Evening star., 1934-10-14
Need of Federal Policy
On Mineral Industries
BY HARDEN COLFAX.


The recent discovery that every day
more than 1000 tons of bootleg coal
are coming out Of one anthracite
county in Pennsylvania has redirected
attention to the chaotic condition of
State laws affecting mining and min
eral production and the need for some
national control. 1t is one more evi-
dence Of the fact that We have no
Federal mineral policy and are sadly
in need of it.
This bootlegging of coal Is possible,
Of course, only for two reaSons-pri-
marty because of the pressure of cir
cumstances, and secondarily because
local sympathy is with the bootleggers.
The lack of uniform State laws on
mineral resource development, how
ever, and Of any Federal policy look
ing toward the development and ex-
ploitation of our mineral resources are
also responsible.
Those economic statesmen who are
planning for the utilization of our
natural resources are concerning them
selves with this matter, and the Presi-
dent has already appointed several
committees to draw up plan to con-
serve natural resources on broad and
statesmanlike scale.
The coal industry is in bad shape at
present. 1t has been estimated that
in the case Of soft coal, it is now
made up of more than 10000 COM
peting units. Moreover, the industry
has to face the competition Of other
fuels and sources of energy, such as
oil and waterpower, which are gaining
in popularity. Markets for our goods
are unable to absorb the output of our
mills and factories; low prices prevail,
and there is a general disorganization
of sales activities; so coal is indeed in
a bad way.
Moreover, behind the immediate
problems of overcapacity and wages
in the field, as well as in the mineral
industry as a whole, economists are
beginning to discern the lines of the
larger issue that faces us-that of a
wise redistribution of our mining
population, particularly in the anthra-
cite regions.
Should we have mineral policy, a
national one? Up to the present time
our domestic mineral resources have
been developed according to the time
hcnored theory of 'laissez faire" and
the principal of the survival of the
fittest. The leasing act, affecting
public lands, amounts to a sort of
public control, but not adequate, it is
felt. Moreover, there are tendencies
toward special taxation in the States
and an extension of police powers,
particularly to control the surplus Of
oil. Similar measures for coal and
other minerals are being widely dis
cussed.
1t is generally admitted that CO.
operative efforts in the mineral in
dustries themselves have not been
largely successful. The Presidents
Committee on Natural Resources is
understood to be thoroughly canvass
ing the situation and weighing the
advantages of exercising Federal con-
troll through legislation which might
tend to alleviate present conditions.
There are already all sorts Of taxes
on the mineral industry. The situa-
ton with regard to the tariff is con-
fused. Next year the present duty
on copper will lapse. Methods to con-
troll stocks might be used in much the
same way as stabilization funds are
applied in managing" currencies.
X *.% \
The N. r. A. has shown that min
erals cannot be viewed as the agri-
cultural products Of the soil. Min
erals cannot be renewed. When once
used up, it will take centuries to re-
place them. The growing realization
of this is evidenced by the rapid de-
velopment of the reclamation or scrap
metal industry.
Since March, 1888, we have been
moving rapidly toward the adoption
of national plan to cover practically
all phases of our economic life.
Where do minerals figure in this pro-
gram? It is believed by those among
the Presidents close advisers, who
have studied these problems, that in
any mineral policy we must take into
consideration not only the purely
economic aspects from a domestic
standpoint, but the needs Of national
defense, the avoidance Of waste, and