Copper in 1867
08/18/2009 15:22
From the 1867 American Journal of Mining
This is the publication that would later be known as the Engineering and Mining Journal. In its fifth (?) year, the main feature of the journal were narrative accounts of the news from the major mining areas, organized by the mineral mined. The March 30 1867 edition, for example, contains nearly five columns describing Copper-mining events in Montana, Michigan, and Arizona. At the time, Michigan was the leader in production, and the Calumet mine already the leader in Michigan. Technology was a major focus, the Michigan column describing new machinery at the Isle Royale mill, says: “Never having seen the Chilian mills—on which this simply claims to an improvement—work, we have preferred to maks no speculations, pro. or con. on the subject.” Clearly, the state of Chilean technology and of Chile as a competitor in the copper market, was already well established in the minds of journal readers.
In at least a full page, every other issue, the journal reviews the various mineral markets. A note from San Francisco dated Feb. 23 1867 mentions the “high price of freight and the low price of ores in the markets of Swansea and Boston have had a very depressing effect on the California copper mining interest.” This is a reminder that the only way to move ore from the west coast to the east was still by ship, around South America. A huge advantage to Chilean miners.
March 8 1867: “Chili bars L73, buyers in Liverpool.” (“Dock Edwards” is at Birkenhead, in Liverpool)
April 5 1867: “Chili bars in Liverpool have been done at L71 10s. and L71 5s. the West India Mail which arrived on Wednesday, has brought advices of shipment of only about 800 tons copper from Chili, which may strengthen our market.” (Von Dadelszen and North, correspondents) (4 East India Avenue)
April 12 1867 “the panic in the Stock Exchange, and the complicated affairs of continental politics” blamed for stagnant market. “Chili bars in Liverpool, L71 10s. to L72.”
June 1 1867 edition quotes “The Lake Superior (Ontonagon) Miner asks the question, ‘Shall we work or suspend?’…The stock of copper on hand April 1st, 1867, is about the same as in April, 1866, showing a consumption in 1866 of 24,000,000 in the United States, none exported.” (in fact, it shows 1,200,000 of “Foreign refined copper” imported). Goes on to claim, “the Chilian mines, it is said, are losing money at present prices, and are not likely to continue many months at this rate.” Is this true? The industry was lobbying heavily for tariffs at this point…
May 17 1867 London report: “An animated business was reported both in Foreign and English copper, the former taking the lead…Chili bars L72 10s. spot and L73 to arrive…Since the arrival of the Chili mail advising shipments of about 2,200 tons of pure copper in a fortnight, buyers have withdrawn, and prices fell 20s. per ton lower.”
May 31 1867: “The last mail from Chili having brought advice of smaller shipments (1,300 tons copper), the market is rather better…” (no Chile price quoted) (this probably from mid-June issue)
July 1 1867 “Copper Trade Circular” from Baltimore says “Copper mining has become extremely adventurous, and these mines that cannot produce native copper at less than 22 cents per lb. or ores less than $30 per ton delivered at navigable shore, cannot expect to live…Ingot Copper ranges at 23 ½ @ 24 ½, being 4 per cent. below the cost of production. Smelters have reduced operations very much and the overstock in the country is fast being redced by consumption. The Lake Superior companies are free sellers, and at the ruling prices large investments have been made on speculation. The Baltimore smelters intend holding their copper over until next Spring, when it is likely better prices will rule.”
July 20 1867 edition features a new “London Copper Trade” column by Vivian, Younger, and Bond. Installment dated June 21: The Chili advices referred to in our last have had their effect all through the week, and transactions have been very exceptional and difficult. Towards the close, however, there seems to be a little more disposition to make business both on the part of sellers and buyers, each showing some signs of giving way a little. The result of the continued low prices seems to have been to rid the market of the weak holders of English copper who went into the article during the Hispano-Chilian war, and also to bring down the price of the raw material to a more reasonable relative value, as compared with the prices of English copper. these two things should give a healthier tone to the article, for such demand as there is now goes to the smelters, and so more directly helps off the stocks. the want of demand, however, continues to be very much felt. We report sales of Chili bars at from L69 to L70 per ton, and of about 2,000 tons of ore and regulus at 14s. per unit. we have heard of no sales in fine foreign copper.”
Von Dadelszen and North’s report (just below) has “Chili bars, L70 10s., sellers.”
VYB June 28 write “The business done in Chili bars and ingots early in the week has been very considerable, the total being about 1,600, principally for shipment to France. Prices have advanced about 10s. to 20s. per ton, the transactions we report having taken place at L68 10s. to L69 10s. for bars, and L78 to L78 10s. for ingots. Holders now ask L70 for the former, and L79 for the latter…The Chili mail, received yesterday, advised only 1,200 tons of fine copper, 700 tons in bars, and 500 tons in ores and regulus, from May 3 to 17, 1867, as against 1,780 tons the same time last year.”
July 12 1867 “Metal Report” says “Copper has again turned in buyers’ favor…Chili bars, L89, in Liverpool.” Must be typo for L69.
August 3 1867 “Metal Report” says “Copper has been very sick. The last Chili mail advised charters for about 1,900 tons pure copper, of which two-thirds is in bars, which is a large quantity.”
Just below, VYB report “Transactions in all kinds have been extremely limited, and although importers of Chilian copper produce are somewhat higher in their views, this does not seem to be warranted by the course of events. the result [sic], indeed, has been an almost total absence of business. there are, in fact, no sales of the least importance in Chili produce to record. As to English tough cake, it has been sold at L74, the lowest price ever known in the copper trade, except in the year 1782. Sheet copper for India has been parted with at L77…a lower price than has ever been known before…It is very disheartening to such considerable shipments reported from the West Coast by each mail, at rates which must leave the importers serious losers; in fact, the sanguine feelings which still prevailed in Chili as tot eh future of copper is one of the worst features of the market, as tending to keep production up to its full average. With very limited consumption, and no aid from speculation, it seems clear that nothing but really short exports from the West can restore the market to a healthy tone.”
August 16 1867 Metal Report announ ces “A better feeling has come over the market, owing to warlike advices from Chili; holders are not pressing sellers, and in some instances an advance of one or two points has been established…Chili bars in Liverpool, L69 10s. to L70, buyers. Ore sold at 14s. 3d.; most holders ask 15s.”
VY&B (date Aug. 17 1867) say “There has been more business doing, and the advanced prices asked have been more readily paid. Some of the English smelters have shown themselves desirous of being provided with furnace material, rather than being found short of stock in the present unsettled state of the market. The principal transactions in Chili produce since our last have been about 1,000 tons of ores, at 13s. 10d. to 14s. per unit; 600 tons of regulus, at the latter figure, and 150 tons of bars, at L65 10s. and L69 per ton. For bars, L69 10s. is now asked, and for ores and regulus, 14s. 3d. per unit…The mail from Chli brings advices of about 1,700 tons of copper produce having been chartered for, half in bars and the remainder in ores and regulus, with a list of sales amounting to nearly the same quantity of fine copper, prices in Valparaiso having slightly improved, and freights being rather higher. The general feeling in the market here is better, and the tendency on the part of holders of copper (who can conveniently do so) is to keep it at present, in the hope of a future improvement being established.”
The September 3 1867 “Metal Circular” (marked New York – possibly written by the AJM editor?) says “Copper has been quiet, but with a steady demand for consumption, the price has gradually advanced from 26 3/8 @ 26 ½ c. for Detroit, 26c. for Portage Lake, and 25 ¾ @ 26 c. for Baltimore. For the end of September and October delivery ¼ and ½ c. more is paid. The arrivals from Lake Superior are small, and the companies have little to sell. The stocks are almost entirely in the hands of parties who bought for investment or on speculation, and who look for much higher prices in the face of such advices as have just been received from England. The low price and the cheap money have at last begun to tell, and the London market rose in the last fortnight of August from L67 10s. to L74 in Chili pig, with every prospect of a further advance when the position of the article is fully understood. The remarks made in my circular of 30th July, in regard to our market, also apply to the European markets. A vague impression has prevailed that the production of Copper had increased wonderfully, bt that the consumption decreased. It was founded on the uninterrupted supply from Chili in 1865 and 1866, during and after the Chili-Spanish war, andn the dullness of business in the East Indies, Germany and France, the three largest consumers of British Copper. But now an improved demand for the East Indies has sprung up, and the shipments from Chili begin to fall off at the same time that the production in Cornwall, Australia, California and Lake Superior shows a marked decrease. The next twelve months are likely to see a great rise in the price of Copper and Tin. Both articles have been unreasonably depressed, far below the average of former years, and the reaction will be the more severe. There are no orders for export. 100,000 lbs. Minnesota will be cleared early in August for Hamburg. The total shipments this year amount to one million of pounds.”
In an August 23 1867 Metal Report (printed after the Sept 3 note above), Von Dadelzen [sic] and North say “The market has been much firmer, and holders less willing to sell, pending further news from Chili…Chili bars, in Liverpool, have advanced to L70 and L75 10s. to arrive.”
VY&B (same date) agree: “The firmness evinced by holders, especially of Chili produce in Liverpool, has resulted in a further improvement in prices of that description, bringing the figure for spot bars, good brands, up to 70l., whilst 14s. 6d. has been refused for a cargo of regulus to arrive. The actual business done has been only moderate—120 tons spot bars, 69l. 10s. to 70l.; 120 tons bars to arrive, 70l., 10s. to 70l. 15s; 20 tons Urmeneta ingots, 78l., cash; 600 tons of ore (half Canadian) sold at 14s. 3d. per unit, and 160 tons of argentiferous regulus at 14s. 2d. per unit. At the present moment there are no sellers of bars to arrive at 71l.”
An additional section on the “French and German Metal Markets” says “Advices from Havre indicate more stability in the price of copper at that port, and also induce an impression of a revival of activity in the article. for 20 tons of disposable Chilian, in bars, 69l. 10s. per ton has been paid (Paris conditions;) since then the tone of the article has been a little firmer.” Raises the interesting question of how much Chilean copper went (directly?) to European markets other than London…
September 6 1867 the Weekly Metal Report says “Copper is a shade easier, but holders are firm…Chili is in buyers’ favor, and quoted L72 10s. for bars, L92 for ingot. Ore and regulus, 14s. 9d. to 15s. per unit.”
By October 25 1867, “Chili bars sold at L69,” suggesting a “dull and slack” market.
November 15 1867: “Nothing new to report…Chili bars, in Liverpool, have advanced to L69.”
The “Metal Circular,” date December 2 1867, New York, says “Copper has improved a little in price in the beginning of November, and has since been steady at 22 and 22 ¼ c. for Baltimore; 22 7/8 and 23 c. for Portage Lake, and 23 and 23 ¼ for Detroit…The London market has declined to the lowest figure of last June, viz: L67 and L67 10s. for Chili Pig. the shipments from Chili, which for a short time showed a falling off, had again increased and this has depressed the European markets.”
A column in the November 9 1867 edition announces “Another Trans-Continental Railway” and describes a plan by Chile and Argentina to build a railroad “to cross the Andes upon the plain known as the Plancheon.” The company, formed in Buenos Aires, has applied for a “grant of land upon both sides of the track, upon which they propose to establish colonies.” The initial colonists proposed are Germans, and the engineer in charge is a German named Otto Von Armen. This is interesting – did it ever get built? What about the colonization scheme?
Another column titled “Copper Mining,” in the December 14 1867 issue, says “A California paper discourses upon the condition and prospects of copper mining as follows: One of the chief demands of copper of late years has been for locomotives. There is, on average, one engine for every three miles of railroad, and two tons of copper are put into every large locomotive, so that three mles of railroad demand two tons of copper.” How many locomotives are produced annually? What are the other big users of copper, year by year? and how do they change as technology develops? Until the BIG change – electricity. I need to do a demand-side review of copper fairly soon.
This is the publication that would later be known as the Engineering and Mining Journal. In its fifth (?) year, the main feature of the journal were narrative accounts of the news from the major mining areas, organized by the mineral mined. The March 30 1867 edition, for example, contains nearly five columns describing Copper-mining events in Montana, Michigan, and Arizona. At the time, Michigan was the leader in production, and the Calumet mine already the leader in Michigan. Technology was a major focus, the Michigan column describing new machinery at the Isle Royale mill, says: “Never having seen the Chilian mills—on which this simply claims to an improvement—work, we have preferred to maks no speculations, pro. or con. on the subject.” Clearly, the state of Chilean technology and of Chile as a competitor in the copper market, was already well established in the minds of journal readers.
March 8 1867: “Chili bars L73, buyers in Liverpool.” (“Dock Edwards” is at Birkenhead, in Liverpool)
April 5 1867: “Chili bars in Liverpool have been done at L71 10s. and L71 5s. the West India Mail which arrived on Wednesday, has brought advices of shipment of only about 800 tons copper from Chili, which may strengthen our market.” (Von Dadelszen and North, correspondents) (4 East India Avenue)
April 12 1867 “the panic in the Stock Exchange, and the complicated affairs of continental politics” blamed for stagnant market. “Chili bars in Liverpool, L71 10s. to L72.”
June 1 1867 edition quotes “The Lake Superior (Ontonagon) Miner asks the question, ‘Shall we work or suspend?’…The stock of copper on hand April 1st, 1867, is about the same as in April, 1866, showing a consumption in 1866 of 24,000,000 in the United States, none exported.” (in fact, it shows 1,200,000 of “Foreign refined copper” imported). Goes on to claim, “the Chilian mines, it is said, are losing money at present prices, and are not likely to continue many months at this rate.” Is this true? The industry was lobbying heavily for tariffs at this point…
May 17 1867 London report: “An animated business was reported both in Foreign and English copper, the former taking the lead…Chili bars L72 10s. spot and L73 to arrive…Since the arrival of the Chili mail advising shipments of about 2,200 tons of pure copper in a fortnight, buyers have withdrawn, and prices fell 20s. per ton lower.”
May 31 1867: “The last mail from Chili having brought advice of smaller shipments (1,300 tons copper), the market is rather better…” (no Chile price quoted) (this probably from mid-June issue)
July 1 1867 “Copper Trade Circular” from Baltimore says “Copper mining has become extremely adventurous, and these mines that cannot produce native copper at less than 22 cents per lb. or ores less than $30 per ton delivered at navigable shore, cannot expect to live…Ingot Copper ranges at 23 ½ @ 24 ½, being 4 per cent. below the cost of production. Smelters have reduced operations very much and the overstock in the country is fast being redced by consumption. The Lake Superior companies are free sellers, and at the ruling prices large investments have been made on speculation. The Baltimore smelters intend holding their copper over until next Spring, when it is likely better prices will rule.”
July 20 1867 edition features a new “London Copper Trade” column by Vivian, Younger, and Bond. Installment dated June 21: The Chili advices referred to in our last have had their effect all through the week, and transactions have been very exceptional and difficult. Towards the close, however, there seems to be a little more disposition to make business both on the part of sellers and buyers, each showing some signs of giving way a little. The result of the continued low prices seems to have been to rid the market of the weak holders of English copper who went into the article during the Hispano-Chilian war, and also to bring down the price of the raw material to a more reasonable relative value, as compared with the prices of English copper. these two things should give a healthier tone to the article, for such demand as there is now goes to the smelters, and so more directly helps off the stocks. the want of demand, however, continues to be very much felt. We report sales of Chili bars at from L69 to L70 per ton, and of about 2,000 tons of ore and regulus at 14s. per unit. we have heard of no sales in fine foreign copper.”
Von Dadelszen and North’s report (just below) has “Chili bars, L70 10s., sellers.”
VYB June 28 write “The business done in Chili bars and ingots early in the week has been very considerable, the total being about 1,600, principally for shipment to France. Prices have advanced about 10s. to 20s. per ton, the transactions we report having taken place at L68 10s. to L69 10s. for bars, and L78 to L78 10s. for ingots. Holders now ask L70 for the former, and L79 for the latter…The Chili mail, received yesterday, advised only 1,200 tons of fine copper, 700 tons in bars, and 500 tons in ores and regulus, from May 3 to 17, 1867, as against 1,780 tons the same time last year.”
July 12 1867 “Metal Report” says “Copper has again turned in buyers’ favor…Chili bars, L89, in Liverpool.” Must be typo for L69.
August 3 1867 “Metal Report” says “Copper has been very sick. The last Chili mail advised charters for about 1,900 tons pure copper, of which two-thirds is in bars, which is a large quantity.”
Just below, VYB report “Transactions in all kinds have been extremely limited, and although importers of Chilian copper produce are somewhat higher in their views, this does not seem to be warranted by the course of events. the result [sic], indeed, has been an almost total absence of business. there are, in fact, no sales of the least importance in Chili produce to record. As to English tough cake, it has been sold at L74, the lowest price ever known in the copper trade, except in the year 1782. Sheet copper for India has been parted with at L77…a lower price than has ever been known before…It is very disheartening to such considerable shipments reported from the West Coast by each mail, at rates which must leave the importers serious losers; in fact, the sanguine feelings which still prevailed in Chili as tot eh future of copper is one of the worst features of the market, as tending to keep production up to its full average. With very limited consumption, and no aid from speculation, it seems clear that nothing but really short exports from the West can restore the market to a healthy tone.”
August 16 1867 Metal Report announ ces “A better feeling has come over the market, owing to warlike advices from Chili; holders are not pressing sellers, and in some instances an advance of one or two points has been established…Chili bars in Liverpool, L69 10s. to L70, buyers. Ore sold at 14s. 3d.; most holders ask 15s.”
VY&B (date Aug. 17 1867) say “There has been more business doing, and the advanced prices asked have been more readily paid. Some of the English smelters have shown themselves desirous of being provided with furnace material, rather than being found short of stock in the present unsettled state of the market. The principal transactions in Chili produce since our last have been about 1,000 tons of ores, at 13s. 10d. to 14s. per unit; 600 tons of regulus, at the latter figure, and 150 tons of bars, at L65 10s. and L69 per ton. For bars, L69 10s. is now asked, and for ores and regulus, 14s. 3d. per unit…The mail from Chli brings advices of about 1,700 tons of copper produce having been chartered for, half in bars and the remainder in ores and regulus, with a list of sales amounting to nearly the same quantity of fine copper, prices in Valparaiso having slightly improved, and freights being rather higher. The general feeling in the market here is better, and the tendency on the part of holders of copper (who can conveniently do so) is to keep it at present, in the hope of a future improvement being established.”
The September 3 1867 “Metal Circular” (marked New York – possibly written by the AJM editor?) says “Copper has been quiet, but with a steady demand for consumption, the price has gradually advanced from 26 3/8 @ 26 ½ c. for Detroit, 26c. for Portage Lake, and 25 ¾ @ 26 c. for Baltimore. For the end of September and October delivery ¼ and ½ c. more is paid. The arrivals from Lake Superior are small, and the companies have little to sell. The stocks are almost entirely in the hands of parties who bought for investment or on speculation, and who look for much higher prices in the face of such advices as have just been received from England. The low price and the cheap money have at last begun to tell, and the London market rose in the last fortnight of August from L67 10s. to L74 in Chili pig, with every prospect of a further advance when the position of the article is fully understood. The remarks made in my circular of 30th July, in regard to our market, also apply to the European markets. A vague impression has prevailed that the production of Copper had increased wonderfully, bt that the consumption decreased. It was founded on the uninterrupted supply from Chili in 1865 and 1866, during and after the Chili-Spanish war, andn the dullness of business in the East Indies, Germany and France, the three largest consumers of British Copper. But now an improved demand for the East Indies has sprung up, and the shipments from Chili begin to fall off at the same time that the production in Cornwall, Australia, California and Lake Superior shows a marked decrease. The next twelve months are likely to see a great rise in the price of Copper and Tin. Both articles have been unreasonably depressed, far below the average of former years, and the reaction will be the more severe. There are no orders for export. 100,000 lbs. Minnesota will be cleared early in August for Hamburg. The total shipments this year amount to one million of pounds.”
In an August 23 1867 Metal Report (printed after the Sept 3 note above), Von Dadelzen [sic] and North say “The market has been much firmer, and holders less willing to sell, pending further news from Chili…Chili bars, in Liverpool, have advanced to L70 and L75 10s. to arrive.”
VY&B (same date) agree: “The firmness evinced by holders, especially of Chili produce in Liverpool, has resulted in a further improvement in prices of that description, bringing the figure for spot bars, good brands, up to 70l., whilst 14s. 6d. has been refused for a cargo of regulus to arrive. The actual business done has been only moderate—120 tons spot bars, 69l. 10s. to 70l.; 120 tons bars to arrive, 70l., 10s. to 70l. 15s; 20 tons Urmeneta ingots, 78l., cash; 600 tons of ore (half Canadian) sold at 14s. 3d. per unit, and 160 tons of argentiferous regulus at 14s. 2d. per unit. At the present moment there are no sellers of bars to arrive at 71l.”
An additional section on the “French and German Metal Markets” says “Advices from Havre indicate more stability in the price of copper at that port, and also induce an impression of a revival of activity in the article. for 20 tons of disposable Chilian, in bars, 69l. 10s. per ton has been paid (Paris conditions;) since then the tone of the article has been a little firmer.” Raises the interesting question of how much Chilean copper went (directly?) to European markets other than London…
September 6 1867 the Weekly Metal Report says “Copper is a shade easier, but holders are firm…Chili is in buyers’ favor, and quoted L72 10s. for bars, L92 for ingot. Ore and regulus, 14s. 9d. to 15s. per unit.”
By October 25 1867, “Chili bars sold at L69,” suggesting a “dull and slack” market.
November 15 1867: “Nothing new to report…Chili bars, in Liverpool, have advanced to L69.”
The “Metal Circular,” date December 2 1867, New York, says “Copper has improved a little in price in the beginning of November, and has since been steady at 22 and 22 ¼ c. for Baltimore; 22 7/8 and 23 c. for Portage Lake, and 23 and 23 ¼ for Detroit…The London market has declined to the lowest figure of last June, viz: L67 and L67 10s. for Chili Pig. the shipments from Chili, which for a short time showed a falling off, had again increased and this has depressed the European markets.”
A column in the November 9 1867 edition announces “Another Trans-Continental Railway” and describes a plan by Chile and Argentina to build a railroad “to cross the Andes upon the plain known as the Plancheon.” The company, formed in Buenos Aires, has applied for a “grant of land upon both sides of the track, upon which they propose to establish colonies.” The initial colonists proposed are Germans, and the engineer in charge is a German named Otto Von Armen. This is interesting – did it ever get built? What about the colonization scheme?
Another column titled “Copper Mining,” in the December 14 1867 issue, says “A California paper discourses upon the condition and prospects of copper mining as follows: One of the chief demands of copper of late years has been for locomotives. There is, on average, one engine for every three miles of railroad, and two tons of copper are put into every large locomotive, so that three mles of railroad demand two tons of copper.” How many locomotives are produced annually? What are the other big users of copper, year by year? and how do they change as technology develops? Until the BIG change – electricity. I need to do a demand-side review of copper fairly soon.
