The DeLamar nugget. [volume] (DeLamar, Idaho) 1891-1900, 1892-10-29
Silver Prices and Mining

Has the general condition of mining
in Colorado been seriously depressed by
the decline in silver prices? 1t has and
it hasn't, you lie and you're another, is
the way that politicians dispute about
the subject. 1t would be an easy thing
to settle, if every inquirer were seek
er after truth, instead of seeker after
political advantage, and willing to sacri-
fee the truth to obtain it.
Every man who travels through the
mining regions of the State, brings back
a report to the effect that things are
much depressed in a mining way. We
have travelled over considerable min
ing country during the past three
months, while silver was quoted be-
low "a cents an ounce, and have seen
the condition, and had good opportuni-
ties to measure the feeling of mining
men about the matter. The conditions
we find are these: Many mines have
restricted production, a few have closed
down, and there are many idle miners.
Except in Clear Creek county we know
of no place where wages have been re-
duced. Some properties which were for
msrly operated on company account,
are now operated by leasers. The COM
panies could not continue mining at a
profit, with wages and silver prices as
they were the men were unwilling to
accept reduction in wages, and rather
than be idle took leases, running their
own miuing risks,
In the best of times, and at all times,
there are plenty of grumblers. There
are men who will grumble in heaven be-
cause they lack tools to dig up the gold
en- pavements, and the pearls IN the
gates are too heavy to carry. But there
are more grumblers now than usual.
Men are dying every day who never
died before, 80 there are men grumbl-
ing who never grumble0 before and it
is natural they should, because silver
declined 80 rapidly below So cents an
ounce, that the cost of production did
not have time to adjust itself to lower
prices, and there was consequent loss or
absence of profit in too many mining
operations.
In the slower decline of silver from
Sl.3l per ounce, in 1873 to 50 cents in
1891, the cost of production declined at
the same time, so that there was as
much or more profit in mining silver at
80 cents an ounce one yea- ago as there
was at mining it at S1.31 cents an ounce
twenty years ago. This the Industry
has several times demonstrated by quot
ing prices at these periods. 1t is a nat
ural and inevitable law that as silver
declines in price, other prices fall with
it, so that the business of mining it re-
mains profitable. But it takes time for
the general run of prices to become ad
iusted to silver fluctuations, which are
often rapid and have sudden effects.
This was illustrated in 1890, when silver
suddenly to $1.2l per ounce.
I'm mmediately every hole, mine ard dump
in the country which could produce sill
yer ore was at work and mine labor
could scarcely be obtained and men
were happy. The railroads were not
able to haul the ore, and the smelters
were not equal to treating it, So, too,
the effect of sudden 6uctuation was
seen when silver suddenly tumbled be-
low S5 cents. 1t was restricted produc-
ton, idle mines and miners, and grum-
bling instead of happiness.
This much can be set down as an eco
nomicsl fact, and men can get satisfac-
ton or misery ont of it as they see fit
in the long run the cost of producing
will decline as its price de-
clines. If silver goes to so cents an
ounce, miners wages will go to ST per
day, and other things in proportion.
The mine owner will not be so much a
sufferer as the wage worker, who is
sooner or later the under dog in every
fight.
The situation of affairs has given rise |
TO some peculiar arrangements between
mine owners and their work men in va
rious parts of the country. In some
cases wages have been fixed on slid
ing scale, dependant upon the average |
price of silver each month. At the !
American Sisters, in Clear Creek coun-
,y, the most peculiar one we have heard |
Of has been made. The miners, after
being laid off, have returned to work |
with the agreement that they will work |
.hree months, receiving $3.50 per day,
f at the expiration of three months
.ine the price of silver is below 80 cents.
If it is 50 cents or more they shall re-
,eive SO per day. The miners also have
he privilege of continuing the arrange
nent for four months, if they choose to