refiners
to Russia, but up to the present it has evidently failed of its
purpose. The passage of this law has finally put an end to the question
of a government monopoly of platinum mining.
Soon
after the beginning of the war the Eussian Government issued an order
forbidding the exportation of raw platinum hi quantities valued above
500 rubles ($257.50). It was apparently believed that these two
measures would result in the establishment of refineries in Russia.
This expectation was not realized, according to a recent consular
report,1 which comments under the heading, " Russian gold and the platinum situation," as follows:
At
the meeting of the Russian Export Chamber on May 11, 1915, a report was
presented on the work of the newly organized bureau for the gold and
platinum industries, which has over 20 members. Some time ago an order
was issued forbidding the exportation of raw platinum in quantities
valued above 500 rubles ($257.50), in order that domestic refineries of
the metal might be encouraged. However, not a single refinery has been
opened, and the producers of platinum now have the metal on their hands
and are unable to sell it. They have requested the bureau to find out
whether or not sales of platinum might be organized in the United
States. In case of an affirmative answer, the producers will ask for a
modification of the embargo.
On
the other hand, there can be little question that large stocks of crude
platinum have accumulated in the Russian centers, particularly
Petrograd and Ekaterinburg. An interesting side light on this situation
is given in the London Mining Journal:2
The
situation created by the present war would have formed an excellent
opportunity for British platinum buyers to start an indirect business
in the Urals—i. e., buy direct from the Russian producers. To
thoroughly understand the full advantages of this exceptional occasion
it must be remembered that up till the war the French-company
(Compagnie Anonyme) always had a predominating interest in the
platinum business, which practically amounted to a monopoly, having
entered into agreement with the chief big producers for the exclusive
purchase of their ware, besides being large producers themselves. Since
the outbreak of the war, however, the French company have naturally
been unable to meet their obligations of purchase, with the result that
their former clients have been obliged to resort to the only way out of
the difficulty, viz, mortgage their ore with the banks here. If a
strong British organization was to come along provided with sufficient
financial strength, there is little doubt but that it could take up a
monopolizing position in the platinum industry of the Urals, and it
must he remembered that such a monopoly really means being in a
position of dictating prices. The greatest difficulty, however, would
seem to be the flatness of the demand on the markets abroad; however,
owing to the reduced prices prevailing here now, a strong financial
group could well afford to wait till better times for selling their
ore. One thing is. however, certain, and that is that if the British do
not make a bold move while they have the opportunity there is no doubt
that after the war the possibility of getting a firm footing and direct
business with the producer here will be lost, and they will again have
to depend on buying refined platinum at an enhanced price in Paris.
The price prevailing now for small quantities of platinum ore—i. e., from the small producers—is between 8 rubles3
and 8.50 rubles per zolotnik on an 83 per cent basis platinum, * * *
but all the available platinum at this price is being bought up by
local speculators, who are reselling to Petrograd at prices commencing
at 9 rubles per zolotnik and over.
Considerable stocks are lying mortgaged at the various banks here (not less than 80 poods).4 'The output for the current year is estimated to be very much less than for former years.
i Commerce Repts., No. 139, p. 1211, June 15, 1015. 2 Vol. 109, p. 445, June 19, 1915. 3Ruble=$0.515 ; 1 zolotnik=65.8329 grains troy. 4 One pood=526.6632 ounces troy.
