The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-07-12


~ market seem to agree that the
unexpected and rapid decline
in the price of the metal is due
tn the weakness of the market i'm Eur
ope rather than 10 "a falling off in the
demand in this country. 1t is true
that the domestic demand has also
slackened, but this is explained in the
persistent movement of the price
downward, presenting a situation in
which large consumers of lead natur-
ally withhold large orders as far as
possible in order to take advantage of
further reductions With the decline
in the European price. foreign prOduc-
ers and holders of lead would have
sought a market i'm this country had
not the American price been cut to
correspond with the reduction in Eur
ope, thereby wiping out the margin of
profit on imports The tariff on pig
lead is rs per pound and under normal
conditions that is sufficient to protect
the American market against the for
eign product and maintain a satistac
tory price. The present price is far
from satisfactory and the only thing
that can be said for it is that it is
probably so low that foreign lead can
not prohtably enter and therefore will
not go any lower Deduct 2ls cents
duty. transportation, insurance and
other costs from the present price and
the balance will hardly cover the ac-
tual cost of foreign production.
In the Occur d'Alenes.
SO far as the mines i'm the Occur
d'Alene district are concerned the
slump i'm the price of lead up to date
has had no noticeable effect upon pro-
duction but it has nevertheless con-
fronted operators with "A serious prob
lem which must soon be solved I'M
less there should be "a favorable turn
in the lead market With lead at
cents the margin of profit for some of
the companies if it exists at all, is
very small, while others more forum
ately situated can not earn the profit
to which they are reasonably entitled
What the solution win be doth not yet
appear but when it is found it is hop
ed that it win be one that will insure
the uninterrupted operation Of the
mines
Frank Smiths Comment.
When lead dropped to 6.lO cents last
Monday. Frank NJ. Smith. director of
the Bunker Hill smelter, made this
comment: at seems to he the opinion
Of those in closest touch with the lead
market that the price will not go be-
low cents But these declines of
little more than a cent in a month
coming on top of the termination of
the Pittman act and the consequent
drop in the price of silver from 81 to
SO cents have been a serious matter
to silver-lead producers 1t will I'M
loubtedy have an effect on the small
producers especially; for it means
big decrease in net returns. but so far
we have not noticed any decrease in
to the smelter.
1.-THE decline has come out of a clear
sky for there are no surplus stocks Of
lead in the country and up to few
weeks ago the demand was fully equal
10 the production. 1t is explained that
It is in sympathy with the sharp de
cline of the London market which
usually takes a large amount of MeXi-
can lead With the drop on that mar
Set it would be profitable to ship the
Mexican lead to New York and pay
the tariff, if the price remained high
here. The metal market is also I'M
loubtedly influenced by the recent
setback in the east"