488 THE COLLIERY GUARDIAN. March 9, 1917. immediate reduction of overtime; but whether existing- special rates of pay and war bonuses should persist as long as abnormal conditions and high prices are maintained is a problem which will present many difficulties. This question is one which will become very important when peace is restored. In the coal mining industry it will affect the minimum wage rate, and there will probably be a general demand for such an adjustment as will maintain what is commonly known as the standard of living. But employers will be faced, on their side, with heavy burdens. The rate of interest has risen to nearly double the pre-war rate. There is much additional taxation ; the cost of materials will be high; and, what is perhaps more important than all, there will be keen competition in the effort to regain lost markets. The last factor alone will render it imperative to produce at the least possible cost. Thus, we are confronted with a series of diverse and complex tendencies, which will need not only con- summate skill for their control, but also no little forbearance in the discussion of their rival claims. In the midst of many conflicting views upon the probable economic position of this country after the war, it is interesting to draw attention to the opinions of financial experts upon some of the more insidious processes which help to maintain high prices. In his address at the annual general meeting of the Merchants’ Trust Limited last week, the chairman, Mr. Robert Benson, gave an instructive lecture on the subject of money and credit, and the influence upon the money market of the huge debt which the war is forcing us to incur. The chief interest of his remarks centred around the connection between money and price. He referred to the so-called “ quantity theory” of money as an economic fallacy. This theory may be illustrated by the statement that money is like a 12 in. rule, and if you increase it to 18 in., while the thing to be measured remains constant, the price of those things will be raised in proportion. What this means in actual practice is that the creation of credit means inflation of prices. In his view the Government financial policy until recently was regulated by this fallacy. It was, he> says, believed that the rise in prices, brought about by the enormous purchasing power of the Government, could be controlled by borrowing banking credits and making money scarce; in other words, by restricting the purchasing power of private individuals. Dear money was expected to lower prices. Its actual effect, however, was to lower the value of securities. Upon prices it appears to have had the opposite effect, increasing the cost of production, and checking exports to the detriment of our foreign exchange. We are aware that the science of money is as a sealed book to all but the experts; and there will be many who would be as ready to dispute the law of gravitation as to deny the truth of the “ quantity theory ” of money. But there is clearly a case for the consideration of Mr. Benson’s suggestion that there should be a separation of questions of internal finance from those of foreign exchange. Our internal financial needs require no great reserve of gold, and there is no apparent reason why internal production should be penalised with a high rate of interest for the sake of maintaining a free market for gold* We do not profess to be competent to discuss this matter from the banking point of view. But, on the face of it, there seems to be here a practical suggestion of some importance with regard to the lowering of prices after the war* It seems clear that we require in this country to have money at least as cheap as our competitors can obtain it if we are to maintain our position as a producing nation. It certainly seems a little unnecessary that whenever the state of the American or other foreign exchange requires the imposition of a high bank rate, every producer in the home market should be called upon to pay more for his banking accommodation. This may be good business for the banks, but is it to the advantage of our internal trade ? The Cleveland Ironstone and Quarrymen’s Association selected Mr. Harry Dack as Labour candidate for Cleveland at the next Parliamentary election. Final approval of the selection rests with the Miners’ Federation. THE COAL AND IRON TRADES. Thursday, March 8. Scotland.—Western District. COAL. The Scotch coal trade presents no new features. Markets are still dull owing to the continued scarcity of tonnage, and values incline more in favour of buyers. In the West of Scotland district industrial sales are well maintained, and along with household demands keep the collieries fairly well occupied. Shipments for the past week amounted to 88,201 tons, compared with 89,826 in the preceding week, and 111,969 tons in the same week last year. Prices f.o.b. Glasgow. Current L’st week’s Last year’s prices. | prices. prices. Steam coal 18/ -24/ 18/ -24/ 19/6-22/6 Ell 19/ -22/ 19/ -22/ 23/6-24/ Splint 22/ -31/ 22/ -31/ 1 25/ -34/ Treble nuts 24/ 24/ 21/ -21/6 Double do ; 22/ 22/ 20/ -20/6 Single do 1. 20/ . 20/ 19/3-19/9 IRON. Conditions in the Scotch pig iron trade show little alteration. Haematite is still the strongest feature, while foundry iron is in. good demand, but the turnover in the export department is of little account. Shipments for the past week amounted to 343 tons, against 1,721 tons in the same week last year. The tone in the market, however, is firmer, and although no official announcement has been made of a rise in quotations, 6d. to Is. per ton in most cases is being charged above the following makers’ prices:— Monkland and Carnbroe f.a.s. at Glasgow, Nos. 1, 125s., Nos. 3, 120s.; Govan, No. 1, 122s. 6d., No. 3, 120s.; Clyde, Summerlee, Calder and Langloan, Nos. 1, 130s., Nos. 3, 125s.; Gartsherrie, No. 1, 131s. 6d., No. 3, 126s. 6d.; Glengarnock, at Ardrossan, No. 1, 130s., No. 3, 125s.; Eglinton, at Ardrossan or Troon, and Dalmellington, at Ayr, Nos. 1, 126s. 6d., Nos. 3, 121s. 6d.; Shotts and Carron, at Leith, Nos. 1,130s., Nos. 3,125s. per ton. Malleable iron is unchanged at <£15 per ton net, for “ Crown” quality bars for export, and mild steel bars produced at the malleable works at =£17 per ton net for basis sizes. Scotland.—Eastern District. COAL. In the Lothians district a fair quantity of coal is on requisition by the Admiralty, but apart from this business is very quiet. Shipments were 17,155 tons, against 20,569 last week, and 31,936 tons in the same week last year. Prices f.o.b. Leith. Current L’st week’s Last year’s Best screened steam coal... prices. 25/ prices. 25/ prices. 23/6-24/ Secondary qualities.. 23/6 23/6-24/ 23/ Treble nuts 24/ 24/ 23/ -24/ Double do 22/ 22/ 21/ -22/ Single do 20/ 20/ 19/ -19/9 The Fifeshire collieries are indifferently employed, and stocks are accumulating. Shipments totalled 13,428 tons, against 12,450 tons in the preceding week, and 58,386 tons in the same week last year. Prices f.o.b. Methil or Burntisland. Current prices. L’st week’s prices. Last year’s prices. Best screened navigation coal 30/ -32/6 30/ -32/6 27/6-28/ Unscreened do 24/6-26/ 24/6-26/ 25 6-26/ First-class steam coal 26/ 26/ -26/6 .27/6-28/ Third-class do 20/ 20/ 20/ -23/ Treble nuts 24/ i 24/ 23/ -23/6 Double do 22 22/ 21/ -21/6 Single do 19/ ) 19/ 19/6-19/9 The aggregate shipments from Scottish ports during the past week amounted to 118,784 tons, compared with 122,845 in the preceding week and 202,291 tons in the corresponding week of last year. Northumberland; Durham and Cleveland. N ewcastle-upon-Ty ne. COAL. Since last report there has been exceedingly little business done in the prompt coal market. The reason is to be found in the continued lack of tonnage, although it is good to be able to state that, after all, tonnage arrivals have been a little better and that the chartering market has been rather more active. Nevertheless, supplies of collier shipping are still a long, long way in arrear of requirements, with the result that stocks of fuel have not been appreciably lessened, collieries are still compelled to “ teem by ” to a large extent, pits must, perforce, work short time, and the tone of the market remains weak. Sellers, indeed, have found it advisable to make further concessions on the week, f.o.b. quotations for prompt ship- ment having declined as follows :—Blyth steam seconds are from Is. to 2s. reduced; Blyth smalls are Is. cheaper ; smithies, weaker; gas bests, Is. lower; seconds, Is. to 2s. decreased ; coking smalls, easier. There is any amount of enquiry but the tonnage shortage blocks the way to business, and discounts on the quotations given are still obtainable by buyers who can take immediate delivery. The coke market is strong and active, with the output fully absorbed by home and Allied consumers. So far as forward business is concerned, the enquiry seems to be less pressing, although there is no doubt that a guarantee of tonnage when and as required is all that is needed to stimulate the demand. The Norwegian State Railways have allotted the bulk of their orders for 18,500 tons of best steams for delivery up to April 15. Ten thousand tons of Northumbrian steams—stated to be in the proportion of two-thirds best Blyths to one-third Bentinck—have been ordered at 29s. lOd. per ton, f.o.b., 3,000 tons of Hordens at 28s. and 3,000 tons of South Hettons at 28s. 9d Prices f.o.b. for prompt shipment. Current L’stweek’s Last year’s Steam coals:— > prices. prices. prices. Best, Blyths (D.C.B.) ... 30/ 30/ 32/6 Do. Tynes (Bowers,&c.) 27/ —28/ 27/ -28/ 1 i 35/ Secondary, Blyths Do. Tynes (Hastings 21/ -22/ 22/ -24/ 28/6-30/ or West Hartleys) ... 22/6-25/ 22/6-25/ 29/ -30/ Unscreened 18/ -20/ 18/ -20/ 25/ -26/ Small, Blyths 18/ 18/ -19/ 16/ -17/ Do. Tynes 17/ -18/ 17/ -18/ 14/6-15/6 Do. specials Other sorts:— 19/ -20/ 19/ -20/ 17/ -17/6 Smithies Best gas coals (New 18/ -20/ 20/ 25/ Pelton or Holmside) Secondary gas coals ■ 25/ 25/ -26/ 25/6-26/ (Pelaw Main or similar) 17/ -19/ 19/ -20/ 28/ -30/ 24/ -24/6 Special gas coals Unscreened bunkers, 28/ -30/ 27/ Durhams Do. do. 17/ -20/ 17/ —20/ 23/6-25/6 N orthumbrians 18/ -20/ 18/ -20/ 25/ -26/ Coking coals 18/ -20/ 17/ -18/ 18/ -20/ 1 20/ -22/6 Do. smalls 18/ : 20/ -22/6 House coals 27/6-30/ 27/6-30/ i 32/6-35/ Coke, foundry 40/ -42/6 40/ -42/6 1 38/ ; 41/ -42/6 Do. blast-furnace 38/ 41/ Do. gas 30/ -32/ | 30/ -32/ j 27/ -28/ Sunderland. COAL. The exports from Sunderland last week amounted to 35,365 tons of coal and 360 tons of coke, as compared with 63,720 tons of coal and 565 tons of coke for the corres- ponding period of 1916, being a decrease of 28,355 tons of coal and 205 tons of coke. The coal market is without any appreciable change, business is extremely quiet, and prices are hardly tested. Ample supplies of every descrip- tion are offering, and are subject to discounting for prompt shipment, but there is not any disposition to reduce quotations for later loading. The supply of tonnage does not improve. The local coal sold to the Norwegian State Railways for delivery from now to April 15 comprises 3,000 tons of South Hetton at 28s. 9d. and 3,000 tons of Horden at 28s. f.o.b. Prices f.o.b. Sunderland. Current L’st week’s Last year’s Gas coals:— prices. prices. prices. Special Wear gas coals 26/6 26/ 26/6 Secondary do. 18/6 18/6 24/6 House coals:— Best house coals 30/ 30/ 35/ Ordinary do 23/6 . 24/ 30/ Other sorts:— Lambton screened 28/6 28/6 32/6 South Hetton do 28/6 28/6 32/6 Lambton unscreened ... 17/ -17/6 17/6 , .25/ South Hetton do. 17/ -17/6 17/6 25/ Do. treble nuts 21/ 21/ 28/ Coking coals unscreened 18/ 17/6-18/ 24/6 Do. smalls 17/ -18/ 17/ 24/ ' Smithies 19/ 18/6 25/ Peas and nuts 22/ 22/ 27/6 Best bunkers 18/ -18/6 18/ -18/6 26/6 Ordinary bunkers 16/6-17/ 16/9-17/ 24/6 Coke:— Foundry coke 42/6 42/6 42/6 Blast-furnace coke (did. Teesside furnaces) ... 28/ 28/ 30/ Gas coke 32/ 31/ 26/6 s The outward freight market is stagnant, practically no tonnage offering ; rates rule firm and high. Several fixtures with coke for limitation ports reported, specially North France. Other fixtures are: London 19s. 6d., Monaco (neutral) 150s., Port Said 100s., and Barcelona reported at 105s. Middlesbrough-on-Tees. COAL. The fuel trade shows little change. A temporary addition to the inconveniences in the tonnage situation has been caused by delay to shipping in consequence of the storm, but prospects generally are better. It is stated that collieries are hesitating to enter upon forward business, because they are under State control, and what may occur in the future in this connection cannot be ascertained. Gas coal is dull, but deliveries continue on a fairly good scale. Best Durham gas coals keep about 25s., seconds are in the neighbourhood of 19s., and special brands are quoted up to as much as 29s. Bunker coal is abundant. Ordinary Durhams are 16s. 6d.; best, 19s.; and specials round about 24s. Household coal keeps steady and firm. Coking coal is quiet, though a good deal is being taken up near 19s. Demand for coke for local consumption continues heavy, and values of descriptions needed are well maintained. Thus the fixed maximum of 28s. at the ovens is realised for average blastfurnace kinds, and qualities low in phosphorus still command the limitation price of 30s. 6d. at the ovens. Foundry coke is 42s. 6d., patent 37s. 6d. to 40s., and gas something like 32s. IRON. There is no dearth of pig iron. The March allocations of Cleveland kinds to home consumers and to Scotland are heavy, but they are hardly sufficiently large to fully satisfy customers, and applications for further allocations are meeting with success, delayed shipments releasing, more iron for home purposes. Some delay in delivery is still caused by shortage of trucks. Most of the business now passing is for early delivery, but a few forward contracts are still being arranged, subject to any alterations in the official quotations. Export trade is quiet, but improvement is looked for. Enquiries on account of our Allies are good, and occasional efforts to do business on behalf of neutral countries are still being made. Under special conditions licences for despatch to Scandinavia are obtainable. For