The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-09-23
REGULATE PRODUCTION
An EXPERT OPINION
CONDITIONS THAT SHOULD BE
CONSIDERED IN FIXING THE
OUTPUT OF MINES.


to how production should be regulat-
ed, says an eastern expert. While on
one side, stockholders of lead and zinc
producers are looking askance at the
crowding of mine output, shareholders
of the silver producers do not particu-
larly relish the reduction In their div
idends as the result of the conserva-
ton policy in force.
Taking UP the baser metal issues
first, while II may seem ~reprehensi-
BILE to strain all efforts at production,
and let development work take care
of itself, 1t must be admitted with an
unusual situation in the metal mar
kets, and prices of base metals sell
ing at four or five times normal fig-
ures, as has beer the case of spelter
a short time age, with lead and cop
per practically rs per cent above the
prices usually received for these COM
modities, the temptation to strain pro-
ductlon Is hard to resist. Nor is II
wholly to be condemned. An oppor-
tunity Of this character does not come
often. 1t is abnormal, and therefore
requires special consideration.
Hay While Sun Shines.
Those who approve of the method
call attention to the fact that there
may not be an opportunity to secure
so large a profit or ore reserves as
there Is at the present time, and while
production has been increased, and
the ore in sight transmitted into
money as fast as possible. and paid
out in dividends, stockholders should
not cavil, If either market settles back
to normal, a portion of the money
earned should be turned back into the
property for developing work. 1t is a
case of making hay while the sun
shines" and we admit the logic of the
argument. OF course, IL such increas-
ed output means wrecking the mine,
or mining In a that will leave
ruin in its aftermath, as has been the
case. only too often where properties
have been operated by leasers who
have been compelled to work against
time. It is a policy to be condemned.
On the other hand, If the pursuit Of
this policy means the extraction Of
ore already in sight, along miner-like
lines, in order to take advantage Of
the metal markets, the attitude Of the
mineowners would seem to have cause
for commentator.
Should Conserve Silver.
The case of the silver mines is the
diverse of the medal. Silver Is SELL
ing far below what may be considered
a normal figure. With the reduction
in dividends, and in some cases the
passing Of these dividends, has come
a shrinkage in the market value OF
securities. that has brought down CEN
sure on the heads of the mineowners,
Many stockholders feel that the mine
product should be sold for what It
viii bring, and that there should be an
creasing in value, by keeping earnings
up to a normal standard.
While a decrease In dividends and
the market value of securities hurts.
nevertheless the continuance Of silver
production at a high rate and in
creased output to offset the decline in
the market value of the white metal
Is too shortsighted a policy to admit
of serious consideration. The policy
OF conservation of now in
force among the silver producers Is
really working for an ultimate benefit
for the stockholders. If they would
realize that II is only a question Of
time when the world will need silver
quite as much as 1t has needed copper
during the past year, we believe their
clamor regarding dividend reductions
would be less vigorous.
Silver Coming Back.
1t is admittedly poor business policy
to sell silver metal for acc an ounce
when there is a strong indication that
60c. zoe or even one dollar an ounce
may be secured when the war in Eur
p is over.
II should also not be forgotten that |
the reduction in output and dividends
Is giving the silver companies a mag
niicent opportunity to develop new
ore reserves hat will be available |
when the silver market is in the post
ton now occupied by the markets In
the base metals.
Stockholders will not kick II produce
ton Is strained, when silver is selling
at 20 or soc an ounce higher than II Is
at the present time, and on this basis
they certainly should raise no objec-
tion to the present conservation Of
resources for that later period.
The matter Of mine production de-
ponds largely on the condition Of the
metal markets, providing II does net
violate the laws of good mining. More
consideration to the regulation
production Is being given than ever
before, and in the majority Of cases,
such regulation is for the best interests |
Of the stockholders. |,
III