The morning times., 1896-07-05
Copyright, 1860

Denver, Col, July 4--The best adver-
tised thing in this country just now is gold.
Everybody is talking about gold, tie
political campaign is likely to hinge upon
it to an extent not anticipated year or
even six months ago, and 1 am told by op-
orators i'll mining sha res here and in san
Francisco that there is every reason to an
ticipate this fall Il decided increase ID spec
ulation in gold stocks.
One of the heaviest mining operators in
the whole West pointed out to ne the sig
nificaDtfact that within the last year mining
stocks have been listed in the Eastern
cities to an extent Dot known before. and
that all the important Commercial papers
OF the country are DOW deyoting space to
the discussion of gold stocks and TO listing
their prices which they never
thought OF doing i'll former years.
II will be surprise TO many ID the East.
perhaps, although the figures are accessi-
Ole 10 all, to know how much the production
of gold has been stimulated, and how much
the production OF silver has been dis
couraged by the worlds financial legisIa-
NiOu VI Tue past
The annual production of gold in this
country for the last twenty years has va
ried between $50, 900 900 and S4s ,OOO,-
600, the larger sum occurring in 1878.
From 1882 to 1892 the production did in
no year reach S33 GOO 600, but since lss2
it has increased at the rate Of 5000 900
or So 100000 a year. The figures for
1895 were S44, 81 / ,949.
Silver has uuctuated very much more.
The production increased from S23 Coo 600
in 1876, TO ST3,0uO ,OUD III 1898. Last
year II dropped to Se ,s04, 1858, so that, in
spite OF the increase in gold mining, the
total production OF the precious metals
for the year was cunsideraDiy lower thapIt
had been al ans time since SIC and the
result OF that in turn was that the stock OF
precious metals III the country was actually
smaller at the eDd of the year thanit was at
the beginning. because exports Of specie to
Europe more than equalled The total do
mestic production. This had not happened
before since 1875.
A prominent bank presidentin New York
who, from a former connection with the
Treasury Department, is entitled to speak
authoritatively, told me recently that the
gold party in politics and finance ask Rotii-
ing more than that gold should REMAIN
where 1t was, that the situation should Tot
be changed, aud that the commerce of the
country should continue TO be done upon
its present basis Nor, he said, did he
anticipate any wild speculation in geld
stocks or any phenomenal increase in gold
production because of the recent agitation
on the subject OF the relation OF the two
metals. This is the usual Eastern view OF
the matter.
The Western view Is different. Denver
points to the fact that twenty years ago
the director OF the United States mint,
in his annual report for 1876, after refer !
ring to the fact that since the establish
ment of the mcuey system of the United
States down to the year 1870 the ratio
of silver and gold had remained about
1 to Is 1-2. with but trifling fluctuatiou
from year to year. commented upon the
even then phenomenal slump in the price
OF silver which began in 1872, after the
change from silver to gold standard
by the German empire had been deter
mined upon, and was more marked after
our own financial legislation of 1873.
After referring to the increased demand
for gold, the director of the mint said:
Il cannot but think that the demand for
gold exceeded the supply avail
able for coinage from the mines of the
world. and to d sufficient extent to pro-
duce a slight advance in its value
The Eastern banker, and many OF the
bankers in the West for that matter, say
that prices have deprecated since 1873.
Colorado people say that gold has ap-
preciated.
II is. after all, distinction without a
difference The fact remains that gold
is worth more wheat, corn, cheese, butter,
iron or cotton cloth than it was twenty
years ago, and OF course that makes 1t
better worth while to mine it, even il
there were no other reason for increased
production.
As matter of fact. Il great deal of capt.
tai in the far West has turned within
the last three years from silver produc-
ton to gold production. and mechanical
processes have become SO far perfected
as to make possible great economies ~
the production OF gold.
1t is well understood that the great
Kaffir gold mines iu South Africa are
enabled to succeediu mining fargequantities
OF iow-grade ore by using the most perfect
machinery and by pa ying large salaries TO
such Inen a John Hayes Hammond for the
most EXPERT advice and superintendent
available.
The biggest mining company in Alas
ka. by all odds, is one which works low
grade ore This it is enabled to do at
profit, because its mines and works are
near tide water aud sufficient water
power,
Now that it has become possible to
transmit power by electric wires from
mountain streams, precisely where it is
wanted for mining purposes. another great
economy is rendered possible. And this is
why. am told, mining properties in various
parts of the West which have been in the
past worked until the vein was apparently
exhausted and then abandoned, can now
be reopened at q profit by the use Of the
newer resources OF civilization This is be-
ing. done in various parts OF the West,
while even in Georgia and one or two other
OF the southeastern States there is Il .oc-
siderable quiet local boom in gold mining.
1t is confidently expected that the gold
production this year will run between $780,
O08 geo and $50, 600 900 and probably hit
pretty close to the latter figure.
1t Is the theory OF those who hold that
gold has .appeeciated'' that the entire
stock OF gold in the world is not sufficient
for the demand for coinage and the arts,
and that the amount produced each year
does not add to the total stock with suffI-
cient rapidity. A curious phenomenon in
connection with the movement OF the
metals is that British India and the coun.
tries OF southeastern Asia generally alb.
sOrb every year q quantity OF precious
metals larger than can be accounted for
by their use 10 the arts. East Indian ad-