Delta chief., 1884-08-06
Does Precious Metal Mining Pay.
Engineering and Mining Journal.

Engineering and Mining Journal.
In the report of the Census, entitled, "Thc
Statistics and Technology Of the Precious
Metals occurs the following passage, which
discusses the question whether precious metal
mining pays;
In considering The profits and losses Of the
mining business, 1t must be remembered that
the brilliant possibilities attending It attract a
great number OF persons who would enter no
less speculative occupation so III provided with
the requisite knowledge. An immense number
OF mines are opened where no experienced min
Ing man would dream OF finding rcmuncratlvc
ore, and mines are nlso sometimes started with
the deliberate purpose OF swindling the public,
or, with fair prospects, are Intentionally mis-
managed for the same purpose. In short. the
profits OF mining ms legitimate industry bear
a far higher ratio to the expense than would
appear from tables that include the cost OF the
wild ventures and OF the deliberate swindlcs
placed upon the market.
In discussing the profits Of the mining in
dustry falacious arguments arc often ad-
vaDced, though the subject Is In reality one OF
great simplicity; proftless industry is one
that paws nobody, or where the actual costs
equal or exceed the actual returns A mine
that pays no dividends, but yields sufficient
product to settle Its accounts for wages and
supplies, is not prohtlcss. Agriculture In
many regions does no more than support those
engaged In II, yet no one would maintain for
moment that r country capable OF support
ing given number Of persons by farming
even though they were unable to accumulate
surplus, was not by so much richer than n
country capable OF afYordipg livelihood to no
one. The wages OF miners are among the pro-
fits OF the mining industry; 30 too, Ia the sur
plus over actual cost OF the industries that de-
pend upon the mines for market and that de
pend upon the mines for supplies. The loss
that wonld ensuc II the mines were to be sud
denly wiped out OF existence Ia the cxact
measure OF the profit that Ia now derived from
them In short, the entire profit OF the pre-
cious metal mining industry Ia the entire pro.
duct In dollars, plus the increment (if any OF
the value Of mining property, plus the net
profit OF manufacturers OF supplies used
| In the mines and OF wares OF the bullion
produced; minus the net cost Of supplies, in
Guiding plant consumed In mining, and ninus
the shrinkagc 0f any) OF the total value Of
| mining property. The increment and deere
ment In the value Of mining lplant being
counted under the head Of supplics) can only
| be measured by the yield Of the mines, which
Huctuates greatly, but on the whole increases
at an average rate Of say two millions year.
The gross expenditure for supplies other than
plant Is, say, ten millions, OF which perhaps 25
Per cen. may Be counted ,s profit and stint
bullion In the manufacture OF wares. II the
yearly cost Of plant is placed At o., ,0D, ,000,
which Is . very rough but probably fair e.
timate, the profit and loss account Of the pre-
cious metal deep mining industry would stand
as follows:
PROFIT.
Product census year. .ses, 7ao, 900
Increment In value OF mining pro-
O perty. ..................... 100000
Net profit on plant. nt................. 2OO,0OO
Net profit on other supplies: ....... 100000
Net profit on manufacture OF bullion
ware. e.............. 2,5Oo,oOo
7l,73O, 600