Douglas daily dispatch., 1927-03-08

VI
same thing is not true of copper,
because our copper comes from large
industrial unity that can better
afford to take losses during low
prices than they can to shut down
and start again later. Stopping and
starting in the copper industry is
an expensive proceeding.
The Chinese situation is having its
direct effect on keeping silver down, 4
for the attitude and conditions cfl
India and China absolutely control
silver. China is not alone affecting
silver, but the uncertain conditions
are given as reason for the slow
European conditions, as European
conditions are peculiarly sensitive to
the conditions in the Orient.
The copper sales are reported good
although most of the consumers
stocked UP we'll during the recent
slump in price and have enough
bargain metal to take care of present
needs. The raising of the price of
American Brass company products
to 1S 1-S base is a favorable indica-
tion of a better price being main
tanned.
Curtailment of production of copper
brought an immediate reaction in. the
price Many of the large copper
! mines have started to cut production,
and, while the cut in the production
| is of no great amount in the total
! it is sufficient TO cause the demand
/ to again exceed the supply, and that
| brings the higher price. The effect
| is not immediate, for February crude
production does not become refined
copper for about three months, but
| the price reaction is in anticipation
tof the shorter supply.
! The present bad condition Of the
metal market is not reflected into
the dividend reoords of the various
mines, as they Hhave taken a. jump
upwards. While February is not
! popular dividend month, the mining
companies have paid $16,197,919 in
dividends during the month, which
| is almost a million dollars more than
paid by the same companies during
November, i. e., for the last quarter,
iand million and half more than
paid during February of last year.
An organization similar to the
American Copper and Brass Research
association has been organized in
Germany, known as the Deutsches
Kuefer -und Messinginstitut German
Copper and Brass institute). This
is to perform the same function in
Germany as the organization does
in the United States, "the populariz-
ing of the manifold uses off copper
and brass, which to some extent have
been lost sight of by the public in
the stress of war and initiation times
The success which has attended
the work of the Copper and Brass
Research association in the United
States has encouraged the organiza-
tion to proceed along similar lines, |
and now remains to be seen whether
the Germans will take to the similar
propaganda program in the same
manner as the Americans.
The effect of the Copper Exporters
in Germany, as reported by DR.. James
Rubinfeld, is to spread sthe buying
of copper with confidence that there
would be no bull movements and that
plenty of copper could always be
obtained at reasonable prices. This |
acceptance by Germany of the aims
of the Copper Exporters towards /
stabilization has been upset bys the |
frequent underwriting of the copper |
price by London dealers, and it has
made the German buyers cautious.
In attempting to show why the
Copper Exporters, Inc, has not |
worked out according to expectations
in Great Britain, Lewis Lazarus and
Sons, of London, attribute it to q
buyers strike and a natural resistance
against a trade combination thatl
would not be endured under the law
in the United States. They stated:
"Vhe reasons for the initial failure |
of the association to maintain or
stabilize prices are not far to seek !
The projected association was credited
with powers which in fact it has
been found not to possess. The
artificial stimulus which this belief
gave to the market and which main
tanned values during the first nine
months of the year has been removed |
and the law of supply and demand, I
which is always bound in the long
run to make itself felt, is now
governing the course of values. There
are ample supplies of copper to meet
all requirements, and as it is no
longer possible to compete in the
export market, producers are reduced
to competing for orders in the Amer
lean market. The consumer in
America has not been slow to recog-
nize the advantage which this gives
him and is able 10 choose his own
time to cover his requirements. The
European consumer is in different
position and is protecting himself as
far as possible by buying from inde- y