need production has not been maintained at even the pre-war level. This situation has been due in large measure to labor disturbances and disorganization of transportation facilities induced by war conditions. The British Government has been forced to place export restrictions on the coal trade and take other arbitrary measures to control supplies, but these efforts to alleviate the coal shortage have neither increased production adequately nor kept the price of fuel from going to phenomenal levels. The figures in the following table show the general situation of the coal industry in the United Kingdom in the years 1912 to 1918: 1 Annual (and Monthly) Statements of Trade of the United Kingdom. 3 A more recent report gives the 1918 production at only 226,700,000 tons. According to the above data the export coal trade in 1917 declined to less than 50 per cent of the trade for 1913. Putting this fact in another way, it may be said that, in 1913, 70 per cent of the coal produced was absorbed by domestic consumption and 30 per cent was exported; in 1917, 86 per cent was retained and 14 per cent exported. This decline has just about compensated the smaller production, so that the amount available for domestic consumption remains fairly constant for the period under consideration; but there has still been a serious shortage in view of the increased needs for coal. Although conditions have been changed by the cessation of hostilities, the coal situation is still alarming, according to current reports. Stocks held by leading railroad companies and other large consumers of coal are unusually low, and great care must be taken in distributing supplies for a few months at least if the essential needs of the coal consumers dependent upon the United Kingdom's output are to be met. There is a considerable trade in coke, figures for which are not included in the above table. In 1912 the imports of coke (including a small item of other manufactured fuel) totaled 55,719 tons. Exports for the same year amounted to 2,591,501 tons. In 1913 the net exportation was 3,273,036 tons. This export trade has been about maintained during the war. The production of coke in the United Kingdom in 1913 totaled 20,529,732 tons.1 1 See p. 26 of report of Coal Conservation Subcommittee (British). 119025-19 -3 The following table shows approximately the disposition of the coal production of the United Kingdom in 1913:11 THE DISPOSITION OF THE UNITED KINGDOM'S COAL PRODUCTION IN 1913. No data are available to show just how this distribution of coal supplies has varied during the war. The larger amounts required to bunker merchant and naval vessels and to supply essential industries have necessitated sharp reductions in the amounts consumed for "domestic" purposes and by nonessential trades and industries. Coal is of fundamental importance in furnishing the power of the United Kingdom. Of the total engine capacity in the United Kingdom over 90 per cent (9,354,532 horsepower in 1907, for example) depends upon coal. The gas and oil consuming horsepower is about 7 per cent of the total, while water power supplies less than 2 per cent of the total engine capacity. Of the dynamos in the United Kingdom about 95 per cent are driven by coal-burning engines. These data are taken from a report of the Coal Conservation Subcommittee organized under the Ministry of Reconstruction, which deals especially with a possible reorganization and development of the electric power plant of the United Kingdom with a view to conserving the consumption of coal. There have been important changes in the direction of the coal trade during the war. The following table gives the exports of coal from the United Kingdom to France, Italy, and Germany for the years 1912-1918 (by percentages): THE DIRECTION OF THE EXPORT COAL TRADE.1 1 See report of Coal Conservation Subcommittee (British), p. 6. 2 This computation gives a figure smaller by 4,000,000 tons than the actual output for 1913. 3 A very small amount of power is generated by natural gas. The production of natural gas in 1916 was 85,000 cubic feet, a negligible amount. Before the war Germany received from 8 to 9 million tons of coal per year from the United Kingdom; this trade has, of course, disappeared during the war. The amount going to Italy has been cut from 9,000,000 tons in 1912 to 4,000,000 tons in 1917, although the percentage of this trade to the total remains about the same. France received from 10 to 12 million tons of British coal in 1912-13. There has been a considerable increase in this trade to 17,500,000 tons in 1917, or 50 per cent of the total exports for that year. The exports to Russia and Sweden amounted to from 4 to 5 million tons annually to each country before the war, and a large part of this trade has ceased. Norway, Denmark, and the Netherlands, and Argentina and other South American countries formerly received important quantities of coal from the United Kingdom, but this trade also has been cut down sharply under war conditions. The British are expecting to be able to regain much of this commerce, however, after the conclusion of peace, although American competition in the South American markets is reported to be causing some anxiety in British coal circles.1 With respect to mineral oils, the United Kingdom depends almost entirely upon outside countries for its supplies, as was stated in the preceding section. The extent of the trade in these commodities for the years 1912 to 1918 is shown in the following table: 1916 1917 1918 Imports. Exports. Imports. Exports. Imports. Exports. 1 Annual (and Monthly) Statements of Trade of the United Kingdom. According to the above figures the total imports of mineral oils have increased from 412,000,000 gallons in 1912 to well over a billion gallons in 1918. The changes in individual items are interesting. Imports of motor spirits have increased about 100 per cent in 1918 as compared with 1912. The figures for lubricating oils show 1 See report of the "Departmental Committee appointed by the Board of Trade to consider the position of the coal trade after the war," 1918. a growth in this trade of about 50 per cent. Imports of gas oil increased somewhat in 1915, but fell off in 1917-18. The most striking development is the very sharp increase in the receipts of fuel oil in the past two years; and it is this change in the oil trade which largely accounts for the variation in totals mentioned above. In 1918 imports of fuel oil were over 1,700 per cent of the 1912 total and 900 per cent of the 1913 figure. The need for fuel oil in industry and as ship fuel under war conditions has been responsible for this development. The following table shows the direction of the import trade in mineral oils for the years 1912-1918 by leading countries of origin: THE DIRECTION OF THE IMPORT MINERAL-OIL TRADE.1 1 Annual (and Monthly) Statements of Trade of the United Kingdom. This table shows that under war conditions the United States has come to be the principal exporter of mineral oils to the United Kingdom. Before the war the United States led in the exportations of kerosene, lubricating oil, and gas oil. In 1917 the figures show the United States to be the principal exporter in each case, with no other countries even a very close second. In addition to the countries named, British India before the war exported about 11,000,000 gallons of motor spirits to the United Kingdom, and about 4,000,000 gallons came from Dutch Borneo. In 1917 British India furnished 20,000,000 gallons, Dutch Borneo 27,000,000, and Mexico about 10,000,000 gallons of motor spirits. It is noticeable that the important mineral oil trade with Roumania has ceased since 1914. The trade in crude petroleum is small and is not shown in the above table. In 1913 importations of crude amounted to something over a million gallons, and in 1914 there was the unusual amount of about 15,000,000 gallons received. Since that date the receipts of crude petroleum have been insignificant. This indicates a small oil-refining industry in the United Kingdom. The only mineral oil produced in the United Kingdom is secured by the reduction of the oil shale mined from the shale beds of Scotland. About 3,000,000 tons of shale is produced each year, furnishing from 70 to 80 million gallons of oil. This means that the United Kingdom is dependent upon the outside for 85 per cent of her normal petroleum requirements. Recently there has been a good deal of discussion as to the possibilities of developing a petro leum industry in England. Lord Cowdray has offered a large sum for experimental purposes, and has secured the services of American oil experts in locating oil deposits and in doing the preliminary drilling. Thus far this matter is entirely in an experimental stage, and it is impossible to predict what effect it may have upon the British oil trade. In spite of the great increase in importations, particularly of fuel oil, it has been necessary for the Government to control stocks and to ration gasoline and other similar commodities very rigidly in order to insure an adequate supply of fuel oil and petrol for the naval and merchant fleet, the motor vehicles used for military purposes, and the aeroplane service. The Journal of Commerce in the issue of November 22, 1918, prints a report concerning oil stocks in the United Kingdom. According to this report (from Lord Curzon) the stocks of oil in 1916 fell below 1,500,000 tons, which is regarded as a minimum safety requirement, by 700,000 tons. The report stated that after strenuous efforts these stocks were increased by the fall of 1918 to 1,800,000 tons and that the present and prospective situation was satisfactory. IRON AND STEEL. As was stated in the introductory section, the United Kingdom occupies a strong position in the iron and steel industry. Much of the domestic ore is of relatively low grade, yielding only about 30 per cent pig iron, but because of the convenient conjunction of iron and coal, iron mining and smelting has long been an important industry in the United Kingdom. About two-thirds of the ore smelted in the United Kingdom is domestic and one-third imported, chiefly from Spain. The imported ore has a much higher average metal content, however, so that the production of pig iron from imported ore amounts to about half the total British production. The trade and production figures for iron and steel for the years 1912-1918 are shown in some detail in the following table: THE TRADE AND PRODUCTION OF IRON AND STEEL. 1 Annual (and Monthly) Statements of Trade of the United Kingdom. 2 From Mineral Industry during 1917, p. 895. 8 No data. 4 Statistical Abstract of the United Kingdom. 5 From Iron Trade Review, issue of Jan. 2, 1918. |