FALL IN PRICES OF METALS

Dominion, Volume 14, Issue 72, 18 December 1920, Page 11

FALL IN PRICES OF METALS

EFFECT ON AUSTRALIAN, INDUSTRY.

The fall in the price of metals, will tell on all industry in ,'be Coniuionwealth. Electrolytic, copper at XB< to £89 per ton means that boards of directors of a nnmher of copper-mining companies will nave to very seriously contfder the questional finance, states the "Argus;" For instance, the reeent balance-sheet of the Mount Lvcll Mining and Railway. Compnny contained a statement snowing the way in which costs have mounted up. during the past three years., This has been due to the increased price of commodities,' concessions made to workers, ana their lower efficiency. The metal market now is approaching a' point where the strain of such imposts will .tell greatly on the profit-earning capabilities of all mines at work, and compel attention to the problem of how far they shall be depleted of reserves in order, merely to maintain staffs of workers. • "he name situation must al«o arise at the sl .lyf r " lead mines of Broken Hill. Mr; Justice Edmunds, in his award respecting f JabouT there, hns placed a special burden on. the companies of providing compensation for sufferers from, occupational diseases. The companies have also to bear the, burden of shorter hours and "higher wages. ] 10have Oieen made against the'effect. :of the awahl. When these were-uttered i lie price of metals was a good deal above the point the market has..now .reached. , The fall in the priee'of tin has been even j "more spectacular thnn that, of copper, lead, and zinc, and' tho drop may affect •the dividends paid bv-Enstern concmis. So far as copprr, lead, and zinc mining goes. the situation would not be so bad if. through th'o strikes thnt hare taken "place not only at Broken Kill hut in the and shipning- industries, the splendid markets that existed during the jvist twelve months had not been missed, "he .high price that hn.s to be paid for coal And transport ns the result of the strikr.s when combined with the drop in tho price of metals, make the baseonetnl • mining industrial, outlook most discourajI *ng, unless the men guarantee ft far high* er standard .of efficiency than has been set by them of late.