the principal consuming market and the building up of the peace market is being push ed as rapidly as possible, but that ! necessarily requires a little time. A clear understanding of the existing l conditions, which is difficult on all sides, will. it is hoped, furnish basis for mutual understanding. 1 On the signing of the armistice the following conditions existed: The copper producers had very little copper sold ahead as the needs of our government and the Allies, I which were taking close to 90 per cent of the entire production, were ! being supplied monthly as required. i At the request of the War Industries Board the mines continued to run from the middle of November until the end of the year at a fairly high production in order to keep the labor employed awaiting further develop ments.
 There now exists unsold stock of copper, in process from the mine to the refinery, or in finished form at , the refinery, approximately one bill i lion pounds.
 This copper, it must be borne in mind, has been produced on the | scale for wages of 26c price and none of it has been marketed or can be marketed at that price or any where near it. A stock of copper is found to be on hand in France, Eng land and Italy, which while small for war consumption is a considerable amount in peace times. Large amounts of scrap metals are for sale in connection with the cancellation of munitions manufacturing program.
 Foreign governments have pur- chased their copper at 23 cents to 26 cents and are mareting under government control the stocks bought at these prices and in mean while are discouraging and in some cases prohibiting imports of new ctnnlyc-in ho lyaf featuring industry finds itself sudden ly cut off from it's business on account of the cancellation of the munitions program. The renewal of peace in- dustry takes time to bring about, and a. gap in the business is the re- suit.