POLITICAL CONTROL
The quicksilver industry offers two conspicuous examples of the direct political control of mineral resources. The Almaden mine, whose output is such as in normal times to determine the market for quicksilver, has been owned and worked by the Spanish government since 1645, and the Idria mine up until the close of the war was owned by the Austro-Hungarian government.
The Spanish government, on the basis of competitive proposals, contracts with the successful bidder for the sale of the quicksilver for periods of ten years. For a number of successive periods the contract has been awarded to the Rothschilds of London, the present one dating from June 1, 1912. The contractors bind themselves to sell, in London, the greatest possible quantity of quicksilver, which they take f.o.b. at the reduction plant at Almaden, at prices above 7 pounds per flask, They receive a commission of 1¹⁄₄ per cent. of the amount of the sale; 6 shillings for each flask shipped from Spain to London; and 10 per cent. of the amount by which the sales price exceeds 8 pounds 2 shillings per flask. The Spanish government reserves from the operation of this contract 500 flasks[144] annually for the national requirements of Spain. By this arrangement, although the mine is owned by Spain, the market has been controlled in London. During the war the sale of Almaden mercury was taken over by the Admiralty through Messrs. Rothschild. The quantity received in London from Almaden in 1917 was about 25,000 flasks.
[144] Increased to 10,000 flasks in 1919.
The Konia mine, in Asia Minor, reverted to the Turkish government in 1912, but its output, as previously noted, is inconsiderable.
The quicksilver mines of the Monte Amiata district, Italy, although less obviously illustrative of political control than those just mentioned, should perhaps be referred to in the present connection. German capital has been dominant in their development in the late years before the war, and the most productive mines are credibly reported to have been owned wholly or in part by the German Emperor. With the entry of Italy into the war they were seized by the Italian government. The Italian mines produced about 28,000 flasks, of which from 12,000 to 15,000 flasks were purchased by the British Admiralty.