MINERALS 245 



deposits in the process. (5) Place. The nearness of a mineral to 

 the place at which it is used helps determine how much that 

 mineral is used. (6) International supply. A nation with large 

 deposits of essential minerals is much more secure than one not 

 so fortunate. This fact influences the development of mineral 

 deposits and their conservation. (7) Supply and demand. 

 Obviously, the problem of regulating minerals with a large de' 

 mand and a small supply is different from that of regulating a 

 mineral of which there is an abundance, but for which there is 

 little use. 



To see just how these rules apply, it is best to divide 

 the minerals into two classes. The first class is the metals. This 

 includes copper, iron, sine, and so on. The second class is the 

 mineral fuels. The chief of these are coal, oil, and natural gas. 



TAXES AND MINERALS 



Hibbing, Minnesota, in the Mesaba iron range, is one of 

 the centers of the iron mining industry. One of the first things 

 you notice about Hibbing is its schools. There are only about 

 15,000 people in Hibbing, yet its high school cost $4,000,000. 

 The school swimming teams of Hibbing have become famous 

 throughout the state. Now it may seem far-fetched to connect 

 the Mesaba iron range and high school swimming teams. 

 Nevertheless, these two things are very closely connected. 



Minnesota believes that the natural resources in the state 

 belong to the people in that state. The Mesaba iron range is 

 Minnesota's richest single resource. It belongs to large steel 

 companies like the United States Steel Corporation and the 

 Bethlehem Steel Company. The ownership and control of these 

 companies is centered in New York and Pennsylvania. 



In order to gain some of the value of this fabulously rich 

 iron region for the people of Minnesota, the state legislature 

 has put a high tax on the iron ore taken from the mines. A 

 part of this tax money goes to the state and a part is kept in 



