Los Angeles herald., 1891-06-11
THE DEVELOPMENT OF OUR MINES.

We publish in other columns very
carefully considered communication on
the subject of mining development in
this section. There is no doubt that we
have many mines of great value that
would be developed and made produc-
tive if the banks and capitalists would
extend aid to them in shape OF loans.
There is no better security for loan
than good mining property. If the
owner of mine has so far developed it
as to show that it has paying ledge,
and has placed on the dump a quantity
of ore that will work to a profit, he GER
tainly has collateral that ought to en-
able him to raise ready money to put up
machinery and work his mine to the
best advantage. 1t is true that no bank
would loan money on mining security
without being fully informed of its value
by competent and confidential agents;
and they would have to employ
such agents if they extended their busi-
ness SO as to take in mines as securities
to lend money upon. But this is diff
Guilty of minor consideration. They do
not loan money on real estate without
having expert agents to pass upon the
value of the property offered as security.
If the San Francisco banks can lend
money on mining securities, why cannot
the Los Angeles banks? The rapid de-
velopment of our tributary mines would
build up great city here in short
time. The liberal treatment of the
mining properties by the banks of San
Francisco has done more than any other
one thing to build up that city into
great metropolis. The mines give their
business to the city that helps their de-
velopment, and San Francisco has en-
joyed the profitable trade of all the
mines on this coast, no matter how re-
mote. Calico district, whose supplies
ought to come from Los Angeles, buys
her mills and all that she consumes in
San Francisco. Why? Because the
mines of that district have been princi-
pally developed by the aid of San Fran
cisco capital. Ii we refuse to aid in the
development of the many new districts
that are now coming out so promisingly,
they too will 60 to San Francisco for
money aid, and to purchase all the sup
plies they need. This is the natural
reciprocity that grows out of the princi-
pie of "you help me and I'll help you"
We do not know whether the Los An
geles bankers have ever given this sub
ject serious consideration if they have,
and found insuperable objections to ex-
tending accommodations to owners of
good mines that are developed suffi-
GENTLY to show their value, they will,
of course, continue to refuse to place
such property on the list of desirable
loans. But if they have not, we submit
that it is subject that is we'll worthy
to engage their attention.
Our correspondent has treated this
question very clearly and intelligently,
and it seems to us that he has pointed
out a way by which banks that have
money to loan could do SO with perfect
safety, and at the same time realize very
good returns for the accommodation ex-
tended. There can be no doubt about
the ultimate advantages that would ac
crue to this city by the successful devel-
opment of mines that would be obliged
by the law of reciprocal benefits to re-
ceive all their supplies from our farmers
and merchants, and their machinery
and mills from our foundries.