The copper era and Morenci leader., 1921-12-30
COPPER SuRPLus|s SEE PRODUCTION SOON

Boston, Oec. zo-7-lC IS the OplnlOH of prominent copper interests that the copper producers will be forced to resume operations within five weeks.
 The rapidity with which the sur plus has been eaten into has had the effect of throwing a scare into the producers in that there may be a famine in the metal in 1922. This is just what the producers desire to avoid, and in order to head off such a possibility resumption of opera thought possible month or so ago. U Probable Consumption
 It is estimated that the consump- tion of copper during 1921 will total around 1,200, 100000 pounds, and that the present surplus is not over 400,- 900, ,000i pounds. Normal production of the red metal runs about 2,000,- 100000 pounds per annum As about a third of the copper produced is al ways in process of transit, if the mines were operating at capacity, there would be over COG, 1000, 900 pounds in smelters and refiners.
 Low Production
 Production this year will not be oyer TOO 1000 900 pounds; there has therefore, been about 500,000,000 pounds more consumed than pro- duced As the consumption has been running particularly high in the past two months, it can be seen, in the event that sales continue in the next month or so as they have been in the past. two, that the near future will find the copper supply very small
 As mining forces have been pretty I ,1-< 11r, r,r,k three months for the mines to as- semble sufficient forces to resume, and it may take six months before a full quota of employees is obtained. Production, therefore, cannot make much headway for three months after orders are issued and it will probably be late-in 1929 before any amount of new copper comes on the market. That the mining companies are pre- pairing for an early resumption is show by the fact that the Anaeonda companysrecently put on : several hundred men in its numbering de partment presumably to get timber for use in the mines. 2 A :
 Haste in opening the: mines may be attributed to the new policy which the copper producers have adopted. The organization of the Copper and Brass Research association has been for the purpose of increasing the use of cop per and the only way that the use can be increased is to hold the price at a normal and steady figure. Producers prefer that the market price of cop
 per would not go above 15 cents a
 pound or at least hold that level as an average. In any event they do
 not want the apex to get above IT cents.
 At the latter figure St is felt that consumption would be detrimentally affeced. but at 15 cents it is believed that copper would again be applied in all it's old uses. such as roofing, | cooking utensils. etc.
 The benefits of this policy are aD- parent It will stabilize the industry 1 and thus eliminates the old condi tions of feast and famine. The policy | will make for more stability in the price of copper stocks and will also make for larger earnings year in and year out. as there will be a large | tonnage of copper used tn all lines of 1 industry It is felt that should cop | per go to IT cents the tendency will | be for other metals to be used in the I place of copper. # | boSlQeS LUlS cOSLS SHOulu De, iON 0t | in the production of copper tends | on the average. An abnormal in crease in the production of copper tends to increase costs proportional 1 ly and an abnormal reduction in out | put likewise affects costs adversely l the present closing of the mines has cost the producers many millions ol 1 dollars and resumption will likewise I cost large sums. It is this waste l that the producers are anxious ts i avoid in the future and they vii l bend every effort to stabilize the in 1 dustry through moderate ane l steady price for the metal