The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1916-03-18
UNWORKED MINERAL LANDS

The holding OF large tracts of mineral lands without
working them has been one OF the characteristics OF the
later mining industry in Central and South America.
This condition exists to a certain extent IN the United
States. but it is not SO marked as it now is IN the repub-
lies to the south, says the Mining Journal.
In many OF the Latin american republics the mining
industry is backward because the owners OF mineral lands
are waiting for foreigners to come and buy their proper
ties. which they have no intention-and often no means
OF exploiting. The laws and political conditions in some
OF these countries cause the foreign capitalist to hesitate
about investing; he Is concerned about the security OF his
investment and would much rather put his money III an
enterprise at home than in one III a foreign country where
he has no influence and where revolutions or new po-
ltical administrations may change or cancel the Suaran-
tees originally given when his investment was made.
Meanwhile the native owners hold the propcrty-not pos
ses>ing the means Of exploitation and often having no
capacity or training III this direction.
Except as developed by foreign capital, the mining
industry in most of the South American countries has de
clned from its original activity when the rich deposits
were first opened. This condition is in great measure
due to the lack OF application OF capital and technical skill
to the lower grade deposits that undoubtedly exist in these
countries. The exploitation OF such areas, however. re
quires the introduction OF greater capital than is usually
at the command of one man, and in the absence of favor
able political conditions the capital necessary to develop
and operate low-grade deposits has not been available.
In several instances higher taxes have been imposed
as soon as production on an important scale was initiated;
The clapping on OF higher export duties is not calculated
to stimulate further development Of these loW-grale
deposits. The prosperity OF a country would be placed
on a sounder basis by the establishment OF more indus
tries providing steady employment for the people than
BY heavy taxation Of the one or two established opera
tons. Untaxed development of its mineral lands
has put the United States in the forefront of mining
countries; its mineral industry employs many more
people today and is vastly more important than in the
earlier bonanza days when only the rich deposits were
being operated. An equal opportunity exists in many OF
the southern republics similarly blessed with latent min
eral resources.
The attitude OF the native owner in holding his
mineral lands unWOrked and waiting for the foreigner to
come in and open up the properties has resulted in a
decadent mining industry in ~Latin-American republics
that were once the most active mining centers of the new
.or1d.
Honduras in colonial times employed a large per
centa9e OF its people in the mining industry. Much of
the mineral land of the country is now held in grants
or zones by the payment of small annual rental
fees. and in consequence little active work is being done;
the owners are awaiting the arrival of foreigners who
will buy and operate the properties. The country, how
ever, is growing weary of the inactivity, and a bill is now
before the I1Onduran congress to abolish the annual
rental tax and restore the older colonial system, which
REQUIRED mineral lands to be worked. Under this system
Honduras had a large part of its population engaged in
the mines. The work -the-claim method would doubtless
create a new mining activity. Will the Hondurans have
the faith to see the thing through?