Document LJJLBmbwnRVg8BK8vmGBQmKwb

LIA 16232 LEAD INDUSTRIES ASSOCIATION 4M UWNOTOM AVSMU* NSW VOWK If, M.V. *d t ns rmxcmm PD-TIMt PftODOCBtS* X, A. Bblfldll, m*nAgv, lirtal Selea Dept, lb* Consolidated iUnlng and Sueltlng Cewpeay of Canada, Ltd* States Are *a.-gr and nrltd, in cocaon with those who *r* inside the Cnlted State*. Prodaeer* in the sterling or 'soft Curretirjr* tmi, it MaH to M| are havin' an easier tin* than their fallow producer* in th# *o-cailed hard currency* area*, such a* Canada. The Australian producer, for enra^fl.*, can fell, if be has a narket, in sterling areas to anyone aho bee sterling, and if, in addition, he can sell lead for U. S. dollars, o ouch th* better. Th* '.aniuian producer, operating within th* regulations of th* Canadian Foreign '.rchance Control Board which was set up diring the war as a necessary control for transactions in foreign exchange, and which ha* been continued during the post-rcr period, cast follow definite role* es to the currency xb-.ich he way accept for export sale*. a hare area* brown as Special irranfenent Countrlee* where, subject to certain regulation*, m r-ry sell for 'ansdim dollar*. There are other area* where we ray accept sterling, 'jut it cust be .convertible. ?here wi other area* where we can only accept C. S. dollara. In ejuxy of these countries th* buyer* cannot pet dollars. In ethers, dollars are available, but the holder* prefer to spend then on scrcethlag else end buy their netal in soft currency countries. As an exurple, Canadian lead axles in traril oust be for tf.S. currency. Th# 5rexilian consunrr, 'ho ha* an abundance of euseiroe but eeeas tc be short of U.3. dollara in ~lte of the currant high price for coffee, is under equally stringent exchange reguletioc* xtrich specify the ln.iort for which the dollars cay be used. fns, the Canadian nay b* wllli up to eell and the Brasilian caper to buy, but. bee suae of xehaj* restriction* tfcsy both find thooselves *behlnd th* 6 bell.* In Orect Britain, which is a traditional load sarket for there 1* e pronounced trend tovard* soft currency countries, of which of course Australia is th* chief. Operating with E.C.A. funds to lsrg* eo tent, it is only natural that Qreat Britain find* difficulty in going * Presented at th* Rnd Anneal Meeting, Lead Indi*tri** Aaaoclatlon, April 13-lb, 1?50, Chicago, Illinois at th# Panel Dlscusalen of Lead Pro dicers. iij*.roB'ip i jjiii n it mmmi u mnvmmun wi.nisg* s j -^-11 ----- - ---, g - -|| -.........................................f- r- - `WtMlilBliiiilni -1 - outald# of Baited States interests for eeeh lead u ehe nay net be able to purchiee in soft currency tree*. European countries, not lent ip H(r purchasers of leaders now eager sellers - particularly if dollars can be refilled. JU an a&aapJe, franca waa a buyer cf pit load a little aore than a year ago, but Just before the end of 19^9 waa reported to bare aold 19,000 tona to the Brltiab Oowerwent, So, without Going Into too each detail, Z think it is obviowt that tha Ho, 1 ?roblm to producars today eutalda the 0.8.A. nay he classified rather broadly under tha heeding of Foreign Scchanjo. Varloue medlea have bean put forth, running fro* tha suggestion that the Oorene* - sent* get out of the exchange business (or in fact out of all butineas) to the return of cold aa a nedlua of exchange. Our own opinion, advanced for what it -<r bo worth, la that aoae nediua of epchanc* cast be found. Other* wise, with the end of the prograara in eight, pertly*la of export trade night well ensue, with ell Its disturbing Implications. Seme taste* tire Dores hare boen r-eoe towards barter - one or two of then inrolring two or sore co^noditiea, and a few hare been completed successfully, I know we were offered Turkish tobacco in exchange fbr lead, but declined the offer, Se were afraid we right wake up aoae day and find oureclrea in the tobacco buainesa, which la one we understand even lasa than the load business. Perhaps with the accelerated return of prosperity to Europe, these problem* a* 11 cr^dually disappear. They are of trenendous scope and tremendous 1*. pertcnee, and they hare so cany angles that they can only be sectioned briefly in e discussion of this sort. Another -rohlca we hare in cottaon \d.th our friends in the States is foreign escpetiilca. 'e heard a great deal last year about lead fros Yugoslavia and other European countries, and we watchad the arrirals in Eew Tork .-ith Interest And perhaps tat complacency, although we realised what th-p tore doing to the market. Our interest vaa asich intensified sons fairly lerge tcrwwice* appeared in Canada at a pries aor.ouhst under the then-current nnrket. e erea had aetal erriring fiw Japan, which before the var t.-*a one of cur largest narheta. Aether this lead was nade in Japan and branded "Selby* I ac unable to say. These iteca are just nea* tiorwd to ahor the aboornal pattern of the present world uarkst. Another problea re have is the loss of saaos oecamsd of eubati* I tutlena. Loid-covered cable la e case in pointj eo-callad "tin foil*, "4 of lead, la another) end collqlble tubes ie a third. I mipht even Motion wMte lead, although there are sons who del* it 1a a decedent pigment dee* tlned to bo replace, by other pigments until consumption reaches a low point *1,r* It will frobahly level off, I do not altogether agree with this view. There ere others who del* that the high prices of 191*8 and 191*9 for lead and linseed oil helped to price this plgnent out of the market. I think there In ore logic in the letter argument, mid it applies not only to white lead but to other ied lead products, and ej>*n substitutions because of high rice* take particularly when capital inveetmoct la involved, eons of it ureally sticks. j ' i-nMtetatsmesh, it m;0mw/yxmv, PPPPPPBSPiiiP^PPi BP m mmmmrnmmmmmm Li Al623^* MftBSSSl'lVii^ 'BNUBBiif 'iliiiniriiTraiinurfili d'i'fMlir mi i~i' Mrir*'iv-'im-'<***- fn f ......- 3 - ~ ret when prices c o d * done. Looking bask over the put tvs years, we cia Ml that nhil high price* were gratifying, they ware, whin coupled with abort su-ply, exiraoely harmful over the long term, I have not suggested any twans of fighting these substitutes, but we *11 know they are being ? fought. Probably the best' weapon 1* the price of lead itself; next c o m* the planned erepaign and chat eight be called education, rich as those unde*'* tiler, by the Lead Industrial Association; and I think a third weapon is direct contact with the manufacturers. However, the transition In lead frees famine to plenty has been so awift that cany of os hare not had tine to adjust our eights. ?e feel that we art at least holding our own at present, and ce can thank heaven that we still here the automobile with t its lead-eeld battery and Tthyl gasoline, However, few r.amfacturer* want to use * cosaodity of which the eupply is uncertain, and which is subject to nide and sudden fluctuations in price, thus exposing hla to aarket risks. If he eeu find a fairly satisfactory substitute in plentiful supply at s stable price, he can hardly be biased for using it. In addition to the major problem which I have mentioned briefly, we hare a nisber of lesser ones. Under this beading I should place tarrlfa and freight rates. In those days of international economies at high gcTermer.t levels, vs hear a great deal about lower tariffs tad balance of trade. Balance of trade is dssirebla and we all want it, but we all want the other fellow tc lower his tariffs. It will be interesting to see the outcome of the next International Tariff Conference to be held In Septeober la Ingland. High freight rates are causing some concern to all producers, fortunately, there are definite signs cf lower ocean rates, but roll rates are high and cay go etill higher - at least in Canada, *> recently had another increase in our rstes - asking the third in leas than he years. One of the unfo.-tunate features of these increases now is that they are so j f.T behind the -arkrt. I scan that the producers E.git not actively eombat an application for higher rates when lead is selling for 21)#, but when the application is filed (with ler.d at 21^#), end, die to cudboraoss nachinery end prolonged deliberation by rate-making bodies, is finally granted Just when lead hits lof#, the producer cay well wonder if it Is now justified. Unlike sees cccr4itiei, rail increases in lead carnet be passed on to the constaor. These are scca of the problem fscod \jf the lead predsesrs outside of the United States, and on examination I think they are pretty moeh the seas problems that plague tho U.S. producers too, )k>vt of thea I hop* will be solved in die course, hit in the meantime one nay be forgiven for looking back with envy to .re-war days before governments got into and when the only problem, as us renember thsi, cere price, supply, and the ability of the consumer to py. ; Speaking for :'r. Hallaa and qyself, I want to thank the Lead Industries Association for the opportunity givon to us to placs r of our views before you. -mu"1' m wi u tj u s ib-w .ijiy i