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The Business of Mining

IV MINING'S PLACE IN COMMERCE.

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It is said that upon two of the world's commercial industries, every other form of activity depends. These two fundamental industries are agriculture and mining. Statisticians prove the above statement and the further fact that these two dissimilar branches of civilization's business are so closely related as to be quite inter-dependent. Strides are made by one of these industries only when advance is noted in the other. While it may not be possible to explain just why this is so, it is worth our attention to consider some brief figures that show this condition of affairs.

The agitation conducted during the past few years, leading to the establishment of a Bureau of Mines in the Department of the Interior, attracted the thoughts of many students of economics who had not previously or seriously considered the industry of mining. The delivery of brilliant addresses showed that mining had been unjustly retarded. While agriculture has for years been fostered by the government and with remarkably satisfactory results, the great sister industry has been required, until recently, to struggle along without any governmental recognition in the matter of support. Yet it has forged its way in unmistakable terms of progress and there was an insistent demand, among those men particularly interested in the welfare of mining, for the protection and the assistance which would and has now come through the establishment of a governmental department. Various states have long recognized the importance of the mining industry by the establishment of departments. The Canadian and Mexican governments maintain very creditable Departments of Mines. It was but a question of time until the shortsightedness of our politicians (not our statesmen) was revealed, and the mining industry has now come under the auspices of a federal department.

Taking the world as a whole, it would be hard to conceive the sum total of annual mineral productions. The middle of the past century seems to have been a critical period in the mining industry of the earth. There was a great impetus given to mining by the greed for gold which caused the settlement of our western states and the Australian states, as already mentioned. But there gradually followed the opening up of mining in many other and hitherto unpopulated and uncivilized portions of the globe. The search for gold was successful.

Prior to 1850, the production of gold had not kept pace with the increase in population. Soon, however, it began to take leaps, in almost geometrical ratios, until, by 1900, the annual production of gold throughout the world was some 2,200 per cent. of the production for 1800 (as nearly as may be ascertained). The 1900 gold production was of a weight of about 400 tons, in round figures. During 1911, the world produced approximately $470,000,000 (about 779 tons) in new gold bullion. It is estimated that with a continuance of the remarkable progress, the next 20 years will duplicate the amount of gold now known in the world. This means that the amount of gold which has been accumulating from mining during the world's ages will be doubled during a fraction of our lifetime. This is significant of the world's progress, in gold mining, at least.

Kennedy Mine, Jackson.
Kennedy Mine, Jackson.

Kennedy Mine, Jackson, California.

It seems coincidental that the rush for gold in 1849-50 should have been almost simultaneous with the remarkable development of our other mineral resources. All of our great discoveries of coal, oil, silver, iron, lead, copper, and zinc can be said to have followed closely upon the discovery of gold in California. It is not supposed that the discovery of iron in northern Michigan in the early eighties had any connection with the "Pike's-Peak-or-Bust" expeditions, nor that the opening and development of the vast coal beds of Pennsylvania had any bearing on the discoveries of lead and zinc in the great Mississippi Valley. But, on the other hand, there can be traced a very intimate relation between the finding of gold, silver, copper, and lead in the Rocky Mountain states and the search for gold in California: the pioneers en route to the coast were the discoverers and settlers in Colorado, Wyoming, Utah, and Montana.

Figures are not available for arriving at such striking or reliable conclusions in regard to the world's production of metals other than gold, but there is no logical reason to doubt that such increases have been just as pronounced as in the case of the yellow metal. In fact, there are good grounds for assuming that the figures for silver, lead, iron, and zinc would show up even more spectacularly; while with coal, we know that we are now in the greatest period of the world's production.

The United States leads the world in the production of the base metals, such as copper, iron, manganese, lead, and zinc, taken collectively or separately. Our country stands second in the production of the precious metals, gold, platinum, and silver. We have the greatest variety of mineral products, as well as the greatest production of complex ores, or those carrying more than one valuable metal. We produce more copper than the rest of the world combined. Although we stand in second place when considering the production of gold, we still possess the Homestake mine in the Black Hills, famous as being the gold mine with the greatest tonnage in the world; and the Camp Bird mine, in the San Juan district of Colorado, famous the world over for its highest average value of gold ore. This great mine is now nearly exhausted and is about to close down after making a wonderful record.

South Africa produces the greatest amount of, and the purest, natural gold in the world. Great Britain has an insignificant production of both gold and copper, and still it is noteworthy that the English-speaking nations control the world's production of both these metals. British and American citizens own seven-eighths of the world's gold mines. England stands second in the consumption of copper, which, of course, is mainly imported.

Russia controls the world's output of platinum, with very little competition. In a similar manner, Canada has the control of nickel production. Mexico, although not commonly regarded as a gold mining country, is rapidly coming to the front and possesses the Esperanza mine, said to be one of the most profitable gold mines in the world.

To more emphatically show the importance of the mining industry, especially in our own country, the following facts are taken from 1900 census returns: Agriculture produces annually about $725 per capita; mining, $1,910; and manufacturing, which is dependent upon the others, $760. The National Banker has said: "Statistics show that the combined dividends paid by the gold and silver mining companies of the United States are greater than the combined dividends paid by all of the banking institutions of the country; and the combined dividends paid by the copper mining companies of the United States exceed the combined dividends paid by all of our railroads."

There is one thought that will always comfort any person who is engaged in furthering legitimate mining: Wealth acquired from a mine is not wrested from any being but Mother Earth, and it is not, therefore, in the class with the much discussed "tainted money" that is said to be wrung from unfortunate human beings.

The following tables are presented to give the reader ideas concerning the productions of gold and silver during recent years. Among the interesting points that may be noted are the following:

The gold production of the world took a sudden drop in 1900, but it immediately resumed its upward climb. During the decade from 1900 to 1910, this production increased over 81 per cent.

There is a remarkable similarity noticeable in the gold productions of the United States during the years 1910 and 1911.

Without the notable increase in the gold output of the Transvaal in 1911, the world's total gold production for that year would have shown a decrease.

The silver production of the United States remained practically unchanged during 1911.

GOLD PRODUCTION OF THE WORLD FOR 20 YEARS

1892 $146,292,600 1902 $298,812,493

1893 158,437,551 1903 329,475,401

1894 182,509,283 1904 349,088,293

1895 198,995,741 1905 378,411,054

1896 211,242,081 1906 405,551,022

1897 237,833,984 1907 411,294,458

1898 287,327,833 1908 443,434,527

1899 311,505,947 1909 459,927,482

1900 258,829,703 1910 469,365,110

1901 260,877,429 1911 473,383,543

UNITED STATES SILVER PRODUCTION (In Fine Ounces)

1910 1911

Alabama 300 174

Alaska 153,900 275,691

Arizona 2,655,700 1,594,428

California 1,791,600 2,727,336

Colorado 8,523,000 7,530,940

Georgia 300 225

Idaho 7,027,000 7,507,802

Illinois 2,100 4,648

Michigan 262,200 507,234

Maryland 87

Missouri 32,200 56,228

Montana 12,282,900 10,651,571

Nevada 12,366,000 507,234

N.Mexico 779,000 1,142,335

N.Carolina 8,300 2,227

Oklahoma 168,245

Oregon 43,800 69,116

Pennsylvania 700 13,262

S.Carolina 14

S.Dakota 120,600 206,188

Tennessee 69,800 126,683

Texas 364,400 442,486

Utah 10,445,900 12,679,633

Virginia 200 45

Washington 204,900 142,196

Wyoming 1,300 1,009

Porto Rico 51

Philippines 1,800 3,383

Miscellaneous 826,102

__________ __________

Total 57,137,900 57,796,117

UNITED STATES GOLD PRODUCTION (In Value)

1910 1911

Alabama $32,900 $18,335

Alaska 16,271,800 16,002,976

Arizona 3,413,200 2,954,790

California 20,441,400 20,310,987

Colorado 20,526,500 19,153,860

Georgia 24,000 30,532

Idaho 1,035,000 1,169,261

Illinois 5,788

Michigan 20

Maryland 20

Montana 3,720,400 3,169,840

Nevada 18,783,700 18,968,578

New Mexico 477,200 639,897

N.Carolina 64,500 76,693

Oklahama 30,698

Oregon 18,783,700 18,968,578

Pennsylvania 18,783,700 18,968,578

S.Carolina 37,800 13,437

S.Dakota 5,380,200 7,430,367

Tennessee 2,800 14,140

Texas 400 1,178

Utah 4,312,700 4,709,747

Virginia 900 4,300

Washington 806,000 504,537

Wyoming 4,100 18,791

Porto Rico 1,000 2,191

Philippines 154,400 130,501

Miscellaneous 265,013

__________ __________

Total $96,269,100 $96,233,528

GOLD PRODUCTION OF THE WORLD

1910 1911

Transvaal $155,730,260 $170,487,900

United States including Alaska 96,269,100 96,233,528

Australia 65,634,340 61,072,409

Russia 43,168,389 40,600,000

Mexico 24,073,100 19,500,000

Rhodesia 12,607,791 13,045,100

India 12,089,400 10,505,506

Canada 10,224,910 10,646,000

China 10,102,300 10,000,000

Japan, East Indies, etc. 10,522,437 10,600,000

West Africa 3,674,087 5,268,100

Madagascar 2,149,721 1,900,000

France 1,114,700 1,275,000

Central and South America 14,886,234 15,000,000

Other countries 7,118,841 7,250,000

__________ __________

Total $469,365,610 $473,383,543

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