Mineral Resources of the United States

Since the smelter production permits very accurate distribution as to source by States and also gives the actual output of copper, it is considered in this report as the production of the country. It is made up of the production of blister copper and of furnace-refined or ingot copper of the Lake district, plus the Michigan copper cast into anodes for electrolytic refining.

SUMMARY OF STATISTICS.

The following statistical statement summarizes the copper industry in the United States in 1907 and 1908:

Summary of statistics of the copper industry in the United States in 1907 and 1908.

GENERAL CONDITION OF INDUSTRY.

As compared with the year 1907, the commercial conditions of the copper industry during 1908 were very stable. The variation in the monthly averages of New York quotations was only 1.54 cents, as compared with 11.90 cents for 1907. As compared with the prices for the years immediately preceding, the price of copper remained low throughout the year, although it was almost exactly the same as the average price for the twenty-five years from 1883 to 1907; the average price for 1908 was 13.20 cents and that for the preceding period of twenty-five years was 13 to 13.25 cents."

The year opened with large stocks of copper on hand, although several important producers were restricting their output. Other companies, however, were making their normal production or even increasing their output in order to reduce costs. It soon became apparent to the companies that had reduced their output that they were doing so to the advantage of their competitors, and a general resumption of production followed, so that by the middle of the year all the leading producers in the United States were making a

a Mineral Resources U. S., for 1907, pt. 1, 1908, p. 574.

normal or even an increased production. The Great Falls plant of the Amalgamated Company was idle for a considerable period after the general resumption, but this was due to damage by flood. During the year the mines of the Ely district, Nevada, and the Balaklala mine, Shasta County, Cal., began production; and the Bully Hill mine, also in Shasta County, resumed operations after about two years of idleness while the smelting works were being rebuilt, and the mines of the Bingham district, Utah, increased their outputs.

The domestic consumption of copper did not fall far below that of 1907, which, with the record export of 661,876,127 pounds caused by the stimulus of low prices, resulted in a small decrease in stocks during the year, though copper was rapidly accumulating during the last months.

A notable feature of the industry for the year was the decrease in cost of production. This was brought about by a general policy of economy in operations, including the lowering of wages and in some cases in the mining of higher-grade ores. Probably the greatest saving resulted from the increased efficiency of labor, which had become notoriously inefficient during the boom times of preceding years. Many companies producing copper at a high cost were forced to cease operations with the fall in price; and still others will come to this if present prices hold. However, according to the statements of producers, a large part of the output of 1908 was produced at a profit. Several large properties, capable of producing copper at a low cost, have just begun to contribute to the output, and other mines will soon be adding to the production. It therefore seems probable that present demands for copper can be met by companies able to produce it with a reasonable profit at prices no higher than those of 1908. If this is true, there seems to be little to encourage the continued operation of developed mines that are producing at a loss under present conditions. The continued low price of copper would, however, naturally cause an increase in consumption, which, unless more than balanced by increased production, would tend to raise the price to a somewhat higher level."

An important event early in 1909 was the formation of the Copper Producers' Association. This includes all of the leading producers of the country. The object is to collect and give out accurate information relative to the production, export, and domestic consumption of copper. The industry has suffered much in the past from erroneous reports and estimates concerning stocks, etc., some of them published for the purpose of influencing the market. The general purpose of the organization is to furnish accurate information to those interested in the industry. The association issued its first report on February 10, 1909, and has made monthly reports since that date. The usefulness of these reports seems to have met the expectations of the organizers.

SMELTER AND MINE PRODUCTION.

GENERAL STATEMENT.

The production of copper in 1908 by smelters from copper-bearing materials from the United States was 942,570,721 pounds. The production for 1907 was 868,996,491 pounds, and for 1906, 917,805,682 pounds. The production for 1908 was the largest in the history of

the industry, exceeding the record production of 1906 by 24,765,039 pounds and that of 1907 by 73,574,230 pounds, or 8.4 per cent.

The yearly production of copper in the United States from 1845 to 1908, inclusive, together with the actual and relative changes from each preceding year, is given in the following table:

Magnitude and growth of copper production in the United States from 1845 to 1908, inclusive.

The figures, except for 1908, are taken from the previous volumes of Mineral Resources of the United States. Statistics from 1882 to 1908, inclusive, are based on the returns to the Geological Survey by the copper-producing companies. Figures for the years prior to 1882 were compiled by the United States Geological Survey from the best sources available. Reliable figures for years previous to 1845 are not obtainable. The year 1845, however, marks the entrance of the Lake Superior district into the ranks of producers and is really the beginning of important production of copper in this country: The industry has shown a steady and in recent years a very rapid growth. The few years when there has been a decrease in production, as compared with the preceding year, have in almost every case been years of general financial depression or panic, and the copper industry has been quick to recover when normal business conditions were restored. The year 1908 seems to be no exception to the rule. The year 1907 showed a marked decrease, due to the financial panic occurring in the latter part of that year. The year 1908 shows a marked increase over the production of 1907, and also over that of 1906, and this notwithstanding the fact that the financial depression extended well into the year 1908 and that copper production was curtailed for a part of the year. It is expected that 1909 will show fully the normal increase.

A more detailed discussion of the fluctuation in production has been published in a recent volume of Mineral Resources of the United States and need not be repeated here.

SMELTER RETURNS.

The figures of smelter production for 1908 are based on returns made confidentially to the Geological Survey by all known smelting companies handling copper-bearing materials from the United States. To all companies and officials who have aided in furnishing this information and have given valuable time to answering inquiries to aid in the accurate distribution of the output, sincere thanks are extended. The following list gives the names of the owning or operating companies, the location, and the final copper product of all known plants which contributed to the copper production of 1908: Smelting plants that treated United States copper in 1908.