ABSTRACT
Raw materials are often extracted under the law of decreasing return; an increased demand must be covered by the working of new deposits, which are difficult of access, or by more intensive working of those already in existence; there is, of course, an element of hazard, inasmuch as the richness of the deposit and the difficulties of working are not known when a “claim” is discovered, and new deposits are often found by accident. But under normal conditions a larger consumption of a given raw material, whether this is due to increased applicability or simply a larger demand, will meet with increased difficulties of production—i.e., the probability is that the raw material will be more and more scarce and thereby attain an increasing value. This is, of course, counteracted by the fact that new and more easily workable land and deposits may be taken up for working when our technique improves and the cheapening of transport draws hitherto unused rich deposits into the rayon of supply of the Western European consumption. Accident and need co-operate in this. Very often the press of population is necessary in order to make us go beyond our accustomed rayon of supply, but once we have ventured out and sunk the capitals required for clearing, for making the deposits workable, etc., we find that we may even extract the newly discovered treasures cheaper than the old ones.
