For the immediate future, measures which have been suggested to extend the use of water power include: the more complete utilization of water powers already in use through more efficient machinery and methods; a certain degree of redistribution of industries, so that those requiring large amounts of power may be located in areas where water power is cheap and abundant; and the interconnection of hydro-electric plants so that their full capacity may be used. Some water powers which have been developed are not being fully utilized because the plants are not connected with distribution systems large enough to use all the power. During the war the United States Geological Survey, in coöperation with the Fuel Administration and the War Industries Board, collected the information required to prepare maps showing the locations and relations of power stations and transmission lines throughout the country. This survey of the situation showed many possibilities, which had before been but vaguely realized, of interconnections which would increase the efficiency of the plants.
2. Substitution of lower-grade coals—of bituminous for anthracite, and of low-grade bituminous for high-grade bituminous coals. Larger use of low-grade western coals. War and post-war conditions have shown Germany the way to a wide and effective use of its lignites. This has been accomplished by coöperation of the government and private interests. This vast improvement in methods of treatment and recovery of heating elements and by-products will doubtless have a widespread effect on utilization of lignites in other parts of the world.
3. Substitution of alcohol and natural gas, oil, oil shales, peats, etc., as a source of power. This merely concentrates the conservation problem more largely on these minerals, in some of which, at least, it is already considerably more acute than in the case of coal; it is not a solution of the problem, but merely a shifting of emphasis.
Business conditions have limited private enterprise in this class of measures, but some progress has been made. More rapid introduction of these measures would require sacrifice of private interest and probably may be accomplished only by application of public power.
Division of Responsibility Between Government and Private Interests in the Conservation of Coal
A review of the conservation measures above listed indicates that many of them are already in operation, and that the initiative for such measures has been largely supplied by private ownership endeavoring to advance its own interest. In this category are to be included most of the improvements in physical methods of mining, preparation, and utilization of coal, the use of substitutes for coal, the concentration of control into larger groups better able to introduce new methods, and the improvement of labor and living conditions; also, under recent conditions, the increase in selling price, allowing for a wider application of these measures. Another group of conservation proposals, which have not yet been put into substantial effect, are obviously beyond the power of private interests; and must be introduced, if at all, by the application of government power. These include the elimination of resource or royalty costs, the control of over-capitalization, the removal of restrictions on concentration of control, the granting of permission for coöperation among competitive units, the regulation of selling price minimums in order to insure during normal times the use of better physical practices, and the control of distribution. In short, it appears that there are two great spheres of conservational activity—one within the field of private endeavor, and the other possible only by collective action through the government. The principal advances thus far made have been in the field of private endeavor.
The government has aided greatly in the advancement of conservation measures arising within the field of private endeavor. One need only refer to many governmental investigations, to the spreading of information as to best methods, and to local compulsory requirements that the best practices be made uniform and that backward interests thereby be brought into line.
Recognition of the fact that there is a large body of sound conservational practice in the coal industry which falls within the range of self-interest seems essential in planning further changes in the direction of conservation. Conservational measures do not all require sacrifice of the individual to the public, nor of the present to the future generations. An exercise of public power is not in all cases essential to the advancement of conservation. The respective limits of the fields of public and private endeavor are not sharply defined, and vary from place to place and time to time, depending upon local conditions and special requirements.
In general, the sphere of private interest includes measures which will bring adequate commercial return. The interest rate is the limiting and controlling factor. When it is possible—by improvement of methods of mining, better planning, better preparation of coal, better transportation and distribution, or better utilization—to secure a larger average return on the investment, or to insure return through a longer period of years, self-interest naturally requires the introduction of such methods as rapidly as financial conditions allow. Even some of the improvements in labor and welfare conditions have been introduced in this way, with a view to securing a more permanent and more efficient labor supply, and thereby aiding the enterprise from the commercial standpoint.
Within the sphere of government activity lie the removal of unnecessary restrictions on private initiative, and such conservation measures as involve some sacrifice of individual returns—in other words, a reduction of the normal interest rate. Exercise of government power may be directly helpful within the field of private endeavor without materially sacrificing private interests; but beyond this point there are additional large possibilities of conservational activity which are clearly beyond the control of private interests. The introduction of any of these latter changes would evidently be so far-reaching in effect, and would require such broad readjustments not only within but without the mineral industry, that the necessity or desirability is not in all cases so clear as in the case of measures already introduced for private interest.