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Show Tebniary 3. 1956 The Western Mineral Survey. Salt Lake City. Utah Page 4 Zinc Decline Due To Foreign Dependence (Continued from Page 1) from the nation's mines rained but little from the surging Indus trial activity. The Government in reporting the mineral production of the United States for 1955 pointed out that the production level of the mines was far below average. "Domestic mine output of lead and zinc topped 1954; but the production level demained well below the average of any of the past four decades for zinc and five for lead." Output " Mine output of lead was approximately 40,00 Otons below the average of the last ten years. 0 Zinc mine output was some tons below the ten year average. And obviously the averages were pulled down measurably by the low tonnages of the last two years. But for all that, slab zinft production and use increased 20 percent during 1955 to set new records and consumption of lead was e close to an high. In September the price of zinc moved up to 13 cents per pound to regain the price level of January 2, 1953. But during a three year cycle, marked by depression and rising costs for the mines, the price of zinc dropped to a low of 9 cents in February, 1954, and lead to 12 cents per pound in April, 1953, far below the cost of production at present-daBelow-Averag- e 84,-00- all-tim- y wage scales. The 1953-5- 4 period of 94 to 11 cent zinc (prices served to eliminate mine production of some 150,000 to 200,000 tons or zinc. Mine output dropped from 666,-00- 0 tons in 1952 to an estimated 508,000 tons in 1955. The new records for production and use of zinc in 1955 brought no corresponding improvement to the mines They represent no gain for the mines but reflect near-recor- d imports of forores and metals amounting eign to 610,000 tons in 1954 and some 660,000 tons or more in 1955. Liquidation of Resources And thus the contribution of U.S. miners to the cause of foreign aid and freer trade during ithe past few years has accomplished the liquidation of more than 150,000 tons a year of our zinc production. Communities dependent upon that production for support likewise have contributed their share in the injuries they have sus- rather tained. And so, through tihs process of wiping out mines by means of imports priced below the cost of production in this country of high wages and living standards, the price of zinc once more has been returned to a level of 13 cents. Measures toward price stabilization proposed three years ago by the mining industry would have avoided the closing of many mines whose production might have avoided the closing of many mines whose production might have helped to supply the metal shortages of present and future years. But opposition by the State Department in the interest of foreign oroduction blocked proposals designed to protect the domestic mines and permit their survival. Higher Prices U. S. miners cannot become overly encouraged by the recent price rises in lead and zinc. It will be' recognized that prices were raised to attract larger imports of foreign ores and not to 76 LARRY'S UNION FINEST SERVICE Quality Products at Lowest Prices 1165 California Ave. Phone IN 6-00- 80 SALT LAKE CITY, UTAH Sandy Metal Works USED AUTO PARTS 764 West 21st South SANDY, UTAH Phone HU Phone AM 4-76- 95 5-29- 61 WE WILL BUY YOUR WRECKED CARS B&D Texaco Service Complete Line of Texaco Premium Oils GAS - LUBRICANTS insist on Marfalc Lubrication 1 . 353 Indiana Ave. Our Specialty Phone EM SALT LAKE CITY, UTAH 3-09- 03 aid the domestic mines. The announcement of the price advance in zinc said: "The rise in the London price of zinc has been encouraging shipments to Europe by domestic smelters of foreign zinc ore and has discouraged imports of refined zinc. "In order to preserve for our domestic customers we have increased the zinc price by a half cent to 13 cents a pound. It would appear from this that we have reached the stage where it is necessary to raise the price of lead and zinc in order to protect the American consumer. He now has to be protected from foreign competition for supplies by price increases, it seems, because sources of supply in his own land have been lost for want of the reasonable consideration that would have permitted their survival. Copper prices on the London Metal Exchange have reached 50 cents per pound in recent months, and during 1951 and 1952 when mining costs were much lower than they are today and U.S. prices were controlled, the official United Kingdom price for zinc was 2334 cents per pound. Prices elsewhere in the world reached 32 cents and highzinc-suppli- es ever leadership it has in the world today because of its great wealth and productive capacity. But when the wealth is dissipated there will be no followers. Nor will the consumer prosper greatly if the productive capacity is impaired, particularly in case that impairment is caused by inflationary cost increases that far outrun corresponding gains in productivity. Support for reasonable measures to permit the survival of a healthy mining industry in the United States will afford protection against a costly dependence upon foreign sources for supplies. Analyses of Montana Manganese Reported core Analyses of diamond-dril- l drilled of holes and samples logs by the Bureau of Mines while exploring for additional reserves of manganese ore in the Philips-bur- g District of Granite county, Mont., are given in a report released today by the Department of the Interior. The Bureau investigated the district long one of the most Important producers of manganese ore in the Uinted States In cooperation with the Geologi- cal Survey of the Department. Holes totaling more than 6,000 feet were drilled from nine surface and eight underground sites. Core samples were analyzed at Peace and Prosperity the Bureaus Northwest ElectroLaboratory, Albany, The political slogan of the day development Ore. is peace and prosperity But who Briefly reviewing the history can be confident that either the and production of the Philips-bur- g peace or prosperity is stable or District, which has turned out minerals valued at more than Possibly an uneasy peace may $20 million in the past 50 years, see growing competition in com- the report discusses physical feamercial fields play havoc with tures and describes individual our high-cos- t prosperity. ore deposits. The nations of the world have recovered from the devastation for the credulous and unprepared. We can enjoy the blessings of of war and their farms, factories and mines are producing large peace and prosperity only through quantities of goods to export. We the strength that comes from our face the problem of meeting the material resources and our as a free people. competition that we have and continue to aid and If we heed the lessons of hissupport. tory we will keep our nation er. But in any event, this world of strong, avoid inflationary expeIt is better to pay high foreign ours in the foreseeable future dients and trust our security priprices in order to obtain supplies promises to be a dangerous place marily to our own good resources. when the need is great rather than have assurance of a reasonable degree of in productive capacity at home? As for the domestic mining inBuy Quality Feeds and Eggs from Draper dustry, if there is no profit to be gained for the effort expended, "THE EGG BASKET OF UTAH" there will be no production. Miners will move to other fields. Utah for example, is one of the leading lead-zin- c producing states. But already in three years time there are more miners working at the uranium mines in Utah DRAPER EGG PRODUCERS than in all of the lead, zinc, gold and silver mines In the state put long-lastin- g. self-relian- self-sufficien- Draper Poultrymen, Inc. together. Requirements for minerals are mounting because of rapidly increasing world population, widespread mechanization of industry, vast expansion of transportation facilities and means of communication, and extensive development of power resources. Consider the strong demand and short supply which prevails for metals in common use, particularly steel, aluminum, nickel, copper, lead and zinc. The problem in time threatens to be competition for supplies rather than overabun- dance of metals. Policies of Dependence However that may be, national policies are encouraging a trend toward dependence on other countries for our metals and minerals. To be sure the lead-zin- c mines have been helped temporarily by Government stockpile purchases of lead and zinc. But this offers no long-rang- e assurance of a healthy domestic mining indus- try. During the time that it is effective, the Government purchasing can be expected to bring added imports to the extent that it serves to increase prices to a more adequate level. Witness the rise in zinc imports last year and recent efforts to attract more foreign ores by higher prices. And when stockpiling ends is the temporary prop by means of which Washington sustains us, to be made into a more permanent crutch for a crippled industry? Is that the only plan we may hope for to cushion the reaction which normally may be expected when the current booming activity runs down and heavy demands for lead and zinc subside? The United States holds what Generator Supply Co. 867 South 2nd East Phone EM 4-77- 23 SALT LAKE CITY, UTAH It is our pleasure to serve the Mining Industry Throughout Utah ROWE CIGARETTE SERVICE 1424 EAST STRATFORD AVE Phone IN 6-72- 63 Salt Lake City |