C. K. Leith

“ It is true that many of the economic applications of geology are so new and so constantly changing that they are not yet fully organized on a scientific basis; but this fact is merely an indication of the lag of science, and not of the absence of possibilities of developing science in such directions. There is today a considerable tendency among geologists of an academic type, whose lives have been spent in purely scientific investigation and teaching, to assume that anything different from the field of their activities is in some manner non-scientific, and therefore less worthy. ”

“ An agreement for international coöperation in such matters, therefore, is not to be regarded as merely a cold-blooded attempt to rob weaker nations,—but rather as a means of improving methods in satisfying the actually existing material demands of civilization. For illustration, the criticism of England's attempt to develop the oil industry of Mesopotamia and Persia has to a large extent confused the methods with the aim sought for. ”

“ This topic brings up the question as to the right of any nation or group of nations to exert any force on weaker nations in the exploitation of mineral resources. On the principal of self-determination and of the complete freedom of action of nations, this procedure seems unjustified. On the other hand, whether rightly or wrongly, civilization has created great material demands which must be satisfied. The individuals, companies, and governments which use force to exploit resources in weaker countries are merely the agents in supplying the demand created by all of us. ”

“ Of all the mineral commodities, gold has played perhaps the most important and certainly the most romantic part in the world's history. The "lure of gold" has taken men to the remotest corners of the globe. ”

“ In view of the fact that it is impossible for any one institution to cover all phases of applied geology, because of lack of time, and in view of the fact that even if this were attempted the results would be very unequal, because of the varied experience of teachers or because of geographic location, it would seem wise definitely to recognize these limitations and for each institution to play up the work it can do best. With freedom of migration among universities, a student by moving from place to place can thus secure any combination of specialized courses which best fits his requirements. ”

“ Nature has clearly marked out fields of specialization for different localities, and the effective use of mineral supplies is just as much a matter of specialization as the effective use of man's talents. If the United States, because of its vast copper deposits, is in a position to specialize in this line and to aid the world thereby, this should involve recognition of the fact that other countries are better able to specialize in other commodities,—thereby forming a basis for mutual exchange, which is desirable and necessary for world development. ”

“ The world is the geologist's laboratory; it is the only limit to his activities. The frontiers are near at hand, both physically and intellectually. There are few fields so attractive from the scientific standpoint. There are few in which the successful prosecution of the science can be of so much direct benefit to civilization and can yield such large financial rewards. If, in addition, the opportunities for travel and adventure are taken into account, what profession promises a more interesting and useful life?
So far we have discussed geology as a profession. ”

“ To some tax officials an ore is an ore, more or less regardless of situation, of conditions of mining, of the demand for the product, and of the time when the demand will allow the ore to be mined,—in short, more or less regardless of what the ore may be made to yield as a going business. In this way heavy taxes are sometimes imposed on mineral reserves, which are based on unwarrantably high appraisals of future possibilities, and which cannot be paid out of earnings. ”

“ The argument that high taxes inhibit exploration is good only beyond the point where the industry itself becomes no longer profitable. If there is sufficient demand for the resource, it is obvious that such a condition cannot long continue; for, as production and the development of reserves fall off, the resulting increase in the price received for the product is likely to offset any effect of taxes, and to restimulate production and exploration. ”

“ In short, to enter successfully the field of economic geology one should first become a scientist, if only in a limited field.
The traditional conception of the geologist as a musty and stooped individual, with a bag, hammer, and magnifying glass, collecting specimens to deposit in a dusty museum, will doubtless survive as a caricature, but will hardly serve to identify the economic geologist in his present-day work. ”

“ In some respects, the marketing of different grades of iron ore is as complex as the marketing of a miscellaneous stock of merchandise. With ores, as with merchandise, custom and sentiment play their part,—with the result that two ores of identical grade mineralogically and chemically may have quite a different vogue and price, simply because of the fact that furnace men are used to one and not to the other and are not willing to experiment. ”

“ It might be better for posterity to have the product of our energy multiplied into raw material than to have the raw material itself. The valuation of these two major elements of conservation is again almost impossible of quantitative solution. We do not know what is the best result to be aimed for. We cannot foresee the requirements of the future nor the end toward which civilization is moving—or should move. The extravagance of the United States is often contrasted unfavorably with the thriftiness of Europe. ”

“ Whatever action may be taken by the United States in regard to international mineral questions, it is clear that the war has brought this country into such world relations that it has become imperative for us to study and understand the world mineral situation much more comprehensively than before,—in the interest not only of intelligent management of our own industries, but of far-sighted handling of international relations. ”

“ The approach to the problem of exploration is very often determined by local requirements and conditions; but if one were to come at the problem from a distance and to keep matters in broad perspective, the first step would be a consideration of what might be called the economic factors. Let us suppose that the geologist is free to choose his field of exploration. An obvious preliminary step is to eliminate from consideration mineral commodities which are not in steady or large demand and are much at the mercy of market conditions, or which are otherwise not well situated commercially. ”

“ In estimating the total reserves in a mine, geological considerations nearly always play a large part. An ore body may in some few cases be completely blocked out by underground work or drilling, eliminating the necessity for inferring conditions beyond those actually seen; but in the huge majority of mineral deposits the reserves are not so definitely known, and it becomes necessary for the geologist, through knowledge of similar occurrences, through study of the structural features of the deposit, its origin, and its history, to arrive at some sort of an estimate of reserves. ”

“ If it is right to apply science to practical affairs, in other words, if the profession of economic geology is a legitimate one, it seems inevitable that the application must be in some part directed by the geologist himself, in order to avoid mistakes and confusion. The contention that the scientist must isolate himself in a rarified atmosphere to avoid contamination from a non-scientific, commercial, or legal atmosphere, seems to the writer practically untenable, if we recognize any obligation on the part of science to the practical conduct of human affairs. ”

“ If the general investor were to give more attention to these methods he would doubtless save himself money, and the mineral industry would be rid of a great incumbrance of parasites who live on the credulity of the public. To anyone familiar with the mineral field, it is often surprising to see the rashness with which a conservative business man, who would not think of entering another industrial field without close study of all the factors in the situation, will invest in minerals without using ordinary methods of analysis of values. ”

“ Throughout the history of the iron and steel business there has been a marked tendency for the iron ore to move to regions of coal production rather than for the coal to move to the iron ore regions. The coal or energy factor seems ultimately to control. This is due in considerable part to the fact that coal furnishes the basis of a great variety of industries for which iron ore is only one of the feeders, and which are so interrelated that it is not always easy to move the iron and steel industry to a spot near the sources of iron ore where iron and steel alone could be produced. ”

“ Notwithstanding the immense economic importance of water as a mineral resource its value is more or less taken for granted, and considerations of valuation and taxation are much less in evidence than in the case of other mineral resources. Water must be had, regardless of value, and market considerations are to a much less extent a limiting factor. Economic applications of geology to this resource are rather more confined to matters of exploration, development, total supply, and conservation, than to attempts to fix money value. ”

“ It is our purpose further to bring home the fact that international coöperation in the mineral field is not merely an academic possibility, but that in many important ways it is actually in existence. The terms of the Peace Treaty alone have far-reaching consequences to the explorer or mining man in all parts of the world. The modifications of these terms, which are inevitable in the future, will not be of less consequence. It is necessary not only to know what these are, but to aid in their intelligent formulation. ”

“ While applied phases of the geologist's work may be truly scientific in the broader sense, it is undoubtedly easy in this field to drift into empirical methods, and to emphasize facility and skill at the expense of original scientific thought. The practice of geology then becomes an art rather than a science. ”

“ In forming any estimate of mineral deposits beyond the ground immediately opened up,—for instance, in estimating depth, form, change in values, mineralogical character, or interruptions due to faulting,—it is difficult to form any intelligent conception of the probabilities unless the history of the deposit is understood. If, for instance, the ore is known to be formed by hot waters, associated with the cooling of igneous rocks, different conditions are to be expected below the zone of observation than if the ore is formed by surface waters. ”

“ The war-time necessity of making our country as nearly self-sustaining as possible does not seem to obtain in peace times. To carry that principle to an extreme means not only the expensive use of low-grade domestic supplies, but the elimination of the imports which are so necessary to balance our export trade.
These facts also raise the question as to how far the United States is justified in exploiting the rest of the world to add to its already great preponderance of control,—as, for instance, in copper. ”

“ Where mineral reserves are developed too far ahead of demand, the interest on the investment piles up an economic loss to be charged against the industry. It may be assumed that the urge for exploration will continue as long as there is demand for mineral resources; and that, to keep the industry on a sound basis, a certain amount should be set aside and charged to cost for the purpose of keeping up reserves in a proper ratio to production. Much remains to be learned about the most desirable ratio between reserves and production. ”

“ Economic applications of geology are by no means confined to mineral resources (including water and soils) . The earth is used by the human race in many other ways. Human habitations and constructions rest on it and penetrate it. It is the basis for transportation, both by land and water. Its water powers are used. In these various relations the applications of geology are too numerous to classify, much less to describe. ”

“ For instance, to the extent to which the estimate of ore reserves is doubtful, it is necessary to use a high rate of interest to allow for this hazard. In a large, well-developed mineral deposit, with the geological factors all well known and the demand and market well established, it is reasonable to use a lower rate of interest. In general, the mineral industry is regarded in financial circles as being more hazardous than many other industrial lines; and money is put into the industry with the expectation of a high rate of interest, no matter how safe the investment may be. ”

“ In adapting ourselves to physical environment it has been necessary to learn something about the earth. Mainly within the last century has this knowledge been organized into the science of geology, and only within the last few decades have the complex and increasing demands of modern civilization required the applications of geology to practical uses, resulting in the development of the science generally known as economic geology. This science is not sharply marked off from the science of geology proper; almost any phase of geology may at some time or some place take on its economic aspect. ”

“ The participation of governments in world mineral trade, when not modified by international coöperation or some other higher form of control, seems to be having a tendency in the opposite direction—to be closing the doors of equal opportunity and preventing the natural world use of the world's resources. ”

“ Thus, while there are sources of silver in many places, the great bulk of the world's output comes from North America. In the financial ownership of mines, including ownership in other countries, the United States controls over half the world's silver, Great Britain about a third, and Germany about a tenth (principally in Mexico) .
All the silver mined in the United States is smelted and refined by domestic plants; and in addition much of the Canadian, Mexican, and South and Central American silver is exported to the United States as ore and base bullion, to be treated in this country. ”