Douglas daily dispatch., 1926-07-27
Weekly Copper Review
BY CHARLES f. WILLIS
EUIIOF, TIC MH.iIHS JOUrhHI
Phoenix, Arizona

Phoenix, Arizona
Copper strong at IA Ia is the en-
couraging news that has been daily
metal during the past week. Contin-
ued good sales, the lower production
during June with increased consump-
tion and the immediate prospects of
the Association of Copper Exporters
getting into action are declared to be
the basis for the higher price and the
optimistic feeling.
There seems to be no question that
an actual shortage of copper is at
hand. While the surplus is quoted at
the end of June as being 66,O96 tons,
or about two weeks supply, this
means nothing when orders start to
come in as there is almost no copper
in the consumers hands, and there is
usually Il hidden surplus in the stoc:Ss
of the fabricators which does not get
into the published total.
The long nand to mouth buying pol
icy has resulted in the consumer buy
ing only such metal as he needed in
small amounts and as needed, and the
usual reserves against future orders
was not at band. 1t is stated that
even in June the refineries could rnt
deliver tho c.Gers for copper, that in
July the conditions were worse and
that considerable trouble was expert
.Dced in MAX ng deliveries, and that
il was not exDt cted thai July deliv-
81 les called for could possibly be
made.
The difficulty of meeting the July
requirements will undoubtedly prevent
August contracts being fulfilled, and
no additional production is in sight,
as it takes about three months for
copper to roach the market after it is
mined. x Ic w looks as though the
fahricatorS were going to spend the
late summer ara early fall months in
tying to find enough copper to meet
their deliveries of fabricated mate
rial.
The June production of copper from
the United states mines totaled TO-
09S, tons, as against 1852 tons during
May, and June was the lowest month
of the year except February, and had
al over daily rate of production than
during February The daily rate dur
ing June was but Is tons less per day
than during May, hence the decrease
in production was not as material as
the first figgres would Indicate.
Domestic consumption % copper is
increasing consistently and ut rec
trd rate. About 25 per cent of the
worlds copper is fabricated by the
American Brass company, and they re-
port 16 per rcnt greater shipment dur
ing the first halt of 1926 than during
the same per't in 1925, and 30 Per
cent greatcc t!lsn n in 1924.
1t is anticipated that the advent Of
the Association of Copper Exporters
is going to brig orders of consider
able size from European sources, COW
ering future requirements as well as
a protection in price. Everything now
points to a price increase of the metal
With a price increase started, history
shows that a rush of orders come, and
this rush of orders in turn again in
creases the price.
William Boyce Thompson, the presi-
dent of the Magma Copper company,
who has recently returned from Eu-
rope, predicts a world business boom
in a recent interview. He stated;
"I am pleased with the European
outlook generally and I don't think
the situation is as bad as some seem
to think" he says. THE French in
dividually are prosperous. There is a
building boom going on, crops are
good and the people are working. With
currensy, France is pay
ing off a number of her internal OBJ
which should put her in a
strong position. Her people are pay
ing taxes Indirectly in this way.
"The nations of Europe might be
treated as big corporations that have
more or less bone or are going into
the hands of a receiver. They will
have to be thoroughly reorganized and
a new economic structure built up.
And they will need new working capi-
tai before they can be returned toI
their boards of directors.
'"These nations will eventually get
out of receivers hands and be stronger
for it, but they have to readjust their
wage scales and economic structures.
The standard of living has improved
in Europe since the war and labor is
demanding and receiving higher wages
than ever before.
at looks as if the world is on the
eve of an industrial boom. Our pros
perity will lead to world prosperity
when there has been q readjustment
of economic structures and wages"