Evening star., 1949-01-02
MinersEye
Quicksilver
PriCeBOOSt
Cartel Action Ma,
Make Profit for
u. S. Firms
BY Fletcher F. IsbelI

tight a monopoly in its way as the
De Beers diamond syndicate. It has
had experienced London dealers in
the liquid metal guessing with mar
rowed eyes, and owners Of closed
United States mercury mines re-
figuring operating costs.
What has happened has been a
humping increase in the price of
It's product by Mercurio Europeo,
the cartel that rigidly controls the
output and sale of the two greatest
quicksilver mines in the world
Almaden in Spain and Idria in
Italy All the rest of the compare
lively high-cost mines Of the world,
with the possible exception of
Russia, can produce only If Mercurio
Europeo allows a living price.
The cartel's quotation now is $40
for a 76-pound iron flask, the uni
versal unit of trade, laid down at
Spanish or Italian ports. That is a
stiff increase of $14 from the $56
In effect since May "a. 1t caught
London, historically a storage;
and reshipping point, off balance
as we'll as American importers and
dealers. Sharp traders had shifted
a new increase in the wind for some
time. but thought In terms of 81
to 81.
Important War Material
The current price, when ocean
freight and SIG duty are added,
makes European quicksilver at New
York more than $50 a flask, and
that fact was Immediately reflected
in several days of market confusion.
Domestic sellers hardly knew what
TO ask at first, although lots were
offered at $94 and that has been the
quotation to date. The amount of
business done Is open to question.
What is the cartel's game? That
question is important not only to
mercury merchants and manufac-
turers, but to many United States
mining men who always have been
eclipsed In the shadow OF cheaply
produced metal from Almaden and
Idria.
The answer may lie IN the great
output Of the war years. Mercury
always has been war baby. 1t has
certain steady peacetime uses in
pharmaceuticals, laboratory appa-
ratus and power boilers, but its
grimmest employment Is It's most
widespread. Mercuric illuminate,
gray, sandy, crystalline, is the pow
der which, set of by percussion, in
turn fires gunpowder in small arms
or artillery. Until atomic energy
comes In capsules, no war can be
fought without 1t.
Sold for $500 a Flask
Naturally the price ascends dur
ing any conflict. In the one just
concluded, the American price was
fixed ut 5000 a flask and production
scared. Mercurio Europeo did busi-
ness ut comparable quotations. The
Axis got Italy's production and some
Of Franco Spain's; although, the
vagaries of world commerce being
what they are, much of Almaden's
output went straight to London
also.
When the war ended and the
price plug was pulled, mercury drop
ped to about $54 a flask. Stocks
were big, far more than peacetime
requirements, and much was held
as surplus war material, out Of
reach of the combine.
This fact may be the key to the
events transpiring now. Since the
wars end, the cartel has held to a
cheap price policy. 1t has had to
meet the competition of war surplus
sales. 1t may be the world supply
is now at turning point, with the
bulk Of those stocks disposed of and
most of the competition eliminated.
Reports here, for instance, are that
an accumulation Of about 2,700
TASKS of japanese metal has been
sold for the Far Eastern Allied
Command.
Mines Have Problem
If this is the true situation, the
$14 increase by Mercurio Europeo
is understandable. 1t controls two
thirds to three-quarters of the
worlds production, again is in posi-
tion to rule the market, and is
making the most of its power.
1t has chosen the time strategi-
cally. Winter has just started. Cold
and snow add to reopening dificdl-
ties of American marginal COM
petitors. No immediate threat from
new production Is likely until at
least late spring. The cartel then
can act again, if necessary, in the
light of developments by that time.
A case could be made, too, for
the theory that the cartel has set
its price just high enough to ex-
tract a maximum return without
enabling United States mines to
operate. Under present high pro-
duction costs, 500 flask is just
about the payoff quotation for
domestic producers. Sales at s94
are just a little short of satisfaction
for most.
Wait.and.See Policy
Under the circumstances, miners
in California, Oregon, Texas, Arkan-
sas and other trans-Mississippi
States are likely to watch closely,
wait and see. THE cartel put the
price up overnight and they can
nut il down" said G. N Schuette