San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-01
Metals Show Improvement
Better Domestic Markets for Copper, Lead and Zinc
While the Foreign Demand Is Slowly Increasing.

how, present production is not far be-
| low the annual capacity of 64O,OOO tons
reached in 1918 and considerably more
than the pre-war average of less than
100000 tons. Canada and Mexico have
also increased production markedly.
| Spanish, Australian and Indian lead
producers are reported still working on
only a limited scale. as they are beset
with labor difficulties, especially in Aus
| tralia. 1t is natural to assume that
| they will soon be in position to take
more advantage of the present excellent
market.
Mexican lead for the most part has
| been shipped abroad. though, the % per
cent duty was paid on some lots before
the new tariff went into effect. The
new rate is . is cents per pound, so
that it has since been slightly more adj
vantageous to ship Mexican lead to
Europe. The market there seems per-
| factly able to absorb it, and il Euro
pean prosperity returns in measure
during 1923 considerably larger quanti-
ties will be required.
The future of the lead market here
depends entirely on the business of the
paint, battery and cable manufacturers.
| So far there has been no cessation in
| the demand for lead from these indus
tries, and they are all expecting con-
tinued good business in 1928. Produc.
ers do not wish the price OF lead to
70 higher. on account of the after eff.
fects, and it seems unlikely that the
price can long hold at close to double
the pre-war average. And yet no signs
of a weakening have been apparent.
Throughout 1922 the New York price
has held above that at st. Louis, al
though the full freight differential has
not generally ruled. Corroding grades
have brought premiums of about 10
cents per 100 pounds over ordinary lead.
Zinc Market Better.
Zinc has shown the most consistent
gain in price of any of the metals.
Though the st. Louis price declined
from "a to 41-2 cents in January,
1922, it has since shown a gradual
| strengthening until in December the
price has averaged about z cents. At
| the beginning of the year domestic
stocks were reported as 66,G0S tons; at
the end they are around 10000 tons
barely two weeks supply. In January
the production was only 23,706 tons OF
all grades of zinc, whereas higher prices
have so stimulated production that
the December figure should be around
AZ, 900 tons, this being the total produc-
| ton in the United States from domestic
and foreign ores. This is at the rate
of 100000 tons per year, and compares
with the peak of $4,000 tons reached in
| 1917 and an average of about $1,000
in 1913-1914. The 1922 production will
| total about $4,000 tons, based on fig
ures released by the American Zinc In.
stitute. At present prices zinc can be
mined and smelted at a profit by most
of the producers, and, with an adequate
number of men available. and suffi-
cient fuel. production will, without
doubt. adajust itself to the demand.
Recently Europe has shown an ability
to take quite large tOnnages of Ameri-
can zinc. and in the coming year this
movement may assume important pre-
portions. Instead Of being obliged 10
keep out foreign zinc by the increased
duty (now 3-4c per pound, instead NJ
Is per cent?, good export business
may be built up. There seems no rra'
son why consumption of zinc should not
be excellent throughout the coming year
though prices are not apt to go a great
deal higher unless export business con
sumes more than is expected. European
advices indicate a great scarcity Of
zinc abroad. Brass makers have
worked close to capacity throughout the
year, but in the early months much ol
their supplies were obtained from scrap
Galvanizers have not been quite so ac
tive. but decreasing prices for blacl
sheets should help this outlet for zinc
The demand for the higher grades o.
zinc has been excellent throughout the
year with prices about one-half cen
per pound above those asked for prime
western in the New. York market. Th'
. proportionate production Of the higher
grade metal is likely to increase in thu
next year or two.
Government Still Buys Silver.
Silver producers have continued 4
reap the benefit of the Pittman act, b!
which the POI, 100000 ounces Of silvs
sold at 81 per ounce during the war i
being replaced in the United State
. Treasury vaults. at the same price a
which it was sold. Thus domestic sil
yer producers are greatly benefited a
no loss to any one. At the end of 102.
approximately 60.0000O0 ounces re
: mains to be bought, which assures pro
:, ducers just about one more year of tn
= premium price. Then they must TAX
their chance in the world market nles
l further sterilization can be effected
which seems unlikely and possibly tn
/ desirable.
!. The world price of silver is deter
: mined in London, the New York quo
. tation being entirely dependent upo
. the London price and the rate of ster
q ing exchange. The New York price q
so-ealled foreign" silver advanced t
G a peak of 73 3-4c in May, but has sine
: gradually fallen so that at the Ind G
the year it is around &c. So far ther
+ seems no indication Of cessation Q
! this movement; in fact, other things h
. ing equal, the price should fail SomC
|, what faster as the upward movement i
= sterling exchange comes to halt aroun
par. The Indian and Chinese market
: are predetermined, as always.
Z Greater Gold Output.
Gold producers have operated on
d larger scale and more profitably tina
l. they did in 1921. The price, of rouTs
e is stationary in this country, but cost
It have decreased. Recent cOnstructiO
= has added an important new produce
Y in the United Comstock mine; ii
" Homestake has added greatly 10 il
, capacity and continues one of the thrt
:. or four leading gold mines of the wcrl'
d The gold mines Of northern Ontari
J. IN which much United States capital
p invested. are developing wonderful
r we'll. with the Hollinger. Dome and Nj
" Intyre mines in the POrcup!ne d!stri,