Korean conflict benefits base metals

Commodities closely associated with the Far East have been soaring in price. Tin has risen 15 since the Korean affair started.

Meanwhile, the Chinese have cut off shipments of tungsten to the United States, and, several months ago, Russia sent North America its last shipment of manganese. Experts say that, by the end of the month, both copper and zinc will be higher than the present prices of 22.5 and 15, respectively.

The topic of the hour in business circles is whether the federal government will freeze prices, as they did during the Second World War. A few commodities, such as tin and rubber, are already getting out of hand. Tin at 95 is comparable to the war-frozen price of $1.03 per pound. There is also talk of rationing metals so that the military can get what it requires. Three metals — nickel, copper and zinc — are already being rationed, albeit on a voluntary basis.

The intervention of the United States in the Korean conflict in late June has halted the international decline of gold prices.

Demand for the yellow metal immediately increased in Hong Kong, Macao, Beirut, Tangiers and Paris. Hoarders, especially in the Far East and Western Europe, are buying coins and small bars in steadily increasing quantities. Dealers, aware that a “new gold era” would result from an armed conflict, are reluctant to sell their stocks. Smugglers who had gone out of business have begun to prepare their new operations.

Should the present conflict spread beyond Korea, the confidence in paper currencies would diminish immediately and push gold-hoarding far above Second World War levels.

A bright and shiny future appears assured for Golden Manitou Mines as a result of new ore findings at depth. Expanding conditions below the 1,140-ft. horizon in the main Manitou shear zone, in Bourlamaque Twp., Que., have about doubled the mine’s ore potential.

The mine’s success is attributable to several factors. A high price for zinc, together with excellent silver production and a mill operating capacity of 1,000 tons per day, is establishing a high level of earnings — a level that shows no signs of diminishing. Zinc production is already being sold into the final quarter of this year.

The price rise among base metals has brought about a quick change in the earnings outlook. At the current level of production, an operating profit of $1.2 million will be shown for the full year. Value of production for the first six months was $1.2 million, with costs totalling $794,343, for an operating profit of $395,292.

“When this button is pushed, it will signify the end of power shortages in Ontario,” said Robert Saunders, chairman of the Hydro-Electric Power Commission, at the opening of the massive Des Joachims plant on the Ottawa River.

Completed in record time, at a cost of $75 million, the dam will feed the rapidly growing demand for power in Ontario, especially in the mining district of the northeast. The new plant is ideally situated to help relieve the power shortages that have crippled northern mines over recent years.