124

THE COLLIERY GUARDIAN.

Joly 16, 1915.

latter, moreover, undertake to collect data for the
purpose of arriving at a basis price, where that is not
automatically forthcoming.

Criticism, however, does not stop at this point.
Clause 3(1) provides that

This Act shall not apply to any sale of coal for export,
or to any sale of coal for the manufacture of patent
fuel for export, or to any sale of coal to be used on
any ship.

Parenthetically, it may be observed that no reference
is made to coke. But, the strange thing is that this
clause seems to be completely at variance with the
recommendation of the Retail Prices Committee.
That Committee’s recommendation—with which we
do not by any means agree—was that steps should
be taken to curtail the exports of coal with the object
of placing increased supplies at the service of the
home consumer, and the institution of the export
licence system shows that it has met with approbation
in official circles. Of course, we can conceive that
the licence system is not proving altogether satis-
factory. Whilst it presumably has diverted a certain
quantity of fuel into other channels, this has only
been accomplished by a certain definite loss of trade ;
not only has the import trade suffered, but we learn
within the last few hours that collieries in South
Yorkshire and Derbyshire are to-day accumulating
stocks of steam coal and working short time, owing
to lack of orders. It must be obvious that, if prices
in the world’s markets continue to rise, in obedience
to the economic law and artificial expedients of this
nature, there will be every incentive for collieries to
sell coal abroad instead of conserving it for home use
at a sacrifice to themselves.

This case alone shows the pragmatical tangle in
which the Government have involved themselves.
The root basis fact is that there is a shortage of coal,
and no j uggling with prices will increase the supply;
that can be done alone by augmenting the productive
capacity of pits; the only alternative is to economise
consumption and discourage waste. This Bill does
neither: a catholic measure that does not take into
account the wide variation in conditions of working
and in conditions of sale, the uneven burden of costs,
the imperceptible graduation in quality, can only
tend organically to diminish activity; on the other
hand, it is obvious that the consumer is less likely to
economise under a regime of low prices than if he
had the continual dread of famine rates hanging
over his head.

We do hot pretend that nothing should be done
to avert this terrible spectre; on the contrary, any
advantage from an economic standpoint that may
arise from dear coal is insignificant compared with
the material hardship and injury that may spring
from it. If the owners of collieries have any quarrel
with the Government it is not over the spirit of the
Bill, but over its details. The Colliery Guardian for
many years has advocated the adoption of the
German Syndicate system in this country; that
system has not only given the consumer a much
wider choice of fuels, but has also tended to keep
prices within reasonable limits. Unfortunately, to
the characteristic insularity of the Briton is added a
habit of suspecting in every collective movement the
nucleus of a “trust” or “ring.” It is too late in
the day, perhaps, to organise such a system now,
but there can be no doubt that it would be the best.
means of meeting the situation.

As it stands the Bill will inevitably create the
impression with the man in the street that, if the
price of his coal is not limited to a 4s. advance, in
some illicit way he is, notwithstanding the Act, being
robbed by the colliery owner. He will overlook the
fact that he has also to pay for the increased cost of
transport, for the increased expenses of the merchant
and the itinerant vendor. Even now the Government
has placed no check upon the last-named element,
and it is a notable fact that in the transport
department, which is practically controlled by the
Government itself , and has been productive indirectly
of a very large proportion of the increased price of
fuel, it has not been considered necessary to invoke
the assistance of Parliament. The Board of Trade
itself took over the management of the interned
steamers, and speedily found that it had to modify
its easy doctrines in consonance with practical
conditions of trading—much to the disgust of the

“ experts ” on the Retail Prices Committee. The
Board found that it was impossible to follow the
thread of every business transaction.

At this stage it is interesting to see what our
friends and enemies have been doing. In France a
large proportion of the coal output has been requisi-
tioned by the State, and paid for three-quarters in
cash and one-quarter in Treasury bonds. Moreover,
the disposal of the remainder has been subject to the
consent of the Government, which has adopted two
means of procedure—viz., by requisition at a fixed
price, and by invitation to give preference—either at
market price or at rates to be settled by agreement—
to consumers whom the authorities consider should,
in the national interest, come first in the matter of
coal supplies. The fixing of requisition prices has
not raised any serious difficulties, according to the
Comite Centrale des Houilleres, but they state that
the interests of private consumers and manufacturers
are being sacrificed too much to those of the enter-
prises whose prime importance is undoubtedly in
connection with the national defence, but who are,
from their strength, geographical position, and the
profits they are making, better able to obtain supplies
from other sources. It has therefore urged the
Government to relax the system of requisition and
privileged consumption by degrees, and gradually
allow an approximate return to the normal freedom
of trading in coal.

On Monday, it was announced in Berlin that the
German Government was to assume control of the
whole coal industry. The form of procedure is that
the Federal Council has approved a proclamation
which will empower the State authorities to bring
the owners of coalfields together by compulsion in
associations which will control the whole production
and sale of the coal produced by their members.
It is laid down that all coalowners have to place their
output at the disposal of their association from the
time at which it begins operations. “ For the pro-
tection of public interests in face of the strong
economic influence which such a compulsory syndicate
of coalowners will have,” the State is given various
controlling rights. The State is to have what is
described as “a certain influence in the fixing of
prices,” and it is to appoint commissioners who will
take part, with voting power, at all meetings of the
coal owners, and can veto their decisions in accordance
with the laws, the new regulations, or even “ public
interests.”

The German Government evidently regard the
renewal of the Rhenish-Westphalian Syndicate as a
matter of the highest moment, because it affords the
possibility of providing for a certain stability in coal
prices, ‘4 in regard to which both the needs of the
industry and the just interests of the consumers will
be taken into proper account.” It is provided that
compulsion shall not be exercised in any district in
which before a given date a voluntary agreement is
reached by coal owners whose production amounts to
more than 97 per cent, of the whole production of
their district. The Berliner Tageblatt, commenting
on the scheme, contrasts the situation in England,
and says:—

The German Government has to deal only with a single
purveyor, who knows precisely the situation in the coal
industry, and can make his arrangements with almost
absolute precision. In a word, this secures with certainty
the proper supply of the needs of [war. The situation in
England, where there is no combination of the mines,
shows us how much less satisfactorily the system of coal
supply works in England than in Germany.

Several other points present themselves for con-
sideration. For example, is provision to be made
for further advances in wages, or does the Govern-
ment consider that the claims of the miners have
now reached their apogee ? Again, how is the
colliery owner to deal as between two customers—
one, say, in Birmingham, the other in London—when
he can only supply one ? Questions of credit and
transit facility may sway him one direction, whilst
the more urgent need may be in the other.

Under the circumstances we should advise the
collieries to sell no coal except on a pithead basis.
The best thing they can do is to mobilise their
wagons, even if it be too late to mobilise their
output, by arranging all sales through a central
agency. That, at least, would save trouble in the
end and would be to the advantage of the country.
In the meantime, we do not see how they are going
to satisfy the Government, whose object in the
abstract seems to be to compel them to sell what
they haven’t got.

THE COAL AND IRON TRADES.

Thursday, July 15.

Scotland.—Western District.

COAL.

There has been some improvement in the west of Scotland
coal trade since last report, and the market has developed a
much firmer tone. Splints are experiencing a better
enquiry, and it is expected that some good orders will be
placed soon, while business in ells is much brisker, and
some collieries are full up until after the holidays. Navi-
gations are still going away in satisfactory quantities, and
remain firm about 21s. to 23s. per ton, but ordinary steams
continue easy. Washed produce is again firmer, and the
outstanding feature in this department is trebles, which are
very well booked at present. Shipments from the district
continue heavy, and for the past week amounted to 132,301
tons, compared with 123,688 in the preceding week, and
117,168 tons in the corresponding week of last year.

Prices f.o.b. Glasgow.

Steam coal..............

Ell ....................

Splint..................

Treble nuts ............

Double do...............

Single do...............

Current |L’st week’s
prices, i prices.
14/ -16/9 13/6-16/6
15/3-15/6 15/ -15/3
15/ -19/ : 14/9-18/
16/9—17/3 16/9-17/
16/ -16/6 ; 15/9-16/3
16/3-16/6 , 16/3-16(6

Last year’s
prices.
10/9-12/9
11/3-11/6
11/3-14/6
11/ -11/6
10/9-11/
10/3-10/6

IRON.

No change of importance can be reported as yet in the
Scotch pig iron trade. New business continues slow, and
consumers are only inclined to purchase against their
immediate requirements. The works, however, are still
busy, [and large deliveries of haematite and ordinary
qualities are being made. There are 71 furnaces in blast
in Scotland, one less than in the preceding week, and two
more than at the corresponding date last year. Prices of
Scotch makers’ iron are unchanged, and are quoted as
follows :—Monkland, f.a.s. at Glasgow, No. 1, 80s. 6d., No. 3,
79s.; Govan, No. 1, 79s., No. 3,77s. 6d.; Carnbroe, No. 1,83s.,
No. 3, 79s.; Clyde, No. 1, 85s. 6d., No. 3, 80s. 6d.;
Gartsherrie, Summer lee, Calder and Langloan, Nos. 1,
85s., Nos. 3, 80s. ; Glengarnock, at Ardrossan, No. 1, 86s.,
No. 3, 81s.; Eglinton, at Ardrossan or Troon, No. 1, 80s.,
No. 3, 79s.; Dalmellington, at Ayr, No. 1, 81s., No. 3, 79s.;
Shotts, at Leith, No. 1, 85s., No. 3, 80s.; Carron, at Leith,
No. 1, 86s., No. 3, 81s. per ton. Owing to further with-
drawals from stores at the beginning of the week, the
Glasgow pig iron warrant market was considerably firmer,
and business was done up to 68s. per ton. Prices eased a
little again, but Cleveland iron closed at 67s. 6d. per ton,
cash buyers, showing a gain of 6d. per ton on the week.
The total turnover amounted to 12,500 tons. Stocks now
amount to 147,568 tons, compared with 78,597 tons at this
time in 1914. The various branches of the finished iron
trade are extremely active. Black sheet makers report that
the demand which had fallen off to some extent has
expanded very considerably again, and deliveries cannot be
guaranteed. The Glasgow warehouse price for 7 to 11 b.g.
is now about <£11 10s. per ton, less 5 per cent. Malleable
iron makers are also in a satisfactory position. Work is
plentiful, and several makers state that they are not in a
position to accept some of the new business offering.
Prices are unchanged.

Scotland.—Eastern District.

COAL.

The position of the coal trade in the Lothians is not
encouraging. Collieries are competing very keenly for any
business passing and values are declining. Clearances for
the week amounted to 41,566 tons, against 37,197 tons in the
preceding week and 124,617 tons in the same week last year.

Prices f.o.b. Leith.

	1 Current	L’st week’sLast year’s
	| prices.	prices. ! prices.
Best screened steam coal..	J 15/	16/ -16/6 ;	11/6
Secondary qualities		. 14/ -14/3	15/6-16/ :	10/6
Treble nuts 		16/6-18/	16/ -17/ j 11/6
Double do		J 16/ -16/6	' 16/ -16/6 ! 10/9-11/
Single do			.| 16/ -16/3	16/ -16/6 | 10/6-10/9

Conditions in Fifeshire are also disappointing. The
position at the beginning of this month was very firm,
but the licensing difficulty has completely upset the
calculations of the collieries and exporters, and quotations
have declined considerably. Navigations are still strong,
but other qualities of round coal have suffered considerable
depreciation. Smalls, however, continue steady at fairly
firm rates. The shipments for the past week were about
the average, meantime, and amounted to 71,537 tons, com-
pared with 73,831 tons in the preceding week and 120,969
tons in the corresponding week of last year.

Prices f.o.b. Methil or Burntisland.

	Current  1 prices.	L’st week’s’Last year’s	
		prices.	prices.
Best screened navigation			
coal		24/ -25/	24/ -25/	15/9-16/
Unscreened do		22/ -23/	22/ -23/	14/
First-class steam coal		17/9-20/	18/6-20/	12/6—12/9
Third-class do. 		13/9-16/	14/ —16/	! 10/ -10/3
Treble nuts 		17/6-18/6	16/6-17/6	11/ -11/9
Double do		16/ -x.76	16/ —17/	10/9-11/3
Single do		16/6-17/	15/6-16/6	10/3-10/6

The aggregate shipments from Scottish ports during the
past week amounted to 245,404 tons, compared with 234,716
in the preceding week, and 362,754 tons in the corresponding
week of last year.