Douglas daily dispatch., 1927-05-17

tailment program as shown by the
March figures is reality or whether
the low March figures were but the
result of some unusual condition.
In the meantime, the producers of
copper are comfortable in the feeling
that the production is actually less and
they are not rushing into the market
with their metal and show no inclina-
ton to either cut prices or get out and
sell far into the future.
1t is probable that April will show
large decrease in the stocks of refined
copper. This is direct reflection of
the February buying wave, as much
of that copper was delivered during
April and caused large refinery out
put for the month. It is generally re-
ported that there will be a 10,000-ton
decrease in total copper stocks for
April.
One would think from reading the
various reports on the metal situation
that the whole mining industry had
gone to the dogs when, as matter of
fact, all of the metals show an enor-
nous production.
The situation regarding the metals
seems paradoxical, with exceptionally
low prices and yet all three of these
metals are having the greatest produc-
ton and the greatest consumption in
history and continuing to increase in
both.
The production of copper in the
world for the first quarter Of 1927
shows rate of 1,652,787 tons in 1927
as against 1,600,4 tons during 1926.
This is the largest production Of cop
per in the history of the industry not
excluding the war years. In fact, the
peak war year of 1917 has been ex-
ceeded for the past two years.
Lead also has shown that enormous
quantities of the metal are being used
as the rate for the year 1927 as shown
by the first quarter is 1,636,036 tons,
against 1,575,912 tons last year, and
this, too, is the largest in history. Zinc
is producing at the rate of ], ,424, ,148
tons for the present year as against
$1,330,891 tons last year and the rate
i is higher than ever before.
The world lead production during
the war year 1873 'GoTaled 1,317,7OO tons,
the zinc production 914,474 tons and the
copper production 1,486,677 tons. All
of these figures are far less than pres
ent day production even in view of the
fact that the metals were being pro-
duced in 1918 faster than they were
I being consumed and we ended the war
with a large unused surplus of metals.
| In other words, all three of these
metals, copper, lead and zinc, were
being produced in greater quantity in
the world than at any time in previous
history, and the world is consuming
more of these metals than at any pre-
vious time not excepting war years.
The trouble with the metal situation
| is that the capacity of the world for
production of the metals at the pres
ent time is somewhat in excess of the
amount which the world is able to con-
sumo, even though it is consuming
more than ever before. While con-
sumption has grown at rapid rate,
production has grown faster. So that
when we hear of the market being dull,
sales small, ETC., it really means COM
paratively speaking and in view of the
background which now exists.
When we consider that the potential
needs of Europe for all of the metals
is so great ana in excess of their
ability to buy, manufacture and dis
pose of, we can readily understand why
those engaged in metal mining are
optimistic as to the future even though
the present is not netting the proper
prices for the metals. We can expect
! a steady continuance of the United
States increases in consumption and,
with European rehabilitation, we can
foreSee the time when Europe will try
to catch up its lost ground.