Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-11-19

Wellesley Hills, Mass, Nov. 49,
Copper stock have been showing more
life .of late and evidence a tendency
to act quite independent of the rest, Of
the market. Roger w. Babson ac-
counts for this change by calling at
tention to a shift in the conditions
which control the copper industry.
.'The copper stocks" says Mr.. Bah
son. like others are governed by q
combination that control the produc-
ton and consumption of copper.
'"The industry" continues Mr.. Bah
son. lis now in a better position than
it has been for the past four years. In
other words, it has taken the industry
practically this length of time to re-
cover from the abnormal producing
conditions and heavy stocks built up
during the war years. Due to the
continuance Of heavy stocks which, at
the high point in 1919, amounted to
over one billion pounds, production has
been radically curtailed. Prices have
slumped from the wartime price Of
SO cents for electrolytic copper to q
low point of u cents reached about a
year ago. The industry has suffered
in the present period of REIMBURSEMENT
to a greater extent than probably any
other important industry.
Holds Up Well
1.-THE fact that copper in its manu-
featured forms has excellent wearing
qualities has worked to the disadvan-
tage of the industry during the past
two or three years. For example, in
the case of ammunition abroad, ali of
the shell was destroyed except the
~ - 40 ryytHpr 'I1aTo q II r, n ranfp-
Der, was used again and again and at
the end of hostilities, large stocks of
unused brass and copper cartridges
went for industrial purposes. Re
claimed supplies are now greatly di-
minished SO that the demand for new
copper will gradually increase from
now on.
Production has been gradually in
creasing since the first of the year.
Production during the war years aver
aged well over $50 million pounds
monthly. Compare this with an out
put during 1921 averaging under 25
million pounds monthly. In fact, even
exports last year were materially heav-
Ter than the total Unitel States pro-
duction. Production at the present
time is averaging about So million
pounds monthly. Exports have tend
ed to increase and are around 50
million pounds each month. Domestic
consumption is also increasing SO that
the statistical position of the indus
try is relatively strong This does not
promise any radical comeback but
rather that the worst is over and that
the long pull outlook 10 much better
than it has been for q number of years.
This change will bring about better
profits for the larger, low-cost cop
per companies.
Large Production
The producing capacity of the in
dustry is still large so that any in
crease in price tends to stimulate pro-
duction. This, in turn, causes the
market to weaken The reason for the
slump in most copper stocks around
the first of November was clear
enough. The rate of importation from
South America for a matter of months
has been increasing. Our southern
neighbor can produce at low cost.
much lower than domestic companies a
fact that has been holding the domestic
price down. Their producing capa-
city, however, is distinctly limited and
as demand increases they will no long
er set the market. The price Of elac-
t~rolytic copper has been f~luctuating
around IA cents for a number Of
months. Demand during 1923 should
tend to strengthen the market. al
though production will be sufficiently
large to supply this demand. In the
event of a good building year in 1923,
the demand for copper will improve.
1t should total at least as much as
this year, and considerably better than