The copper era and Morenci leader., 1922-06-02
COPPER MARKET |S CONTINUING ID
 MOVE UPWARD
By CHARLES F. WILLIS Editor Arizona Mining Journal

6Y OT1AhEES ViELiO
 Editor Arizona Mining Journal
 The. spectacular rise in the price of copper during the past 5wo weeks has been the cause of much speculation as to it's cause, when it will stop and what may be expected of the future. The cause of the rise in price may be attributed to several things: First, the fact that the surplus of copper is practically exhausted; second. that number of the larger selling agen- cies withdrew their copper from the market; and third that the demand (particularly the European demanO has maintained at full strength. The May sales of copper will probably be a little beteer than 100000, 900 pounds.
 During the first five months of the year the sales of copper have eX- ceeded the production by about 4O,- 000,000 pounds per month so that, outside of the pool held for export, the surplus suppIy has dwindled at a figure that makes the copper con sumers wonder where their copper is coming from for the needs of the next few months The withdrawal of the copper of the large selling agen- cies was not complete as they still b toners.
 It is well known that the copper mines can speed up production and get more copper than the forty mil lion pound difference but it is also realized that any increase in the pres ent production of the mines cannot affect the. surplus of copper for at least three months and that, before that time there will be an actual shortage of the metal as predicted ill these columns some four or five weeks ago..
 Thus the impending shortage forced the price up almost an eighth of cent every two days until the four teen-cent mark was reached a. which point the price of copper will un- doubtedly hold for a short time as some of those holdiug copper stock that has not been on the market will take advantage of that price and un- | load sufficient for quick cash How ever, there is not being enough held to make it gay long at that point and an additional rise in the price may [ be expected within comparatively short time.
 Already a number of the mining companies have started to increase their production, the Copper Queen increasing to 7,500,000 pounds month ly, the United Verde starting up on larger scale than originally planned, and d.hers; but, as mentioned above. ! this will have no effect on the market for three months and by that time it is believed that copper will have l reached the fifteen-cent mark. Tn fact, it is freely predicted that copper will be fifteen cents before August 1.
 During,.he war practically all of the copper, 90 per cent to be more exact, was used for war purposes and dur l ing all of that period improvements in electrical plants, hydro-electrical developm ent, etc., was at a stand 1till and the things for which copper is used now have the problem of get ting caught up, which will make a large prospective demand. It has been estimated that the outlay for i Improvements and extensions among public utilities, for trolley lines, tele- : phone, hydro and other electrical power plants will call for an expen- allure this year of 1000, ,000, ,000. This is in order to catch up the condition caused by the shortage of copper during the war.
  i and it is backed by figures on the l monthly increase in consumption so l far this year-that by che time the 1 increased production gets on to the market. we will see an increased de- l mand and still shortage which will i possibly make the price go sill i higher than 15 cents. Predictions on i the price for copper for January 1, | 1928, say Is cents, and this rather i borne out by the stock marke. indi- : cations
 1 With a stock consisting of less than 1 one months sales of copper on hand ! and with no prospect of the supply ! catching up to the demand for con- I, siderable time, the prosperity of the copper industry esems assured How ever, in spite of the sales being ade- quate there is still much to be done in getting the cost of producing cop
 per down for it cannot be eXpeG.ed that a high price of copper can be maintained, and without a lowering of costs the industry cannot be prof | liable. The recent reduction in freight rates of 121s per cent to take effect on July 1 will be of advantage,
 and the lower cost of running the
 state by 25 per cent as affected by the last session of the legislature will
 also be of assistance but there are many economies yet to be effected be
 fore the copper industry of Arizona can be considered to be on a profit
 able scale and it cannot endure with out a return on the money invested
 MRS. HUTCHINS
 WILL RETURN-
 Mrs. w. R. Hutchins, who has been