Document e5k04oe7jY5rVOJmbQ8QY8LZM

u^iyiiiu^e . i 4 i - } .r n ""inf-wasp LIA23120 IMP* *&&(!litfUMa LEAD INDUSTRIES ASSOCIATION 410 LCOMOTON AVCMUS MEW TOOK IT* M. Y. May 28, 191,8 h`i~\ - To Kaebora of tho Lead Xnduatrlea Aaaoclatlooi SPBJECTt ADDWESS RETCSE THE IDAHO imroc ASSOCIATIOU CM LUD* Attached pla find copy of an addreu to be delivered by your aecretiry at the Convention of the Idaho Klnln* Association In Sun Valley, Idaho, on Kay II, 19i,6, on "lead,* '**t3v -i : 1 * i iupj ju&t j&sfaj&sfk yii IA23121 1 at i j f. j .1 i * i 1 Tor release lune 1, 191*8 Lead Induetrie* Association l?Q Lexlnrton Avenua Keer Tor'K 17, 5. I. LEAD By Robert Linoley Zleefeld Secretary, Lead Inluscrius Association New Jork City Address before Idaho Wnlnf Association Sun Valley, Idaho, Hay 31, 1?1* I was particularly gratified to receive an Invitation fron your food secretary, Kary Karsh, to talk with you for a few cl nates about the lead situa tion, I say "particularly" not only because I enjoy beinw here and belne srlth you, but because Idaho has been probably the brightest spot In the lead picture for nany soothe. As you all doubtless know, there Is a decided shortage of lead both In this country and In the world. There appears little likelihood that this shortage will be completely relieved so lone as the current business boon lasts. j'tyiaMLLK 'HjeiuJ ""w weisy j S")' \ ^1030 i*5i?sn^Si!^fp0pS!PWPW^^ ^ ~ . 'y * " :; LIA23122 il^ - - i - -- ^--1 - -^~ - ^ - - ftv r tr tr k tfi iiii^ riitlfr irufiii iitititiiii iiii n tiri a dftjliiW nainin -8 True, then in ic m developments which may alleviate it to ic m extent. These include gradually increasing sin* production la thia country and abroad, ia> proved labor supply, recent settlement of the strike* in Mexico, and lessened demand as pent-up requirements are filled* On the other hand, there are factors which aay tend to operate in the opposite direction. Possible strikes, lower production from scrap, demands of the European recovery profraa and rearmament program eight be listed among them. Let's take a detailed look at the present situation* Consuaptlon during the first quarter of the year averaged about 98,000 tens a month* This ccopares with last year's average of about 100,000 tons a month* In neither case was demand fully satisfied, probably less so this year than last* Hew what has been areliable to supply this lead? The mines of the United States have produced cn the average about 3li,009 tens a aonth since the first of the year. That is cn the increase and I wunt to t J1 more about it later. Ho figures are available on production from scrap later than Eebruary of this year. About 1<0,000 tons a month wes the figure for the first taro months, and I think we can assise that that figure or close to it would be the average for the first quarter. Inporte in the same period averaged a little over 22,000 tons a month, somewhat better than last year's average. These three supply sources add up to between 96,000 and 97,000 tons' of lead a month, the difference between that fig ure and the 98,000 tan consumption figure being accounted for largely by a small drop in refinery stocks of pig lead* That, briefly, was the statistical picture as of April 1, 19L8. Since then the American consvaer has been hit by strikes in liexloo which aocounted for the loss of many thousands of tons in April and Hay. Also hanging ver his head is the Govnrv?nt desire to stockpile. ..wty^gwuj'.gw11 "iMpth!y:gU?yi ^ -- u-. , . ,| ' j ^Ll i> w j w t w j i wiiii^u.m.iujjUM"Jir u|m|j j u . O. LIA23123 i i i' 1 5 j ?i j 1 i. "l 4t- . -. k H -; -3It la no wonder that to long at dewind* on lead manufacturer* remain to h*ary, ha eye* every aouroa of natal eagerly* Ha can hardly expect nor* fron the secondary narket baoauso laat yaar'a high pricea cleaned up stocks, and aecondary dealer* and smelters now hare to depend largely on scrap that la cur rently generated. That probably would be between 35*000 and 1*0,000 ton* a nonth* Refiner* stocks are ao low that little. If any, nor* can be dram frea then. That leavea doaeatlc nine* and laporta ai the hop* of your ultinat* customers, the lead nanufacturer*. While daaejtic nine production doe* not equal the high of a few years ago, it has been constantly increasing since the 332,000 ton low of 191*6. In 191*7 it was 375,000 tons and this year la naking a strong bid to hit 1*25,000 tons, barring unforeseen interruptions* It la particularly encouraging that the lead ainlng industry has shown the strength and initiative to go forvard under its own rteaa without de pendence on Oovcrment assistance. Practically every section of the country pro duced lead at a higher rate in the first quarter of 191*8 than it did in 191*7 with the result that In March the daily rat* of production was higher than for any nonth since August, 191*1*. The April rate was still higher. Even districts predoninantly dependent upon other actals are continuing to ajroduee lead at a rate at least equal to last year's* As I said before, Idaho has been a bright spot in this picture. Idaho's daily ret* for the first three nontha of this year exceeded last year by 22 per cent* Thit cccparea with an increase of 11 per oent for the country as a whole. It is e record to be proud of anicno that indicate* a bright future for the mining Industry of Idaho. Dei.xi.to this fine record of Unitod Status lend sines there are still haapering lnflucncc-s. Tou ere working under th* handicap cf a still short labor supply. Nearly 10 per cent wore nan could be used lanodiately in the lead adnes of this country. mw***#1 LIA2312A -b - Then, too, certain Uni an an unfair burden on tho alning Industry. Thay retard tha search for mi ninoa or new orebodiej and restrain the lcvert- nent of rlak capital in wining venturea. Canada'a tax law* an aooh nora eon* dudv* to exploration and development of aaa nines. Iran aoaa af oar cMa lava an aan favorable to other re* Material producer* than to natal art no* Sen* atop* have already bean taken to alleviate thde aitaatlon but then la Much aon than ean and will be don*. Z hope that all natal and Mining aaaociationa will vork tofather toward a constructive progren of nine taxation that will be fair to the miner and provide the country with the atronceat and healthieat Mining industry. I aa aura that the lead Industries Association will do non than nerely lend ita support to auch a constructive effort and that, as a natter of fact, it already la. Vow the on* other aouro* of lead for Anerloan consuaara ia imported natal. Then i* a world shortage of lead eo that w* bon must cccpete with other countries for the foreign supply. A Europe with acre dollar exchange will be better able to compete in the world market. Aa yon all doubtlaaa know, a bill hea pasaed the Eoutta of llapraaanta- tivea and (cn* to the Senate which would temporarily euapond the import duty on lead on and pig lead until June JO, 19u9. Proponent* c' t:d* legislation hop* that it will result in eon* increase in lnporta to help newt the rtentrd of Anerican consuatrs. Z don't believe that any of the proponent* would favor auoh legislation when then la * non nomal balance between supply and desand, aa the firat need of Anerioen oonaunera ia e healthy daoeetlc wining indurtry baaed on traditional protection, but regardless of the outecan of that legislation, now that the Mexican rtrlkie have been tattled, omsuxi rs can look forward to a better aupply of inpor.od lead in another month or eo. Fran the foregoing it ia obvioua that the load wining Indurtry of tha United Statea haa not let conaunera down. It increased production against s mupmuHwarw n fels" rf . i i mfWPfW i jgjwPj.nwnui^iJii^PP S/V-'.''' - - v ^<*3.rwfcwfcjjfca > -* ,v* -.: W* ui nwamir iwimiiii*.tnH>MMBin*diiiiHikiyii<Mi^ai^^ heavy odds. But miners, too, oust recognise the consuser'a plight - a demand that they are unable to meet with the supplies at hand. Soma linea of consumption have already sham sons slackening, but there are othera that are hungry for whatever lead thoee linea don't need* Op to two ooth* ago the etorage battery industry had been conataing lead at an unheard of rate. Now that rate of consumption has fallen way off but the cable industry and othera are stepping in to take mare lead* It has been feared that the high prloe of lead would cause a substantial aaount of substitution of other materials and that your markets might thus be permanently endangered. That baa not yet oocurred to any treat extant although there la considerable resistance in acme linea. The re-so: s perhape are that t substitute nateriala in many lnstencoa are also scarce a:. L that ether prices are also high. That possibility must always be kept in rind, hoeever. Briefly, the situation today is that the time of balanced leed produc tion and eanwnpticn is not yet in ei^ht. The mining industry must do and is doing lta utmost to increase production to preserve its markets. And consumers, who at the Dement are faced with difficult protleu of satisfying their needs, should realise that that situation will not exist permanently and that the mining industry is successfully expanding lta production and through lta am efforts and with its am mcney is adding to its reserves, as Idaho so vividly illustrates* - v w p"w >mes ' mm h i.'e pm M ^msemm swmwae-- d J a a ia rtttiii imi oA-ihiira JLSJIIV*,I 'WWW rnypyijinjuat.i .