A similar deposit of silver was found in New Mexico about twenty years ago and was christened the "Silver Lake" Mine. This was worked profitably until the great fall in price of silver made the operation a losing one. The "blanket" still contains millions of ounces of silver, and it is probable that cheaper methods of recovering the metal from the ore will be devised whenever the price of silver shall have fallen low enough to enable it to take its place among the so-called "economic" metals, having far wider application in the arts than have the precious metals. At present silver holds an unfortunate place "betwixt and between" the precious and the economic metals.
Twenty years ago aluminum was more valuable than silver is to-day, and its production was correspondingly limited. Last year the price was reduced to a point which so widely extended its use that the production increased from 1,900 pounds in 1888 to more than 5,000,000 in 1898.
Although the gold deposit in the Camp Floyd district in Utah already alluded to may actually contain several billions of dollars' worth of gold, it will cost some billions of dollars' worth of labor and capital to recover the precious metal and will consume much time in the process; so that there is little reason to fear that gold will become so plentiful on account of this discovery that it will cease to be regarded as a precious metal. About forty years ago the assayers of the United States Mint announced that the clay underlying the city of Philadelphia contained more gold than had been brought from California and Australia, and this remarkable statement has never been disproved or even questioned. The gold, however, still remains locked fast in the clay, and the value of the precious metal has not yet fallen in consequence of the announcement of this old discovery. At that time the idea of profitably recovering gold from low-grade ores had not been born, and it is an interesting fact to note that in California gold is now being obtained from clay (by hydraulic washing methods) in which there is but little more than the average proportion of gold to the ton that the assayers found in the clay under the streets of Philadelphia. This does not prove, however, that it will now pay to excavate under the streets of the Quaker City, and undermine the buildings in order to wash out this gold, and until Philadelphia shall be provided with a far more copious water supply the most sanguine or suave promoter of great undertakings would find it impossible to obtain subscriptions to any scheme to recover this fugitive gold, or even, perhaps, difficult to give away shares of stock to influential individuals either in or out of councils.
An impression has prevailed that the production of gold in South Africa attained its maximum point in 1897, and that thenceforth the animal output would be smaller. On account of this fear the "Kaffirs" (South African gold-mining stocks) suffered a decline in the London stock market some months ago, but the statistics showed that the output during the first half of 1898 was larger than in the previous half year, and in the latter months of the year the increase was even more pronounced.
In an address given before the Mining and Metallurgical Section of the Franklin Institute on Mining and Minting of Gold and Silver in November last, the writer said that the production of gold in South Africa in 1898 would not fall far short of $70,000,000, and would probably be nearer $80,000,000. The estimate of the Director of the Mint fixes the amount almost at the latter figure. The United States, in spite of the considerable increase over 1897, takes second place as a world's producer of gold, Africa having contributed in 1898 an amount equal to that of the United States and Canada (including the Klondike) combined.
The startling announcements of discoveries of virgin gold in the Klondike and of rich placer gold deposits in other localities have had little to do with the enormous increase in production of gold in the world in recent years, though formerly such discoveries constituted the main source of supply of the precious metal. Digging for nuggets is a lottery pure and simple, in which a few prizes are obtained and many losses are suffered. It is said that for every dollar in gold taken out of the Klondike to date, two dollars have been carried in, and this is perhaps a conservative estimate. In fact, it is easy to prove by figures, if the value of labor be counted even at the lowest wage rate, say one dollar per diem, that far more money has been lost by the many gold-seekers than has been gained by the few fortunate ones in this twentieth-century search for the golden fleece.
The business of extracting gold from low-grade ores by scientific methods on a large scale, where the precious metal is evenly distributed throughout the matrix or gangue, is a legitimate field for the investment of capital, because the element of chance is reduced to a minimum, and even may be eliminated altogether. The margin of profit per ton of ore is not large as a rule in these operations, and thus the stability of value of the product is assured, whatever the output may be.
"Treasury Department, Bureau of the Mint,
"Washington, D. C., February 1, 1899."Alexander E. Outerbridge, Jr., Philadelphia, Pennsylvania.
"Sir: In answer to the inquiries in your letter of January 31st, I take pleasure in sending you such information on the production of gold in the principal gold-producing countries in 1898 as is at this early day available, comparing it with the gold output of the same countries in 1897. And first of the United States:
"Inclosed you will find an estimate made by the agents of the bureau of the gold yield of the several States and Territories in 1898. The aggregate outturn was $65,782,667. It must be clearly borne in mind that this is only an estimate, not the ascertained actual production. In 1897 the gold product of the United States was $57,363,000. Assuming the estimate of the gold product of the United States in 1898 to be correct, there was an increase in the latter year over the gold yield of 1897, in round numbers, of $8,420,000.
"The gold product of the Witwatersrand in 1898 was 4,295,602 ounces crude, and of the whole of the South African Republic 4,555,009 ounces crude, representing a value of $79,801,025.
"As the gold product of the Transvaal in 1897 was $57,633,861, the increase in 1898 was $22,167,164. The figures here given are those published in all the leading papers interested in such matters in England and on the European continent. They are not, any more than the figures given below, official to the Bureau of the Mint.
"I have not yet seen any figures of the total gold product of Australia in 1898, but the output of five out of the seven colonies has been published. The figures are as follows:
1897.
Ounces crude.1898.
Ounces crude.New South Wales 292,217 341,722 New Zealand 251,645 280,176 Queensland 805,928 918,100 Victoria 812,765 837,258 West Australia 674,994 1,050,183 ————— ————— Total 2,837,549 3,527,439 2,837,549 ————— 689,890 "There was an increase in the gold product of these five colonies of $13,107,910, the ounce crude averaging about $19 in value. The total gold product of Australia in 1898 was, as I estimate it, about $67,792,000. In 1897 it was $55,684,182. As yet no figures of the gold output of the two Australian colonies—Tasmania and South Australia—have come under my observation.
"Persons not connected with the bureau, but whose opinions are entitled to respect, have estimated the increase in India's gold output in 1898 at about $500,000, and in that of Canada (including the Klondike) at $8,000,000. I have thus far no data on which to predicate an increase or decrease in the gold yield of Russia. The product of these last-mentioned countries in 1897 was:
India $7,247,500 Canada 6,027,100 Russia 23,245,700 "The increase in the principal countries mentioned above, of their gold product in 1898 over 1897, reduced to a table, gives a total of $52,195,000, as follows:
United States $8,420,000 South African Republic 22,167,000 Australia 13,108,000 Canada 8,000,000 India 500,000 ————— Total $52,195,000 "The world's product in 1897 was $237,504,800. In 1898 it will probably not be less than $289,699,800. My opinion is that it will be somewhere between $290,000,000 and $300,000,000.
"If any further information reaches me within a week or two, I shall be glad to communicate it to you.
"Respectfully yours,
"George E. Roberts, Director of the Mint."
| 1897. Ounces crude. | 1898. Ounces crude. | |
| New South Wales | 292,217 | 341,722 |
| New Zealand | 251,645 | 280,176 |
| Queensland | 805,928 | 918,100 |
| Victoria | 812,765 | 837,258 |
| West Australia | 674,994 | 1,050,183 |
| ————— | ————— | |
| Total | 2,837,549 | 3,527,439 |
| 2,837,549 | ||
| ————— | ||
| 689,890 |