In 1825, an English company, styling itself the "Pasco Peruvian," undertook the drainage. This company contracted to be paid in ores, which they were to beneficiate themselves. They were never fairly paid. They employed English officials and operatives at high salaries; and after having dug one hundred and ten feet, at a cost of forty thousand dollars, between September, 1825, and January, 1827, they failed. The government then took it up, and gave two thousand dollars monthly towards the work, the miners also taxing themselves twelve and a half cents on the mark of silver obtained. Rivero took charge of the work, and from the first of June, 1827, to the first of January, 1828, he perforated one hundred and twenty-two feet in the socabon, the workmen finding powder and candles, and he supplying tools. In an official statement, afterwards made by Rivero, he shows that to excavate a vara cost him eighty-six dollars, while it cost the Pasco Peruvian Company one thousand dollars; though he says that in the lumbrera of Sta. Rosa the Pasco Peruvian Company found the rock so hard that twelve men could not perforate more than half a vara a month. The socabon at present is eight thousand two hundred and fifty feet long, and three hundred feet below the surface. About a million of dollars have been spent upon it, though it is said it has not really cost so much.

A few years ago it was determined to try steam again, for the purpose of carrying on the mining below the great drain, and the gremio contracted with Mr. Jump to undertake it. He bound himself to put up four sets of engines, to work those engines for a year at his own expense, and then turn them over to the gremio; the gremio, on the other hand, binding itself to sink the shafts and to pay weekly twelve and a half cents on every mark of silver produced by the mines for a certain length of time, then twenty-five, and then fifty cents, till six hundred thousand dollars were paid.

The work is carried on with unexampled despatch on the part of Mr. Jump, so that now two sets of engines are at work, a third is going up, and the fourth has arrived from England, though the shaft is not yet ready for it. But there are two parties in the gremio, representing distinct interests. One party, of which General Bermudez (at the time of making the contract prefect of the department and ex-officio president of the gremio) is the leader, represents the speculative men, who look for "boyas," and think that great and sudden riches are to be had by draining the mines below the socabon. The other party (and the majority) represents the men who, content with moderate and certain gain, work the cascajos which are generally above the drain, and therefore need no machinery. These men were probably borne down by the influence of Bermudez during his prefecture, and a majority was obtained for the contract; but since his retirement they rise up and say, "It is a hard case that we should contribute to pay for machines that do us no good;" and they seek for means to avoid this. They find it in the wording of the contract; and although they see that the machines are doing, and more than doing, the work required, they take advantage of the wording, and raise the question now under consideration. The words of the contract are, that "he, the contractor, shall bind himself to put up four sets of engines, each set to consist of two engines of fifteen-horse power each, and to drive three pumps; each engine to be entirely independent of the other in such a manner that, if an accident happen to one engine, the other shall be able to drive two pumps."

I thought, from examination of the engines, that a case might occur whereby the wording of the contract would fail to be fulfilled; but it seemed to me that this arose from the nature of the contract, and was not at all chargeable on Mr. Jump; for it appears to me that, for two engines to drive three pumps, and in such a manner that if one breaks the other may drive two, it is necessary to have a connexion between those engines, which connexion breaking, although either engine may be intact and able to drive its own pump, (thus keeping two pumps going,) yet the engines must stop to repair the connexion, so as to drive all three again. That the pretended objection is a quibble, may be seen from the fact that the engines keep the shafts clear with only two pumps, and do not work the third; but I suspect that news recently received from Lima of the discovery of large quicksilver mines in California, which would bring down the price of that article one-half, and double the value of the cascajos, (thus still diminishing the necessity for drainage,) had something to do with the movement. A committee of the gremio, appointed for the investigation of the matter, did report in favor of stopping the payments; but before this was decided upon, some rich ores were discovered by the operation of the pumps. This changed their tune, for, although they now only work the ores above the socabon, they may, if they choose, penetrate below it; and if these machines should show conclusively that there are richer ores below, they of course would be glad to have them, and the gremio, therefore, (including even some of the members of the committee,) voted that the works and the payments should continue, and the matter should be arbitrated. I of course get my knowledge and views pretty much from Mr. Jump, one of the parties; but I meet at his house and elsewhere with men of the opposite party, and hear the matter very fully discussed. I would have advised Mr. Jump, in any other country, to reject arbitration and appeal to the law; but the less a man has to do with law in this country the better, not so much on account of its ill administration as of its vexatious delay.

I removed from the sub-prefect's house to that of Mr. Jump, Ijurra staying with his relations, and Mauricio and the mules at board.

The "callana," or smelting-house, where the "piña" is run into bars, is a government establishment, and is farmed out. All the produce of the mines has to pass through it; is here run into bars, weighed, stamped, and the duties charged upon it. It is very rude in its appointments, a mere straw-covered hut, with an iron smelting pot in the middle, mounted by arms, on two iron uprights like anvils. The pot melts at one operation sufficient silver to make a bar of two hundred and fifty marks, or one hundred and twenty-five pounds. Alternate layers of piña and charcoal are put in the smelting pot; fire is applied, and air furnished by a rude bellows. When the silver is melted, the pot is turned on its arms, and the silver poured out of a sort of ear at the top of the pot into an iron mould below. From one and a half to one and three-fourths per cent. is lost in this operation; much seems to be driven off by the irregular and excessive heat, and the sides and roof of the hut are covered with a deposit of fine particles of silver, looking like frost. They are frequently swept; I did not think to ask to whom these sweepings belong, but I imagine to the farmers of the "callana." The bars are marked with the number of the bar for the year, the number of marks it contains, the initials of the owner, and the invariable 11.22, which designates its "ley" or quality.

Remittances of bars are made to Lima every week. Last week the remittance amounted to seven thousand five hundred marks—a large yield. Since my return, I cut from a Lima paper a letter from Cerro Pasco, of April, 1851, (a few months before the date of my visit,) in which the writer states the remittances for the week at eighteen bars, or four thousand five hundred marks. He says, "The drainage by steam is progressing rapidly. Another vein of ore has been discovered in the mine of Peña Blanca, but I believe not very rich. The advices from Lima are constant that the quicksilver mines of California will yield a sufficient supply for Peru, at a price not exceeding fifty or sixty dollars the 'quintal', (or hundred pounds). Should this be the case, there will be no need of suspending the working of the cascajos, as ore of six marks to the caxon, with quicksilver at seventy dollars the quintal, and piña at eight dollars the mark, will leave fifty dollars of profit in the circo. The price of quicksilver at present is from one hundred to one hundred and seven dollars the quintal; that of piña, eight dollars and forty-three and three-fourth cents."

The yield of these mines is about two millions a year, which is nearly equal to the yield of all the rest of the mines of Peru together.

M. Castelnau makes a calculation from all the data within his reach, by which it appears that the yield of the mines of Cerro Pasco, since the date of their discovery in 1630 to the year 1849, amounts to about the sum of four hundred and seventy-five millions of dollars, which would give a yearly mean of about two millions one hundred and seventy thousand.

About two hundred miles-to the southward and eastward of Cerro Pasco are situated the celebrated quicksilver mines of Huancavelica. The viceroys of the regal and the presidents of the republican government have made many efforts to keep up the working of these mines, but of late years entirely without success. M. Castelnau states that their produce since the opening in 1751 to the year 1789, inclusive, (since which time they have yielded nothing of importance,) has been one million forty thousand four hundred and fifty-two quintals, which, at a mean price of sixty-five dollars the quintal, will give the sum of sixty-seven million six hundred and twenty-nine thousand three hundred and eighty dollars. In the same time have been expended on them ten million five hundred and eighty-seven thousand eight hundred and forty-five dollars.