Document rpE59NVxEgXX6OdM0RwG0Qk9G

LIA16211 LEAD INDUSTRIES ASSOCIATION ~------- 4S0 kBONOTON AVPM NCWVONK IT, M. V. mo t Foa majcmm paconc l e a p Koaucase Bray Panin, Director Day Wnoe, Xna* a tcrsAii IT? rcnarks are ocrflnod to the "dm-rtle r.inar* aa dlstinjgl ahnrt fra tho integrated operator" who swy conduct andtln^, refining, w b w kctlng and ewnufacttaring cciivitioa and n-o say a direct or indi rect intercet in foreign load production* The al ner in* tho iu c general protista aa any ether business, in addition he ha* all the cccylicatod preblta* inherent is any wasting uict Industry. lie has no control over the price of Ms product, and today he is ear.frortod with Inadequate ttxlff protection, which, in cot*, dunction with foreign currcne;' devaluation, the deoand for United State* dollars and tho operation of tlia "Uars-iail flan,* hes trou^.t about a chaotic condition in the industry.. p^DDcria- ridis ir. d x ix t s ac ^r-rrri Let us exadne tor a saner! this protiou w'ich axirts today Where drastic declines In the price of lead hart occurred withoct any ooopetw eating reduction in labor and ra'.axial eoota. Onless the tdner has a rich orebod, wldch has r.ot been aado war* final by prioe declines he rrill ettenyt to upgrade Ids product, reduce costs and increcso leber efficiency. In all likelihood he can only succeed in tho upgrading proesas. This involves is slnlng Of his better grade ores. It nay also involve airing narrwr vein wldtha* KeeHees to a a;', wily neoesanry dovolopncnt wart will be performed* Exploration wort: will coao to a halt. If he ear. not suko both endsaeot ndr these drcusutencea and his operating loes eaeoeds his anco expense on a shut down beads, ha will close hie property. Tho latter has already been the fate of nunc roue lead sinos In tho Vest. Any furtisr decline in tho prioe of load will add to tho ntahor of wins* which wore forcud to tone the shutdown route. epr*eerrtod at tho 22nd Annual lieetlngt lead Industries Association, Apr, 13-lh, 1950, Chioayo, ill, at the Pu.nl ulscuaalon of Lead Produoora* -- > # i i utrtnn .... . i O iilti mm i h h i mm new ini, 1 , 4 4 i ia I 1 g -a- X, th ciner has no oantrol over the pries of Id* product he to " roally up against tough propoaiti an, Kia condition at tbo present tin* has been brought About by a coniinetier of factor* over which b* hao no control. A* a rcr-lt of tie lc tariff oa lead, the desire far dollar exchange k u foreign cu rrency demluotlona, the United State* haa beooce the dusping ground for foreign lead, This alone would pro duce t drop in the daso*tlc price for thia Metal, However, where It 1* aggravated by the effort of a largv sellar to balance aalea of Metal agclnst intake, and the policy of Manufacturer* and fabricator* t* porarily to (top buying in an effort to oecure cheaper raw Material*, the ainor really tin* a beating, I acn appreciate the pocitien of the teller* and buyer* of letd under these drcuBatances, and m. only paint ing *it the emulative effect theae action* hrre on tbo Minor. guana potesne uniw k bc j t c s pec ial cacnERmair Thia rale** the junction of wh*thar r not the Minor of baee Mctale V^o mi fWe T-- *TT M* **>* >; t-. 4 ^w e*. -et^ devises designed for that purpose. 2 personally belire* that there are two important reaeco* wty soos prloe protection should be accorded the doaertio dner of baee Metals. Tbsy srs as follow* i 1, A healthy and productive base octal siring Industry In this country 1* essential for our notional security in tho*vent of war, and is a possible deterrent to agression in peaostlas. 2. A healthy and productive base octal nining Industry Is H Verts* es sential to tbs naintecanos of our dooertic ec rxny in psaostiMo. Let us examine these two propositions. rerrrrrcr g t h : mrr cr zui Any thiiCdng person would be forced to sddt that bass astcls in aeple quantity are essential to *uee**efully wage a nodom war. However, wc nay overlook the Important fact that ary wcakssas or deficiency In this respect nay be the deciding factor in the decision of any posaibl* aggrosfor to eoaoence war against ua. It would bv a.-, invitation to netieoal -lcide to ever ailcr ourselves to get Is. a ? reHcanert where ws are not assured of an adequate supply of baoe artals at all tlass. Consequently, our cheapest insurance against aggression is to Maks surw that vs hat o an adequate supply o: base octal* within our borders to oort any e**r;enay. "he only wsy tlds can bo acoocyllshcd is to rupplsMsnt a dsslrablo but undeterminable tonnage in the national stookgdl* by a baalthy md productive daocatie base octal ntr.in- industry. rsoncrioB or ctn d c t c s t ic vcarxir xx piAcrroct The (portion icnodlately crises whether cr not the arguosat prs- pamdsd with roapoct to wartlne has ary application during peaostlas, V* are faalliar with the argueent that v.ten foreign aetals oan be ac quired cheaper t:*n our cone*vie products the ccnsuaer should be en titled to receive this advantagei and if t 1* seens the shutdown of our dost, stlc .tiring industry it ia simply a vietin of t:* ocwoale law of supply and danand, f.dch acts to conserve our tinoral reserves* Us -> tov that this It an everetry11flection cf the problso, and fru a long rani* standpoint it souldr.'t work out In t.ie ft*hion. In the first piece it overlooks certain important oonsequaneee that would result froo a shutdown of our dcDestie olnos. Due to the feet that the Cnli.ec States produces orar 1A1 of the world** copper, load are tine, and prcsentl. eonruaea around 2GI of the asac, aiy severe eurtailaert of production In this country would result la higher trices w.doh would offset the toaporary advantage gained by the influx of foreign octal. So fro* the long range standpoint neither the sanufesturer nor the oenstm.* would secure any pemanast price benefit. In the process baas octal ninths would suffer a eevere blow, Average to low grade ore reenanta In "high seeded* nlnee would be irretrievably loot. Case shut Com nlnoa would never reupea be cause underground conditions would sake it a staggering undertaking. Severe econasde dislocations would occur In oeosuslilca dependent upon base octal adalng. Unasployaant would rerult. Tb* lndaetry would aleo u jirl~ ^ *_ - ^cchnl^l ***** t Sven If only cur peacetime econcer were at stake, Z do not believe the price poll for the temporary advantage to the Manufacturer and aaosuaer Is worth the coet. c o c l c s ic h - zacnra. I believe c m coc.cl.-sicc is ineecaptble, nee\-, *it le nsteimy both frea the stands at of our nctlcuml security in the event of war, and the welfare of our deccatie econocy in tin# of pence, that our base natal ataing lndaetry be protected, fostered and encouraged.* If it is not uw nay pay a horrible price for our neglect, w.u.eh would bo all eat of pro portion to the relative coat entailed to acooopllah tide objective. The United Ststea Oovcmaent could help reae^ the condition of the laud pruducin; Industry by prorldlng idcynie tariff protection. Keewsvcr, unless the Congress ini the .^llrlstrutloc is aadc to realise the danger Incident to albocin,, t ie basic Industry to rural r. In this condition one ecr. not crpoct any gcvcmseutal relief. 7r.a alternative to tariff relief would be subaidlsallor., w.leh I, personally, believe io a reaedy of last resort, and a-.culd not be tried -until all other efforts have proven casuecessful free the standpslnt of lnsurun; oar future national uelfaro. Cther inoer.tlvos to c produrtive setal nlnirg industry would be t.'o r*. Dcr.-l of govemoerrisi restrrlnta such an restrictive tax polidas, res trictive public land policies and restrietiro cine flncndn; pollelae. Kon-produclng acabora of the Lead I duatries Assocletion ai_ht also help If they likewise realise that It le Isportant fron their <s/n 10% ran,# well being to oaintaln e bealt'.y and productive load dnir.g liduetry. L slight change in your selling and bu;-iny nothods udgkt aid the produoer by cushioning tho effects of a prleo decline rather than accelerating the ease.