The indicator., 1897-02-27
FUTURE OF GOLD MINING.
Its Increase win Depend Chiefly Upo
ths Reduction of Cost.

''Fhe increase in precious metal min
ing, upon which, after all, Colorado's
future prosperity Is mostly dependent,
will probably not be SO largely affect
ed In years to come by new discover
les OF rich ore resources, AS 1t Will be
by the ever increasing purchasing pow
er of gold, aided by innovations In the
treatment of low grade ores. the reduc
tion in the cost of labor. the first ex-
pense of mining and milling machin-
cry, transportation, and the price of
fuel and supplies, as well as the initial
cost of the properties themselves.
There is an impression partially true,
but in the main erroneous, that each
year lower grade gold ores are being
worked, and with satisfactory profits.
As matter of fact. but small head
way has been made in the metallurgy
of gold, except in so far that greater
capital Is now frequently invested, re
sulting in larger plants and increased
capacities, nccessitating II smaller pro
portionate force of employees In the
technical and financial departments,
and limited improvements in the me
chanlcal construction, displacing of
some labor. The great gain has been in
the appreciation of the product and
this will he more scusibly felt hereaf-
ter, A mine that twelve years ago
yielded twelve pennyweights of gold
per ton is yielding nearly as much now
in purchasing value if its average is
but six or eight pcnnywcights; so that
really gold mining has not developed
to embrace In the list of profitable
mines any of much lower grade ore
than heretofore. but general business,
rather, has descended to very low ba-
sis to meet higher standard values.
Everyone would naturally prefer to
witness Il general revival on the old
basis to which the people of the Rocky
Mountains are accustomed. The high
er grade surface ores, however, are
nearly worked ont, and the yield OF
bullion as compared with the amoun'
of labor employed. has greatly de
creased, while deeper works and more
refractory ores have Increased the cost
Of treatment.
Moreover, the developments in the
southern countries of the western hem
isphcre, and in Africa, where cheap Ia
bor is almost exclusively employed, has
brought gold mining in the United
States in competition with those coun-
tries, in the sense that capital for min
ing ventures seeks the more favorable
conditions. and ignores the costly
fields. Investors figure upon cost of
production, and if in those countries
the wages are but one to one and
half pcnnyweights in gold, while The
average is three, ii must be apparent
that proportlonately low grade ores
present more favorable mining propo-
sition elsewhere, and ores of equal as
say value here will be neglected
The reduction in wages is n feature
repugnant 10 everyone. yet there is no
doubt but that the question must sooner
or later be met, and the decision made,
whether all the western miners shall
be Kept employed at reduced wages,
or only portion of them ut prevailing
rates. 1t is dilemma in which miners
are finding themselves. as other trades
have already encountered, and leaves
choice only between two evils, which
will adjust themselves with time
From an abstract view. the person
who will consider favorably n reduc-
ton in wages and general prices is not
a most beneficial or desirable member
of community, still If Il course can be
pointed out, where fifteen men can he
employed and earn in the aggregate
$1,000 per month, against five men
earning 500 only, so long as the men
are here, largely idle and desiring
work, then the consideration of the
subject should not be passed without
thought and discussion.
The next help to he expected in sup
port of Il large addition to the gold
mining industry of the West, will be n
more sanguine feeling among mining
engineers. Mining ventures must be
viewed more in the light of Industrial
enterprises that are expected TO yield
reasonable incomes on their invest
ments, rather than great risks with
phenomenal riches sparsely inter
spersed amidst numerous great losses.
To this end the services of the expert
enced engineer will be required. who
can calculate upon the mnutest details
and Is competent to figure upon the
lowest cost of mining accurately. and
Will take the time to collect reliable in
formation upon the prospective value
of property. Reasonably good fees
should always be demanded and then
thorough and conscientious services
rendered. Low fees and casual exami-
nations have retarded many Il mining
district of merit, if they have not ac-
tually consigned it to complete oh
livion.
The matter of transportation is
most important factor in successful
close work. In this direction much DIFF
ficulty will be encountered in meeting
bonded Indebtedness and interest on
the roads has not decreased with the
decline of the general market, and no
adjustment appears feasible that will
give relief 10 the industry, except with
drawal of patronage from roads that
are overburdcned with watercd indebt-
edness until failure follows, reor-
ganization is then sure to follow upon
basis commensurate with the earn
ing capacity of the communities il
serves. AS many railway companies
are financially constituted. the refund
ing of debts on II basis more compati-
BILE with the times or insolvency appear
TO afford the only relief that presents
itself to the average mind.
Mining machinery and supplies are
also out of proportion when compared
with former quotations and conditions.
Marked reductions have been made in
this direction, which, however, are en-
joyed mostly by the heavier and best
Informed consumers only. The occa-
sional purchaser and small operator
gets minimum of his share of the
benefits in this direction In this con.
nection attention may also properly be
called to the eXhorbitant and fictitious
prices quoted on much so-callcd patent
ed machinery. Much of this is good,
but neither new in its plans or utiliza-
ton. Most of them are hybrids. devel-
oped from established products of the
past. to meet especial demands Their
cost is light, and the ingenuity expend-
ed upon their evolution from the orig
inal Is not In proportion to the bonus
asked above the cost of manufacture.
The late great decline in steel rails is
precursor of what is to follow in the
iron and manufacturing trade. 1t is
measuring iron and steel. as well as
silver by the increased gold standard,
and other ARTICLES will fnlIn1y and ns n