The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-01-31

output. The authority to determine
and fix minimum prices therefore be-
comes the most important instrument
in the bill which would fail to accom-
plish its purpose unless such authority
is included. To strengthen the gov
ernment's purchasing power and pre-
vent speculation and production
Authority is given the president to
proclaim maximum prices"
Some Prices Fixed.
It Is pointed out that the govern
ment already, by agreement, has fixed
prices of some mineral products. but
this fixation has not been based on
law, and could not be enforced. The
statement continues:
"In the future, maximum price reg
ulation may become imperative and
the authority to make such regulation
should be provided by law. .
Prices must be so determined that
adequate production will be assured
during the war. Mining responds
slowly to increased and urgent de-
mand and there is danger that unre-
stricted competition operating under a
low maximum price may force the
abandonment of mines whose output
may be required at later time.
Under existing internal conditions
new mines can not be rapidly opened
and equipped or operating properties
enlarged without assistance in some
form. Private initiative can not make
Roadway against the obstacles which
must be removed, and before we'll -di-
rected efforts will be made on the
part of producers, the government
must state it's requirements, announce
that imports will be curtailed and
guarantee producers that fair prices
will prevail over definite periods. Such
a program can only be formulated and
executed by an agency in which the
entire control of the mineral industry
Is centered.
New Production.
plans to open new mines and in
crease the output Of producing mines
will be abandoned or postponed I'M
less the government is prepared to say
that reasonable fixed or minimum
prices will be maintained The in
ability of producers to execute long
time contracts has contributed more
than any other single factor to hinder
development. Uncertainty regarding
the duration of the war and the trend
of prices thereafter discourages in
vestment in any enterprise which %
primarily based on unusual war de-
mands. Unless the fact is recognized
that mining introduces an added ele-
ment of risk and that government en-
couragement is required we can not
expect to materially reduce our i'm
ports and expand our production in
the same proportion that requirements
may increase.
Measures may be taken to provide
supplies beyond our immediate needs
in anticipation of long war; 1t is
coed to collect and make known the
combined estimates of each branch of
our military establishment and DOM
este requirements.
Priority certificates and transporta-
ton orders must be granted to new
pyrite, manganese, chromite and gra-
phite producers II any attempt Is to be
made to replace our imports from do
nestle sources. Every mining COM
pany now finds 1t extremely difficult
to move its ores and obtain equip
ment, supplies and fuel. Some COM
panies have recently shut down be-
cause they have not been able to OBJ
tain fuel or transport their product
Others are suffering because they can
not obtain deliveries of new machin-
cry. Unless prompt relief is given,
nearly every mine in the country will
be handicapped and forced to reduce
its output. This critical condition
cannot be overemphasized.
Government Support.
Markets in which minimum prices
have been announced cannot be main
tanned without government support,
and to carry out the guarantee au-
thorized in section IA of the bill, the
government must be prepared to pur-
chase all surplus production which is
offered for sale. A revolving fund of
$l50,000,000 is provided, which will be
used for such transactions.
"A clause has been framed by
which the price of imported products
may be adjusted to meet any mini
mum price which may be established.
BY means of import duties. consumers
or importers are prevented from
in foreign products at prices
which will enable them to compete
with other consumers or from
taking profit which may operate to
Increase the liability of the govern
ment by reason of its obligation to
purchase at guaranteed minimum
prices.
THE bill provides that contracts
'or future deliveries may be entered
nto by the government for periods
lot exceeding two years. The inten-
ion is to enable the government to
place contracts with producers who
otherwise would not be induced to