Show SUND SUNDAY Importance of Utah Uth as Copper CopperI I State Shown in Latest Review I Conditions and Outlook for Industry in This Region Discussed by John Per Perrin i Th There e ha has ha Just been received receive in Salt Sal Ll e Lake City a a review or ot the copper I I of ot which Utah man Is 13 apart a apart mining industry in the Twelfth federal federl reserve district or of the part by John Perrin chairman of ot the tile board and federal reserve agent I I federl reserve bank nf C ot San Q h which says Ti T I I Jr industry The tr present r Is e reflected condition II In fW figures of or the es copper shoWIng showIng show show- Ing that mine production of ot the met metal l lin In the United States today Is at the rate of oC 20 per cent of oC prewar normal production that stocks of refined coPper copI copper cop cop- per and blister and material In process of ot refining on January J 1 1 1922 1927 were I 0 p pounds compared with wih average prewar stocks of ot pounds d and that the price of electrolytic electro electro- ft copper hp dropped pt from leg cents l Ier er pound In March 1917 1911 to 12 cents l Per Iler er pound In August 1921 and is to today today to- to day March 1 at 1276 1275 cents 96 percent per percent percent cent under the average prewar price whereas the level of ot prices of ot all an commOdities commodities com coin at wholesale according to toI I I Bradstreets Bradstreet's Index number is 27 per perI j I I cent Gent above the prewar level The condition of the copper industry I In ht Ie of or particular importance to the Twelfth federal reserve district especially espe cope daIly to the states of ot Arizona and anti L Utah Sixty one per cent of ot the blister copper produced in the States Stater I in 1920 and 34 per cent of ot the worlds world's output was produced in the th seven sever L states of ot this district The cessation of ot operations in April Apri 1921 by all an but two of ot the largest copper mining mining com corn companies companies panics in the district resulted In serious unemployment of ot miners and smelter workers depressed business conditions in the mining regions loss of public revenue and decreased sales by all l firms r that normally sell goods gooda o agre v hh r either t to the 1 companies p themselves orto or orto to the persons dependent upon the Industry in industry industry In- In for tor their living A review of ot the present situation Inthe in inthe inthe the copper Industry seems therefore therdor particularly timely Apparently as a 1 result of an improvement in the tIre market market market mar mar- ket outlook during the last quarter of 1921 1921 certain producers are The ing h resumption largest tg producer of mining IAn In Montana operations I has lias as already begun begun for tor reopening reopening reopenIng reopen reopen- ing Its mines and the tho principal factor in Michigan has announced Its is intention intention tion ton of ot taking similar action acton on April Apri 1 next Current reports indicate that certain certain tam tain producers in this district intend similar action acton at rt a a datA still tn to tn h hA de- de n on n I I t C ned FACTORS En Detailed statistical exhibits indicate I the following controlling factors In the the present copper condition industry of ot and outlook for forthe forthe forthe 1 Stocks of ot copper on January 1 1 1922 were twice prewar normal stocks 2 Consumption of ot copper In Jn 1921 as measured byi byr bY domestic taKIngs plus exports from the United Unit States was approximately two-thirds two of ot such consumption consumption con con- In 1913 a profitable normal year 3 Production of ot copper In 1921 from primary sources was approximately third one-third of what it was in 1913 the falling off of being most marked in production pro pro- ducton of mines Inc te United States Imports of ot copper principally from South America now exceed do domestic do- do domestic mine production whereas in 1 1913 they were but third one-third of ot this country's mine production Production of old copper Is still sti a competitive factor 4 Demand for tor copper notably in increased In in- creased prices rose and stocks declined in the last quarter of ot 1921 1921 Based upon the hypothesis that permanent permanent permanent per per- manent Improvement In the Industry must depend upon reduction of ot present stocks certain provisional calculations which have a bearing upon the resumption tion ton of ot mining operations may be made mad I from the foregoing facts CALCULATIONS MADE 1 1 If I additions to the supply con con- on- on at the same rate as at pr present sent and deductions continue atthe at atthe the same saro rate they averaged during 1921 12 tho the excess of or stocks over normal ill Il vanish In eight months 2 If I additions t tp toe supply con coo at the same rate as at present and domestic consumption and nd exports were to increase to theIr ther 1913 amounts four to five months would be bo required to eliminate the present excess of ot stocks above prewar normal amounts 3 If I. I as now seems probable domestic do d- production of copper Is In Increased In- In creased longer than five months from January 1 would be required to bring stocks tocks down to prewar amounts even assuming an immediate increase in the tho rate of consumption to the 1913 amount If I domestic consumption and anc exports are no greater in 1922 than in 1921 1921 longer than titan eight months would DC ue required 4 The rate of ot reduction of ot present copper stocks depends upon domestic consumption and but Is also subject to the uncertain influence ence of ot resumption of production by mines now flOw closed down Consumption both domestic and foreign depends upon general business conditions in the fields in which consumers of ot copper operate bath at home and In jn EUrop Europe Factors affecting such general conditions condi condi- worldwide tons are In scot Scone e and oper oper- aton In considering considering resumption of ot mining it is to be borne in mind that time be needed to gather 1 together working forces and that ordinarily from three to four months are sary for the advance of ot copper from its ores ore to forms ready for tion ton OUTLOOK DESCHI PJ As to the th future of ot the industry t the e I principal findings are 1 That the world pro production of ot copper at the present time If It mines were operated operated at capacity would exceed exceed ex ex- ex- ex pounds as compared with wih a prewar production of approximately pounds pound 2 2 That world consumption today is at the rate of ot not more than I pounds louds per annum which is less I than the present refinery capacity of ot the United States alone pounds per por annum and that before production can again profitably reach the pres present nt productive capacity Of ot the world not only will wi the prewar rate of consumption have to be regained but creased it I will wi have to be considerably in In- In 3 That copper Is I being produced In America rapidly a II increasing from ore quantities bodies 7 t the e in Inco cost South u of working which per pound of copper produced Is it less than for the majority of ot the mines In the United States II n n IX IN The rue smelter output of ot copper opper produced pro pro- b by mines in IK the u. u seven states of of p vv i per cent I the smelter output of ot the tho United States and per cent of the worlds world's production In 1909 the percentages were respectively and 27 7 Arl Arizona Ari- Ari zons zona is the foremost copper producing state state in the Union having produced In 1 1920 20 75 71 per cent of ot the districts district's oute output out- out put 46 6 per cent of r th the output of the United e States and 25 per cOe cent P of t the te to to- to tat tal tiL world production Utah ranks sec second second sec sec- sec ond among the states of ot the district and fourth in the tho United States Cop Cop- por ir por production in the United states in 1913 1917 1911 and 1920 and In the states of o states this district In 1921 Is i shown Vy ly 3 of ot statistics for tor 1921 with f figures gures for 1 1920 1020 20 shows Shown how the general situation of the how copper Indus Indus- tr try during the past year was reflected reflected in greatly greaty curtailed output by th the mines of this district Arizona mines mineR produced only Arizona pounds of ot copper In 1921 compared with pounds In 1920 and the of th the tle district totaled pounds In 1921 mi compared with wih Pounds In 1920 1 Of the thirty four our mining districts listed by the United States geological survey sur as rs being being the principal copper producing districts In the United States during 1 1919 19 twenty five ive districts were I within the geographical limits of the I Twelfth h federal reserve district The I I Miami Globe Globe Arizona ranked second among the mining districts of the coon coun try the Lake Superior Michigan beIng being be be- ing first After the Butte Montana 1 region the Arizona region in n the th Eleventh federal reserve district L T i was fourth and the BI gnam v fifth I mining companies com corn Ot of the tIre twenty copper United States whose I pr panicS in ln the the production is reported by monthly Mining Journal hf- hf I Engineering and W fl- fl Nevada teen are art In Arizona Utah and These fifteen mines produced ores in 1920 whose copper content was pounds 93 per cent of ot the mine production of ot the entire Twelfth federal fed ted eral ral reserve district entre and 51 61 er cent of ot the mine output of oC the United States The Engineering and Mining Journal e another indication of ot the figures s give curtailment of ot operations in this ais- ais of ot these fifteen mines all al but three had closed by April Apri 1921 and all allbut allbut al but two which are still stil operating by ly I May ay The production of ot crude copper by the two mines now flow operating was I pounds In the first elev eleven n months of 1921 compared With 83 pounds in the first eleven cleven m months 1 of ot 1920 The output of ot all al the fifteen I mines during 1921 to December 1 wa was pounds compared with pounds during the similar period pe p nod of 1920 I |