Changes During the War
The war wrought fundamental changes in the world movement of minerals. The character and distribution of the demands changed. Customary sources of supply were cut off. Financial disturbances and ship shortage profoundly modified the nature, distribution, and extent of the world movement. Our domestic mineral industry was abruptly brought to a realization of its vital relations with international trade. To illustrate, the large movement of manganese from India and Russia to the United States was abruptly stopped, and we had to develop a source of supply in Brazil. The stoppage of pyrite importations from Spain as a means of saving ships required the development of pyrite and sulphur supplies in the United States. The export of oil from the United States to European countries was greatly stimulated, and the export to other countries was correspondingly decreased. The world movements of coal were vitally affected, principally by the limitation of the coal shipments from England and the United States to South America and the concentration of shipments to European countries. The closing of German coal supplies to nearby countries also had far-reaching consequences. The cutting off of the German potash left the world for the time being almost unsupplied with this vital fertilizing ingredient. The Chilean nitrates, on which the world had relied for fertilizer purposes, were diverted almost exclusively to the manufacture of powder. The total annual imports of mineral commodities into the United States were reduced by 1,200,000 tons. Our exports, though they continued in large volume, were mainly concentrated in Europe. The story of these disturbances in the world movement of minerals, though highly interesting, is too long to be told here.
Out of these sweeping and rapid changes in the world movement of mineral commodities there arose, partly as cause and partly as effect, international agreements for the allocation of minerals, as a means of insuring the proper proportions of supplies to the different countries for the most effective prosecution of the war. Inter-Allied purchasing committees in London and in Paris found it necessary to make an inter-Allied allocation of the output of Chilean nitrate, because the sum of the demands exceeded the total supply by a considerable fraction, and to agree on the distribution and prices of the world's supplies of tin, tungsten, and platinum. For many other commodities agreements of various sorts were made. For instance, the United States entered into an agreement with England and France for the purchase of iron ore and molybdenum from Scandinavia to keep it out of Germany. The United States and England agreed as to supplying Canada with ferromanganese. New problems of world allocation came up almost daily.
Another war change in mineral conditions, of a more permanent nature, was the liquidation of German ownership and control of minerals in allied countries, and in some cases even in neutral countries.