One Phase of the Problem of Increasing the Consumption of Copper

THE high copper price during the war stimulated the capacity to produce far beyond a possible normal consumption. The curves in Fig. 1 show this. The line YZ indicates, what the world production and consumption of primary copper nor-mally would have been, had not the 3 war upset the rhythm of industry. Granting that the maximum world production of 3,150,000,000 lb. in 1917 was obtained by crowding both the equipment and the grade of ore mined, yet in many instances addi-tional capital was invested, upon which the producer will be driven to earn at least a reasonable interest. During the period of deflation, or C liquidation, which we have entered, the consumption of copper will nat-urally be below the normal. Fig. 1 shows the actual consumption ex-pressed-in per cent. of normal : 1919, 96 per cent.; 1920, 94 per cent.; 1921, 70 per cent. The copper industry, consequently, faces: (1) Potential over-production capacity; I (2) Diminished consumption. To deny the existence of these factors would be illogical. To minimize the menace of this potential producing capacity might lead to regret. All past attempts at artificial control have not proved very successful. Obviously the remedy is to increase, if possible, the consumption of copper to a point where these factors cease to be dangerous. In ultimate analysis, this means: Produce an article so cheap and so good that no one can afford to use substitutes. The problem can be solved by: (1) Re-ducing price; (2) Improving product offered.