The Economic Aspect of Geology Part 40

2. Larger use of smoke consumers and mechanical stokers.

3. Larger use of central heating plants, with higher efficiency than many local plants.

4. Subst.i.tution of gas engines for steam engines, and improvement of the steam engine.

5. Improvement in methods of smelting, leading to larger output of metal per ton of c.o.ke used. Also the development of electric smelting for certain metals.

6. More careful study and cla.s.sification of the qualities of coals, in order to avoid use of higher-grade coals where inferior coals would serve the purpose.

7. More consumption at the collieries.

8. Larger use of powdered coal as fuel.

9. Improvement of force-draft furnaces.

10. Larger use of gas, a by-product of coal mining, and extraction of other by-products.

11. More efficient transformation of peat and coal into power and light.

12. The possible use of oil flotation to eliminate foreign mineral matter.

Most of the conservation measures above proposed have already been applied with good results, and with promise of large results for the future. The stimulus has come largely from self-interest. War conditions in some ways aided and in others hindered these developments. One of the conspicuous gains was the building of many by-product c.o.ke plants, under the necessity of securing the nitrates and hydrocarbons for munition and other purposes.

=(F) Subst.i.tutes for coal as a source of power.= Some of the more prominent measures along this line which have been discussed are:

1. Larger use of water power. This has sometimes been popularly a.s.sumed to be, at least potentially, a complete solution of the problem; but nevertheless it has its distinct limitations.

Water power has the advantages that its sources are not exhausted by use, and that the relatively greater initial cost of a hydro-electric plant is frequently more than compensated for by the saving in man power required and by the lower operating expense. However, the total amount of water power which can be developed on a commercial basis is rather closely limited, and much of the available power is so distributed geographically that it cannot be economically supplied to the industries which need it. Of the total water-power resources of the United States which have been estimated by the Geological Survey to be available for ultimate development, over 70 per cent is west of the Mississippi,--whereas over 70 per cent of the horse-power now installed in prime movers is east of the Mississippi. Electric power cannot at present be economically transmitted more than a few hundred miles. Furthermore, for many uses of coal, as in metallurgical and chemical processes which require the heat or reducing action of burning coal, and in its use as fuel for ships, hydro-electric power cannot be subst.i.tuted. It seems clear that while the use of water power will increase, particularly as rising prices of coal make possible the development of new sites, it can never take the place of the mineral fuels in any large proportion.

For the immediate future, measures which have been suggested to extend the use of water power include: the more complete utilization of water powers already in use through more efficient machinery and methods; a certain degree of redistribution of industries, so that those requiring large amounts of power may be located in areas where water power is cheap and abundant; and the interconnection of hydro-electric plants so that their full capacity may be used. Some water powers which have been developed are not being fully utilized because the plants are not connected with distribution systems large enough to use all the power.

During the war the United States Geological Survey, in cooperation with the Fuel Administration and the War Industries Board, collected the information required to prepare maps showing the locations and relations of power stations and transmission lines throughout the country. This survey of the situation showed many possibilities, which had before been but vaguely realized, of interconnections which would increase the efficiency of the plants.

2. Subst.i.tution of lower-grade coals--of bituminous for anthracite, and of low-grade bituminous for high-grade bituminous coals. Larger use of low-grade western coals. War and post-war conditions have shown Germany the way to a wide and effective use of its lignites. This has been accomplished by cooperation of the government and private interests.

This vast improvement in methods of treatment and recovery of heating elements and by-products will doubtless have a widespread effect on utilization of lignites in other parts of the world.

3. Subst.i.tution of alcohol and natural gas, oil, oil shales, peats, etc., as a source of power. This merely concentrates the conservation problem more largely on these minerals, in some of which, at least, it is already considerably more acute than in the case of coal; it is not a solution of the problem, but merely a shifting of emphasis.

Business conditions have limited private enterprise in this cla.s.s of measures, but some progress has been made. More rapid introduction of these measures would require sacrifice of private interest and probably may be accomplished only by application of public power.

DIVISION OF RESPONSIBILITY BETWEEN GOVERNMENT AND PRIVATE INTERESTS IN THE CONSERVATION OF COAL

A review of the conservation measures above listed indicates that many of them are already in operation, and that the initiative for such measures has been largely supplied by private ownership endeavoring to advance its own interest. In this category are to be included most of the improvements in physical methods of mining, preparation, and utilization of coal, the use of subst.i.tutes for coal, the concentration of control into larger groups better able to introduce new methods, and the improvement of labor and living conditions; also, under recent conditions, the increase in selling price, allowing for a wider application of these measures. Another group of conservation proposals, which have not yet been put into substantial effect, are obviously beyond the power of private interests; and must be introduced, if at all, by the application of government power. These include the elimination of resource or royalty costs, the control of over-capitalization, the removal of restrictions on concentration of control, the granting of permission for cooperation among compet.i.tive units, the regulation of selling price minimums in order to insure during normal times the use of better physical practices, and the control of distribution. In short, it appears that there are two great spheres of conservational activity--one within the field of private endeavor, and the other possible only by collective action through the government. The princ.i.p.al advances thus far made have been in the field of private endeavor.

The government has aided greatly in the advancement of conservation measures arising within the field of private endeavor. One need only refer to many governmental investigations, to the spreading of information as to best methods, and to local compulsory requirements that the best practices be made uniform and that backward interests thereby be brought into line.

Recognition of the fact that there is a large body of sound conservational practice in the coal industry which falls within the range of self-interest seems essential in planning further changes in the direction of conservation. Conservational measures do not all require sacrifice of the individual to the public, nor of the present to the future generations. An exercise of public power is not in all cases essential to the advancement of conservation. The respective limits of the fields of public and private endeavor are not sharply defined, and vary from place to place and time to time, depending upon local conditions and special requirements.

In general, the sphere of private interest includes measures which will bring adequate commercial return. The interest rate is the limiting and controlling factor. When it is possible--by improvement of methods of mining, better planning, better preparation of coal, better transportation and distribution, or better utilization--to secure a larger average return on the investment, or to insure return through a longer period of years, self-interest naturally requires the introduction of such methods as rapidly as financial conditions allow.

Even some of the improvements in labor and welfare conditions have been introduced in this way, with a view to securing a more permanent and more efficient labor supply, and thereby aiding the enterprise from the commercial standpoint.

Within the sphere of government activity lie the removal of unnecessary restrictions on private initiative, and such conservation measures as involve some sacrifice of individual returns--in other words, a reduction of the normal interest rate. Exercise of government power may be directly helpful within the field of private endeavor without materially sacrificing private interests; but beyond this point there are additional large possibilities of conservational activity which are clearly beyond the control of private interests. The introduction of any of these latter changes would evidently be so far-reaching in effect, and would require such broad readjustments not only within but without the mineral industry, that the necessity or desirability is not in all cases so clear as in the case of measures already introduced for private interest.

The most obviously helpful step possible to the government in the immediate future is to permit cooperative arrangements under private ownership,--which would make it possible to use common selling agencies, thereby reducing the cost of selling; to divide the territory to be served, thereby avoiding excessive cross freights; and to allot the output in proportion to the demand from various territories, thus eliminating excessive compet.i.tion and over-production. All of these measures could be accomplished without detriment to the public if properly regulated by the government. The very large saving possible by this means would allow the introduction of conservational methods at the mines without raising the cost to the public.

War conditions required even more immediate and sweeping application of government power than above indicated, but conservational purposes were quite overshadowed by other considerations.

Where the mineral resources are already owned by the government, or can be acquired by the government, some of the troublesome factors in the problem are removed. In such cases it is possible to work out an intelligent plan for government control without the difficulties which arise in dealing with private ownership,--although, of course, new difficulties are introduced (see also pp. 345-347.)

The fact that there are conservational measures possible only to governments has been widely used as an argument for introducing government ownership or control. Recent vigorous demands for the nationalization of natural resources in Europe, and the increasing discussion of the subject in this country, may be regarded as phases of the conservation problem. It is not the purpose here to argue either for or against the drastic exercise of government power in the conservation of natural resources, but merely to call attention to the measures which are being discussed.

CONSERVATION OF MINERALS OTHER THAN COAL

The discussion of conservation as applied to specific minerals might be extended almost indefinitely; but perhaps enough has been said to indicate the general nature of the field. Before the war careful estimates of world supplies had been made for comparatively few minerals, although these included some of the most important, such as coal, oil, and iron. War conditions required a hasty estimate of world reserves of most of the mineral products. The reader interested in the problem will find an extremely interesting body of literature issued by the various governments on this subject. Of especial interest to the American reader will be the reports of the U. S. Geological Survey and of the Bureau of Mines.

In recent years there has been increasing recognition of the possibilities of conservational saving by concentration, refinement, and even manufacture of mineral commodities at or near the point of origin,--thus lessening the tonnage involved in transportation of the crude products. Limitations of fuel and other conditions often make this procedure difficult; but considerable progress is being made both through private initiative and, especially in international trade, through governmental regulations of great variety.

FOOTNOTES:

[42] Campbell, M. R., The coal fields of the United States: _Prof. Paper 100-A_, _U. S. Geol. Survey_, 1917, p. 24.

[43] Final report of the Royal Commission on coal supplies: House of Commons, London, vol. 16, 1905.

[44] Report of the National Conservation Commission: Senate Doc.u.ment No.

676, 60th Congress, 2d session, Govt. Printing Office, Washington, 1909.

[45] Van Hise, C. R., _The conservation of natural resources in the United States_: Macmillan Co., New York, 1910.

[46] Haas, Frank, The conservation of coal through the employment of better methods of mining: Abstract of paper presented to Pan-American Scientific Congress, Washington, Dec., 1915-Jan., 1916.

[47] Adams, Frank D., Our mineral resources and the problem of their proper conservation: _6th Ann. Rept., Commission of Conservation_, _Canada_, 1915, pp. 52-69.

[48] Chance, H. M., Address before the mine engineering cla.s.s of the Pennsylvania State College, Quoted by F. W. Gray, The conservation of coal: _Bull. 47_, _Can. Mining Inst._, 1916, p. 201.

[49] _Loc. cit._

[50] Campbell, M. R., and Parker, E. W., Coal fields of the United States, Papers on the conservation of mineral resources: _Bull. 394, U.

S. Geol. Survey_, 1909, p. 12.

[51] _Loc. cit._ p. 12.

[52] Smith, George Otis, and Lesher, C. E., The cost of coal: _Science_, vol. 44, 1916, p. 768.

[53] _Loc cit._, pp. 768-769.

[54] _Loc. cit._, p. 771.

[55] Van Hise, Charles R., _Cooperation in industry_, pp. 7-8, Address given before annual meeting of the National Lumber Manufacturers'