POSITION OF THE GREAT NATIONS

The accompanying [table] presents available statistics of production since 1913 in order to show the extent to which the industry in each country is controlled by domestic or foreign capital, and attempts to show the extent of commercial control by each of the great powers. Such statistics are at best only approximate; the control varies from year to year and the data are difficult to obtain and verify.

Table 57.—Commercial Control of the World’s Output of Pig Lead

Country	Recent pig-lead production (short tons)	Year	Per cent. of world	Financial control by
Country	Recent pig-lead production (short tons)	Year	Per cent. of world	Home capital	United States	Great Britain	France	Germany
United States	612,200	1917	44.6	...	612,200
Australia	127,800	1913	9.4	...	...	127,800
British Isles	12,600	1916	0.9	...	...	12,600
Canada	20,400	1916	1.5	...	...	20,400
Burma	20,000	1917	1.5	...	...	20,000
France	30,800	1913	2.2	...	...	...	30,800
Italy	24,000	...	1.8	5,700	...	18,300
Belgium	39,400	1913	2.9	15,000	...	...	24,400
Venezuela	200	1917	...	...	...	...	...	200
Bolivia	2,400	1917	0.2	400	...	...	2,000
Greece	12,800	1916	0.9	...	...	...	12,800
Japan	12,300	1916	0.9	12,300
Peru	3,000	1917	0.2	500	500	2,000
Russia	1,100	1913	0.1	1,100
Chile	6,000	1917	0.4	3,000	...	1,000	...	2,000
Mexico	61,200	1913	4.4	...	53,200	8,000
Spain	157,000	1917	11.4	20,000	...	25,000	105,000	7,000
Sweden	2,100	1915	0.1	1,100	...	...	...	1,000
Germany	200,000	1913	14.5	...	...	...	...	200,000
Austria-Hungary	26,600	1913	1.9	26,600
Total	1,371,900	...	100.0		665,900	235,100	175,000	210,200
Per cent. of world production.			100.0		48.6	17.2	12.7	16.3

United States.

—During the war the United States demonstrated that its lead-ore deposits were capable of a production greatly in excess of the normal. That the increase was not greater was chiefly because of insufficient incentive in the market price of lead, which did not attain the early inflation of many of the other metals; and later, when the price was right, was restricted by lack of refining capacity. The existing capacity was at times not fully utilized because of the congestion of railway traffic. The lead-ore deposits in the United States have large possibilities, but with the exception of the disseminated lead deposits of southeastern Missouri the developed ore reserves will supply production for only a few years. Control of the mines in the United States is vested almost exclusively in Americans or American companies, some of the latter, however, having foreign stockholders, chiefly British or Canadian.

The United States imports lead ores, to a small percentage of its total production, from Mexico, Canada, South America and Africa. The Mexican ore is largely imported to meet the especial needs of the El Paso lead smelter, and not because of lack of smelting capacity in Mexico. The smelting capacity of the United States has always been in excess of the actual production of ore and is now very greatly in excess of the normal production. The ownership of most of the important smelters has always been vested in American capital, and as a result of the activity of the Alien Property Custodian all of them are now owned and controlled by American citizens. A considerable amount of lead bullion is imported, chiefly from Mexico, for refining. Most of this is re-exported. United States capital through ownership of smelters controls the greater part of the pig lead produced in Mexico and Peru. The importation of ore and bullion for refining from Canada is restricted by the government bounty on lead smelted and refined in Canada. United States capital also controls a considerable percentage of the mines of Mexico and has some interest in the Burma Mines Corporation, and the Irtysh Corporation.

Notwithstanding the enlarged smelting capacity and the possibilities of production from American mines, it is not expected that there will be any considerable export of domestic lead after the period of readjustment following the World War.

British Empire.

—The countries of the British Empire in the order of the importance of their lead output in 1913 are Australia, British Isles, Canada, Burma, and Egypt.

British capital controls the mines and smelters of the British Isles, Canada, Australia, Burma, and the Altai Mountains in Siberia, and, by ownership of mines and smelters, some 25,000 tons of lead annually from Spain and over 70 per cent. of the production of Italy. By contracts for desilverization and marketing it has controlled the greater part of the Spanish output and part of the production of Greece. It is reported also to control small tonnages of ore from Peru and Chile. In view of the recent increase of refining capacity in Spain by the Penarroya company (French), and the organization of all French interests into the Société Minerais et Metaux, future control by English capital of Spanish output above the 25,000 tons produced by the English smelter is doubtful, although it has been reported that the Penarroya company had agreed to market its lead through the new Metal Bank of London. Prior to the war much base bullion from Spain, Belgium, and Germany was imported and desilverized, and in large part re-exported.

The ore production of the British Empire is about 25 per cent. greater than its consumption, but insufficient smelting capacity has caused dependence on foreign-smelted lead. The smelting capacity has been increased, and the additional capacity contemplated will make the total equal the consumption. The empire can be made independent of the rest of the world should the policy of “Imperial preference” be adopted.

All the large interests in the lead industry of the British Empire have shown during the war period a strong tendency to co-operate and organize for mutual protection and benefit. A culmination of this movement is apparently the formation of the British Metals Corporation, intended to vest the marketing control of the production of the whole British Empire in one organization under governmental auspices.

Australia.

—The Australian production of lead ore and concentrates, derived chiefly from New South Wales, makes Australia rank second in world production of lead ores. In 1913 little more than half the output was exported to Europe for smelting, the remainder being smelted at Cockle Creek and Port Pirie. The pig lead produced, less a small local consumption, was also exported.

Australian mines have always been owned by British and Australian capital. Prior to the war the marketing of concentrates and of all lead bullion exported was controlled by the Australian Metal Co., affiliated with the German metal “Trio” headed by the Metallgesellschaft. During the war, however, the governments of Great Britain and Australia annulled the long-time ore- and metal-purchasing contracts, and the ore producers and smelters have organized for mutual protection and to keep the industry permanently under exclusive British control. The capacity of the Port Pirie reduction works has been increased by capital contributed jointly by the principal mining companies, and the plant is now the largest lead smelter in the world.

British Isles.

—The small output of lead ore in Great Britain is obtained from a few scattered deposits of little importance. Some ore is imported and smelted with the domestic production. The consumption of the British Isles is so large that very large imports of pig lead are necessary, amounting to 14 per cent. of the world’s production. All of the mines and smelters of the British Isles are owned and controlled, so far as known, by British capital.

Canada.

—With the assistance, through bounties, of the Canadian government, the Trail smelter has become firmly established and is the only important lead producer of Canada. It handles most of the British Columbia output of ores, which otherwise would have to go to the United States for reduction. The Canadian consumption is, however, about one-third greater than the production.

Burma.

—Although the production of ore and pig lead in the Northern Shan States by the Burma Mines Corporation was in 1913 an insignificant part of the world’s output, the company has developed its deposits so as to be capable of a very much greater yield, which may amount in the near future to 75,000 tons annually. This company is controlled by British with probably some American capital.

Egypt.

—The small ore production of Egypt is exported for smelting and is controlled by French capital.

Germany.

—Germany, a large producer of lead ores, imported in 1913 for smelting nearly 10 per cent. of the world’s output and in addition imported a considerable amount of pig lead, being the second largest consumer of lead in the world. Should Germany lose Upper Silesia, which produced nearly half the domestic ores, it will be still more dependent on imports to supply its smelters. Prior to the war the German lead industry was closely organized, much of the lead mining and smelting being conducted by departments of the state governments, although some of the largest concerns were private corporations. The German metal “Trio” headed by the Metallgesellschaft through the International Sales Association controlled directly about one-half the European production, comprising in this so-called Lead Convention, besides the German concerns, most of the Spanish and Belgian producers, most of the lead exported from the United States and Mexico, and the pig lead and concentrates exported from Australia. This system of control outside of Germany has now been permanently destroyed, and the magnitude and the organization of the German lead industry in the near future cannot be anticipated.

France.

—In France the output of lead ore is small and is controlled, with probably one exception, by French capital. Some ores are imported for smelting, Tunis and Algeria being capable of supplying even more. To provide for the large consumption, France ranking fourth among lead-consuming countries, there is imported in the form of pig lead some 7 per cent. of the world’s output. Recently smelting capacity has been increased. French capital controls more than half the production of Belgium through ownership of smelters, and through ownership of mines and smelters controls more than half the production of Spain and most, if not all, of the output of Greece. It also controls the ore production of Egypt and most of the ores produced in Algeria and Tunis. Under government auspices a strong organization of all the metal-producing companies controlled by French capital in France and foreign countries has recently been effected under the name of the Société Minerais et Metaux, which controls the sale of all the production of its members, as well as acting as a purchasing agent for them.

Belgium.

—Belgium produces no ores but smelts about 4¹⁄₂ per cent. of the world’s output, nearly the whole of which is consumed within her borders. A little less than half of this production is controlled by Belgian capital, the remainder by French interests. Belgian capital is also interested to a minor extent in Spain, Algeria, the Caucasus Mountains and Tunis. It is believed that a part of the Australian concentrates may be allotted to Belgium for smelting.

Italy.

—The Italian ore production, amounting to about 2 per cent. of the world’s total, is smelted in that country. The product is consumed, together with about 50 per cent. more, imported as pig lead. More than three-fourths of the domestic output is controlled by English capital; nearly all the remainder is controlled by Italian capital, but other English, French and Belgian companies produce insignificant amounts of ore.

Austria-Hungary.

—The Austro-Hungarian Empire produced and smelted ores to the amount of about 2 per cent. of the world’s output in 1913, and consumed this with about 50 per cent. more metal imported in the form of pig lead. The several lead-producing districts and smelters, some of which belong to the states of Austria and Hungary, with the partition of the empire fall within three or more distinct political jurisdictions, the lead production of none of which will be of importance. One of the important lead smelters is at Fiume.

Spain.

—Spain ranks third in content of ores produced and second in smelter production. The domestic consumption being negligible, all of the lead is exported. Prior to the war most of the production went to England to be desilverized. During the war, however, the refining capacity of Spain was greatly increased, and it now seems likely that any silver lead which the domestic plants can not take care of will be shipped to France for desilverization. More than half the Spanish production is controlled by French capital, and to a minor degree by Belgian and German interests.

Japan.

—Japanese lead-ore resources are meagre. The output of lead ore and pig lead in 1913 was about 25 per cent. of the domestic consumption. Since then ores and concentrates have been imported from China, Formosa, Korea, Siberia, and Australia, but importation of pig lead has still been necessary. The Japanese are endeavoring to secure control of ore deposits in China and Siberia, and supply the raw material for the increase of their domestic smelting and manufacturing industries. It is probable, however, that Japan will be dependent for many years on imports from other sources for most of the lead consumed.