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Show Hie Western Mineral Survey, Salt Lake City, Utah 2 LOOKING AHEAD Vanadium Corp. Aids New Holdings Vanadium GEORGE S. BENSON President Harding College Searcy, Arkansas By DURANGO, COLO. Corp. of America reveals in its Sen. Henry Dworshak introduced a bill in the Senate reto impose import quotas pn Debts that hang on are like a cently lead and zinc. He said such legis- copper-uraniu- ores m mined in that vicinity was discontinued. The step was necessitated by the Corporations inability after extended negotiations with the Atomic Energy Commission to reach satisfactory terms for an agreement covering operation of the plant on an expanded commercial scale. The closing of the plant ended losses and expenses incurring during the experimental operation. The- uranium concentrates recovered from the vanadium-uraniuores of the Colorado Plateau have ond market, the Atomic Energy Commission. Vanadium Corporation of America! a pioneer in the production of ferro alloys, functions in all phases of the industry. Operations include mining and milling of ores, production of metals and alloys, and production of chemical compounds. In the production of vanadium, Vanadium Corp. of America leads the world. It is the second largest producer of ferro alloys, and is a leading miner and miller of uranium, the basic source material in the atomic energy program. . - m . ForeignfromLead . . pay-as-you-- Page 1 level, the report stated. In the latter year profits of $36,400,000 were realized, but during the first half of last year amounted to only Continued 0. Despite the evidence, however, the commission did not make any recommendation with respect to the imposition of higher tariffs or other tariff restrictions, but passed the buck on this question back to Congress, stating that this was a matter of public policy. This comes as a disappointment to the mining industry, which has been counting heavily on the report to clarify the issues involved in the problems confronting them for the past two years and point the way to a solution. The commissions faiure to reach any conreclusion rendered the distinct anticlimax. a port Last year when Congress turned down the Simpson bill to impose a sliding-scal- e tariff on imports of lead and zinc, both the house ways and means committee and the Senate finance committee, which : andle tariff legislation, requested the tariff commission to conduct hearings into the situation and make a report of its findings. Since much of the evidence to support the mining industrys request for tariff protection had been presented in the course of the debate on the Simpson bill, it was widely ly hoped that the tariff commission's report would take a definite stand. 553-pa- ball and chain around anyones neck. This is true with the individual, the family, the business, and with local, county, state and national governments. As this column is written, the Finance Director of our Arkansas state government has just announced that by 1970 the last $100,000,000 of our state highway debt will be paid off. When the last bond is redeemed on that date there probably will be a statewide celebration and every man' woman and child will heave a great sigh of relief. The state will have broken its chains of debt. Arkansas borrowing to build highways would have been all right had it been kept within reasonable bounds and had the money been spent wisely, without political considerations. But it wasnt. The big borrowing started nearly 30 years ago. First one governor and then another discovered the political magic of floating bonds to get things done without having immediately to tax the people for it. The money was spent loosely and sometimes with political design rather than wisdom.' Nose to Grindstone Quickly our state was $150,000,- 000 in debt. When unexpected hard times came, Arkansas defaulted It couldnt meet the terms of its debt contract, and for a short time the bondholders were in serious jeopardy. The temporary injury to the state affected the welfare of every citizen. Then, 15 years ago, Arkansas refunded its highway-bonde- d debt and began a stiff proof gram debt liquidation. But under this program our debt service has been so heavy (interest and principal payments) we havent been able to keep pace with the wear and tear on our highways. Thats why our citizens can look ahead with unbounded gladness to 1970 and the throwing off of the ball and chain of this debt. With our bonded debt out of the way, the tax revenues thus released can be used to improve our highway system, instead of for debt payments, and this return to will have a wholesome effect throughout the whole structure of our governmental services. The Federal Debt Our debt situation in Arkansas is a microscopic example of some aspects of a truly grave national problem, the rising federal debt. It has become a ball and chain around our nations neck. It is affecting the full freedom of every citizen. The national debt now And yet stands at to raise asked is being Congress the statutory limit so that the federal government can borrow new money and spend it and postpone the day when taxpayers must pay and pay through the nose. national debt avThe an obligation of $4,250 on erages in the U. S. A. holder every job must be And it paid in taxes. Not only that, but the interest, the cost of borrowing, must be paid in taxes. The interest now amounts each 12 months, to about which is more than the entire fed- eral government cost us as recently as 1938. Also each 12 months, is needed to reabout deem the debts coming due; and this must be borrowed. With the debt climbing, it is an endless cycle. It all adds up to frenzied financing. Must Ilalt Borrowing , , The sensible thing to do about the national debt is, I think, not to permit it to be raised and to institute a program for gradually cutting it down out of current tax revenue. This would mean reduc- . m of Bill Proposed To Limit Metal Imports (R-Idah- o) BALL AND CHAIN DEBT annual report that important additions were made to its uranium facilities in the Colorado, Plateau area. Additional mining pleases were acquired and developed. The Corporation exercised its option to purchase the mill at Durango, Colo., which it had previously operated under lease from the Atomic Energy Commission. Additional roasters and auxiliary equipment were installed and placed in operation at the Durango and Naturita, Colo., plants during 1953. The uranium output of both plants continued to flow to the Atomic Energy Commission under contract extensions made in 1952 and 1953. ore conThe vanadium-uraniucentrated at these two mills is mined from the Companys own deposits and purchased from many individual m inning contractors. In December, 1953, operations at White Canyon, Utah, of a pilot plant for the milling and concen- tration April 30, 1954 , $275-billio- n. $275-billio- ge n $7-billi- on , ! lation was necessary to stem the flood of these metals from cheap-labo- r producing countries abroad and thus protect the security interests of the United States by stimulating domestic production of lead and zinc. His bill would restrict annual lead imports to 335,000 short tons. Zinc imports would be held to 325,000 short tons. It would go into effect 60 days after its enactment into law. Sen. Dworshak explained that this would maintain imports in the historical pattern under which this country brings of in from abroad about one-thir-d the zinc and lead it normally consumes. The Senator said that in numerous months during the past year, lead and zinc have come into the United States in quantities exceeding consumption. This has had the result of depressing prices for these metals, he said, making it almost impossible for domestic mines to continue operations. The low cost of labor abroad and the high production costs in this coununbaltry have brought about-aanced competitive situation which is reflected in curtailed domestic lead and zinc operations and considerable mine unemploymeqt, he added. During 1953, a total of 556,000 short tones of lead and 753,000 short tons of zinc were imported into this country. Continuation of this situation, Dworshak said, eventually will force uS to become) dependent on foreign sources forjlead and zinc. In the event of am international emergency, we would be caught with our mines down. Since lead and zinc are considered strategic and critical metals which the United States is stockpiling, and the increased production of which is being encouraged by the United States by various measures, it is not unreasonable to assume that the maximum production of lead and zinc in the United States is considered necessary to the essential security interests of this country. The recent announcement of new stockpiling objectives under a Tong term' program must be regarded as only an interim step pending a long-rang- e program for stabilizing the mining industry. Stockpilings value, even on a temporary basis, could be obliterated if the imports continue in a wide open basis as they have in the past year. of transportation is decided upon, Activity Gains, In Nevada Oil Boom Area it was said. The Reno office of the Bureau of Land management disclosed that up to the first 5922 this month, oil leases had been granted in Nevada, totaling 4,175,578 acres. Leasing of patented lands has conand tinued without cessation, of shows no slackening. signs Continued from page 1 . Majority of the patented land is at 7815 feet and fossils of Pennmoving at $2 to $3.50 per acre sylvanian age have been found be- with the customary 12V6 per cent low, that depth. royalty to the lessor Pioche The companys original objective in drilling this well was to test the Mississippian formations. It is certain that they will be able Sulfate to accomplish this intent, for the Copper Production of copper sulfate in drilling rig at the well has a of about feet. February was virtually unchanged 12,000 capacity from January, but on a daily av- Additional shows of oils have basis rose .12 percent acbeen found in the lower Tertiary erage cording to the Bureau of Mines, beds but there does not appear to United States Department of the be sufficient porosity to allow Interior. Shipments dropped 12 commercial production from these were almost identical, but percent lower horizons. with production, and stocks were The high pour point of oil from little changed from January; they the well is going to mean addi- were sufficient for. little over a tional cost before the oil can be months requirements at the Febput into a pipeline if this method ruary rate of shipments. i . . so-call- ed 1 Then there is the farmer who made a fortune out of the wild oats sown on his farm. He caught a millionaire kissing his daughter. Subscribe Now i Western Mineral Survey TlYx Salt Lake City, Utah East 1st South PUBLISHED ONCE EACH WEEK X 1954-5- 5 budget ing the the Administration, proposed by by just 5 per cent. Is this too much for the citizenry to ask of Congress that 5 per cent be cut Of form the budget? course not! When a family has an unexpected illness that entails medical and hospital services of $200, it hasnt quite as much to spend oh necessities for the next few months. Does it run to borrow money? No, usually it tightens its belt. Thats what our federal government should do tighten its belt on ex- The new Sendltures. g from our bloatof some the government ed fat, but it hasnt really tightened the belt to cope with the realties of its extremely bad financial position. It should do this, and do $65-billi- $65-billi- loose-spendin- it at once. Late News, Quotations, Information Service, on Mining, Oil, Financial KEEP POSTED QN THE GREAT URANIUM BOOM . . $5.00 Two Years $3.00 One Year Subscription Order I Encsed find $ for which send me Western Mineral Survey for Addrcsy, ...MW.... 2. |