Year: 1879

California have about consummated an
arrangement whereby the output of that
metal will, for period at least, suffer
some restriction an object that portion
of these companies have been seeking to
effect for several years past, that is to say
ever since it became evident that an un-
limited production, if allowed to go on,
must preclude any of them from realizing
living profit.


But while the most Of these companies
were willing and even xieus to enter
into com binaton for this purpose, few
Of them held aloof, not quite satisfied
with the minor details, or hoping for such
early improvement in prices as would OBJ
viate the necessity for such action. Dis
appointed IN this, even these compan-
les have at last, it seems, given their ad-
herence to the plan proposed for guarding
against the continuance Of this runous
overproduction. We are not advised as
to the exact manner in which this is to be
accomplished, further than that enough
curtaiment will be made to reduce pro-
duction to the requirements of the mar
ket. Whether each of the companies now
in the field will make pro rata abate-
ment Of their yield, or whether few will
retire altogether, sharing the profits to
arise from an advancement of prices,
while the remainder go on turning out
their full complement of metal, as before,
we are not informed.


II will be observed that this is not
combination entered into to force up
prices directly, but to prevent, in the first
place, their further decline, and ultimate
ly bring about such advance as will make
the business fairly remunerative. For the
past two years the best conditioned of
these companies have made bu. little
money, the majority Of them having been
going behind at rate that has compelled
quite a mum Der, after heavy expenditures
for outfit, ETC., to suspend operations,
some of those that have kept on having
done so merely in the hope that affairs
would soon take favorable turn. A
monopoly of quicksilver or even extreme
high prices, can, in no event, be brought
about on this coast. We have multi
tude Of small mines that, while they can
not be worked with profit so long as
prices remain greatly depressed, will be
started up Immediately should the latter
undergo any marked advance, some Of
these mines being already opened and
furnished with reduction works.


In adopting the policy proposed, these
companies are not without precedents, the
manufacturers and producers Of certain
articles elsewhere having in many in
stances found it expedient to pursue
similar line of action. Quite recently
course like this was forced upon the
manufacturers of borax on this coast, the
several companies engaged in business
having, through competition stripped it
of all profits. Having, through a mutual
arrangement, slightly lessened the pro-
duction, the prices have so advanced as to
leave a narrow margin for profits, where
before there were none. Borax, however,
is an article of large use and varied APP
plcation in the useful arts, insuring for 1t
under low prices an increased consump-
tion, which is not the case with ouicksi-
yer. For this there may be said to be but
single use, wherefore about the same
quantity will be consumed whether the
price be high or low. With most COM
modities the maker or producer finds in
the increased demand resulting from low
prices some compensation for the latter /;
but not so the producer Of quicksilver,
wherefore, when prices drop below res
munerative fgure he must devise some
method for bringing about an improve
ment, give up the business or continue it
at loss. An advance in the price Of this
commodity of few cents pound, while
it would not lead to any appreciable eur,
talment of gold and silver production,
nor much oppress any class Of consumers,
would very often suffice to cover the mar
row margin that with the producers Of
this metal divides living profits from dead
loss.-ltning Press.