The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-12-16

TIME MINING outlook in tn
Occur d'Alene district is better
A few weeks ago when tn,
price of lead dropped to cents
we began to wonder how much fur
Their it could go and permit profitable
operation of the mines. 1t did not keeI
us wondering long. for it soon fell to
55A cents and then to 5. where it now
stands with the chances about ever
as between remaining at that point
and going lower. In the meantime one
mine closed down, throwing out OF
employment 100 men. All other mines
of the district have remained in oper-
alton as usual and the impression is
gaining that there will be no further
suspensions. This impression is due
to the fact that while the price of the
metal is too low as compared with
other commodities. the remedy must
be found in a reduction of mining
costs rather than suspending produc-
ton In fact. it is evident that forces
are now at work for the purpose Of
bringing about such an adjustment
and actual results have been accom-
plished The smelters are evidently
prepared to continue buying leads sill
YER ores in spite of the fact that the
demand for lead is far below produc-
ton. The Bunker Hill plant is now
charging its facilities for storing pig
lead. ard doubtless other smelling
plans are anticipating a large accum-
ulation. Under these circumstances
if the costs of mining can be reduced
to a point that will permit lead pro-
.ducers to make a fair profit. there
would appear to be no reason why
they should not continue the usual
production. except possibly in cases
where lead producers also operate the
smelter and may not be in position to
carry a steadily increasing surplus
stock of pig lead.
Mining Costs Go Down.
BY far the most gratifying and en-
couraging development in the mining
situation is the reduction in freight
rates on ore from Occur d'Aiene
points to East Helena and NOrthpOrt,
and a reasonable certainty that a cor
responding reduction will be made in
The rate on lead bullion. Announce
ment is now made that another cut in
the price of lumber. which will also
prove of material advantage in re-
ducing the cost of mining. No fur
Their cut has been made in the price [
of powder. but there are rumOrs that !
one will be made before long. prob |
ably before the first of the year. The I
recent reduction of so cents per 100 !
pounds was so insignificant compared !
with the exorbitant price of powder
and the price reductions in other lines |
that il is believed that the powder |
manufacturers will be forced to make |
further concessions at an early date |
Announcement has been made of re- !
ductions in the price of STEEL and |
machinery manufacturers will soon !
have to fall in line. In the general |
movement toward lower price levels. |
it is only natural to look forward to |
reduction in wages of employees of the [
mining companies and this viii prob
ably follow when there has been a /
sufficient cut in the cost of living.
Metal Market Improves.
Reviewing the metal situation un- /
der date of December 8, the Engin 7
eering and Mining Journal says; "A
much better feeling exists in the !
metal market. There seems to be no |
definite reason other than desire to
discount better business conditions
which are expected by the end of next
summer at the latest. Sales of metal
have not in general been large but
have been satisfactory as compared
with recent business, and prices have
tended frmer. There has been con-
siderable speculative demand for cop
per, lead and zinc, which would in
dictate that those who follow the mar
ket closely do not expect further
marked declines and believe the pres
ent strengthening to be not merely a
flash in the pan. There is one gov
erning factor. however, which must be
kept in mind: European deflation has
not progressed to the extent that
has in this country, and should metal
prices go much lower in London they
would act as a brake on any advanc-
ing market here. Zinc. for example
is already not far from the point
where il would pay to make impor-
tations. London prices have been