The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-03-04

Attti " ttiN va ~ IN - tiiSl tlOAlllS
THE COsr or PRODUCING SILVER.
A writer in tho last Forum shows in q
very clear way the falsity Of tho popular
eastern Wow that silver mining is encr-
mously profitable. In discussing what
few people not engaged in tho industry
appreciate-the cost OF of producing an
ounce of silyer-he shows that under
the present depressing conditions Il sill.
YER mine with fairly good prospects
must DO managed with extreme care in
order to realize anything at all. At the
best it is a hazardous venture, necessi-
tating a large outlay in money, with
more uncertainties than are to be found
in other enterprise. Tho popular view
of mining investments is obtained from
reading the dividends Of phenomenal
producers like tho great Comstock; the
reader never takes the trouble to
inquire into the great losses on
mining ventures, nor does he study
the situation from a business mans
standpoint OF considering the cost
as we'll as the price. 1t is largely
because of this sentiment that pre-
JUDGE against free coinage finds SO many
adherents in the east and elsewhere.
They seem to think that all silver mines
return to the owners several times the
amount of Investment each year and
conclude, therefore, that the profits are
sufficiently large without free coinage.
After stating an opinion, obtained
only after great experience, that gold
and silver mines reaching a profit of
one-third the total value are ]rosperou
far beyond the average, Mr.. Hague
reasons from all figures obtainable. At
the best, these are inaccurate and suffice
only to show in a general way the truth
of his conclusion. The price OF silver
last year averaged so cents for 60,000,O00
ounces, the writer's estimate of the pro-
This would give,a value of a
tritie more than S52,000,OOO. The En-
cheering and Mining journal of Jan. 7,
printed a list of dividends from silver
mines mainly and others producing
silver and other metals, amounting in
all to S6,50O,00O. Tho writer takes an
estimate of 100000, or 10 to IA per
cent of the value produced, and CON
cludes: "lf this percentage of the 81
cents of value realized per ounce of sill
Yer sold, say Il cents, fairly indicates
the profit in the product, then the re-
mainder, say rs cents per ounce, would
be the indicated cost, not including,
however, anything for assessments
levied or other calls for new capital in
vested chargeable to the business and
tending to lessen the net profit and IN
crease the real cost. But as shown, a
very considerable of this product was
produced at % cents per ounce, as many
believe, or at any cost far below the av-
e-age, then another considerable part
must have been produced at a cost far
above the average, and some of it, with
out much doubt, far above the market
price" y i 4: 4; II "Thasa sta+e-
ments go to show that only the most
fortunate producers, the finders of the
great prizes, a produce silver at any
profit while the average producer,
especially at the present time must con-
tent himself with a very small profit and
be glad if he does not make a loss.
Many Of the silver mines are closed as
Improbable under the existing condi-
and it is my belief that the major
ity of people whose money is now in
vested in silver mining enterprises can
buy silver in the market cheaper than
can produce it,"
Silver mining in Montana is carried
. n as a legitimate industry rather than
form of gambling. The mines each year !
are managed with greater economy and
care for details, and yet with the
management it has been found
necessary to close many Of the mines.
the inducements to foreign
are not growing under present
conditions. Aside from the question of
rec coinage, the silver product must
a fair price before We can expect
UGH development as is needed. Silver
leeds moro friends in the east like Mr..
lague, who will discuss mining as a
business industry and show, as he has
lone, that in order that it may live, it
receive as much encouragement
rs is given to other industries.