Arizona republican., 1922-05-15
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ON NSTOCK MART
Mining Journal Editor Ex-
plains How Forei G n
Buying Effects Price Of
Copper Stocks

Although copper production has
been resumed in this state on a very
satisfactory scale the activity in this
line is not reflected by the quota
tions on the stsock exchange.
In the following comprehensive
summary OF the situation Charles F.
Willis, editor of the Arizona Mining
Journal, give some important facts
relating to mining industry with
copper stocks:
The latest reports from the copper
market showing an slightly in
creased price and a much increased
firmness, together with the news
from the many mining camps in the
Southwest of increased production
and activit indicate that the worst
Of the copper depression is consid-
cradle distance behind us but those
who have been looking for the stock
market to show a consequent reac-
ton have been rather disappointed
in that copper stocks have not been
as active as many industrials and
the yhave not shown rise as have
many other stocks during the past
few weeks.
Much has been published OF sta
tistical nature regarding copper and
it is possible te work out either pes
simism or optimism from these sta
tistics, depending upon their source
and what was desired to be proven.
Much of tn. information reaching
the public however, emanates from
brokers' offices and they are either
bears or bulls on copper and copper
stocks and the information while
usually accurate. takes advantage of
the complicated statistical position.
But fundamentally the future OF
the copper situation lies with Eu-
rope. The United States cannot con-
sumo all the copper which it is
capable of producing. Yet if it only
produces the copper which can
readily be consumed, the costs are
disproportionately high and, in order
to make a profit, it is necessary to
work on A larger scale and with
lower costs. Approximately 80 per
cent of the copper of the world is
produced in the United States. while
probably about 80 per cent is con-
sumed in this country.
Therefore in order that the cop
per industry thrive, it is necessary
to sell coppe. to European countries
and they want to buy today but, on
| account of lack of credit, cannot buy
as freely as they wish. This may
| DG easily NAtil ~
| is considered that, before the war
three marks bought two pounds OF
copper while today it takes forty
| marks to buy one pound.
Germany has always been the
| largest purchaser or American cop
per and bought more than all other
European countries together before
| the war. II at country is now de-
| 2leted of its copper as it was forced,
| during the war, to use up its copper
kitchen utensils, bells, door knobs
| and everything available. Germany
wants to buy American copper but
| cannot finance the purchase. 1t is
| probable that the Genoa conference
| will result in a large internationa-
! loan being made to Germany which
| will make possible the purchase o.
much raw material from this coun-
| try. Immense hydroelectric pro
| jects are contemplated in a number
of European countries which vii
| consume large quantities of copper
and this equipment will probably bt
bought from Germany.
| The lack of ability OF the Euro
pean countries to purchase copper
| in large quantities, coupled with tht
industrial depression in the United
| States, has caused the smaller con-
sumption during 1921. This. how
| ever, is better now as the copper
| requirements for the United States