The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1914-08-27
PRICE OF sPELTER
|WHP It has ADVANCED
INTERFERING FACTS REGARD.
ING METAL AND ITS
PRODUCTION.

Hayden, stone & Co.. Of Boston,
who represent the controlling owner
ship Of the Butte 4 Superior. the
great zinc mine of Butte. In recent
letter have the following discussion of
the advance in the price Of spelter
which will be found of interest here.
owing to the great and Increasing i'm
portance Of the zinc mining industry
IN the Occur 0'Aiene district:
ms III Wind.
1T IL an III wind that blows nobody
any good" Two weeks ago spelter
was weak around ATS cents per pound
s Louis. and there was no hope of
any immediate Improvement as pro-
duction was steadily exceeding con-
sumption and there was a large
amount Of capacity idle that could be
put into commission at very short no.
tice.
Today there Is good demand for
spelter at 3-8 cents a pound, and
there Is reason to believe that stocks
have already begun to decrease. The
advance, Of course, can be wholly at
tributed to the European war, which
has created very interesting situa-
ton in the spelter market. Normally,
this country produces about 80 per
covt nf thn xvorldsc oufprt ~ snoltor.
of the worlds estimated production of
940,215 long tons of spelter in 1912.
the United States produced 302.505
tons.
ever. the United States produces but
about enough spelter for its own
needs Until the passage of the In
derwood bill, there had been quite a
high duty on spelter. This hill re-
duced the duty substantially but, in
a general way, up to the present time
the foreign business in spelter, either
export or import, has been negligible.
No Competition.
With the breaking out Of the war;
producers in this country will not on
ly be relieved at once from any dam
ger of foreign competition, but will be
called on to supply, SO far as possi-
BILE, the deficiency in production Of
European nations. Germany and Bel
GUM have been much the largest pro.
ducers Of spelter. The combined out
\ M, ~ frta In,
$40 tons. out of total of 949,215, sub
stantially so per cent.
With the virtual cutting off Of this
entire production, not only England,
which has hitherto obtained Its sup
ply from these countries, but all the
other consuming nations, will look to
us. 50 far as possible, to make up this
deficiency.
Already there have been bids from
abroad for spelter at very good figures
though we have not heard that, as yet,
any large amounts have been con-
tracted for, principally because Of the
uncertainty of transportation.
There is every reason to believe,
however, that way will be found to
satisfy this demand, very likely by the
guarantee against loss by foreign con-
sumers.
In this case, no doubt, a world wide
market for American spelter will de-
velop: and though, perhaps, a part Of
this will be but temporary, certain
proportion should be to the perman-
ent advantage Of the American pro-
ducers
Command Good Figure.
1t is reasonably certain that IL such
market can be established, with
such large proportion OF the produc.
ton cut of, the balance will command
very good figure.
1t is rather fortunate that there have
accumulated large stocks in this
country: at the close of June. 1914.
these were estimated at $4,000 tons,
decidedly the largest figure ever re-
ported and comparing with $500 tons
at the close 1912.
! This should prevent, for the time
being. any danger Of runaway mar
ket, but it will not, Of course. prevent
the producers from having the whip
hand In the situation.
To the Butte & Superior the adj
vance in the price of spelter is Of su.
preme Importance.
The company had established its
ability to earn well in excess of its
present dividend requirements. with
spelter at less than 5 cents a pound
and with its large production and
comparatively small capitalization the
advance Of one-half cent will greatly
Increase the company's earning ca
pacity, with a possibility Of still fur
Their increase on any further rise.
Partially offsetting this, 1t is true,
has been the decentralization of the sill
yer market, Of which Butte & Superior
Is also a large producer. No doubt.
however, this will be restored to some-
thing like normal conditions upon the