The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-12-10
FAMOUS ECONOMIST SEES BRIGHT
FUTURE FOR COPPER STOCKS.
GIVES REASON
Docs Not Hesitate to Forecast Higher
Prices Conference a
Bullish FACTOR

Discussing ~unlamcntai conditions OF
our leading Industries. Roger ". Eao-
son nakes the following s~ta'eInent;
During the coming year ! fOreSee a
further Improvement IN the fortunes OF
the copper industry. 1t IL thoroughly
liquidRtcd. having suffered n prolonged
de presSion and is S'il! operating NJ a
very low percentage Of raac!ty. Only
threa or four OF the important copper
producers are now pa%lng dividends.
Heavy stocks. poor demand and very low
pricn are Jointly responsible. for these
conditions. Constructive forces are AT
work. however. which will bring about
a substantial Improvement.
-" present demamd whirh is eH-
ccaGtrC the rate Of production by
sppruximatc!v 5000. 900 pounds a
month should absorb the greater part
OF our present excess stock of refncd
copper. estimated in the neighborhood
Of 350, 000, 900 pounds during the course
Of the next seven months. This accom-
pl!shed. The copper industry Will be In
"A position to resume Il semblance nor
NAL production in August, 1922.
Normally tho copper industries OF
this country produce 5000 Of The worlds
total output OF refined copper. Before
the war half of this home production
was exported to England. Germany.
France. Holland. and Italy as orr pr!n-
rlpa, Customers. OF late yer:S Japan
hay been taking considerable quantities.
A.ihosgh Euhope continues {" need our
copper. the adverse exchange rates ana
general shortage Of purchasing power
make Il practically Impossible Cor them
10 huy. Because Of these factors the
total eSnortS Of copper In 1920 TO al
COuH;r!ea amounted TO but 1o% Of the
poundh2e shipped during 1913. EXpor2s
this year 70 date are running about lOeo
under last years.
Price IL TOO Low
Tho price of Gopher IS now around
I4y compared with IA low of II Sc during
the last year. The present price Is still
low compared with the average OF 1912.
for Instance. which WAS l6c.
Taxing these ard other factors into
consideration. the demand IN this coCn-
t~v should increase during the coming
year. believe that the oppcr INDUS
try has seen lts worst days. and after
Il slow process OF Improvement during
the rNv; Ten or twelve months. VIII be
sc a whole in Il very mach better ronol'
liOn. do not hesitate 20 forecast high
or prices for copper. The limitation or
arlnamcutS If adopted by the conference
now meeting in Washington will. in my
pptIllhll, pt 4 DN4lsSI IAlIf'l Stld'l " IVA
'sh factnr in the outlook for the stocks
Of the copper companies. Only a very
small percentage OF the total consump-
ton OF copper in th's country Is used
In the making OF arms. On the other
hand. the restoration OF more normal
conditions among our foreign customers
and AN Increase in good will and mutual
confidence by the nations az the world,
cannot fail 70 add q stimulus to inter
national trade and furnish an outlet for
all IN" basic commodities which We
exported In the Drc-war days.
The StoCKs OF the leading copper
companies averaged around 30 at tho
outbreak OF the war. in the latter part
Of 1915 they had shot upward 20 "a high
average or -. m Increase Of over 1905.
The reaction OF 1917 and 1915 brouRh>
them down again 20 q Irice OF rs In
january. 1919. Later IN the anne year
tr"y Gad risen again TO s.. The liqui-
Ga:ion that heEan in January made
thcm come steadily down ~ a low o. 81.
reached the last week OF hat year. SO
fAr this year they havc recovered 10 an
average 81 50. I still! feel. however.
that the copper stocks offer n splendid
opportunity for r .onT swing speculation