The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1916-11-16
The Metal Outlook--A Discussion of
Factors Which Fix Market Prices
Engineering and Mining JOurnaD

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stimulation of mining and additions
CT plant, and that will eventually pro-
duce the same result as in other met
ais. The output of lead in Utah and
Missouri has increased largely during
1916.
Nickel has been even more orderly.
The production of it in North America
lis practically in the hands of mon
oDoly. The fact that the mines are in
Canada and the refinery in the United
States has caused the production and
sale of this metal to be conducted with
great circumspection. Aluminum,
which is also in the main the produc-
ton of one company, has risen in
price threefold, simply owing to the
urgency of the demand for 1t. OF all
the metals this is probably in the
strongest position, the major part OF
the output of the Aluminium company
cf America through the whole of 1917
being under contract. Strenuous eff
forts to increase aluminium production,
rot only in the United States but also
IN Scandinavia, are being made, but
this involves more tedious construc-
ton than even a copper refinery, in
GLIDING as it does both electrical ma
chinery and hydro electric develop
ment.
With some of the minor metals,
such as anthony and tungsten, con-
ditions were simplest. No elaborate
plant for the beneficiation of their ores
is necessary. They appreciated great
ly In value at first, owing to scarcity
Of ores, which was not due so much to
the stinginess of nature as to the pre-
them. The first sharp rise in prices
adjusted conditions, and by stimulat-
ing the production of ores, reduced the
prices There Is no more reason to
anticipate renewal of extravaganza
in such markets than there is in zinc.
However, the factors that we have
ldwelt upon in this article have pro-
Iduced new conditions in production.
The cost of materials and of labor
have increased enormously; the eff
cheney of labor has decreased. Natur-
ally this has been of the greatest in
fluence in those branches of industry
wherein labor Is the most important
factor. In zinc smelling, for example,
1t is the all important factor No
matter how good a plant the engineer
may build, no matter how efficiently
the metallurgist may direct it, their
efforts may be completely neutralized
lby bad furnacemen The copper smelt-
ing furnace, on the other hand, is more
completely controlled from the office.
In general, the industry of mining and
smelling copper has been far more
highly mechanicalized than other
branches of mining and metallurgy
barring iron and steel. This exhibits
itself in the cost sheets. The big cop
per producers are showing costs per
pound of copper but little higher than
In normal times. The zinc producers
whose industry is least mechanicaliz-
led, talk on the other hand of Z or SC
per pound being no better than 5 OF
IS 1ac before the war, and probably
there is truth in their contention.
Assuming then, that the war is GO
ing to continue through or we'll into
1917, there is reason to anticipate fol
the metals continued large demand
which will be filled at gradually dim
inishing prices, while profits will con
tract even more sharply than prices
flor the reason that costs will continue
to rise. The copper producers will
probably be pinched least, for the rea
son already advanced. 1t is conceiv-
able that we may settle generally up
Oh a plane of price 40 or so per cent
above normal, wherein nobody will
realize any more profit than he used
10 in normal times, and we may move
On such a plateau for long time be-
fore the factors Of further readjust-
ment come into play.
In the intoxication of the moment
people lose sight of adverse influences
that are operating even now. The
American crop failure has attracted
very little attention, but 1t was dis
aster of major character whereof more
viii be heard. The increasing cost OF
living, the unrest of labor, the riot OF
speculation, the growing extravaganza
Of the people, the anchoring of capital
in new plants which may be of but
ephemeral usefulness-all these fac
tors and others are operating toward
the natural results.