The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1907-11-14
VALUE OF SNOW STORM ORE

letter from a Subscriber" in Spo
kane relating to the value of Snow
Storm ore and the basis on which
it is paid for by the smelters
As Manager Greenough refused
to state exactly what the smelter',
terms were, while asserting that
they were much more favorable
than those stated by Subscriber, y
we were unable to set him right a,
that time. We have since ascer.
tanned from one Of the smelters tc
which the Snow Storm is now ship.
ping what these terms are and are
therefore able to make an accurate
statement now.
The ore which the Snow Storm
ships has averaged for the past year
five per cent copper and seven
ounces OF silver to the ton. From
the copper contents a half Of one
per cent is deducted for loss in
treatment (not one and -tenths
per cent as stated by Subscriber
which leaves 80 pounds of copper
in every ton Of ore to be paid for,
the settlement price being three
cents less than the New York
market price, said three cents being
deducted for cost Of refining and
marketing.
With copper selling at 14E2 cents
we therefore have 80 pounds Of
copper at 1112 cents or s10.35 per
ton, plus 81 a ton for silver con-
tents, or $14.35 altogether. The
freight and treatment charge aver
ages IS per ton, leaving 1896 out
Of which to pay the cost Of mining
and shipping, estimated by Sub
scriber" at $3.50 a ton. The net
profit is therefor over 81 so per ton.
Production Of late has been about
5000 tons month, and when the
northwestern smelters are running
at their full capacity it is from
$1,000 to 10000 tons, a month.
Even at the present reduced rate of
production the company is earning
a dividend Of at least $4,000 a
month.
Subscribers error was due to the
fact that he presumed the smelter
deduction to be the same on both
low and high grade copper ores,
which they are not.
It is an axiom OF finance that the
cheaper money drives out the
dearer. We had this pumped into
US by the bankers good and strong
when there seemed to be some
prospect Of the free and unlimited
coinage Of silver at the ratio OF 16t
to L." We, should like to ask the
same bankers now how long will
good money stay in circulation it
they keep on putting out their
alleged currency? 1t was to
prevent such a substitution OF cheap
currency for real money that the 10
per cent federal tax ON bank notes
was instituted many years ago.
The law seems to be imperative
now. Why?
The present financial furry is
likely to have the effect of convinc-
ing the public that the United,
States needs a central bank Of issue
about as badly as any other country
on earth. We do not believe there
is now any serious prejudice against
such an institution so long as it is
absolutely under government con-
troll like similar banks in Europe.
Nobody wants to return to the days
Of state bank currency, but that is
where we are now drifting. An
United States bank is the best way
to stop that tendency and put an
end to periodical money panics.
The country's financial institutions
need a balance wheel.
The Miner hopes there is no truth
in the rumor that when the Stand
ard Oil-Amalgamated outfit went
cunning for Heinze they unexpect-
eddy bagged the Guggenheims