The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-08-16

Now that the gold placers OF California are to a
great extent worked out attention Is being directed
to the further development OF our mineral resources
by new scientific methods Instead OF surface min
ing deep sinking is to be the order Of the dav In the
future. The mineral lOdes, it Is contended extend
thousands Of feet below the surface and
the only efYectual and economical way OF
working these is by tuDnelling-a method which has
not yet been brought into practice but which was
projected some time since in the case OF the Sutro
tunnel Intended to work the Comstock lode, in Me-
yada. This valuable enterprise has already been
favorably reported upon by the Committee on Mines
and Mining Of the House Of Representatives, to
whom was referred memorial Of the Nevada Legis-
laure asking aid IN the construction Of the tunnel
in question: In Europe and South America drain
tunnels at great depths have proved the continuity
downward Of mineral lodes and when
capitalists are once satisfied that this Is
the case in chs country there will be
money enough forthcoming to construct system
OF tunnels, and thus we shall enter upon new
era in gold mining. At present. however, capital is
limited and the question arises, Is 1t not the duty
OF the government to step IN and assist in the inau
guraton Of tunnel mining by adopting the recon-
mendatons Of the committee referred tor The ma
tional importance Of developing the vast mineral
treasures buried deep In the earth Is manifest and
the falling Off in The gold product OF California
makes the subject one which should attract the
attention Of Congress. The days Of the pan, the
rocker and the sluice in gold mining
have gone by, for the surface deposits
have been very largely Cleaned, and science
Is now called upon to do the work at depths
greater than any yet reached by ordinary shaft
sinking. without these drain tunnels the gold
mining interests of the country bid fair to gradually
decay from the exhaustion OF the surface supply Of
metal, but with them permanence would be given
to mining and the miners Tffe, and towns would take
the place OF groups OF shantes which last would be
superseded by substantial buildings, while railways
would follow wagon trains and taxable property
would accumulate In all the mining settlements.
At the same time the way towards resumption Of
specie payments would be gradually paved and the
wealth OF the country exhausted by the war, would
be replenshed by increased yield Of the precious
metals
Money was extremely easy to borrowers on satis-
factory colateras at four per cent with exceptional
transactions at three and five per cent but the re-
cent failure of Iset Kerr Co., brokers and bank
ers with western connections, and the heavy de-
cline In Erie have made lenders careful about the
standing OF borrowers and the character OF securi.
ties as well as the extent OF margins. The state
ment OF the associated banks of this city for the
week ending to-day reflects the cent shipments Of
currency to the West. The deposits have decreased
Ssl5540o the legal tender notes SILL 0e7 the loans
so4y 1885, and the specie ST. ST. while the crcu-
,aton his increased $780, 713. The totals Of the last
two statements are az subjoned:-