The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-08-09
Criticism of ''Blue Sky " Laws
&c. & NJ. Journal-Press)

The governors of the western di
vision of the American Mining Con-
gress at their recent meeting in San
Francisco severely criticised blue
sky" laws and passed. among other
resolutions, one calling for a revision
of the existing blue sky" law legis-
lation and condemning federal legis-
lation proposed for the purpose of
strengthening the various state laws
controlling the marketing of securi-
ties.
The resolution states "a large part
of the decline in western metal mining
is due to unfair restrictions of So
called blue sky laws, which have in
many directions rendered the raising
of capital for mining and other spec
ulative ventures almost impossible,
thus decreasing the production of
metals and contributing thereby to the
cost of all construction and manu-
featuring and tending to eliminate
the prospector and small operator
from important participation in and
contribution to the prosperity of the
mining industry and therefore of the
entire west. ="
We quote the foregoing extract from
the resolution in question, as it shows
how western mining men are often
misled by superficial reasoning. 1t is
true that a comparison of statistics
indicates a falling off in the mineral
production following the war period.
This was the result of economic con-
ditions, low metal prices and an ac-
emulation of metal stocks During |
the war period there was a curtail-
ment of development and for a time |
an acceleration of production. Curtail-
ment of gold mining was the result of |
economic conditions, the initiation of |
currency. Stagnation of industry af-
fected mining as well as other indus
tries. The revival of industry has
likewise revived mining, and mining
is now on the upward grade.
The dominating cause of the fluc-
tuations in the prosperity of the min
ing industry is economic. blue sky"
laws have little effect 1t is true that
we may expect a gradual falling off
in mineral production as the larger
mines approach exhaustion. The rate
Of mining discovery and development
IS necessarily irregular It is more =
iifiicult to discover a profitable mine a
han it once was. A greater amount Z
If capital is necessary for individual Y
operations, and there will lv
Re no doubt a considerable proportion .
If failures as compared to successes. a
The great Industrial expansion of n
he western mining states is not ap- A
ireciated by mining men, nor do they q
onsider that this expansion necessar- Il
Iy implies that the capital which was n
nee available for mining and pros IL
ecting is now in great demand by In
Their industries which offer the small "
lvestor less speculative enterprises. lo
iany of the western states have built
p a heavy bonded Indebtedness by q
capital from every source. Il,
he automobile has taken a tremend- 10,
us amount of small capital. Taxes la
ave accounted for a large part Of g;
ne capital which once took specula- ~
We chances in mining. The rich man n,
ust pay large part of his income in m
come taxes. In a word, where for r
erly the miner occupied front seat ca
the theater of speculative enter IA
Uses, he now finds. to his embarrass- N
ent, that he is one of the gallery In
IDS. We do not appreciate how m
'nds, farms manufacturing. auto W,
obiles and taxes have absorbed cap DE
Il and left lean piclSings for the tn