Part 2

There is usually little question about the validity of a coal mining proposition, since "the goods show for themselves." Comparatively few cases of fraudulent ventures in coal properties are of record. The product of a coal mine is ready for market just as soon as it is loaded into railroad cars, the mining company receiving its pay, commonly, upon its own recorded weights. There is no freight to pay, no waiting for assays or analyses, and no settlements with mills or smelteries. There are not the allurements for getting rich quickly in coal mining that are so beguiling to the class of investors generally approached by the promoters of mines(?). This must not be construed as stating that nobody has ever been deceived in a coal mine proposition, for, indeed, there have been many failures; however, they have been due, chiefly, to auto-deception as to area, thickness or quality of the coal measures.

III

THE ANTIQUITY OF MINING.

Mining is believed to have been one of man's earliest occupations. In historical writings, many of which date back into antiquity, there are allusions, as well as direct statements, concerning the art and tasks of obtaining valuable metals from Mother Earth. We are told that the very ancient Egyptians made common use of metals and that they possessed knowledge of certain metallurgical and metal-working processes (as for example, the tempering of copper) which we, of today, cannot claim. Six thousand years ago Egypt became a world power through her mining of copper in the Sinai Peninsula. Iron implements found in the great Gizeh Pyramid are supposed to date back to 4,000 B.C. Copper tools have been found in the ruins of ancient Troy. In Assyria, a very good steel saw, 44 inches long, was taken from the ruins of Nimrod. Iron was utilized by the Chinese some 2,000 years B.C. Near Delhi, India, there exists an iron pillar, 22 feet long and weighing six tons, dating back to 400 B.C. It is chiefly interesting in exhibiting an ancient knowledge of welding which is the envy of our modern iron workers. If we accept the Hebrew Scriptures, we must believe that mining was carried on in the time of Tubalcain, spoken of in Genesis. The Old Testament contains numerous verses referring to the mining of metals, the land of perfect abundance being paraphrased in Deuteronomy thus: "Where the stones are of iron and out of its hills are digged mines of brass." Coal was mined and used in Greece in 1330 B.C.

It is quite probable that gold was the earliest metal to be worked. There are two good reasons for this assumption: First, gold was to be found in the native state or as nuggets, thus requiring no reduction process. Second, the ores of gold are usually less refractory than are the ores of other metals. This is especially true of the oxidized ores such as would naturally be discovered by primitive man. These facts, together with the further properties of gold, _viz._, that its color is attractive, that it resists corrosion or tarnish, and that it is easily worked into ornaments or coin merely by hammering, make it highly probable that humans early made use of this yellow material.

We read in Job 28:1, that "gold is refined;" and modern investigations tend to prove that the Ophir of Biblical reference is the southern portion of Matabeleland or the Rhodesia of present fame among mining regions. It is possible and quite probable that the great quantities of gold used in the building and furnishing of King Solomon's Temple came from the vicinity of the present city of Johannesburg. The "golden fleece" of literature has been explained as a figure of speech for the skins of sheep which were laid in troughs to catch gold upon the principle of the riffle in a modern sluice-box.

Copper was perhaps the second metal to be worked by man. As a rule, it, also, is easily smelted from its ores; and, as above mentioned, we have relics that give evidence of wonderful skill in working this metal in times of remote antiquity.

However, other metals are believed to have been mined, upon commercial scales, before the Christian era. Silver and lead were handled in large quantities from the mines of Laurium, Greece, in the sixth century B.C., and the same mines are being worked to this day, the principal values now being in the lead rather than, as formerly, in the white metal. The Phoenicians, about 500 B.C., invaded Spain for gold, copper and mercury, and Cornwall for tin and copper. The Almaden quicksilver mines of Spain have been operated, almost incessantly, since 415 B.C., and in the 16th century, A.D., the wealth of Europe's greatest family of financiers, the Fügers, was based upon the operation of this remarkable deposit.

Del Mar, in his _History of the Precious Metals_, says, "Desire for the precious metals, rather than geographical researches or military conquest, is the principal motive which has led to the dominion of the earth by civilized races. Gold has invariably invited commerce, invasion has followed commerce, and permanent occupation has completed the process. It is the history of the past as well as of the present. Scipio went to Africa, Cæsar to Gaul, Columbus to America, Cortez to Mexico, Pizarro to Peru, Clive to the conquest and Hastings to plunder Bengal."

Our own day has witnessed the subjugation of the Boer. Because of Mexico's mineral wealth, many optimistic Americans are beginning to prophesy the annexation of our sister republic. For gold, Englishmen populated Australia in 1850, about the same time (1849) that we witnessed the rush to California gold fields. Spaniards settled Central and South American countries merely to gain the precious metals. It is mining which has been responsible for the population of the arid, southwestern portion of our own domain.

In this, as in every other age of the world's development, we shall find that the mining industry lies at the heart of all commerce. It is well for the student of mining economics to fully appreciate this fact, for it will whet his interest in this great world industry.

"Truly, it has been a great seeking and finding. The story of mining may have been staled by commonplace, and the romance of it dulled, often enough, by greed; yet, in the main, it has linked the generations of earth as with a golden thread--and if not golden only, then there has been the red glint of copper or the white sheen of silver. Mining districts may come and go, but mining remains."--(Editorial, _Engineering and Mining Journal_).

IV

MINING'S PLACE IN COMMERCE.

It is said that upon two of the world's commercial industries, every other form of activity depends. These two fundamental industries are agriculture and mining. Statisticians prove the above statement and the further fact that these two dissimilar branches of civilization's business are so closely related as to be quite inter-dependent. Strides are made by one of these industries only when advance is noted in the other. While it may not be possible to explain just why this is so, it is worth our attention to consider some brief figures that show this condition of affairs.

The agitation conducted during the past few years, leading to the establishment of a Bureau of Mines in the Department of the Interior, attracted the thoughts of many students of economics who had not previously or seriously considered the industry of mining. The delivery of brilliant addresses showed that mining had been unjustly retarded. While agriculture has for years been fostered by the government and with remarkably satisfactory results, the great sister industry has been required, until recently, to struggle along without any governmental recognition in the matter of support. Yet it has forged its way in unmistakable terms of progress and there was an insistent demand, among those men particularly interested in the welfare of mining, for the protection and the assistance which would and has now come through the establishment of a governmental department. Various states have long recognized the importance of the mining industry by the establishment of departments. The Canadian and Mexican governments maintain very creditable Departments of Mines. It was but a question of time until the shortsightedness of our politicians (not our statesmen) was revealed, and the mining industry has now come under the auspices of a federal department.

Taking the world as a whole, it would be hard to conceive the sum total of annual mineral productions. The middle of the past century seems to have been a critical period in the mining industry of the earth. There was a great impetus given to mining by the greed for gold which caused the settlement of our western states and the Australian states, as already mentioned. But there gradually followed the opening up of mining in many other and hitherto unpopulated and uncivilized portions of the globe. The search for gold was successful.

Prior to 1850, the production of gold had not kept pace with the increase in population. Soon, however, it began to take leaps, in almost geometrical ratios, until, by 1900, the annual production of gold throughout the world was some 2,200 per cent. of the production for 1800 (as nearly as may be ascertained). The 1900 gold production was of a weight of about 400 tons, in round figures. During 1911, the world produced approximately $470,000,000 (about 779 tons) in new gold bullion. It is estimated that with a continuance of the remarkable progress, the next 20 years will duplicate _the amount of gold now known in the world_. _This means that the amount of gold which has been accumulating from mining during the world's ages will be doubled during a fraction of our lifetime._ This is significant of the world's progress, in gold mining, at least.

It seems coincidental that the rush for gold in 1849-50 should have been almost simultaneous with the remarkable development of our other mineral resources. All of our great discoveries of coal, oil, silver, iron, lead, copper, and zinc can be said to have followed closely upon the discovery of gold in California. It is not supposed that the discovery of iron in northern Michigan in the early eighties had any connection with the "Pike's-Peak-or-Bust" expeditions, nor that the opening and development of the vast coal beds of Pennsylvania had any bearing on the discoveries of lead and zinc in the great Mississippi Valley. But, on the other hand, there can be traced a very intimate relation between the finding of gold, silver, copper, and lead in the Rocky Mountain states and the search for gold in California: the pioneers en route to the coast were the discoverers and settlers in Colorado, Wyoming, Utah, and Montana.

Figures are not available for arriving at such striking or reliable conclusions in regard to the world's production of metals other than gold, but there is no logical reason to doubt that such increases have been just as pronounced as in the case of the yellow metal. In fact, there are good grounds for assuming that the figures for silver, lead, iron, and zinc would show up even more spectacularly; while with coal, we know that we are now in the greatest period of the world's production.

The United States leads the world in the production of the base metals, such as copper, iron, manganese, lead, and zinc, taken collectively or separately. Our country stands second in the production of the precious metals, gold, platinum, and silver. We have the greatest variety of mineral products, as well as the greatest production of complex ores, or those carrying more than one valuable metal. We produce more copper than the rest of the world combined. Although we stand in second place when considering the production of gold, we still possess the Homestake mine in the Black Hills, famous as being the gold mine with the greatest tonnage in the world; and the Camp Bird mine, in the San Juan district of Colorado, famous the world over for its highest average value of gold ore. This great mine is now nearly exhausted and is about to close down after making a wonderful record.

South Africa produces the greatest amount of, and the purest, natural gold in the world. Great Britain has an insignificant production of both gold and copper, and still it is noteworthy that the English-speaking nations control the world's production of both these metals. British and American citizens own seven-eighths of the world's gold mines. England stands second in the consumption of copper, which, of course, is mainly imported.

Russia controls the world's output of platinum, with very little competition. In a similar manner, Canada has the control of nickel production. Mexico, although not commonly regarded as a gold mining country, is rapidly coming to the front and possesses the Esperanza mine, said to be one of the most profitable gold mines in the world.

To more emphatically show the importance of the mining industry, especially in our own country, the following facts are taken from 1900 census returns: Agriculture produces annually about $725 per capita; mining, $1,910; and manufacturing, which is dependent upon the others, $760. _The National Banker_ has said: "Statistics show that the combined dividends paid by the gold and silver mining companies of the United States are greater than the combined dividends paid by all of the banking institutions of the country; and the combined dividends paid by the copper mining companies of the United States exceed the combined dividends paid by all of our railroads."

There is one thought that will always comfort any person who is engaged in furthering legitimate mining: Wealth acquired from a mine is not wrested from any being but Mother Earth, and it is not, therefore, in the class with the much discussed "tainted money" that is said to be wrung from unfortunate human beings.

The following tables are presented to give the reader ideas concerning the productions of gold and silver during recent years. Among the interesting points that may be noted are the following:

The gold production of the world took a sudden drop in 1900, but it immediately resumed its upward climb. During the decade from 1900 to 1910, this production increased over 81 per cent.

There is a remarkable similarity noticeable in the gold productions of the United States during the years 1910 and 1911.

Without the notable increase in the gold output of the Transvaal in 1911, the world's total gold production for that year would have shown a decrease.

The silver production of the United States remained practically unchanged during 1911.

GOLD PRODUCTION OF THE WORLD FOR 20 YEARS

1892 $146,292,600 1902 $298,812,493 1893 158,437,551 1903 329,475,401 1894 182,509,283 1904 349,088,293 1895 198,995,741 1905 378,411,054 1896 211,242,081 1906 405,551,022 1897 237,833,984 1907 411,294,458 1898 287,327,833 1908 443,434,527 1899 311,505,947 1909 459,927,482 1900 258,829,703 1910 469,365,110 1901 260,877,429 1911 473,383,543

UNITED STATES SILVER PRODUCTION

(In Fine Ounces)

1910 1911

Alabama 300 174 Alaska 153,900 275,691 Arizona 2,655,700 1,594,428 California 1,791,600 2,727,336 Colorado 8,523,000 7,530,940 Georgia 300 225 Idaho 7,027,000 7,507,802 Illinois 2,100 4,648 Michigan 262,200 507,234 Maryland ...... 87 Missouri 32,200 56,228 Montana 12,282,900 11,116,778 Nevada 12,366,000 10,651,571 N. Mexico 779,000 1,142,335 N. Carolina 8,300 2,227 Oklahoma ...... 168,245 Oregon 43,800 69,116 Pennsylvania 700 13,262 S. Carolina ...... 14 S. Dakota 120,600 206,188 Tennessee 69,800 126,683 Texas 364,400 442,486 Utah 10,445,900 12,679,633 Virginia 200 45 Washington 204,900 142,196 Wyoming 1,300 1,009 Porto Rico ...... 51 Philippines 1,800 3,383 Miscellaneous ...... 826,102 ---------- ---------- Total 57,137,900 57,796,117

UNITED STATES GOLD PRODUCTION (In Value)

1910 1911

Alabama $32,900 $18,335 Alaska 16,271,800 16,002,976 Arizona 3,413,200 2,954,790 California 20,441,400 20,310,987 Colorado 20,526,500 19,153,860 Georgia 24,000 30,532 Idaho 1,035,000 1,169,261 Illinois ------ 5,788 Michigan ------ 20 Maryland ------ 20 Montana 3,720,400 3,169,840 Nevada 18,783,700 18,968,578 New Mexico 477,200 639,897 N. Carolina 64,500 76,693 Oklahoma ------ 30,698 Oregon 681,400 599,235 Pennsylvania 5,900 7,814 S. Carolina 37,800 13,437 S. Dakota 5,380,200 7,430,367 Tennessee 2,800 14,140 Texas 400 1,178 Utah 4,312,700 4,709,747 Virginia 900 4,300 Washington 806,000 504,537 Wyoming 4,100 18,791 Porto Rico 1,000 2,191 Philippines 154,400 130,501 Miscellaneous ------ 265,013 ----------- ----------- Total $96,269,100 $96,233,528

GOLD PRODUCTION OF THE WORLD

1910 1911

Transvaal $155,730,260 $170,487,900 United States including Alaska 96,269,100 96,233,528 Australia 65,634,340 61,072,409 Russia 43,168,389 40,600,000 Mexico 24,073,100 19,500,000 Rhodesia 12,607,791 13,045,100 India 12,089,400 10,505,506 Canada 10,224,910 10,646,000 China 10,102,300 10,000,000 Japan, East Indies, etc. 10,522,437 10,600,000 West Africa 3,674,087 5,268,100 Madagascar 2,149,721 1,900,000 France 1,114,700 1,275,000 Central and South America 14,886,234 15,000,000 Other countries 7,118,841 7,250,000 ------------ ------------ Total $469,365,610 $473,383,543

V

THE FINDING OF MINES.

Mines are discovered in many ways. One hears much about prospecting, and since this is a practice which is rapidly changing from a mystical to a scientific basis, a few considerations will here be in order.

Persons who have lived in mining communities are familiar with two types of prospector, the roving and the settled. Somehow, when we think of the former, there comes to mind a bearded, roughly clad man, usually accompanied by a "jack" and both packing the outfit consisting of a few tools, a pan, some blankets, a gun, and a supply of "grub." If we have in mind the other type of prospector, we imagine him as living an isolated life in a log cabin up in the hills, spending his daytime in putting in a few, short drill-holes and blasting down a ton or two of usually worthless rock in a "tunnel" or shallow shaft, confident that each succeeding shot will disclose a treasure.

Both of these types represent the utmost in optimism. These men endure many hardships and privations, they can have little converse with other humans, often they can see no provisions for the next day; in fact, they receive few of the benefits of modern civilization--if we except the food-preserving features. Still, a typical, old-style prospector keeps on with absolute faith that fortune will smile tomorrow. We must reach the conclusion that these uneducated men are led on by subtle beliefs which, to a technically-trained man, seem like the rankest folly. They are diviners, dreamers. They are disappearing now and, a generation hence, there will be but memories of them. They are giving way to successors of a different type.

The newer kind of prospector is well educated, and, perchance, he is rather youthful. His chances of success are many times those of the man he supplants. Why? Because he is taking advantage of the work that has been done by all former prospectors. He is guided by theories deduced from observations through ages, and he has the advice of the best contemporary men of experience in matters of geology as applied to mining. In other words, he is a scientific prospector.

The prospector of today has a general understanding of mineralogy and geology; he must have knowledge of mining methods, so that he may know whether a deposit, once found, can be exploited at a profit; he must be ready to account for all discovered mineral bodies, and he must be capable of applying theories to actualities.

There are so many metals and minerals sought for the markets of the world today that we see there are many fields of study and practice open to prospectors. It is not the purpose here to explain the details of scientific prospecting, for the study of this one subject would, in itself, fill a volume. The object of the above remarks is to draw to the attention of the economist the propriety (amounting almost to a necessity) of giving heed to the findings of the educated, trained searcher for mineral bodies, in preference to those of the illiterate man who has furnished themes for artists, narrators, and dramatists, because of his quaint characteristics.

Some writers have classified mineral discoveries into Search, Chance and Adventitious.

_Search_ discoveries, being the rewards of earnest seeking, it is not surprising that, under the past guide of notions and mysticism, the percentage of such discoveries has been small. Under the new order of things, with science as a guide, the percentage is growing and, in the future, this kind of discovery will undoubtedly strongly outnumber the others.