POSITION OF LEADING NATIONS
The United States was before the war the world’s largest consumer of mica of all kinds. The development of her electrical industry is dependent upon her supply of mica, a large part of which is imported from India and Canada. Production in this country has been considerable, but has not proved nearly adequate to supply the demands, particularly the demand for the higher grades of mica for use in magnetos, radio condensers and spark plugs, and for mica splittings used in making built-up mica.
The large demands and high prices created by the war did not increase domestic production enough to warrant the belief that this country can become independent as regards sheet mica under any but the most artificial conditions. The producer is protected by a 25 per cent. import duty on unmanufactured (rough or knife-trimmed) mica and a 30 per cent. duty on cut mica, splittings and other manufactured forms. Production in this country is largely in the hands of individuals and small companies, who are financially incapable of increasing output spasmodically even under very favorable conditions. Moreover, many consumers have a decided prejudice in favor of imported mica.
If the United States is to take a dominant position in the electrical industry of the world an adequate supply of mica must be assured. The most promising field for the development of such a supply is undoubtedly South America. This is particularly true because the important development of the electrical industry in England during the war places that country in the dominating position formerly occupied by Germany and Austria. This development will require a large part of the Indian mica formerly available for export trade.
The British Empire possesses in India the most important source of muscovite mica in the world and in Canada the only important supply of amber mica. In spite of England’s tremendous advantage with regard to raw material, Germany, through her important position in the electrical industry and the large measure of control acquired in the Indian mines, threatened to dominate the mica market of the world at the outbreak of the war. Since the outbreak of the war England has secured her position not only as the controlling center for raw mica but as the chief producing nation of electrical equipment. London is the distributing center of the world for Indian mica and London prices regulate the market. During the war Indian mica was controlled by the British Ministry of Munitions, and allotments were made to the associated nations at fixed prices.
In the development of the South American fields lies the best possibility of the world lessening its dependence upon England for this most essential raw material.
France is entirely dependent upon outside sources for her supply of mica. Before the war her demands were not large and were filled by Indian mica.
Although Germany before the war was entirely dependent on outside sources for mica, her leading position in the electrical industry enabled her to gain control of much of the Indian production. Every advantage was taken of this opportunity, and in 1914, according to the British Secretary of Munitions, the mica market of the world was at the point of being transferred from London to Hamburg. The deposits of German East Africa were being actively exploited and German commercial interests were being extended to South America.
Although probably possessing very large stocks in 1914, Germany felt very acutely the shortage of mica during the war. High prices were paid to Norway for the output of that country, but this source is probably entirely incapable of meeting the normal demands of Germany.