The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-11-08

A collapse in the price of lead was
anticipated by good judges of the
market months ago, when the short
sighted were experiencing the ecstacy
of II cent price. but nobody thought
that it would come as suddenly and
advance in the market early in the
summer was ascribable chiefly to gov
ernmental bungling in talking about
military requirements on a scale much
larger than they were. 1t is very
likely that the authorities themselves
did not know what was needed. How
ever, they ought not to have talked
about anything The big talk, leak
ing around in a market wherein the
major part of the supply is preempted
by average price contracts, caused
buyers to think, and quite naturally
to think, that the supply of free lead
would be diminished extraordinarily,
wherefore anybody needing lead would
better grab it while the grabbing was
good This was done with the result
of putting up the price to IL and IL
cents while the producers had pre-
viously agreed to supply the govern
ment at cents, both the government
and the producers considering that a
fair price. The labor trouble in south
eastern Missouri that happened about
this time added to the acuteness of
the situation.
Now the consumption of lead for
certain important purposes, especially
corroding, had begun to contract in
1915. The extravagant prices of 1917
had the natural effect of strangling
consumption, Almost before they
knew that anything was happening,
producers found that unsold stocks
were accommodating in their hands,
whereas but a short time previously
they were unable to keep control. of
enough metal to conduct their business
with reasonable safety. Probably the
production of lead in other parts of
the world has been increasing some
what, enabling certain fereign coun-
tries that had previously been buying
from us to obtain supplies elsewhere.
But that the sudden reversal of form
in the American lead market was due
chiefly to the contraction in domestic
consumption Is indisputable. for the
statistics for the first half of 1917
show nothing but trifling increase
in production.
The government had first contracted
with the producers for it's require
ments of one month at cents per
pound and then made arrangements
for its supply during three ensuing
months, ending with October, at the
same price. But before October had
arrived, the lead market was already
going lower. In business between pri-
vate parties, both would, of course
expect to live up to their contract in
such juncture, but the lead produc-
ers exhibited their patriotism by vol
UNFAIRLY releasing the government and
offering to supply its lead require
ments at the market price, not, how
ever claiming the latter above 5 cents.
This arrangement was naturally salts
factory to the government.
Last week the situation in lead had
become so unpromising that one of the
principal producers instituted cur
tailment Of so per cent in its produce
ton. 1t is very fortunate that the
collapse in lead had to go so far as
to necessitate such a thing, for once
q working force is dispersed, there is
difficulty in reorganizing it, as the cop
Der mining companies are now exper- |
fencing. This is one of the mischiev-
,us results of allowing a market to |
get out of hand and soar to extrav-
giant figures. In Justice to the prin-
'ipal producers we are bound to say
hat this was thoroughly appreciated
" them at the time, and they did
that was humanity pos
ible to retard and check the advance.
The recent events in lead are ano-
her illustration, like the previous case
spelter, Of how market will take