Los Angeles herald., 1891-06-11
LETTER BAG.
Pregnant sugge stions About Mining De-
velopment.

May 25th, and again in yours of yester-
day (the 5th), you had very interesting
editorials relative to mining and it's
bright prospects.
All you have said as to the possibili-
ties is probably true, but you seem to
lose sight of one very vital element
which stands in the way of the fulfill
ment of the hopes in which you indulge.
My practical observation and knowl-
edge OF the mining industry is limited !;
but have some knowledge of CONNER
cial matters and finance, and know that
business principles and conditions apply
in mining as they do in other business
enterprises.
In your editorial of May 25th you con-
clude by saying that ''all we require to
bring these unrivaled possessions to
their greatest possible fruitlon is capital
in the hands of energy and intelligence.
This is the keynote to the whole situ-
alton. 1t is fact to be regretted that
our local banks are so conservative, or
short-sighted and narrow in their policy,
as to actually discourage the mining in
dustry, and force those who engage in
it to send their product and buy their
supplies in San Francisco. am not in
terested in mining and never was hence
speak from personal knowledge rather
than from personal experience.
San Francisco is largely what she is
today as direct result of the mining
enterprise of her citizens and the capital
furnished them to back it. Mining is
legitimate business, and most bankers
recognize that, in mining as in other
business, certain facts and conditions
warrant certain accommodations. In
almost any other city in this country,
possessing the bank capital and deposits
of this city, man or company can 60 to
a bank, make showing of what he has,
and obtain loans in proportion to the
reasonable value of the collateral he Of
fers. Ordinarily banks take an interest
in developing new industries which are
calculated to advance the interests
OF their immediate section, and, where
conditions will admit, give new indus
tries the preference.
Mining property has value, and this
value is based upon certain conditions.
These conditions can be as definitely
fixed and known as those appertaining
to any other property. OF course, it
takes competent men to do this, but it
requires competent men to appraise real
estate.
There is no reasonable doubt but that
this section abounds in valuable mineral.
But not one man in hundred who
locates claim is able to develop it and
put it on paying basis. do not think
it is within the province of conservative
banking to furnish money for develop
ment work. Nor is this necessary.
Men of limited means would locate and
open up claims if they could feel reason
ably sure that after they had demon
strated that they actually had ore in
paying quantities they could get means
to go on with the work.
The value of ore, over and above the
cost of working it, can be readily estab-
lished.
So many tons of ore, on the dump,
have known va lue of so much per
ton, and the min from which it came
should be good collateral for certain
proportion of such value. Especially so
when it is known that the money loaned
would go toward the future development
of the property. Yet doubt if one cent
ever was or could be obtained from any
of our local banks on a like proposition.
Miners are always willing to pay fair
rate of interest. The bank that furnishes
the money to get the bullion, handles it
and the miner is willing that the bank
and it always does.
The miner buys his supplies where he
does his banking.
| am not proposing to dictate to our
local banks, how they shall conduct
their business, but simply reciting the
prime cause of the tardy development
of our local mining industries. They
can only advance slowly without finan-
cal support and accommodation.
The money is here in abundance, but
it appears to be under the control of
men who are lacking in enterprise and
interest, or are too timid and conserva-
tive to let it out.
Possibly, the real difficulty and true
situation is that money can be loaned at
satisfactory rate of interest ON collat-
eral that is considered preferable to
mining property and products. If such
is fact, and has always been SC, the
reason is a business-like one at least.
But if we accept this reason from our
local banks, we must concede at the
same time that our bank managers have
either greater abilities or facilities for
making desirable loans than those in
San Francisco and other large coast
points. l think such conclusion hard
ly reasonable.
LII lS IL IdCC UIdJ Cdu fTdHclSCO DdIlkS
always have given and now lend liberal
support to legitimate mining enter
prises. 1t is fact, also, that this policy
has probably done more to build up and
keep building up that city than all
other industries combined. 1t is fact
that all of the mines now being profita-
bly, worked in Southern California have
their headquarters in and get their sup
plies from San Francisco. These being
facts, there will have to be radical
change before we can reasonably hope
to receive the benefit of what is already
being done in this section, and which
by right of situation belongs to us, or
accomplish much in the way of marked
development. If the product is to go
to and the supplies come from some dis
tant point, what good is there to result
to us?
am sure that only nominal investi-
cation will demonstrate that the rea-
sons given will account for the most OF
the gold in our hills remaining so long
undisturbed and the miner and pros
pector being disheartened and discour-
aged. LEMON.
Legal Opinion on Fleming
EDITORS HERALD: AS a number of
people are having their say on the
Fleming case I might as we'll have