Evening star., 1933-03-16
CANADA PROMOTES
GOLD PRODUCTION
Mining Activities in Dominion
Are FoStered by the
Government.
Special Dispatch to The Star.

special DlSpatCn 10 Inc otaA.
NEW YORK, March 16.-The DO,
minion of Canada, through its financial
institutions and its governmental agen-
cies, promotes the mining OF gold. ms
accounts for the rapid strides that TINS
industry has made in the nation to the
north, while gold production IN the
United States has failed to keep pace.
The Caminetti act in California put
an end to hydraulic mining there, ex-
cept by large companies, while the sill
yer boom in Nevada and the Specula-
ton it caused sidetracked the yellow
metal for the white metal. Meanwhile,
Canada was attracting prOspectors Tor
gold. AS early as 1866 there was a
minor gold rush into Ontario, when a
Dutch miner found the metal In Hast
ings County, but 1t was not until 1871
that an important discovery near Fort
William started Ontarios gold produc-
ton on commercial scale.
"Seventy-five per cent OF Canadas
present gold output" said Maj. A. D.
comes from Ontario and Quebec in
a gold belt roughly situated less than
800 miles from New York City,"
Extends to U. S.
This belt, of course, extends into the
United States. In the Black Hills Of
South Dakota, for instance, is the
HomeStake Mine, one of the oldest and
largest producers on the North Amer1-
can Continent. Between this mine and
the Canadian field there appears to be
a wide break in the gold belt, but re-
seach may prove otherwise.
THE real progress in Canadian gold
mining" Maj. Watts explained, was
made after 1910. The huge silver de-
posits of Cobalt were discovered about
1904 and occupied miners attention for
five years thereafter. Then, in the
Summer of 1909. proSpectors, including
Ben Hollinger and Alex Gillies. inspired
perhaps by Indian reports of gold to
the north and west of Cobalt. left the
train at Kelso, Ontario, and plunged
westward into the bush. They emerged
few weeks later with news that fired
the North-the discoveries at Porcu-
pine, including the Hollinger mine that
produced $4,000, 10000 in gold and paid
S60.O00000 in dividends. The area since
that time has produced $318,000, 900 Of
gold.
In 1911 the Kirkland Lake district
was discovered, an area that added S24,-
100000 year to Ontarios bold pro-
auction. That province since 1910 has
added $3.50. 100000 to the worlds gold
supply, and so rapidly is Ontario's pro-
duction growing that an output of $50,-
100000 is expected this year, giving the
Dominion total 1888 output of $780,
100000.
Output Is Increased.
THAT estimates however. are not al
ways a safe guide is shown by an epi-
sode when the League of Nations ap-
pointed special committee to make a
general study of the gold situation and
appraise its prospects. The committee
appraised the potential gold production
OF the world between 1881 and 1910 and
predicted a decline in gold output not
only for the world, but for Canada.
They predicted 1881 output for Can
ada of SAL 900 ,000-in 1880 Canada had
mined $4,000, ,000-and it was thought
that the Dominion might reach $751;
100000 a year by 1910.
Actually Canada reached the $55.-
600, 0,000-mark in 1881 and has steadily
gained ever since Why?
"Canada's gold mining industry has
prospered because the government spon-
sors it. Not only does the government
at Ottawa devote a great deal of effort
to the industry at large, but the indi-
vidual provinces have set up bureaus
Of mines, headed by experts who assist
in every way possible.
IF new strike is recorded in any
given province, corps of geologists is
Immediately sent to the scene and
within few weeks a complete report
of the district is available to any in
quirer. He is told how to get there,
how to equip himself, what to look for
in the way of geology, and last, but not
least, whether it is worth while to go.
Prospectors Trained.
Canada advertises her mines She
sets up schools where prospectorS are
trained and teaches the mining fra
ternity how to get the most out of
mining. Last year nine gold mines in
Quebec and Ontario alone increased
profits by 25 per cent and dividends by
80 per cent.
What can the United States do?" he
asked, and added, well, it could de-
velop its mining bureaus on cooper
ative basis similar to that of Canada s
mining bureaus. Placer mining on q
large scale is being suggested in Cali
fornia. The Reconstruction Finance
Corporation could help finance gold
mining operations that are scientifically
worked out"
UCcpyrioht 1Q33)