Mining Engineering Editorial - Taking the Long View

Taking the Long View THE present international situation has serious implications for this nation. The possibility of total war is no more appalling than the threat of making the United States permanently into an armed camp. A period of ten years under such conditions could mean a Communist victory without firing a shot-if the present trend toward statism is allowed to continue. As individual citizens and as members of the mining profession we have the power to oppose the march toward socialism. We must not adopt shortsighted policies dictated by self-interest, but must endeavor to size up the situation as a whole and act according to what will be best in the national interest. The economic picture for the metal mining industry under present emergency conditions is apparently bright. Demand for metals exceeds supply. But there is danger that fluctuating prices will bring Government regulation. Care must be exercised in our pricing policies, or the calamity of Government intervention will be inevitable. President Truman's "loophole" reference to percentage depletion early in the year caused a brief flurry of excitement, but now that the immediate threat is over the industry has lapsed into sommolence on this subject. Special tax privileges accorded the mining industry because of inherent risks should be guarded by a continuing propaganda campaign to educate Congress and the public. If this is not done we may find ourselves losing the necessary tax protection which we now possess by a capricious act of legislation. Stockpiling minerals from abroad certainly lengthens the life of our own mineral resources. The present consumer demand for the base metals indicates foreign sources of supply for stockpiling. However, this is only one facet of the problem. For strategic military reasons it is necessary that the United States have quick sources of all minerals within our national boundaries. Undeveloped mineral deposits do not meet this need so that where it is possible to encourage our own mineral development by stockpile purchases, it should be done. A need exists for an overall controlling agency that would make purchases for the stockpile according to military necessity, current metal market conditions, and so as to strengthen the mining industry. In the course of the history of the United States we have been engulfed in several wars by the necessity of protecting our economic rights abroad trading privileges-and also because of moral obligations. Disregarding the moral side, it is difficult to reconcile fighting wars to protect world freedom of trade when in peacetime we attempt to restrain such trade by tariff barriers. When it comes to accepting subsidies from the Government in one form or another it is difficult to overlook the immediate personal gains and see in the future that where the Government lays out capital it becomes a partner in the business and not a silent one. It is apparent that hope for the traditional American way of life cannot be bought without some self-sacrifice; and we cannot wait for the other fellow to start it because it is the responsibility of each individual citizen. By taking the long view our course should be apparent and not diverge sharply from our own personal benefit.