AMERICAN COAL OUTPUT.

Taihape Daily Times, 7 January 1919, Page 7

AMERICAN COAL OUTPUT.

EFECT OF ARMISTICE

Bituminous coal producers seem to be move alarmed over the price question than any other class of producers who have been stimulated to increased production to meet war necessities, says an American paper. They fear that they are confronted by an imminent slump in prices. Then have conferred with the Fuel Administrator, and have made definite emergency relief suggestions to him. They' have appointed an Exports Committee to consider the posibilities of foreign outlets. There arc optimists among the coal men, but the pessimists seems to be iu the majority just now. the waj thev look at the situation is that the United States is now producing about 125,000.000 tons of soft coal above the normal output. • The coal operators have been putting out this immense additional amount of fuel in response to mazimum prices, which have unquestionably allowed exceedingly liberal profits to the good mines and some profits to the poor ones. Thousands of new mines have sprung into existence, the capaciay of the old ones has been increased, 'and there will bo a strong tendency for the output of coal to continue at not far from the present rate. But the maximum price has boon maintained, simply because the natural economic pressure would have made the price considerably higher. It is a substantial top, but there is no bottom below.

The pessimists foresee a collapse in demand with the signing of the armistice, an immense surplus of co'al on hand and accumulating, and a debacle of prices Thev look now with envy at the heat farmers, who have a guaranteed price for their product a price that must be made good by Government purchase of all wheat that is ordered at the established price. So the coal men, like all other producers who have been operating under artificial conditions during the war, are anxious to know what, if any, arc the Administration plans for supplementing legislation to cover the twilight period between war and normal peace conditions. i