1939: Mining Industry

The United States is the outstanding mineral-producing country of the world and normally contributes about one-third of the value of the world's output. Likewise it is the largest consumer of minerals, its annual requirements exceeding that of the British Commonwealth of Nations. It occupies a commanding position in the production of many of the important industrial minerals. In 1937, the United States ranked first in the production of petroleum, coal, pig iron, copper, lead, zinc, natural gasoline, cement, aluminum, molybdenum, gypsum, sulphur, phosphate rock, salt, and a variety of less important minerals. It ranked second in silver and fourth in gold. The domestic output of such essential raw materials as tin, manganese, chromium, tungsten, nickel, mica, bauxite, and asbestos, however, was below domestic needs, causing these minerals to be classified as 'strategic' or 'critical' by the Army and Navy Munitions Board.

The annual value of mineral production in the United States exceeded $1,000,000,000 for the first time in 1899. Thereafter it grew steadily and rapidly with extraordinary acceleration during the World War. The record value of $6,981,340,000 was established in 1920 by a combination of high rate of production and unusually good prices. The physical volume of production reached a peak in 1929 but owing to the lower prices prevailing in that year the value was only $5,887,600,000. The depression low of $2,461,700,000 was recorded in 1932 but by 1937 the total value had risen to $5,413,600,000 which was followed by a decline to $4,354,000,000 in 1938. Data for 1939 are not available but a substantial increase is indicated by increased industrial activity. The Federal Reserve Board index of mineral production (1923-25 average = 100) averaged 106 for 10 months of 1939 compared with 98 in 1938 and 114 in 1937.

Of the $4,354,000,000 produced in 1938 metallic minerals accounted for $891,800,000, fuels $2,804,700,000, and other nonmetallic minerals $657,500,000.

Domestic mineral production in 1939 responded to the increase in industrial activity which moved forward rapidly during the last quarter of the year following the outbreak of the European war. Production of crude petroleum advanced about 4 per cent despite a production holiday in August to relieve an excessive stock situation. Overall demand for oil increased about 7 per cent. Natural gas production probably increased less than 10 per cent. Anthracite and bituminous coal outputs were about 10 per cent higher and that of pig iron nearly 70 per cent. Copper, lead, zinc, and gold were produced in larger quantities in 1939 than in 1938 but silver production appears to have declined slightly. Substantial improvement in construction activity resulted in larger markets for building materials; shipments of portland cement, for instance, increased about 20 per cent.

Prices for mineral products, on the whole probably decreased slightly in 1939 as compared with 1938 owing to declines in crude petroleum and coal prices. Metal prices moved to higher levels during the latter part of the year when they were affected only moderately by the outbreak of the war.