The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1896-09-09
WHY IT IS.
Ii. e. Sturteyant, Manager of the
Pioneer Mine Gives His Views
of the Closing.

The Chandler mine is closed down, |
throwing 200 men out OF employment. |
The Zenith is closed and it is probable |
that the Pioneer will soon be in the
same condition.
Why is the only industry of Ely
thus paralyzed, and our entire popula-
tion without means OF earning
living? Why are nearly all the mines
in the Lake Superior region idle?
Because the furnaces to whom the
ore has been sold, now refuse to take
the ore; they connot take the ore.
Why? Because they cannot pay for |
it in money, and their notes are not |
acceptable nor merchantable. The
furnaces cannot sell pig iron nor
manufactured iron; nor can they get
payment for goods delivered. Banks
will not loan money on paper of con-
Germs which heretofore have had best
of credit. Furnace companies and
mining companies with millions Of
capital cannot get ready money
enough to meet pay rolls. This is the
case throughout the United States.
The business of the country is
paralyzed, because money is being
boarded. Every bank and every
individual having money holds onto
it, and will not put it into invest
ments nor into circulation: this is
simply self-preservation. In these
times of financial uncertainty you
nor l, if we had thousand dollars,
would loan it under any considera-
tions. This cannot be considered d
contraction Of currency, but rather
contraction of credit which stops cir
culation of money.
There is another reason why the
mines are closed down. All ore is
sold on four or six months time: ore
delivered now will be paid for after
election and after congress meets.
Now. should Bryan and Towne be
elected, there is a reasonable fear
| that ore sold from now will be paid
| for on silver basis at 81 cents on the
! dollar. The ore was mined and
shipped on the present basis OF 100
cents on the dollar. And does any
one suppose the mines are going to
take any chances on losing nearly
half the value of their sales? This is
not politics. this is sound common
sense. The mines are willing to work
as they have. at times in the past,
without making profit. They are,
rather than see the laboring people
destitute, willing to operate the
mines at a loss, as they have done at
times in the past. But in these times.
when they are threatened with COM
plete destruction of BUSINESS; when
the financial foundations of the BUSH
ness OF the country is in danger of
utter ruin, then how can the mines
see safety ia operating?
And all this has been brought about
| by Bryan and Towne and the Ely
Times and each and every one who
advocates a change from our present
sound financial principles of the
country. They know that s. per
cent of the business Of the country is
| done on paper, on confidence, on
credit and not with ready money.
And all this credit rests on the sound
ness and stability of the financial
system of the country. They are
either fools or knaves who cannot see
that free silver coinage threaten the
foundations OF our financial system:
and when that is threatened the vast
superstructure of credit is destroyed.
and business must stop. Does any
one doubt that s. per cent of the
business of the country is done On
credit? Let me refer you to the
weekly clearances. Last week the
New York clearances alone were more
than $3.50, DOC, GOO, and for the entire
United States over $500, 900, 600, this
is about half the entire money in the
United States but not one dollar Of
these clearances is done in cash. All
through the country men deposit
money in banks and pay bills by
checks or drafts. / will venture to
say that not half the business of Ely
is done in money. The banks are not
required by law, nor is it at all
necessary to keep on hand more than
small part of their deposits.
| The mines are not closed down be-
cause of scarcity of money. The
circulation per capita has been