The avant courier. (Bozeman, Mont.) 1871-1872, 1871-09-27
CORRESPONDENCE.
Montans and the RaiIroad.
HELESx. nj. r.. Aug. 2, 1871.

| In my last letter, | spoke Of the nndevel
oped resources of this Territory, and the q
4 feet which the Northern Pacific railroad VII
have upon them. Before proceeding 70 dis
cuss the mining industry from siinila
standpoint. i will say word with regard +
the merchants. The principles upon Whicl
business has been conducted in these ney
| Territories are Of necessity largely specula
lftive. The mere difference in the cost 9
| freight. between the wagon-road and rail
road. would not account tor the higil price
upon goods by the retail dealers. There ar
other causes. among which the following AZ
prominent. In the first place. the the oc
lcnpiad III treishing is so long as To refssife !;
larger capital here than in the East, for TIN
same volume of business. The Montan:
| merchant. buying goods in Chicago, or st
| Louis or New FORK. on i credit frinty days
| has no hope of realizing upon them 50 as t
pay ary considerable portion of the notes h
gave for them. He must be satisfied to turn
over his.eapital once or twice, instead Of fou
times year !; and of course he must charg'
higher profits to reeompense himself fo
this disadvantage. Again, the practice Q
taking gold dust in payment for goods (which
has now. believe, nearly ceased in Montana
the banks and assayers buying the gold, ant
greenbacks being the currency leads tt
high prices in another way. The merchants
compete with one another in offering the
best rates tor the dust. A miner naturally
patronizes the shop which allows him the
highest value. But OF course it is taken out
of him in the price of the goods. Finally,
the dealer is frequently obliged to give credit
to miners. who are wlntering, without work.
or stripping and preparing their Claims.
When they begin to clean up from their
slnices. if they are successful he gets his
money if NOT, he must write the account to
profit and loss. or wait for his debtors to
strike it rich" another season. think it is
generally true i'll this country that when men
get money they pay. their debts; on the other
hand, when they are dead broke" they go
into racit. informal sort Of bankruptcy, and
are free from liability, the creditors them
selves sharing in the public sentiment which
disapproves being hard on asmln when he
is down. This sort of generous feeling in
the community is pleasant to contemplate !,
but it is demoralizing to business, and can
only exist when mining is, on the whole.
prosperous. times are flush = and merchants
are able to secure large profits, to cover their
large risks and losses.
There is no doubt that the flush times of
Montana have passed away The decline in
surface mining; the growing necessity for
capital and economy in conducting deeper
operations, and the gradual absorptiono OF the
claims in the hands Of companies, or large
owners; pecessifate change in the method
Of business: and this change, iii turn. requires
cheaper aud more rapid transportation The
railroad will revoIutionize tra,Ie: aud ii eer-
family will not bring back the golden past to
the small dealers. Its effect on many amin
flafed and precarionS business will be what
it was ii, San Farnciseo upon j6bbing houses
and real estate spectators. But the people
and the Territory will gain immenselyby
the change and our mercantile businesses
will be benefited in the end by the increase
of population and industry. and.by the elm
inatlon of preearious specuiations and bad
debts. fgss "a sy5
E No industry in Montana. however. willbe
so greatly stimulated by the railroad As that
OF mining. / have satisfied myself already
that there IT mains. even in the gulches, which
have been worked for the longest time. a
good deal Of ground that will be profitable.
tad
ent, the expenses OF guleli mining in this
Territory must average 75 SO per cent Of
the gross product. Wages aud provisions,
taxesand water-money are serious reductions,
which frequently leave the proprietor Ct
claim With less reward for his time and pains
than one of his own laborers has received.
Ii is no wonder that so many claims are pass
ing into the hands Of the Chinese. who are
satisfied ii they earn living merely. and
whose associations for the working OF large
claims are models of economical, harmonious
and effective corporation. Both political
parties here keep up the farce OF de-
nouncing these foreign interlopers; but all
men without distinction OF party are glad
enough to sell old claims to them. In Alder
Guleh. below Virginia City. a large bedrock
fiume,. owned by Knight & Co.. beliese,.is
worked on shares by Cinnamon. The pro-
prietors say they could not pay .'white
wages. Y and even the widest political parti-
san demands that they shall stop, rather than
cheap labor. At the same time. it is
insisted that white labor should be employed.
wherever the proprietor lean afford ia
dubious and scarcely tenable distinction.
Il 1t seems at first sight strange enough, that
everybody. even those who denoHnce the
cheap chinese. joins in the general longing
for railroad, and lower prices. The secret
is that ali these miners who are now work
ing for wages, and striving to keep wages
high, are owners of claims here and there,
which they mean to work for themselves
some day. when wages are low. 1t Is the
transition that troubles them. When It is
once made, they Wilf become proprietors.
and take advantage Of the new state OF
things.
But after all. it's not the placers but the
quartz mines. that will profit by the railroad.
The vast extent and number OF auriferous
gulches indicate corresponding abund-
ance 81 quartz ledes; and this Indication
has already been confirmed BY the labors Of
The gold mines which have
been successfully work d are few IN number.
compared with those which are known and