Gilpin observer., 1920-04-22
STATISTICIAN ON
MINERAL RESOURCES
Says Miner and Smelter Must
Work Hand in Hand.

time when Colorado's production
is at low ebb and how co-opera-
tion between mine operators and
the smelters is essential, if adj
vantage is to be taken of the sit
uation, was> graphically told by
Charles w. Henderson, statistic
ian on mineral resources of the
U. S. Geological Survey, at Fri
days meeting of the Members
Council of the Civic and CONNER
cial association, says the Denver
Commercial. For the year 1919
Colorado's output of silver was
the lowest since 1878 and its out
put of gold was likewise the low
est in many years. Yet today
there is an unprecedented demand
and need for both.
The average price of pure sill
yer during 1920 will probably be
about $1.29, said Mr.. Henderson.
India and Asia are securing the
earth for the white metal. India's
annual demand alone is 250,000,-
900 ounces year for use both
as currency and ornament. For
jewelry 120,000,000 ounces an
nually are utilized outside of In
dia and the use of the metal in
jewelry is growing apace, $50 new
silversmiths having established
themselves in New York City in
the last year. This demand is
growing by leaps and bounds des-
pite the fact that in 1919 the
worlds production of silver was
only 160,000,000 ounces and that
the annual supply from the mines
of the world for the last thirty
years has averaged only 64,000,-
600 ounces.
Colorado's peak silver produc-
tion was in 1898, when total of
26,000,000 ounces was recorded to
the states credit. Because of the
great silver output of Creede, be-
ginning in 1891, the state produc-
tion was maintained at a high
rate until 1898.
Must Work Hand in Hand
"Colorado's total output of sill
yer to date has been 606,000,000
ounces and as all mining men
know that represents a large ton
mage" said Mr.. Henderson. "How
much is left? How shall we get
it out? These are questions that
are before us today. Well, get
ting it out is the mine operators
problem. But one thing is cer-
tain about tive will have to
have cooperation between the op-
orators and the smelters. An i'm
portant factor that most people
do not know and do not realize is
that four-sevenths of the lead
necessary in smelling silver ore
must be imported into Colorado
from Idaho. Therefore, co-opera-
tion is essential.
81 have before me some figures
furnished at my request by the
American Smelling and Refining
Company, which show that during
1919 the company paid in, cash
$10,000,000 in Colorado for silver.
That will be larger in 1920. These
figures disclose also that 70 per
cent of money received by the
smelters upon silver ore goes to
the ore shipper and payment of
freight, and that more than 25
per cent is devoted to costs of
operation and that II per cent
only is profit. Moreover, costs
have increased greatly in the
smelling industry"
Because pure gold brings the
miner only the same return as in
the past-$20 an ounce while
production costs have mounted
greatly, relief for the operator is
necessary, if production is to be
increased, Mr.. Henderson showed
In this connection he called at
tention to the Importance of the
McFadden bill before Congress.
which would place an excise tax
of $40 on each ounce of gold used
for jewelry and would provide
payment of $40 an ounce to the
operator.
Strikes Optimistic Note
An optimistic note with respect
to improvement in conditions.
particularly relating to labor in
the mines, was struck by Horace
F. Lunt, state mining commission
er, in brief address. "The labor
supply is not only better in guam
| titY but in uualitv and cnndi-