Gilpin observer., 1907-08-15
Capt. Smith. Week. Review.

Since the close OF the nScal year,
June 30. bar silver has advanced 21
points in the London and New York
markets, and in spite of decreased
shipment from London to India for
currency demands holders of the metal
are decidedly firm, the mint bureau
paying close to 10 cents per ounce for
deliveries at Philadelphia, Denver and
San Francisco. The secret Of this firm-
ness in the price of the white metal is
the practical ascension Of the much
advertised Cobalt balloon. which last
year threatened the mining and metal
lurgical world with "veritable flood
of silver" such as the Comstocks
poured forth in the demonetization Pc
riod of 1873.
From millions in high grade stuff"
in the early fall Of 1906, Cobalt ore
shipments have dropped to an average
of 900 tons per week Of medium grade
ore, which pays but Indifferent profit
when the excessive cost OF mining,
transportation to outside points and
treatment by American smelters Is
subtracted. Cobalt now talks econ
omy, the curtailment Of wages and liv-
ing expenses, and the immediate con-
struction of home smelters. While
this transformation from bonanza to
business proceeds there Is talk on the
curb of suspending dividends, and on
the strength Of this talk Nipissing, the
leading cobalt share. has dropped In
Boston and New York to $3.50 and So,
with the would-be sellers vastly out
numbering the buyers. Persons who
-. r..
tional lifts do not stand for conserv-
att ye policy, with its average dividend
Of to 10 per cent. yearly. About this
time last year. when the Guggenheim
Exploration Company had barelined
for a large interest in Nipissing, to
keep the silver output in control. the
stock advanced by leaps and bounds
from $14-the contract price-to as
high as $40 on the New York curb,
with wild excitement attending the
sales. The engineers OF the Explora-
ton company who checked up on the
glowing report of John Hayes Ham,
mond, did not agree with the conclu-
sions of the 100000 per annum ex-
pert Then the Guggenheims let go
Of their holdings, but were decent
enough to protect their followers at
loss of some $4,000, 900 to the Explora-
ton company. Since that time, how
ever, another Guggenheim concern, the
United Metals Selling Company. has
cleared vast profit in sales Of silver,
copper. lead and zinc, so that the Co
bait loss has been many times made up
a removal of threat against the sta
bility Of the white metal, which is soon
to be used on an extended sale in
Cuba, where the rate of wages and
nf living kn oi1vpr naCttIiorly
useful as the currency Of the people.
To meet the popular demand in
Cuba Secretary Taft has decided to
make American money legal tender in
the island. demonetizing all foreign
coins, including the Spanish. A Cuban
silver currency Of low denomination.
bearing a fixed relation to American
coins. as In the Philippines, will be in
trOduced. Our silver certificates, gold
certificates. bank notes, etc, will con-
tinue to circulate until the Cuban gov
ernment Is ready to make its own pa
per issues. Currency reform along the
, line proposed means additional work
for American mints, including the
plant In Denver. and wider market
for the product OF American silver
mines.
To return to Cobalt. The district
was recently examined by Willet G.
Miller. NJ. E., provincial geologist of
Ontario, who has every reason to be
prejudiced in its favor In a recent
paper, read before body of mining en-
gineers, he declared that Cobalt was
unique In It's association of ores. "In
no other part of America did the met
ais of silver cobalt, nickel and arsenic
occur together. The only known places
where they were found In combination
were Saxony, Bohemia. and one place
In France. Most of the noted mineral
deposits OF Ontario were unique. The
nickel ores OF Sudbury required years
OF experimenting for their profitable
treatment. The corundum and mica de-
posits were also phenomenal. The CO.
bait mines had been rapidly developed
because the ore was rich in silver
but owing to its peculiar and RE-
FRACTORY character the cobalt.
nickel and arsenic had been practi-
cally wasted"
Very different this from Leadville
where the Yak Tunnel, Mining and
Milling Company pays steady quar-
terly dividends of six per cent. upon
ores that average from $3.50 to 81 per
ton. containing values In silver, gold
lead, zinc and copper. all economically
mined and as easily treated as lead
silver ore at the smelter. Leadville
produced last year $1.249.403 In gold.
$4.1O4.394 In silver. 33,051.261 In lead,
$S7500S in copper and $4,541,75s In
zinc, together with $4,000 worth OF
manganiferous iron ore, and $12,5O0
in bismuth, or $13,SS4,324 all told
This was close to ten per cent. In
crease over 1905. with dividends total.
Ing $2070.000, or near to fifteen per
cent. OF the gross value OF the product
There Is an essential difference be-
tween this record and the Cobalt
showing. in which the more or less
valuable by-products are practically
lwasted.
Boston reports Nipissing bears as
llndulx agrresslye Rennrts stala TINT