Political and commercial geology and the world's mineral resources

by Unknown

It is reported that in 1917 Vivian, Younger & Bond, and Morgan, Grenfeld & Co. were instrumental in forming a “Metal Bank” in London. Broken Hill Associated Smelters Prop. Ltd., and the Penarroya company were said to have agreed to market their production through this bank, but it is probable that the arrangement was never made effective. A Chemical and Metallurgical Bank has been formed in London, among the shareholders being Richard Tilden Smith. Its proposed field is not clear, but it will probably endeavor to influence the control of lead in the United Kingdom.

A British Metals Corporation was formed in 1918 by Vivian, Younger & Bond, Chas. Tennant Sons & Co., Cookson & Co., the British Aluminum Co., Morgan, Grenfeld & Co., and large stockholders of the Rio Tinto Co., with a capital of £5,000,000. The Imperial Treasury will be represented on the board of directors. The purposes are to finance British non-ferrous metal companies, bring all the production within the empire of those metals under one marketing organization and preserve British control. If plans are successfully carried out, the smelting both in England and on the Continent of Europe, should any British concentrates be allotted there, will practically be on toll, the metal remaining in the control of the Metals Corporation or the affiliated bank.

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
				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.