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59th Congress, ) HOUSE OF REPRESENTATIVES. J Document 1st Scssio?i. J (No. 19.
REPORT
✓
OF THE
DIRECTOR OF THE MINT
UPON THE
PRODUCTION OF THE PRECIOUS METALS
IN THE
UNITED STATES
DURING THE
CALENDAR YEAR 1904.
WASHINGTON:
GOVERNMENT PRINTING OFFICE. 1905.
Treasury Department, Document No. 2422. Director of the Mint.
2
CONTENTS.
Puge.
Letter of Transmittal 5
P*rt I:
Production of gold and silver in the United States, 1904 9
Deposits of gold 10
Deposits and purchases of silver 16
Deposits of gold and silver since 1880 17
Coinage of the United States 18
Coinage for foreign governments 19
Movement of gold from the port of New York 20
Imports and exports of the principal countries of the world 21
The market price of silver during the calendar year 1904. 22
Exports of silver to the East 23
Value of net imports of silver into India since 1835 24
Gold and silver imported into and exported from British India 25
Imports and exports of bullion into and from London 26
Stock of money in the United States 26
Gold and silver used in the industrial arts in the United States 28
World’s industrial consumption of the precious metals 30
World’s production of gold and silver in 1904 37
World’s coinage 40
The costs of gold mining 41
Mining conditions in California 43
The history and future production of gold 47
Dredging for gold in California 54
Part II:
Reports of the special agents of the Bureau of the Mint on the production of the precious metals in 1904 in the several States and Territories —
1. Alaska 69
2. Arizona 82
3. California 97
4. Colorado Ill
5. Idaho 125
6. Montana 128
7. Nevada 141
8. New Mexico 146
9. Oregon 153
10. Southern Appalachian States 163
11. South Dakota 177
12. Utah 182
13. Washington 190
14. Wyoming 197
Part III:
Production of gold and silver in foreign countries —
Africa 250
Argentina 232
Australasia 243
Austria-Hungary 236
Bolivia 223
Brazil 221
British India 239
British North America 203
Central America 207
3
4
CONTENTS.
Part III — Continued.
Production of gold and silver in foreign countries — Continued. Page.
Chile 224
China 238
Colombia 215
East Indies 242
Ecuador 221
France 236
Germany 235
Great Britain 235
Greece 237
The Guianas 215
Italy 237
Japan 240
Korea 230
Mexico 206
Norway 234
Peru 222
Russia 232
Siam 239
Spain 237
Sweden 235
Turkey 238
Uruguay 232
Venezuela 219
Yukon (see British North America) 203
Part IV. General Statistics:
Table 1. Deposits and purchases of gold, by weight 258
2. Deposits and purchases of silver, by weight 260
3. Quantity and cost of silver used in the coinage of silver dollars. 262
4. Highest, lowest, and average price of silver in London since
1833 263
5. Ratio of silver to gold each year since 1687 264
6. Imports of gold and silver coin and bullion, by districts 266
7. Imports of gold and silver coin and bullion, by countries - 268
8. Exports of foreign gold and silver 270
9. Exports of domestic gold and silver 272
10. Recapitulation of imports and exports 274
11. Coinage of nations, 1902, 1903, and 1904 274
12. World’s production of gold and silver, 1902, 1903, and 1904 — 275
13. Production of gold and silver in\the world since the discovery
of America 278
LETTER OF TRANSMITTAL.
Treasury Department,
Bureau of the Mint, Washington , I). C November 13 , 1905.
Sir: I have the honor to hand you herewith my report on the pro- duction of gold and silver in the United States and in the world for the calendar year 1904, together with such information as to their dis- tribution, coinage, and consumption as this Bureau has been able to gather. The returns for this country have been carefully obtained through officials and special agents of this Bureau, and the aggregate of precious metals reported has been actually traced from production to market. The figures are therefore conservative, but are believed to be approximately full. The statistics for foreign countries are obtained from official sources wherever governmental calculations are made, and where such returns can not be had the best obtainable esti- mates are given and the authority stated.
Respectfully, Geo. PI Roberts,
Director of the Mint.
The Secretary of the Treasury.
5
0
PART I.
PRODUCTION, EMPLOYMENT, AND MOVEMENT OF GOLD AND SILVER IN THE UNITED STATES, AND SURVEY OF THE WORLD’S PRODUCTION OF GOLD AND SILVER IN 1904.
7
REPORT ON THE PRODUCTION OF THE PRECIOUS METALS IN THE UNITED STATES DURING THE CALENDAR YEAR 1904.
In 1904 the United States produced 3,892,480 fine ounces of gold, of the value of $80,464,700, as against 3,560,000 ounces, valued at $80,000,000, in 1903, a gain in the year 1904, therefore, of 332,480 ounces, or 9/34 per cent.
The yield of silver in 1904 amounted to 57,682,800 fine ounces, of the commercial value, at 58 cents per ounce — the average price in New York — of $33,456,000. The production of 1903 having been 54,300,000 ounces, there was a gain of 3,382,800 ounces and an increase in value, due to the enlarged yield and to the enhanced price, of $4,134,000.
Comparing the total commercial value of the precious metals produced in 1904 ($113,920,700) with that of the output of 1903 ($102,913,700), there was an increase of $11,007,000, or 10.69 per cent.
Of the 22 producing States and Territories, 18 increased their gold production, while in silver 16 showed an increase.
Alaska. — In 1903 this Territory produced gold to the value of $8,614,700, while in 1904 the yield amounted to $9,160,500. There was a gain, therefore, of $545,800. The commercial value of the silver produced in the former }rear was $77,544 and in the latter $115, 246, *an increase of $37,702. There was a decreased production in the Nome district in 1904 as compared with 1903. The gain consequently was in the placers of the Yukon and in the quartz mines of southeastern Alaska.
Arizona. — In this Territory there was a decrease in the value of the gold production of 1904, when compared with that of 1903, of $1,013,700, and in silver of $237,456. In 1903 the total value of the precious metals produced was $6,186,634, while in 1904 it was $4,935,478. Con- sequently there was a decrease of $1,251,156, due to the drought and to litigation. In addition to this, there was a falling off in the quality of the ore yielded by some mines, while others were shut down owing to accident and other causes.
California. — This State in 1903 yielded gold to the value of $16,104,500, which was exceeded by the output of 1904 by $2,890,300. Consequently the production in the latter year amounted to $18,994,800. Thp silver in 1904 amounted to 1,441,300 fine ounces, a gain over the production of 1903 of 509,800 fine ounces. The increase in gold is ascribed in part to extended dredging operations, although there was increased activity throughout the industry.
Colorado. — The gold production of Colorado increased from $22,540,100 in 1903 to $24,395,800 in 1904, a gain of $1,855,700,
9
10
PRECIOUS METALS IN THE UNITED STATES.
while the value of the silver output increased from $7,014,708 to $8,312,328. The combined gains in value amounted to $3,153,320. This recovery in production was chiefly due to the adjustment of labor differences, which seriously affected the output of 1903.
Idaho. — In 1903 Idaho yielded $1,570,400 worth of gold and in 1904 $1,503,700. There was, therefore, a decrease of $66,700. The silver outturn in the former year was valued at $3,513,996, as against $4,529,916 in 1904, an increase of $1,015,920. The net increase in the value of the precious metal was, therefore, $949,220. The increase in silver was due to the activity in lead mining.
Montana. — In this State there was a material increase in gold pro- duction in 1904, as compared with the yield of 1903, it having amounted in the years named to $5,097,800 and $4,411,900, respectively. In 1903 the silver output was valued at $6,826,842, which was increased by $1,645,856 in 1904. The total increase in the value of the precious metals in Montana in 1904, as compared with the preceding year, was $2,331,756. This increase is ascribed to the development in the mining of copper ores in the Butte district and to the improvement in the cyanide process.
Nevada. — In 1904, as compared with 1903, Nevada made a substan- tial gain in gold production, the output in the earlier year having been valued at $3,388,000 and in the later at $4,307,800, an increase of $919,800. There was, however, a marked decrease in the amount of silver produced in 1904, in which }^ear it was 2,695,100 fine ounces as against 5,050,500 in 1903, a diminution of 2,355,400 ounces. The total value of the precious metals produced in Nevada in 1904 was $5,870,958, as against $6,115,270 in 1903. There was, therefore, a decrease of $244,312 in value. The gain in gold is to be attributed almost entirely to the new camp of Goldfield. The decrease in silver was greatest in Nye County and was due chiefly to transportation difficulties.
Ifajo Mexico. — The gold production of New Mexico is never large. In 1903 it was valued at $244,600 and in 1904 at $381,900, a gain of $137,300. In silver the increase was 33,900 fine ounces, the output having been 214,600 ounces in 1904. The total value of the produc- tion of the precious metals in new Mexico in 1904 was $506,368, as against $342,178 in 1903.
Oregon. — In 1903 the total value of the precious metals produced was $1,353,920, while in 1904 it was $1,387,156, a gain of $33,236. In the latter year the gold output was valued at $1,309,900, being an increase of $19,700; and the silver output amounted to $77,256.
South Appalachian States. — This region produces only a small amount of the precious metals. In 1903 the gold yield was valued at $252,400, while the silver output amounted to $19,090, a total of $271,490, as against a total production in 1904 of $430,480, in which the gold amounted to $382,400 and the silver to $48,082.
South Dakota. — In 1903 this State produced gold to the value of $6,826,700 and in 1904 to the amount of $7,024,600. There was, con- sequently, an increase of $197,900. In the two years under compari- son the silver yield was, respectively, 221,200 and 187,000 fine ounces, while the total value of the precious metals produced was $6,946,148 in 1903 and $7,133,060 in 1904, a gain of $186,912.
Utah. — Utah’s production of the precious metals increased in value from $9,743,672 in 1903 to $11,455,894 in 1904, a gain of $1,712,222.
PRECIOUS METALS IN TIIE UNITED STATES.
11
The increase in gold amounted to 25,039 fine ounces, and in silver to 1,287,500 line ounces. The precious-metal production of Utah is chiefly from copper and lead ores, and the increase made in the year under review was due to the enlarged output of these baser metals, particularly of copper, which rose from 25,000,000 pounds in 1903 to 44,000,000 pounds in 1904. A much larger production of copper in the future is assured and with it will doubtless come a further gain in the yield of its valuable by-products.
Washington. — The State of Washington failed to hold its own in 1904, owing to a curtailment of operations in the Deer Trail district, a total suspension in the Montecristo district, and limited opera- tions in Ferry County. There were, however, some promising devel- ments during the year in the State, and a larger production during 1905 is expected. The total value of the precious metals produced in 1904 was $414,842, against $438,930 in 1903.
Wyoming. — Although this State possesses gold deposits of much promise, their distance from railways has so far prevented any important developments. The product of the State at present is chiefly from the copper ores of the Encampment district.
Comparative statements of the production of the precious metals in 1903 and 1904 in the several States and Territories are found in the following tables:
Product of Gold in tiie Several States and Territories in 1903 and 1904 and the Increase or Decrease of Each in the Latter Year.
Value.
State or Territory.
1903.
• 1904.
Increase.
Decrease.
Alabama
Alaska
Arizona
California
Colorado
Georgia
Idaho
Kansas
Maryland
Montana
Nevada
New Mexico . . . North Carolina
Oregon
South Carolina. South Dakota . .
Tennessee
Texas
Utah
Virginia
Washington
Wyoming
$4, 400 8, 614, 700 4, 357, 600 16,104,500 22, 540, 100 62, 000 1,570, 400 9, 700 500
4,411,900 3, 388, 000 244, 600 70, 500 1,290, 200 100, 700 6,826,700 800
3, 697, 400 13, 500 279, 900 3, 600
|
$29, 300 9, 160, 500 3, 343, 900 18. 994. 800 24.395. 800 96, 900 1, 503, 700 |
$24, 900 545, 800 2, 890, 300 1, 855, 700 34, 900 |
|
2,400 |
1,900 |
|
5, 097,800 |
085, 900 |
|
4, 307, 800 |
919,800 |
|
381, 900 |
137,300 |
|
123, 900 |
53, 400 |
|
1,309,900 |
19, 700 |
|
121, 800 |
21, 100 |
|
7, 024, 600 |
197, 900 |
|
4,300 |
3,500 |
|
2, 300 |
2, 300 |
|
4, 215, 000 |
517, 600 |
|
3, 800 |
|
|
327, 900 |
48, 000 |
|
16, 400 |
12, 800 |
81, 013, 700
66, 700 9,700
9, 700
Total
Net increase
73, 591, 700
80,464,700
7,972,800 6, 873, 000
1,099,800
12
PRECIOUS METALS IN THE UNITED STATES.
Product of Silver in the Several States and Territories in 1903 and 1904 and the Increase and Decrease of Each in the Latter Year.
Weight.
State or Territory.
1903.
1904.
Increase.
Decrease.
Fine ounces.
Fine ounces.
Fine ounces.
Fine ounces.
Alabama Alaska . . Arizona . California Colorado . Georgia . .
143, 600 3, 387, 100 931,500 12, 990, 200 400
Idaho
Kansas
Michigan
Montana
Nevada
New Mexico . . . North Carolina
Oregon
South Carolina
G, 507, 400 97, 400
50. 000 12,642,300
5,050,500 180, 700
11.000
118,000
300
200 198, 700 2, 744, 100 1,441,300 14,331,600 1,500 7, 810, 200
127, 800 14, 608, 100 2, 695, 100 214, 600 14, 800 133, 200 500
200
55,100
509, 800 1,341,400 1,100 1,302,800
77, 800 1,965,800
33, 900 3,800 15, 200 200
643, 000
97, 400
2, 355, 400
South Dakota
Tennessee
Texas
Utah
Virginia
Washington
Wyoming
Total
Net increase
221,200 13, 000 454, 400 11, 196, 800 9, 500 294, 500 200
54, 300, 000
187,000 59, 200 469, 600 12, 484, 300 6,700 149, 900 4,400
57, 682, 800
46. 200
15. 200 1,287,500
4,200
6, 660, 200 3,382,800
34, 200
2, 800 144, 600
3, 277, 400
In estimating the gold yield of the United States in any given year, only that gold which has been refined and made ready for the market, together with that of domestic origin exported (an amount usually insignificant) for reduction, is regarded as actually produced.
The figures for the gold production of the United States in the calendar year 1904 are reached by a calculation which includes the following elements:
Approximate Gold Product of the Mines of the United States during the
Calendar Year 1904.
Items.
Gold.
Product of private refineries deposited at United States mints and assay offices
Product of private refineries exported as per custom-house returns
Product of private refineries sold for use in the arts
Domestic gold in ores, copper matte, etc., exported for reduction, custom-house returns. Deposits of unrefined bullion at United States mints and assay offices
Fine ounces. 3,352,965 42, 681 22, 309 47, 497 1,243,766
Total
Deduct— Fine ounces.
Product of private refineries derived from foreign ores 723, 137
Product of private refineries derived from old material 93,601
4, 709, 218
816, 738
Domestic product for 1904
3,892, 480
The silver product of the United States is calculated in precisely the same manner as the gold. It will be observed that the appended table also exhibits the domestic refinery product obtained from imported ores. In the second table, as a check upon the former, is shown the disposition of the silver product:
PRECIOUS METALS TN THE UNITED STATES.
13
Approximate Silver Product of tiie Mines of the United States during the
Calendar Year 1904.
|
Items. |
Silver. |
|
Product of private refineries, bullion of domestic production, as reported to the Bureau |
Fine ounces. 56,987,761 418, 802 276,237 57, 682, 800 39, 792, 075 97, 474, 875 |
|
Unrefined silver of domestic production deposited at mints and assay offices Domestic silver contained in ores, copper matte, etc., exported for reduction, custom- |
|
|
Product of private refineries derived from foreign ores, as reported to the Bureau of the |
|
Approximate Disposition of the Silver Product of the United States during
the Calendar Year 1904.
Classification.
Fine ounces.
Silver bullion exported from the United States, as per custom-house returns
Private refinery bars sold for use in the arts
Fine ounces.
Mint bars sold for use in the arts 2, 917, 387
Bullion of domestic production deposited at United States mints for coinage. 2, 823, 485
Total 5,740,872
Less deposits of old material 451, 528
79, 365, 973 15,531,329
5, 289, 344
Total
100, 186, 646
This disposition exceeds the product for the year, but the discrep- ancy is accounted for by the unusually heavy exports in January, 1901, which must have been, in part, from the product of 1903.
Elsewhere in this volume will be found the detailed reports of the Bureau’s State agents upon the production of gold and silver, and the development of the mining industry in the several States and Terri- tories during the 37ear.
The following tables gives the weight and value of the finished product, by States, as estimated at this Bureau:
Approximate Distribution by Producing States and Territories of the Product of Gold and Silver in the United States for the Calendar Year 1904.
[As estimated by the Director of the Mint.]
Gold.
State or Territory.
Fine ounces.
Alabama
Alaska
Arizona
California
Colorado
Georgia
Idaho
Maryland
Michigan
Montana
Nevada
New Mexico ... North Carolina
Oregon
South Carolina South Dakota . . Tennessee
Texas
Utah
Virginia
Washington ... Wyoming
1,417 443, 139 161,761 918, 873 1,180, 147 4, 688 72, 742 116
246, 606 208, 390 18,475 5,994 63, 366 5, 892 339, 815 208 110 203, 902 184 15, 862 793
3, 892, 480
Silver.
Total value
Value.
Fine ounces.
Commercial
value.
(silver at commercial value).
$29,300 9, 160, 500
3, 343, 900
18.994.800
24. 395. 800
96, 900
1, 503, 700
2, 400
5, 097, 800
4, 307, 800
381.900
123. 900
1, 309, 900
121, 800
7,024,600
4.300
2. 300 4,215,000
3,800 327, 900
16, 400
80, 464, 700
200 198, 700 2, 744, 100
1, 441, 300
14,331,600 1,500
7, 810, 200
127, 800 14, 60S, 100 2, 695, 100
214, 600
14, 800
133, 200 500 187, 000
59, 200 469, 600
12,484,300 6, 700
149, 900
4,400
57, 682, 800
$116 115, 246 1,591,578 835, 954 8,312,328 870 4,529,916
74, 124 8, 472, 698 1,563, 158 124,468 8, 584 77,256 290 108, 460 34, 336 272, 368 7, 240, 894 3, 886 86, 942 2, 552
33, 456, 024
$29, 416 9, 275, 746 4, 935, 478 19, 830, 754 32, 708, 128 97, 770 6, 033, 616
2, 400 74, 124 13, 570, 498 5, 870, 958 506, 368 132, 484 1,387,156 122, 090 7, 133, 060 38, 636 274, 668 11, 455, 894 7, 686 414, 842 18, 952
Total
113,920,724
14
PRECIOUS METALS IN THE UNITED STATES.
The sources of the production of gold and silver in the United States compiled from the reports made b}7 mint officers and agents are given in the following table:
Distribution of the Gold and Silver Product of the United States for the Calendar Year 1904, as to Sources of Production.
[As reported by mint officers and agents.]
State or Territory.
Alabama
Alaska
Arizona
California
Colorado
Georgia
Idaho
Maryland
Michigan
Montana
Nevada
New Mexico
North Carolina .
Oregon
South Carolina . South Dakota . .
Tennessee
Texas
Utah
Virginia
Washington
Wyoming
Total
Gold.
Quartz.
Fine ounces. 1,380 147, 591 160, 143 670, 497 1,155,954 3,355 46, 278 13
223, 455 208, 390 11,247 5, 468 46,711 5,459 339, 815 204 110 203, 902 163 14,962
3, 245, 097
Placer.
Fine ounces.
37
295,548 1,618 248, 376 24,193 1,333 26, 464 103
23, 151
7,228 526 16, 655 433
21
900
793
647, 383
Silver.
Quartz. Lead ores. Copper ores
Fine ounces. 200 198, 700 1,536,696 634, 736 3, 152, 952 1,500 863, 027
4, 848, 447 2, 263, 884 75,684
132, 636 500 187, 000
469, 600 651,539
91, 900 4,400
15, 113,401
Fine ounces.
137, 205 1,721 a 11, 178, 648
6,947, 173
261, 898 431, 216 59,547
7,904,432
" ”52,' 666'
26, 973, 843
Fine ounces.
1,070, 199 804, 840
127, 800 9,497,755
79,369
14,800
564
59, 200
3, 928, 329 6, 700 6, 000
15,595,556
a Lead and copper ores.
As seen from the foregoing table, Alaska furnishes 46 per cent- of all the placer gold and California 39 per cent; over two-thirds of Alaskan gold is placer gold; placer mining is of considerable relative importance in Idaho, Colorado, and Montana.
Of the main silver-producing States and Territories, only Arizona, Nevada, Texas, South Dakota, and Oregon show a preponderance of quartz mining; copper mining as a source of silver production pre- dominates only in Montana.
The first place is held by the product from lead ores. In the table next below the results of the year 1904 are compared with those of former years. As seen from this table, the distribution of the silver product among the several sources of production showed a slight change in 1904 as compared with 1903.
Distribution of the Silver Product of the United States as to the Sources
of Production.
|
Source. |
1891. |
1898. |
1899. |
1900. |
1901. |
1902. |
1903. |
1904. |
|
Quartz mills |
Per cent. 49. 2 40.6 10.2 |
Per cent. 24.7 56.2 19.1 |
Per cent. 28.0 51.1 20.9 |
Per cent. 27.4 50. 8 21.8 |
Per cent. 27.8 46.7' 25.5 |
Per cent. 29.4 48.5 22.1 |
Per cent. 29.9 45. 6 24.5 |
Per cent. 26. 2 46.8 27.0 |
|
Lead bullion |
||||||||
|
Copper bullion |
||||||||
|
Total |
||||||||
|
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
|
The production of gold and silver from the mines of the United States since 1792 is shown in the following table.
The commercial value of the silver product is reckoned at the aver- age yearly market price of silver on the New York market.
PRECIOUS METALS IN THE UNITED STATES
15
Product of Gold and Silver in the United States from 1792 to 1844, and
Annually Since.
[The estimate for 1792-1873 is by R. \V. Raymond, commissioner, and since by Director of the Mint.]
Year.
1792 to July 31, 1834
July 31, 1831, to Dee. 31, 1844
1845
1846
1847
Total
ISIS
1849
1850
1851
1852
1853
1854
1855
1856
1857
1858
1859
1860 1861 1862
1863
1864
1865
1866
1867
1868
1869
1870
1871
1872
Total
1873
1874
1875
1876
1877
1878
1879
1880 1881 1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
Total
Grand total
Gold.
Silver.
|
Fine ounces. |
Value. |
Fine ounces. |
Commercial value. |
|
677, 250 |
814,000,000 |
Insignificant. |
|
|
362,812 |
7,500,000 |
193,400 |
8253, 400 |
|
48, 762 |
1,008,000 |
38, 700 |
50, 200 |
|
55,341 |
1,140,000 |
38, 700 |
50, 300 |
|
43,005 |
889, 000 |
38, 700 |
50, 600 |
|
1,187,170 |
24,537,000 |
309, 500 |
404,500 |
|
483, 750 |
10, 000, 000 |
38, 700 |
50,500 |
|
1,935,000 |
40, 000, 000 |
38, 700 |
50, 700 |
|
2, 418, 750 |
50, 000, 000 |
38, 700 |
50, 900 |
|
2, 660, 625 |
55, 000, 000 |
38, 700 |
51,700 |
|
2, 902, 500 |
60, 000, 000 |
38, 700 |
51,300 |
|
3, 144, 375 |
65, 000, 000 |
38, 700 |
52,200 |
|
2,902,500 |
60, 000, 000 |
38, 700 |
52, 200 |
|
2, 660, 625 |
55, 000, 000 |
38, 700 |
52, 000 |
|
2, 660, 625 |
55, 000, 000 |
38, 700 |
52, 000 |
|
2, 660, 625 |
55, 000, 000 |
38, 700 |
52, 400 |
|
2,418,750 |
50, 000, 000 |
38, 700 |
52. 000 |
|
2, 418, 750 |
50, 000, 000 |
77, 300 |
52, 600 |
|
2, 225, 250 |
46, 000, 000 |
116,000 |
156,800 |
|
2,080, 125 |
43, 000, 000 |
1,546,900 |
2,062,000 |
|
1,896,300 |
39, 200, 000 |
3, 480, 500 |
4, 684, 800 |
|
1,935,000 |
40, 000, 000 |
6,574,200 |
8, 842, 300 |
|
2, 230, 087 |
46, 100, 000 |
8, 507, 800 |
11,443,000 |
|
2, 574, 759 |
53, 225, 000 |
8,701,200 |
11,642,200 |
|
2,588,062 |
53,500,000 |
7, 734, 400 |
10, 356, 400 |
|
2, 502, 196 |
51, 725, 000 |
10,441,400 |
13, 866, 200 |
|
2, 322, 000 |
48,000,000 |
9, 281, 200 |
12, 306, 900 |
|
2, 394, 562 |
49, 500, 000 |
9, 281, 200 |
12, 297, 600 |
|
2,418,750 |
50, 000, 000 |
12,375,000 |
16, 434, 000 |
|
2, 104, 312 |
43, 500, 000 |
17,789,100 |
23, 588, 300 |
|
1, 741, 500 |
36,000,000 |
22, 236, 300 |
29, 396, 400 |
|
58, 279, 77S |
1, 204, 750, 000 |
118,568, 200 |
157, 697, 400 |
|
1,741,500 |
36, 000, 000 |
27,650,400 |
35,881,600 |
|
1, 620, 122 |
33,490,900 |
28, 868, 200 |
36, 917, 500 |
|
1,619,009 |
33, 467, 900 |
24, 539, 300 |
30, 485, 900 |
|
1,931,575 |
39, 929, 200 |
29, 996, 200 |
34,919,800 |
|
2,268,662 |
46, 897, 400 |
30,777,800 |
36,991,500 |
|
2,477,109 |
51, 206, 400 |
35,022,300 |
40,401,000 |
|
1,881,787 |
38, 900, 000 |
31,565,500 |
35, 477, 100 |
|
1,741,500 |
36, 000, 000 |
30, 318, 700 |
34,717,000 |
|
1,678,612 |
34, 700, 000 |
33, 257, 800 |
37, 657, 500 |
|
1,572,187 |
32, 500, 000 |
36, 196, 900 |
41,105,900 |
|
1,451,250 |
30, 000, 000 |
35, 732, 800 |
39, 618, 400 |
|
1,489,950 |
30,800,000 |
37, 743, 800 |
41,921, 30U |
|
1,538,373 |
31,801,000 |
39, 909, 400 |
42, 503, 500 |
|
1,686,788 |
34, 869, 000 |
39,694,000 |
39, 482, 400 |
|
1, 603, 049 |
33, 136, 000 |
41,721,600 |
40, 887, 200 |
|
1,604,478 |
33,167,500 |
45, 792, 700 |
43, 045, 100 |
|
1,594,775 |
32, 967, 000 |
50, 094, 500 |
46,838,400 |
|
1,588,877 |
32, 845, 000 |
54, 516, 300 |
57, 242, 100 |
|
1,604,840 |
33, 175, 000 |
58,330,000 |
57, 630, 000 |
|
1,597,098 |
33, 015, 000 |
63, 500, 000 |
55, 662, 500 |
|
1,739,323 |
35, 955, 000 |
60, 000, 000 |
46,800,000 |
|
1,910,813 |
39, 500, 000 |
49, 500, 000 |
31, 422, 100 |
|
2, 254, 760 |
46,610,000 |
55, 727, 000 |
36, 445, 500 |
|
2, 568, 132 |
53, 088, 000 |
58,834,800 |
39,654,600 |
|
2,774,935 |
57, 363, 000 |
53, 860, 000 |
32,316,000 |
|
3,118,398 |
64,463,000 |
54,438,000 |
32,118,400 |
|
3,437,210 |
71,053,400 |
54, 764, 500 |
32, 858, 700 |
|
3,829,897 |
79,171,000 |
57, 647, 000 |
35,741,100 |
|
3, 805, 500 |
78, 666, 700 |
55, 214, 000 |
33, 128, 400 |
|
3,870,000 |
80, 000, 000 |
55, 500, 000 |
29, 415, 000 |
|
3, 560, 000 |
73, 591 , 700 |
54, 300, 000 |
29, 322, 000 |
|
3, 892, 480 |
80, 464, 700 |
67, 682, 800 |
33,456,000 |
|
71, 052, 989 |
1, 468,' "793, 800 |
1,442,696,300 |
1,242,063,500 |
130, 519, 937
2, 698, 080, 800
1,561,574,000
1,400,165,400
16
PRECIOUS METALS IN THE UNITED STATES.
DEPOSITS OF GOLD.
The deposits of gold at the mints and assay offices during the cal- endar year 1901 contained 8,203,467 fine ounces, of the value of $169,580,717, an increase in value of $30,105,670 over the amount reported for 1903.
Domestic gold deposited contained 4,588,991 fine ounces, of the value of $94,862,863.
Domestic gold coin deposited and transfer of mutilated gold coin from the Treasury contained 111,322 fine ounces, of the value of $2,301,226.
Foreign gold Indlion deposited contained 168,944 fine ounces of refined bullion, valued at $3,492,384, and 753,410 fine ounces of crude bullion, of the value of $15,574,358 — a total of $19,066,742 — as shown by the following table:
|
Country of production. |
Refined bullion. |
Crude bullion. |
||
|
Fine ounces. |
Value. |
Fine ounces. |
Value. |
|
|
Great Britain |
156,592 3, 924 |
$3, 237, 035 81, 122 |
||
|
British Columbia |
57,688 395, 683 3,061 9 10, 799 167 202, 385 39, 226 44, 218 11 41 120 2 |
81, 192, 476 8, 179, 498 63, 263 194 223, 230 3,458 4, 183, 671 810,882 914, 064 240 846 2,489 47 |
||
|
Northwest Territory |
||||
|
Ontario and Quebec |
||||
|
Manitoba |
||||
|
Nova Scotia |
||||
|
West Indies |
||||
|
Mexico |
7,803 |
161, 302 |
||
|
Central America |
||||
|
South America |
625 |
12, 925 |
||
|
British Guiana |
||||
|
Australia |
||||
|
Africa |
||||
|
Asia |
||||
|
Total |
||||
|
168, 944 |
3,492,384 |
753,410 |
15,574,358 |
|
Foreign gold coin deposited contained 2,315,495 fine ounces, of the value of $47,865,534, as shown by the following statement:
|
Country of coinage. 4 |
Fine ounces. |
Value. |
|
Central America |
2,776 45 44, 944 276,095 6 14 951 2, 549 1, 960, 147 27,968 |
857, 374 936 929, 076 5, 707, 397 123 285 19, 667 52, 685 40,519,840 578, 151 |
|
South America |
||
|
Great Britain |
||
|
Total |
||
|
2, 315, 495 |
47,865, 534 |
|
Old jewelry deposited contained 265,304 fine ounces of gold, of the value of $5,484,351.
DEPOSITS AND PURCHASES OF SILVER.
Silver is coined in the United States on Government account only. Deposits of silver bullion are received by the mints and assay offices to be returned to the depositor in fine or unparted bars with the
PRECIOUS METALS IN THE UNITED STATES.
] 7
weight and fineness stamped thereon. These deposits are confined almost exclusively to the assay office at New York, and the bars, when returned to the depositor, are sold for use in the arts or exported.
The deposits and purchases of silver at the United States mints and assay offices during the calendar year 1904 were as follows:
Fine ounces.
Silver contained in gold deposits 938, 971. 66
For Philippine coinage 6, 796, 751. 94
Uncurrent domestic coin, including Hawaiian coin 1, 675, 337. 31
For return in fine bars 5, 393, 614. 20
For foreign coinage 1, 994, 649. 97
Total 16, 799, 325. 08
In the above purchases and deposits, the bullion of domestic produc- tion amounted to 5,740,812.06 fine ounces and that of foreign produc- tion to 1,324,417.62 fine ounces. The foreign silver coin included amounted to 6,867,049 fine ounces, from the following countries:
|
Country of coinage. |
Fine ounces. |
Coining value. |
|
Spain |
6, 789, 596 2, 757 1,807 1,064 59, 430 12, 395 |
$8, 778, 467 3, 565 2,336 1,376 76, 839 16,025 |
|
Mexico |
||
|
South America |
||
|
Central America West Indies |
||
|
Unclassified |
||
|
Total |
||
|
6, 867,049 |
8, 878, 608 |
|
|
( |
Old jewelry and plate deposited contained 705,500 fine ounces of the coining value of $912,162.
DEPOSITS OF GOLD AND SILVER SINCE 1880.
The following table shows the amount of gold and silver (excluding redeposits) received at the mints and assa}r offices, by calendar years, since 1880:
1880
1881
1882
1883
1884
1885 1886.
1887.
1888.
1889.
1890.
1891.
1892.
1893.
1894.
1895.
1896.
1897.
1898.
1899.
1900.
1901.
1902.
1903.
1904.
Calendar year.
Gold.
Silver (coin- ing value).
Total.
$100, 278, 703 98, 763,426 41,921,263 51,089,456 50, 518, 179 44,714,052 66, 422, 088 74,724,077 41,496,410 42, 599, 206 48,767,964 60, 849, 552 45, 406, 646 69,419,223 49, 704, 902 69, 433, 579 91, 743, 670 87, 924, 232 182, 996, 602 129, 798, 782 158, 060, 258 136,858,186 127, 142, 337 139,475, 047 169,580,717
$35, 103, 825 30,326,848 35, 161, 254 36, 978, 184 36,670,731 35, 836, 725 39r086, 070 46, 381, 333 41,323,973 41, 977, 265 55, 198, 037 70, 994, 120 84,591,898 62, 465, 005 14, 120, 605 13, 843, 636 10,873,160 12, 707, 128 15,841,222 13,481,927 16, 005, 626 7,486,293 8,585,751 28, 898, 656 21,101,057
$135, 382, 528 129,090,274 77,082,517 88, 067,640 87,188,910 80, 550, 777 105, 508, 158 121,105, 410 82, 820, 383 84, 576, 471 103, 966, 001 131, 843, 672 129, 998, 544 131,884,228 63, 825, 507 83,277,215 102, 616, 830 100,631,360 198, 837, 824 143,280,511 174, 065, 884 144,344,479 135, 728,088 168, 373, 703 190, 681,774
11442—05 2
18
PRECIOUS METALS IN THE UNITED STATES
COINAGE OF THE UNITED STATES.
The following table exhibits the number of fine ounces and value of gold and silver coinage of the United States, by calendar years, since 1873:
Coinage of Gold and Silver at the Mints of the United States since 1873,
by Calendar Years.
|
Calendar year. |
Gold. |
Silver. |
|||
|
Fine ounces. |
Value. |
Fine ounces consumed. |
Dollars coined. |
Subsidiary coined. |
|
|
1873 ; |
2,758,475 |
$57,022,748 |
3,004,803 |
$1,521,600 |
$2, 503, 147. 60 |
|
1874 |
1,705,441 |
35,254,630 |
5,271,258 |
4, 910, 000 |
1,941,776.70 |
|
1875 |
1,594,050 |
32,951,940 |
11,504,961 |
6, 279, 600 |
9, 068, 293. 00 |
|
1876 |
2,253,281 |
46, 579, 463 |
18, 122, 152 |
6, 192, 150 |
18, 311, 157. 50 |
|
1877 |
2, 128, 493 |
43, 999, 864 |
21, 378, 389 |
13,092,710 |
15, 300,335.50 |
|
1878 |
2, 408, 400 |
49, 786, 052 |
22, 029, 173 |
26, 755, 450 |
1, 763, 400. 00 |
|
1879 |
1,890,499 |
39, 080, 080 |
21,323,113 |
27,561,641 |
8,135. 00 |
|
1880 |
3,014,163 |
62, 308, 279 |
21, 200, 641 |
27,399,342 |
12,351.75 |
|
1881 |
4, 685, 162 |
96, 850, 890 |
21,609,422 |
27, 928, 935 |
11, 228. 75 |
|
1882 |
3, 187, 317 |
65, 887, 685 |
21,615, 563 |
27, 575, 197 |
397, 935. 00 |
|
1883 |
1,414,581 |
29, 241, 990 |
22,581,870 |
28,471,018 |
775. 950. 45 |
|
1884 |
1,160,601 |
23,991,756 |
22,050,011 |
28, 136, 875 |
397, 991. 15 |
|
1885 |
1,343,519 |
27, 773, 012 |
22, 387, 196 |
28, 697, 767 |
264, 409. 20 |
|
1886 |
1, 400, 240 |
28, 945, 542 |
24, 783, 882 |
31, 423, 886 |
662, 823. 90 |
|
1887 |
1,159,664 |
23, 972, 383 |
27,139,034 |
33.611,710 |
1,579, 371.40 |
|
1888 |
1,518,046 |
31,380,808 |
25, 491, 439 |
31,990,833 |
1,034,773. 45 |
|
1889 |
1, 035, 899 |
21,413, 931 |
27, 412, 169 |
34,651,811 |
844, 872. 15 |
|
1890 |
990, 100 |
20,467,182 |
30, 262, 932 |
38,043,004 |
1,159,904.20 |
|
1S91 |
1,413,614 |
29, 222, 005 |
21,086,062 |
23, 562. 735 |
3, 956, 121. 60 |
|
1892 |
1,682,832 |
34, 787, 223 |
9, 461, 298 |
6, 333, 245 |
6,307,833.00 |
|
1893 |
2, 757, 231 |
56, 997, 020 |
6, 440, 604 |
1,455,792 |
7, 347, 005. 30 |
|
1894 |
3, 848, 045 |
79, 546, 160 |
6, 810, 196 |
3, 093, 972 |
6, 106, 378. 85 |
|
1895 |
2, 883, 941 |
59, 616, 358 |
4, 164, 996 |
862, 880 |
4,835,130.25 |
|
1896 |
2, 276, 192 |
47, 053, 060 |
17, 697, 736 |
19,876,762 |
3, 213, 137. 05 |
|
1897 |
3, 677, 878 |
76, 028, 485 |
14,006,626 |
12,651,731 |
5, 835, 566. 30 |
|
1898 |
3, 772, 561 |
77, 985, 757 |
17, 384, 482 |
14, 426, 735 |
8, 607, 298. 45 |
|
1899 |
5, 386, 277 |
111,344,220 |
19, 612, 343 |
15,182,846 |
10, 878, 673. 90 |
|
1900 |
4, 802, 328 |
99, 272, 942 |
27, 543, 406 |
25,010,912 |
11.334,409.45 |
|
1901 |
4,921,439 |
101,735,188 |
23, 437, 523 |
22, 566, 813 |
8,271,647.75 |
|
1902 |
2, 282, 571 |
47, 184, 932 |
22, 630, 799 |
18,160,777 |
' 11,867,390.20 |
|
1903 |
2, 113, 212 |
43, 683, 970 |
14,894,507 |
10,343,755 |
9, 530, 685. 00 |
|
1904 |
11,290,843 |
233, 402, 428 |
11, 794, 995 |
8, 812, 650 |
6, 882, 959. 95 |
|
Total |
88, 756, 895 |
1,834, 767,973 |
586, 133, 581 |
606, 585, 134 |
161,012,093. 75 |
The coinage manufactured during the calendar year 190-1 by the mints of the United States was 135,991,881 pieces of the value of $250,781,567.30, as follows:
|
Description. |
Pieces. |
Value. |
|
12,337,084 8, 812, 650 32, 109, 148 82, 732, 999 |
$233,402,428.00 8. 812, 650. 00 6. 882, 959. 95 1, 683, 529. 35 |
|
|
Silver dollars |
||
|
Subsidiary silver |
||
|
135,991,881 |
250, 781, 567. 30 |
|
Tables will be found in the Appendix showing the value of the coinage made at each mint annually since 1792.
PKECIOUS METALS IN THE UNITED STATES.
19
COINAGE FOR FOREIGN GOVERNMENTS.
In addition to our own coinage, the mints of the United States manufactured the following coins for foreign countries:
Pieces.
PANAMA.
1, 000, 000 half-balboa silver pieces
1.500.000 quarter-balboa silver pieces
1,000, 000 tenth-balboa silver pieces
1.210.138 twentieth-balboa silver pieces .
4.710.138 (total pieces).
VENEZUELA.
500.000 two-bolivar silver pieces
COSTA RICA.
250.000 fifty-centimo silver pieces
SALVADOR.
400. 000 peso silver pieces
PHILIPPINES.
6. 611. 365 peso silver pieces
2. 171. 365 fifty-centavo silver pieces
2. 071. 365 twenty-centavo silver pieces . . .
5. 051. 365 ten-ce’ntavo silver pieces
1.086.355 five-centavo nickel pieces
17, 051, 755 one-centavo bronze pieces
5. 665. 355 half-centavo bronze pieces
39,708,925 (total pieces).
|
Fine ounces consumed. |
Value. |
|
|
| 1,498,119.62 |
82,071,013.82 |
|
|
139,226.25 |
185,655.56 |
|
|
8, 680.50 |
12,000. 00 |
|
|
289, 356. 48 |
160, 753. 00 |
|
|
j 6,719,974.52 1 |
4, 305, 197. 91 |
|
|
) |
The total Philippine coinage from April. 1903, to December 31, 1904, was as follows:
|
Pieces. |
Fine ounces. |
Value. |
|
20 766 382 peso silver pieces |
| 20, 320, 546. 89 1 |
811,731,177.39 |
|
5’ 275^ 542 fifty-centavo silver pieces |
||
|
7, 576, 792 twenty-centavo silver pieces |
||
|
11,356,581 ten-centavo silver pieces |
||
|
9, 998, 913 five-centavo nickel pieces |
||
|
27’ 844j 313 one-centavo bronze pieces |
||
|
17’ 751, 913 half-centavo bronze pieces |
J |
|
|
100,570,436 (total pieces). |
20
PRECIOUS METALS IN THE UNITED STATES
MOVEMENT OF GOLD FROM THE PORT OF NEW YORK.
The superintendent of the United States assay office at New York has prepared the following tables giving exports of gold through the port of New York during the calendar year 190-f :
Statement of United States Gold Coin and Bullion Exported from the Port of New York to Europe during the Calendar Year ended December 31, 1904.
|
Date. |
Country. |
Amount. |
Kate of ex- change |
|
January 5 |
England |
$3, 030 2, 969, 992 1 , 010, 000 510. 000 1,502,654 16,446 6, 638, 605 2, 527, 531 3, 708, 108 3, 004, 938 1,764,216 4, 519, 609 9, 020, 654 4,949,658 8,221,428 4,882,687 2, 259, 755 2,251,865 547, 817 6, 350 631, 685 54, 920 1, 253, 054 2, 030, 503 5, 957 5, 320, 548 3, 393, 206 534, 648 1,055, 341 500. 000 500. 000 807, 019 1,600,000 539, 768 250. 000 641, 018 250, 000 15,358 |
$4.S4| 4.871 4. 87? 4.87? 4.87? 4.87? 4. 87? 4.87? 4.87? 4. 87 4.87 4. 87 4.87 4. 87 4.87 4.87 4.86? 4.86? 4. 871 4.87? 4.87? 4.87? 4. 861 4. 86? 4.86? 4.861 4. 86? 4.87 4.87? 4. 87? 4.87? 4.87? 4.87 4.87? 4. 87? 4.87? 4.87? 4.87? |
|
April 6." |
France |
||
|
April 11 |
do |
||
|
April 12 |
do |
||
|
April 20 |
do |
||
|
April 20 |
Germany |
||
|
April 25 |
France |
||
|
April 27 |
do |
||
|
April 29 |
do |
||
|
May 2 |
do |
||
|
May 4 |
do |
||
|
May 6 ; |
do |
||
|
May 11 |
do |
||
|
May 13 |
do |
||
|
May 16 |
do |
||
|
May 18 |
do |
||
|
May 20 |
do |
||
|
May 25 |
do |
||
|
May 27 |
do |
||
|
May 27 |
Germany |
||
|
June 1 |
France |
||
|
June 1 |
Germany |
||
|
October 26 |
France |
||
|
October 28 |
England |
||
|
October 28 |
Germany |
||
|
November 2 |
France |
||
|
November 16 |
do |
||
|
November 18 |
do |
||
|
November 21 |
do |
||
|
November 21 |
Germany |
||
|
November 23 |
do |
||
|
November 23 |
France |
||
|
December 14 |
Germany |
||
|
December 22 |
France |
||
|
December 23 |
Germany |
||
|
December 28 |
France |
||
|
December 30 |
Germany |
||
|
December 30 |
do |
||
|
Total |
|||
|
79, 698, 368 |
|||
Recapitulation of Gold Exports to Europe.
Description.
United States coin
Foreign coin
United States assay-office bars.
Bullion
In ore
Total
|
France. |
Germany. |
England. |
|
$6,250,000 19, 400 68, 203, 878 12, 106 |
$3, 100, 000 |
$2, 000 |
|
2. 030, 323 |
||
|
99, 031 |
1,030 |
|
|
74.485,384 |
3, 199, 031 |
2,033,353 |
|
79, 717, 768 |
Grand total of exports to Europe
During the same period there were shipped to West Indies, Mexico, Central and South America, the following:
United States coins $27,059,088
Foreign coins 1, 829, 618
Total gold exports to other ports. Grand total of gold exports
28, 8S8, 706
108,606,474
PRECIOUS METALS IN THE UNITED STATES
21
t
The imports during the same period were as follows:
From Europe —
United States coins ^$5, 664
Foreign coins 4, 784, 367
Bullion 3,193,498
In ore 23
Total gold from Europe $7, 983, 552
From West Indies, Mexico, Central and South America —
United States coins 624,927
Foreign coins 855, 893
Bullion .* 1, 207, 158
In ore 815, 869
Total from other ports 3, 503, 847
Grand total of gold imports 11, 487, 399
During the same period there was exported to England copper matte and ore containing 4,855 ounces of line gold and 60,100 ounces of tine silver.
IMPORTS AND EXPORTS OF THE PRECIOUS METALS IN TILE PRINCIPAL COUNTRIES OF TIIE WORLD.
The imports and exports of the precious metals during the calendar year 1904 of those countries from which direct returns have been received are exhibited in the following table. The information relat- ing to foreign countries was received principally through representa- tives of the United States in them.
Imports and Exports of the Precious Metals in the Principal Countries of the
World, 1904.
GOLD.
Country.
United States
Africa a
Argentina
Australasia
Austria-Hungary .
Brazil
Canada
Costa Rica...
China
Denmark
Ecuador
Egypt
France
Great Britain
Germany
Guiana (British).. Guiana (Dutch)... Guiana (French)..
India (British)
Italy
Japan
Mexico
Netherlands
Nicaragua
Norway
Peru
Portugal
Russia
Siam
Spain
Straits Settlements
Sweden
Switzerland
Imports.
$84,803,234 127, 059 24, 903, 198 5, 759, 362 29, 168, 270
11, 224, 391 390, 965 6, 931,735 536, 000 97, 330 34, 927, 347 126,845,197 169, 568, 798 108,061,044
197, 548
75,356,833 «.. 5,986,820
2, 719, 436 3, 036, 979 6, 288, 757
1,721 1, 176. 543 63, 327 3, 562, 855 2,293,568 57,117 2, 044, 407 1, 207, 268 13,181,652
|
Exports. |
Excess of im- ports over exports. |
|
$121,211,827 |
|
|
82, 965, 829 |
|
|
1,587,436 |
$23, 315, 762 |
|
82, 222, 632 |
|
|
12, 445, 275 |
16, 722, 995 |
|
1,722,819 |
|
|
18, 170, 239 |
|
|
318, 625 |
72, 340 |
|
1, 036, 136 |
5, 895, 599 |
|
268, 000 |
268, 000 |
|
200, 000 |
|
|
13,465,508 |
21,461,839 |
|
23, 927, 368 |
102, 917, 829 |
|
160, 784, 965 |
8, 783, 833 |
|
15, 508, 318 |
92, 552, 726 |
|
1,599,121 |
|
|
552, 137 |
|
|
2,281,572 |
|
|
41, 799, 770 |
33, 557, 063 |
|
1,725,813 |
4,261,007 |
|
52,843,639 |
|
|
11,832, 315 |
|
|
392, 026 |
5, 896, 731 |
|
797, 520 |
|
|
291 |
1,430 |
|
63, 807 |
1,112,736 |
|
505, 807 |
|
|
2, 063, 410 |
1, 499, 445 |
|
2,293,568 |
|
|
21, 199 |
35, 918 |
|
328, 629 |
1,715,778 |
|
1,207,268 |
|
|
7,593,794 |
5, 587, 858 |
Excess of ex- ports over imports.
$36, 408, 593 82,838,770
76, 763, 270
1,722, 819 6,945,848
102, 670
1, 599, 121 354, 589 2,281,572
50, 124, 203 8, 795, 336
797, 520
442, 480
a Annual Statement of the Trade of the United Kingdom with Foreign Countries and with British Possessions.
22
PRECIOUS METALS IN THE UNITED STATES.
Imports and Exports of the Precious Metals in the Principal Countries of the
World, 1904 — Continued.
SILVER.
Excess of im- Excess of ex-
Count ry.
Imports.
Exports.
ports over ports over exports. imports.
United States
Africa a
Argentina
Australasia
Austria-Hungary . .
Canada
Costa Rica
China
Egypt
France
Great Britain
Germany
Guiana (Dutch)
India (British)
Italy
Japan
Mexico
Netherlands
Nicaragua
Norway
Peru
Portugal
Russia
Siam
Spain
Straits Settlements
Sweden
Switzerland
$26, 087, 042 2,401,204 14, 753 155,309 1,024,995 316, 554 44, 305 16, 416, 009 3, 348, 294 18, 736, 633 64, 795, 571 8, 353, 800 87, 076 70, 485, 155 2, 606, 272 14, 199, 577
1,091,088
222, 322
416, 326 9, 854, 968 764, 253 1,990,391 11, 308, 459 91, 306 9, 466, 899
$50, 135, 245 714, 295 16, 856 7,591,015 685, 849 2,261,782
25, 925, 602 33, 301 24,377,830 64, 547, 767 5, 721, 044
19, 102, 015 129, 078 881, 818 65, 412, 426 1,015,000 1,447 144, 708 2, 226, 021 281, 994 16, 582, 918 408, 974 5,094,668 897, 333 286 2, 772, 163
|
$24, 048, 203 |
|
|
$1,686,909 |
|
|
2,103 7, 436, 706 |
|
|
339, 146 |
|
|
1,935, 228 |
|
|
44, 305 |
|
|
9, 509, 593 |
|
|
3, 314, 993 |
|
|
5, 641,197 |
|
|
247, 804 2, 632, 756 87, 076 51,383, 140 2, 477, 194 13, 317, 759 |
|
|
65, 412, 426 |
|
|
76, 088 |
|
|
1,447 |
|
|
77, 614 |
|
|
2,226,021 |
|
|
134, 332 |
|
|
6,727,950 |
|
|
355, 279 |
|
|
3,104,277 |
|
|
10, 411, 126 |
91,020 6,694,736 ,
a Annual Statement of the Trade of the United Kingdom with Foreign Countries and with British Possessions.
MARKET PRICE OF SILVER DURING THE CALENDAR YEAR 1904.
The silver market in 1904, owing largely to the change in the policy of the Indian government lay which, instead of delaying its purchases of silver until its needs became urgent it anticipated its requirements, was much steadier than it had been in recent years. In January the lowest price per standard ounce in London was 25i pence and the highest 27yV, while the average was 26.4230 pence, equivalent in New York, with exchange at par, to $0.57922 per line ounce.
By the middle of January the price had risen to 27TV pence; but in the following two weeks it fell to 25^, which was followed by a steady rise until about the middle of February, when it touched 27i pence, a figure which it did not again reach until December 5.
On the 30th of that mouth the price attained the figure 2ST!V, the highest of the year, vhile the lowest was 247V pence, in April.
The rise in price from May to the close of the year was due in part to purchases for the Indian govcrnment*and also to a good demand on the part of the bazaars. The purchases for the French mint, while not as heavy as those of 1903, aggregated about 77,500 kilograms, and helped to sustain the market. Another factor was the purchases for the Panama coinage, which absorbed about 1,500,000 ounces. In November the Mexican congress passed a bill closing the mints to the free coinage of silver, but this action so far has had but little effect upon the price of silver.
It is not believed that either Japan or Russia bought largely in the London market. The former supplied her needs by direct importa- tions of Mexican dollars from Mexico via San Francisco, while the
23
PliECIOUS METALS IN
THE UNITED STATES.
latter drew upon her existing stocks. The great demand of the year was from India. It is estimated that the government purchased not less than <£4,000,000 worth of silver, while the buying for the bazaars was also heavy. The Indian orders continued throughout the greater part of the year.
The highest price during the year was in December — 28TV pence, equivalent, with exchange at par, to 02.012 cents per tine ounce.
The average London price for the year was 26.4019 pence, equiva- lent in New York, with exchange at par, to 57.870 cents per fine ounce.
Highest, Lowest, and Avera'ge Price of Silver Bullion and Value of a Fine Ounce Each Month, during the Calendar Year 1904, London and New York.
|
Month. |
Highest. |
Lowest. |
Average price per ounce, British standard, .925 fine. |
Equivalent value of a fine ounce with exchange at par, $-1.8665. |
Average monthly price at New York of exchange on London. |
Equivalent value of a fine ounce based on average London price and average rate of ex- change. |
Average monthly New York price of fine bar silver. |
|
January |
Pence. 27A 271 |
Pence. 25! |
Pence. 26. 4230 |
$0. 57922 |
$4. 8555 |
$0. 57797 |
$0f 57634 |
|
February |
25! 25! |
26. 6700 |
. 58463 |
4. 8601 |
. 58389 |
. 58335 |
|
|
March |
26 B |
26. 1643 |
.57355 |
4. 8701 |
. 57386 |
. 57347 |
|
|
April |
25 1 |
24 fa |
24. 9900 |
. 54781 |
4. 8741 |
. 54864 |
. 54775 |
|
May |
25 } § |
25! |
25. 5721 |
. 56057 |
4. 8700 |
.56094 |
. 56045 |
|
June |
26| |
25. 6488 |
. 56221 |
4. 8743 |
. 56312 |
. 56269 |
|
|
July |
27 |
26| 2Cpa 26 |
26. 7600 |
. 58661 |
4. 8737 |
. 58769 |
. 58697 |
|
August |
27 |
26. 6018 |
. 58414 |
4. 8807 |
. 58414 |
. 58486 |
|
|
September |
26| |
26. 3485 |
. 57759 |
4. 8665 |
.57757 |
. 57692 |
|
|
October |
26E 27! |
26! |
26. 7596 |
. 58660 |
4. 8591 |
. 58570 |
. 58572 |
|
November |
26! |
26. 9543 |
. 59087 |
4. 8680 |
. 59107 |
. 59091 |
|
|
December |
28to |
27§ |
27. 9302 |
. 61230 |
4. 8697 |
. 61251 |
. 61182 |
|
Average . . . |
26. 4019 |
. 57876 |
4. 8684 |
. 57892 |
. 57843 |
EXPORTS OF SILVER TO THE EAST.
The exports of silver from London to India, China, and the Straits since 1881 have been as follows:
1881
1882
1883
1884
1885
1886
1887
1888 ' 1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
Calendar year.
India.
China.
Straits.
Total.
$12, 375, 612 18, 604, 945 18, 040, 140 26, 073, 909 30, 913, 667 21, 159, 591 19, 798, 328 21, 162, 116 28, 392, 786 35, 673, 177 21, 717, 992 35, 180, 897 34, 319, 877 24,391,351 17, 638, 610 23, 874, 942 28,250,305 20, 984, 625 25, 597, 912 37,916,065 36, 987, 395 30, 987, 195 36, 125, 636 46,366,153
$3, 898, 860 1, 584, 318 4, 212, 574 6, 018,714 3,160, 315 1, 769, 425 1,427,179
1. 153. 002 2, 731, 861 1, 284, 498 1, 177, 620
719, 668 11,635,650 13, 279, 564
8. 042. 003 3, 602, 597 2, 721, 522 3,721,656 6, 929, 117
11,252,496 4,101,764 991,793 1,508, 907 2, 495, 502
$3,577, 729 ' 7,354.255 11,189,631 8, 136, 097 3, 108, 146 2, 892, 064 2, 766, 946 3, 219, 321 8,181,141 4, 441, 197 10,754,800 18, 622, 825 7,847,295 6,002,565 3, 668, 772 4,025,257 3, 597, 331 1,971,143 1, 396, 223 3, 922, 477 3, 150, 630 5,363,710 3, 999, 674 385, 758
$19,852,201 27,543,518 33, 442, 345 39, 228, 720 37,182,128 25, 821,080 23,992,453 25, 534, 439 39, 305, 788 41,398,872
33. 650. 412 54, 523, 390 53, 802, 822 43, 673, 480 29, 349, 385 31,502,796 34,569,158 26, 677, 724 33, 923, 252 53,091,038 44, 239, 789 37, 342, 698 41,634,217
49. 247. 413
24
PRECIOUS METALS IN THE UNITED STATES
VALUE OF NET IMPORTS OF SILVER INTO INDIA SINCE 1835.
The net imports in value of silver into India, average exchange rate of India rupee in London, and amount of council bills sold, by fiscal years ended March 31, is shown by the following table:
Year.
1835- 36..
1836- 87..
1837- 38..
1838- 39..
1839- 40.. 1810-41..
1841- 42..
1842- 43..
1843- 44..
1844- 45..
1845- 46..
1846- 47..
1847- 48..
1848- 49..
1849- 50..
1850- 51..
1851- 52..
1852- 53..
1853- 54..
1854- 55. .
1855- 56..
1856- 57..
1857- 58..
1858- 59..
1859- 60..
1860- 61..
1861-62..
1862- 63..
1863- 64..
1864- 65. .
1865- 66..
1866- 67 o
1867- 68..
1868- 69..
1869- 70. .
|
Net imports of silver. |
Average rate of Indian rupee. |
Amount of council bills sold. |
Year. |
Net imports of silver. |
Average rate of Indian rupee. |
Amount of council bills sold. |
|
a 16, 118, 960 36, 176, 311 9, 173, 294 12,671,392 7. 864. 683 6, 679, 118 5,887,052 14, 068, 739 ' 17,237,334 8. 719. 684 4, 112, 529 6, 322, 979 2, 204, 565 1, 344, 618 5, 810, 633 10, 410, 803 14, 016, 886 22, 293, 629 11,279,345 138, 797 40, 085, 623 56, 413, 954 61, 012, 039 a 77, 283, 420 a 111, 475, 630 a 53, 280, 090 $43, 988, 930 60, 757, 238 61, 950, 883 48, 793, 010 89, 904, 731 32, 474, 026 26, 230, 510 40, 330, 842 34,500,818 |
Pence. 22* 23 23* 23 i 23* 22* 23* 23 21* 21* 22* 22 211 22* 244 24* 234 24| 234 24* 254 24* V) V) V) 23| 234 234 234 23* 23 234 234 234 |
$9, 953, 224 9, 938, 522 8, 303, 149 11,419,685 7,005,448 5,715,461 12, 600, 746 5,827,332 13, 634, 624 12,248,742 14, 919, 273 15, 071,750 7, 503, 189 9, 193, 767 14,283,752 15, 750, 223 13, 516, 816 16, 152, 235 18, 738, 775 17, 860, 191 7, 222, 081 13, 722, 119 3, 059, 077 124, 451 22, 843 3, 879 5,809,277 32,321,230 43,698,839 33, 040, 970 33, 900, 604 24, 661, 422 20, 134, 097 18, 033, 989 33, 968, 764 |
# 1870- 71 1871- 72 1872- 73 1873- 74 1874- 75 1875- 76 1876- 77 1877- 78 1878- 79 1879- 80 1880- 81 1881-82 1882- 83 1883- 84 1884- 85 1885- 86 1886- 87 1887- 88 1888- 89 1889- 90 1890- 91 1891- 92 1892- 93 1893- 94 1894- 95 1895- 96 1896- 97 1897- 98 1898- 99 1899- 1900 1900- 1901 1901- 2 1902- 3 1903- 4 1904- 5 |
$4,273,507 30, 574,254 3,298,985 11,311,401 20. 916. 698 6, 826, 414 29, 911,149 61,869,640 15. 910, 390 31, 852, 848 15, 751, 280 21, 699, 764 29, 614, 971 25, 372, 923 28, 367, 364 42, 960, 530 25,306,454 31, 623, 459 30, 709, 917 36, 741, 437 51, 993, 287 30, 611, 949 39, 083, 615 40, 466, 665 16, 812, 318 18, 206, 409 17, 163, 165 26, 447, 429 16, 442, 585 11, 653, 240 30, 792, 023 23, 318, 450 22. 569. 699 44, 097, 608 43, 509, 790 |
Pence. 22* 23* 22* 22. 351 22. 221 21. 645 20. 491 20. 79 19. 761 19. 961 19. 956 19. 895 19. 525 19. 536 19. 308 18. 254 17. 441 16. 899 16. 379 16. 566 18. 089 16. 733 14. 984 14. 546 13.100 13. 641 14. 454 15. 393 15. 979 16. 068 15. 973 15.988 16. 0018 16. 0491 16. 045 |
$41,090, 337 50, 175, 265 67, 834, 606 64, 654, 752 52, 760, 715 60, 294, 052 61, 784, 106 49,319,325 67, 880, 692 74, 271, 598 74, 163, 888 89, 604, 086 73, 584, 015 85, 649, 451 66, 957, 731 50,089,386 59.061.202 74, 742, 515 69.410.203 75, 306, 635 77, 713, 304 78, 320, 740 80,454,024 46, 378, 884 82, 268, 679 85, 278, 507 76, 028, 915 44,271,918 91, 064, 157 92, 495, 079 65, 501, 810 89, 444, 377 90, 029, 987 116,111,293 118, 866, 929 |
a Rupees.
6 From 1858-59 to 1860-61, inclusive, the home treasury was opened at all times for the sale of bills on India, at rates altered from time to time hy advertisement. Consequent on the mutiny, it was necessary to refrain from drawing on India, and exchange was raised to a prohibitory rate, e Eleven months.
PRECIOUS METALS IN THE UNITED STATES
25
Gold and Silver Imported into and Exported from British India in each Fiscal Year Ending March 31, from 1873-74 (British Standard Ounces).
[From Financial and Commercial Statistics of British India.]
|
Period. |
Gold. |
Silver. |
||||
|
Imported. |
Exported. |
Net im- ports. |
Imported. |
Exported. |
Net im- ports. |
|
|
Ounces. |
Ounces. |
Ounces. |
Ounces. |
Ounces. |
Ounces. |
|
|
1873-74 |
331,554 |
8, 747, 151 |
||||
|
1874-75 |
446' 964 |
16; 269; 590 |
||||
|
355' 985 |
5; 45i; 074 |
|||||
|
1876-77 |
25; 229; 986 |
|||||
|
1877-78 |
102’ 628 |
51 ; 436; 354 |
||||
|
1878-79 |
177| 101 |
13, 916; 146 |
||||
|
1879-80 |
374| 227 |
27; 581 , 194 |
||||
|
1880-81 .. |
777| 533 |
13; 642; 358 |
||||
|
1881-82 |
1,028,240 |
18; 852; 031 |
||||
|
1882-83 . . . |
lj048j 810 |
26; 216; 055 |
||||
|
1883-84 |
1,138,584 |
22; 448; 221 |
||||
|
1884-85 |
' 973' 053 |
26; 393', 863 |
||||
|
1885-86 |
544; 437 |
40, 677,913 |
||||
|
1886-87 |
393| 174 |
25; 078, 814 |
||||
|
1887-88 |
569, 684 |
41,646 |
528; 038 |
37,877,141 |
5, 094, 542 |
32; 782; 599 |
|
1888-89 |
512, 287 |
50, 710 |
461, 577 |
37, 844, 665 |
5, 408, 636 |
32, 436, 029 |
|
1889-90 |
850, 232 |
76, 848 |
773, 384 |
43, 940, 659 |
5, 296, 885 |
38, 643, 774 |
|
1890-91 |
1,175, 875 |
161,646 |
1,014,229 |
56,190,870 |
4, 661, 785 |
51, 529, 085 |
|
1891-92 |
709, 102 |
285, 454 |
423,648 |
38, 177, 580 |
5, 829, 142 |
32,348,438 |
|
1892-93 |
272, 442 |
726, 925 |
—454, 483 |
54,180,144 |
8, 656, 632 |
45, 523, 512 |
|
1893-94 |
474, 635 |
378, 399 |
96, 236 |
60, 328, 296 |
5, 999, 323 |
54, 328, 973 |
|
1894-95 |
236, 873 |
926, 843 |
—689, 970 |
32, 638, 069 |
5, 598, 047 |
27,040,022 |
|
1895-96 |
695,055 |
372, 432 |
322, 623 |
34, 082, 810 |
7, 064, 731 |
27,018, 079 |
|
1896-97 |
657, 238 |
347, 873 |
309, 365 |
37, 520, 322 |
11,591,234 |
25, 929, 088 |
|
1897-98 |
1,129,149 |
397,114 |
732, 035 |
68, 535, 612 |
24, 250, 995 |
44, 284, 617 |
|
1898-99 |
1,432,461 |
410,461 |
1, 022, 000 |
49, 226, 780 |
26, 061, 355 |
23,165,425 |
|
1899-1900 |
1,914,037 |
353,225 |
1, 560, 812 |
50, 663,542 |
32,017,260 |
18,646,282 |
|
1900-1901 |
1,987,738 |
1,881,060 |
106, 678 |
64, 746, 549 |
15,311,385 |
49, 435, 164 |
|
1901-2 ...*. |
1,372,249 |
1,097,743 |
274, 506 |
66, 726, 972 |
27,721,780 |
39,205, 192 |
|
1902-3 |
2,187,384 |
770, 766 |
1,416,618 |
75, 167, 077 |
32, 294, 876 |
42, 872, 201 |
|
1903-4 |
3, 330, 466 |
1,764,229 |
1, 566, 237 |
104, 324, 765 |
25, 749, 296 |
78, 575, 469 |
|
1904-5 |
3, 605, 016 |
2, 088, 025 |
1, 516, 991 |
98,118,908 |
23, 162, 646 |
74, 956, 262 |
Note. — The quantities in the column “net imports” for both gold and silver, for the years 1873-74 to 1886-87, are estimated only, deduced from the declared values of the trade for those years by the following process:
For gold, the rupee value of the monthly net imports was converted into sterling at the average rate of exchange in each month, and this sterling value was then divided by the English mint price of gold (£3 17s. 10id.). For silver the average price of 107 rupees per 100 tolas, or 285.33 rupees per 100 ounces, was taken as the basis of the value of the annual imports.
26
PKECIOUS METALS IN THE UNITED STATES.
IMPORTS ANI) EXPORTS OF BULLION INTO AND FROM LONDON.
The imports and exports of bullion into and from various countries during the calendar year 1904 were as follows:
|
Country. |
Imports. |
Exports. |
||
|
Gold. |
Silver. |
Gold. |
Silver. |
|
|
Austria |
$7, 390, 754 487 97 9S7 |
|||
|
Belgium |
81, 986, 885 2,296,385 8, 984, 591 907, 257 |
$579, 508 1, 382, 251 1, 679, 040 286, 423 |
$221, 966 3, 180, 190 1,371,487 331,049 54, 013 4, 012, 658 271, 823 9,173 97, 330 1,596, 879 |
|
|
France |
||||
|
Germany |
45, 720, 432 1, 289, 987 1, 216, 625 353, 551 49, 395 228, 725 934, 368 20, 571, 669 |
|||
|
Holland |
||||
|
Sweden and Denmark |
||||
|
Russia |
4, 607, 116 610, 094 14, 838 |
|||
|
Spain, Portugal, etc |
911,194 73, 766 6, 326 153, 713 |
|||
|
Gibraltar |
||||
|
Malta |
||||
|
Egypt |
252,284 |
|||
|
Aden |
||||
|
Mauritius |
||||
|
Ceylon |
||||
|
Bombay |
||||
|
Madras |
■ 38,718,473 |
3, 287,077 |
20, 054, 885 |
46,072,917 |
|
Calcutta |
||||
|
Singapore |
||||
|
Penang |
||||
|
Manila |
||||
|
Hongkong |
} 47,059 |
420, 587 |
2, 778, 562 |
|
|
Shanghai |
||||
|
Japan |
224 |
|||
|
West coast of Africa |
1,672,499 79, 530, 080 127, 001 3, 845, 567 2, 157, 636 |
439, 990 66, 296 40, 943, 193 855, 209 1,168 |
124, 456 2,604 3, 392, 569 27, 244, 472 3, 523, 468 48, 665 579 |
1, 799, 194 49, 351 962, 793 675, 597 |
|
British South Africa |
||||
|
United States |
||||
|
Mexico, South America (except Brazil) West Indies, etc |
||||
|
Brazil |
||||
|
British North America |
152, 351 145, 508 |
|||
|
Australia |
20,235,958 2, 573, 984 632, 042 |
1,087,653 245, 992 |
||
|
New Zealand |
||||
|
Other countries |
117, 492 |
1, 349, 928 |
764, 926 |
|
|
Total |
164, 860, 416 |
56, 876, 435 |
160, 784, 965 |
64, 547, 767 |
STOCK OF MONEY IN THE UNITED STATES.
The stock of domestic coin in the United States on December 31, 1904, was $1,979,114,352 of which $1,299,037,758 was gold and $680,076,594 was silver.
Official Table of Stock of Coin in the United States December 31, 1904.
|
Items. |
Gold. |
Silver. |
Total. |
|
Estimated stock of coin Dec. 31, 1903 Net imports United States coin, calendar year 1904 United States coin returned in transports from the Phil- ippine Islands not recorded at the custom-house, cal- endar year 1904 |
$1,110,920, 555 |
$665, 971, 894 257, 135 a717,308 15, 695, 610 |
$1,776,892,449 257,135 717, 308 249, 098, 038 |
|
Coinage,' calendar year 1904 Total |
233, 402, 428 |
||
|
1,344,322, 983 |
682,641,947 |
2,026,964,930 |
|
|
Loss: Net exports United States coin, calendar year 1904 — United States and Hawaiian coin melted for recoin- age (face value) |
|||
|
39, 466, 927 2, 318,298 3, 500, 000 |
2,465,353 100, 000 |
39, 466, 927 4,783,651 3, 600, 000 |
|
|
United States coin estimated to have been used in the arts |
|||
|
Total |
|||
|
45, 285, 225 |
2, 565, 353 |
47, 850, 578 |
|
|
Estimated stock of coin in the United States Dec. 31,1904. |
1,299,037,758 |
680, 076, 594 |
1,979,114,352 |
a of this amount $410,632 were in 1-dollar pieces.
Note. — The number of standard silver dollars coined to December 31, 1904, was 570,272,610, which, added to the Hawaiian dollar coinage of 500,000 plus the number imported from the Philippine Islands— 150,000— and the number returned in Government transports from the Philippine Islands— 410,632— equals 571,333,242. Since July 1, 1898, the number of standard silver dollars exported in transports has been 2,495,000 and since 1883 the number melted has been 180,785 (Reportof thcDirector of the Mint, 1904, p. 21), and the number of Hawaiian dollars melted to December 31, 1904, has been 453,240; a total disposition of 3,129,025, leaving in the United States December 31, 1904, 568,204,217 standard silver dollars, and $111,872,377 in subsidiary silver coins.
PRECIOUS METALS IN THE UNITED STATES.
27
In the Appendix will be found tables giving in detail the source from which these amounts were obtained.
The cost value of the gold and silver bullion owned by the Govern- ment on December 31, 1904, was as follows:
Gold and Silver Bullion in the Mints and Assay Offices on December 31, 1904.
|
Metal. |
Value. |
|
Gold |
$49, 187, 417 4, 982, 396 |
|
Total |
|
|
54, 169, 813 |
|
The total metallic stock, including bullion in the Treasury, was as follows:
Metallic Stock in the United States on December 31, 1904.
|
Bullion and coin. |
Value. |
|
Gold |
$1,348,225,175 685, 058, 990 |
|
Total |
|
|
2,033,284,165 |
|
On December 31, 1903, the metallic stock was as follows:
|
Bullion and coin. ' |
Value. |
|
Gold |
$1,320,357,366 679, 171, 112 |
|
Silver |
|
|
Total |
|
|
1,999,528, 478 |
|
The increase in the total stock on December 31, 1904, as compared on the same date with 1903, was, gold, $27,867,809; silver, $5,887,878; a total of $33,755,687.
The location of the stock of metallic and paper money in the United States on December 31, 1904, was as follows:
Location of Moneys of the United States, December 31, 1904.
Moneys.
Metallic:
Gold bullion
Silver bullion
Gold coin
Silver dollars
Subsidiary silver coin
In Treasury.
849,187,417 4,982,396 647, 261, 358 487, 796, 322 9, 326, 444
Outside of Treasury.
8651, 776, 400 80, 407, 895 102, 545, 933
Total.
849, 187, 417
1,299,037,758 568, 204, 217 111,872,377
Total metallic 1,
Paper:
Legal-tender notes (old issue)
Legal-tender notes (act of July 14, 1890) National-bank notes
Total notes
Gold certificates . Silver certificates
Total certificates
Grand total
198, 553, 937
5,071,354
81,174
15,834,497
20,987,025
58, 940, 810 9, 958, 691
68, 899, 501
2,
834, 730, 228
2
,028, 301,769
341, 609, 662 10, 937, 826 448, 959, 659
346, 681, 016 11,019,000 464, 794, 156
801,507,147
822, 494, 172
465,744,159 467, 143, 309
932,887,468
569, 124, 843
2, 850, 795, 941
28
PRECIOUS METALS IN THE UNITED STATES.
GOLD AND SILVER USED IN INDUSTRIAL ARTS IN THE UNITED STATES DURING THE CALENDAR YEAR 1904.
Among- the purveyors of gold and silver bars for use in the indus- trial arts the United States mint at Philadelphia and the United States assay office at New York hold the foremost places; consequently the larger portion of the material consumed in the arts is brought under Government notice as a matter of public record.
The following table gives the value of the gold and the quantity of the silver bars issued by the Government institutions during the calendar year 1904:
Gold and Silver Bars Issued for Use in the Industrial Arts by the Govern- ment Institutions during the Calendar Year ended December 31, 1904.
|
Material used. |
Gold. |
Silver. |
|
Bullion (new material) |
$18, 948, 890. 58 3, 329, 313. 74 22, 278, 204. 32* |
Fine ounces. 2, 316, 351. 85 601,034.82 2, 917, 386. 67 |
|
Old jewelry, plate, etc |
||
|
Total |
||
Bars for Industrial Use Manufactured by Private Refineries and Furnished Goldsmiths and Others during the Calendar Year 1904.
|
Material used. |
Gold. |
Silver. |
|
Bullion (new material) |
$481,146 582, 129 2, 396, 613 |
Fine ounces. 15, 531, 603 390 1,953, 653 |
|
United States coin |
||
|
Old plate, jewelry, etc |
||
|
Total |
||
|
3, 459, 888 |
17, 485, 646 |
|
Estimating the amount of gold coin used in the arts during the calen- dar year to have been $3,500,000 and silver coin $100,000, the total industrial consumption of the precious metals in the year 1901 was as follows:
Industrial Consumption of the Precious Metals During the Calendar Year
1904.
|
Material used. Jfc. |
Gold. |
Silver. |
|
$19, 430, 036 3, 500, 000 5, 725, 927 |
Fine ounces. 17,847,955 77, 344 2, 654, 6S8 |
|
|
Old mate rial |
||
|
28, 655, 963 |
20, 479, 987 |
|
PRECIOUS METALS IN THE UNITED STATES
29
The following1 table gives the amounts and the classification of gold and silver used in the industrial arts in the United States since 1880:
Gold and Silver Bars Furnished for Use in Manufactures and the Arts, and Classification of the Material Used, by Calendar Years, since 1880.
GOLD.
|
Calendar year. |
United States coin. |
New material (domestic). |
Old material. |
Foreign bullion and coin. |
Total. |
|
1880 |
S3, 300, 000 |
86, 000, 000 |
8395, 000 |
81,267,600 |
810, 962, 600 |
|
1881 |
2, 700, 000 |
7, 000, 000 |
522, 900 |
1,547,800 |
11,770,700 |
|
1882 |
2, 500, 000 |
7,000,000 |
696, 500 |
671,500 |
10,868,000 |
|
1883 |
4,875,000 |
7, 840, 000 |
1,549,300 |
194, 500 |
14, 458, 800 |
|
1884 |
5, 000, 000 |
6, 000, 000 |
3,114,500 |
385, 500 |
14, .500, 000 |
|
1885 |
3, 500, 000 |
6, 736, 927 |
1,408,902 |
178, 913 |
11,824,742 |
|
1886 |
3,500,000 |
7,003,480 |
1,928,046 |
638, 003 |
13, 069, 529 |
|
1887 |
3,500,000 |
9, 090, 342 |
1,835,882 |
384, 122 |
14,810,346 |
|
1888 |
3,500,000 |
9, 893, 057 |
2, 402, 976 |
718, 809 |
16, 514, 842 |
|
1880 |
3, 500, 000 |
9, 686, 827 |
3,218,971 |
291,258 |
16, 697, 056 |
|
1800 |
3, 500, 000 |
10,717,472 |
3, 076, 426 |
362, 062 |
17, 655, 960 |
|
1891 |
3, 500, 000 |
10, 697, 679 |
4,860,712 |
628, 525 |
19, 686, 916 |
|
1802 |
3, 500, 000 |
10, 588, 703 |
4, 468, 685 |
771,686 |
19,329,074 |
|
1893 |
1,500, 000 |
8,354,482 |
2, 777, 165 |
804, 254 |
13, 435, 901 |
|
1894 |
1, 500, 000 |
6, 430, 073 |
2, 184, 946 |
543, 585 |
10,658,604 |
|
1895 |
1, 500, 000 |
8,481,789 |
2, 976, 269 |
471,027 |
13,429,085 |
|
1896 |
1,500, 000 |
7, 209, 787 |
2, 369, 343 |
316, 804 |
11,395,934 |
|
1897 |
1, 500, 000 |
7, 184, 822 |
2, 571 , 428 |
613, 981 |
11, 870, 231 |
|
1898 |
1,500, 000 |
9, 463, 262 |
2,164,976 |
437,641 |
13,565,879 |
|
1899 |
1,500, 000 |
13, 267, 287 |
2, 734, 985 |
344, 906 |
17,847,178 |
|
1900 |
1, 500, 000 |
14, 582, 627 |
3,480,612 |
584,903 |
20, 148, 142 |
|
1901 |
1,500,000 |
16, 296, 688 |
3, 386, 626 |
685, 642 |
21,868,956 |
|
1902 |
1,500,000 |
18, 653, 625 |
4, 677,549 |
851,673 |
25, 682, 847 |
|
1903 |
3, 500, 000 |
19, 944, 365 |
4, 665, 589 |
953, 597 |
29, 063, 551 |
|
1904 |
3, .500, 000 |
12, 298, 459 |
5,725,927 |
7,131,577 |
28, 655, 963 |
|
Total |
68, 375, 000 |
250, 421, 753 |
69, 194, 215 |
21, 779, 868 |
409, 770, 836 |
SILVER (FINE OUNCES).
|
1880 |
464, 063 |
3, 867, 188 |
112, 148 |
273, 023 |
4, 716, 422 |
|
1881 |
154, 687 |
4,563,281 |
137, 672 |
286, 945 |
5, 142, 585 |
|
1882 |
154, 687 |
4, 906, 920 |
164, 665 |
340, 544 |
5, 566, 816 |
|
1883 |
154. 687 |
3, 576, 143 |
434, 595 |
119, 883 |
4,285, 308 |
|
1884 |
154, 687 |
3, 480, 469 |
131,484 |
502, 734 |
4, 269, 374 |
|
1885 |
154, 687 |
3, 511, 310 |
357, 472 |
48, 501 |
4, 071, 970 |
|
1886 |
154, 687 |
2, 804, 635 |
312, 589 |
638, 562 |
3,910,473 |
|
1887 |
154, 687 |
3,173,208 |
371,719 |
506, 595 |
4,206,209 |
|
1888 |
154, 687 |
5,010,218 |
504, 318 |
597, 082 |
6,266,305 |
|
1889 |
1 154,687 |
5, 644, 495 |
472, 582 |
508, 920 |
6, 780, 684 |
|
1890 |
154, 687 |
5, 525, 155 |
495, 077 |
963, 254 |
7,138,173 |
|
1891 |
154, 687 |
5, 637, 642 |
663, 707 |
971, 516 |
7, 427, 552 |
|
1S92 |
154, 687 |
5, 572, 006 |
500, 706 |
966, 643 |
7,194,042 |
|
1893 |
77,344 |
5, 082, 054 |
945, 787 |
1, 346, 326 |
7,451,511 |
|
1894 |
77,344 |
6, 635, 685 |
944, 504 |
759, 824 |
8,417,357 |
|
1895 |
77, 344 |
7, 599, 323 |
1,065, 902 |
752, 942 |
9,495,511 |
|
1896 |
77,344 |
6, 160, 777 |
832, 860 |
821, 387 |
7,892,368 |
|
1897 |
77, 344 |
7,116,009 |
853, 457 |
616, 579 |
8, 663, 389 |
|
1898 |
77, 344 |
9, 417, 981 |
734, 233 |
489, 160 |
10, 718, 718 |
|
1899 |
77, 344 |
8,388,658 |
1, 583, 678 |
529, 137 |
10, 578, 817 |
|
1900 |
77,344 |
10, 423, 485 |
1, 776,006 |
940, 450 |
13, 217, 285 |
|
1901 . |
77, 344 |
11,809,418 |
1,208,523 |
1, 038, 409 |
14,133,694 |
|
1902 |
77, 344 |
15, 236,711 |
2,741,331 |
1,289,623 |
19, 345, 009 |
|
1903 |
77, 344 |
15,016,256 |
3, 919, 726 |
954, 930 |
19, 968, 356 |
|
1904 |
77, 344 |
16, 629, 834 |
2, 554, 687 |
1, 218, 122 |
20, 479, 987 |
|
Total |
3,248,435 |
176, 788, 861 |
23, 819, 428 |
17,481,091 |
221,337,915 |
30
PRECIOUS METALS IN THE UNITED STATES.
EXCHANGE OF GOLD BARS FOR GOLD COIN.
The value of the gold bars furnished to the trade in exchange for gold coin monthly, by the United States mint at Philadelphia and assay office at New York, under the provisions of the act of May 26, 1882, was as follows:
Gold Bars Exchanged for Gold Coin at the Mint at Philadelphia and Assay Office at New York during the Calendar Year 1904.
|
Month. |
Philadelphia. |
New York. |
Total. |
|
January |
S367,301.84 408, 550. 22 464, 899. 46 402, 196. 55 395, 270. 48 361, 969. 58 260, 328. 41 450, 794. 88 529, 387. 82 524, 432. 25 483, 784. 71 272, 790. 25 |
$985, 500. 75 900, 101. 87 1, 121, 228. 67 18, 150, 012. 92 38,020,881.26 1, 612, 790. 20 782, 224. 94 1,099, 978.60 1,427,357.65 4, 748, 227. 09 12, 490, 844. 12 5,932,954. 98 |
81,352,802.59 1, 308, 652. 09 1, 586, 128. 13 18, 552, 209. 47 38,416,151.74 1,974, 759.78 1, 042, 553. 35 1, 550, 773. 48 1,956,745. 47 5, 272, 659. 34 12, 974, 628. 83 6, 205, 745. 23 |
|
February |
|||
|
March |
|||
|
April |
|||
|
May |
|||
|
June |
|||
|
Julv |
|||
|
August |
|||
|
September |
|||
|
October |
|||
|
November |
|||
|
December |
|||
|
Total |
|||
|
4,921,706. 45 |
87, 272, 103. 05 |
92, 193, 809. 50 |
|
These figures include both small bars manufactured for use in the arts and large bars manufactured for export.
The total amount was distributed as follows:
Exported $73, 973, 151. 38
Employed for industrial purposes 18, 220, 658. 12
Total 92,193,809.50
THE WORLD'S INDUSTRIAL CONSUMPTION OF THE PRECLOUS
METALS.
The recent large increase in the production of gold has given special interest to the subject of industrial consumption. What part of the new stream is absorbed in the arts and how much of it is added to the monetary stocks?
The data for any calculation upon this subject is confessedl}T incom- plete and unsatisfactory. We are not, however, without some mate- rial from which to construct an estimate. At various times men of acknowledged ability for such investigations have given careful atten- tion to the subject and conducted extensive inquiries to learn at first hand from parties engaged in the industry the consumption in the important countries.
The celebrated savant, Dr. Adolph Soetbeer, of Gottingen Univer- sity, is the best known of recent authorities upon this subject. He published his first estimates in 1881, but continued his investigations until his death, which occurred in 1892. In 1891 he revised his earlier conclusions, reviewed all the information he had been able to gather, and summed up the average annual consumption of new gold at that time by the more important countries in the following table:
PRECIOUS MISTALS IN THE UNITED STATES.
31
|
Countries. |
Kilograms. |
Value. |
|
19.500 17. 000 16, 800 12. 000 10. 500 2,900 2,400 4,500 2,400 2,000 |
$12, 959, 700 11,298,200 11,165,280 7.975.200 6, 978, 300 1 , 927, 340 1,595,040 2, 990, 700 1,595,040 1.329. 200 |
|
|
France |
||
|
Russia |
||
|
90, 000 |
59, 814,000 |
|
In this calculation he properly includes all melted coin as new gold, but deducts the amount of old plate, jewelry, etc., which is returned to similar use.
Since Doctor Soetbeer’s figures were made Professor Lexis has given much attention to the subject. His conclusions, published in 1896, allowed only $48,790,000 for the industrial consumption of new gold in Europe and the United States.
No attempt is made to estimate the industrial consumption of gold in Asia. A large amount has gone into India and is either hoarded or converted into ornaments, this conversion being in fact a method of hoarding. Statistics as to Asiatic countries have been so meager that it has been simpler to count the net exports to Asia as so much gold definitely withdrawn from the commercial world. It is practically out of the calculation so far as the needs of Europe and America are concerned.
Before the royal commission upon the relative values of gold and silver in 1886 Sir Hector Hay gave testimony as to inquiries he had made of the principal gold and silver refiners of England concerning the industrial consumption of these metals. They estimated that the sales of new gold in bars amounted to If millions of pounds sterling per annum, and that the total consumption, including old material and coin, would be about 2^ millions of pounds sterling. He thought the coin would amount to about 10 per cent of the total, which would make an aggregate of approximately $10,000,000 of new gold and coin.
The only country which makes an official effort to calculate the con- sumption of gold and silver used industrially is the United States. The conditions here are very favorable to success in the undertaking. Gold coinage is free, and as the mint service maintains twelve offices in different parts of the country, contiguous to important ports of entry and important mining fields, practically all the gold produced in the country or imported is disposed of immediately to the Govern- ment. The refineries of the country, as a rule, dispose of their output directly to the Government, but courteously inform the Director of the Mint at the end of each year of the amount and destination of their entire product. The mints offer for sale fine bars in convenient sizes at a charge so low that there is economy in purchasing them for all industrial uses rather than use coin which has been in circulation. How generally the manufacturers look to the Government to supply- their needs is shown by the figures given in the chapter on the indus- trial consumption of the United States. The bars purchased of private
32
PRECIOUS METALS IN THE UNITED STATES.
reliners are usually from sweep smelters and composed of old material. The new gold nearly all passes through the Government offices. There remains, however, a considerable consumption of coin. A few important manufacturers in certain lines prefer coin to fine bars, because the alloy gives it better adaptation to their uses. There con- tinues also the scattered consumption, important in the aggregate, by small manufacturers over the country, to whom the convenience of obtaining coin from a local bank outweighs the loss b}r abrasion, and the use b}^ small jewelers, dentists, and others. Occasionally a census is taken of these losses by circulars of inquiry. The results of these inquiries of late years have indicated a consumption of about $3,500,000 in coin per annum.
The conditions described above seem to give a solid basis for con- fidence in the official estimates for the United States. And, although the consumption of the United States may not be a very definite guide to the consumption of other countries, it is worth something as a basis for estimating the consumption of countries of approximately the same wealth and level of civilization.
Pursuing this suggestion, if the industrial consumption of gold in the countries named below is based upon their total wealth of all kinds as estimated by Mulhall in 1899, and calculated at the rate of consumption in the United States, the result would be as follows:
Country.
England
Scotland
Ireland
France
Germany
Russia
Austria
Italy
Spain
Portugal
Scandinavia..
Holland
Belgium
Switzerland . . Danube States Greece
Europe
United States.
Canada
Australia
Argentina
Total ...
|
Population in 1900. |
Wealth. |
Consump- tion of gold. |
|
8, 900, 000 1, 600, 000 5. 200. 000 38. 500. 000 52. 300. 000 130, 900, 000 46. 300. 000 31.900.000 17. 700. 000 5. 100. 000 9. 500. 000 5, 100. 000 6. 700. 000 3. 100. 000 12, 000, 000 2. 400. 000 |
848, 966, 723, 000 5. 323.951.000 3. 163. 225. 000 47. 156. 385. 000 39, 185, 058, 000 31. 267. 262. 000 21.957.648. 000 15. 378. 140. 000 11, 582, 270, 000 2, 000,131,000 6, 306, 984, 000 4. 282. 520. 000 4. 808. 102. 000 2.394.318.000 4, 993. 029, 000 1.080.364.000 |
810, 500, 000 1,100,000 700. 000 10, 100, 000 8. 400. 000 6. 700. 000 4. 600. 000 3. 300. 000 2. 500. 000 400. 000 1. 300. 000 900. 000 900. 000 500. 000 900. 000 200. 000 |
|
377, 200, 000 76,300,000 5, 500. 000 4; 500, 000 5,000,000 |
249,846,110,000 79, 567,275,000 4.910.298.000 5. 236. 354. 000 2. 997. 764. 000 |
53. 000. 000 17. 000. 000 1, 000, 000 1,000,000 700, 000 |
|
468, 500, 000 |
342, 557, 801, 000 |
72, 700, 000 |
This, when compared with Doctor Soetbeer’s estimate for 1891 — about $60,000,000 in the aggregate — is not very different, the natural increase of eight years considered. There are important differences as to particular countries in the two estimates, but Soetbeers estimate is made at the place of manufacture and the other at the place of con- sumption. Some countries, like England, France, Germany, and Swit- zerland, manufacture for exportation, while those of lower industrial development import for their own consumption.
The industrial consumption of gold in the United States has doubled within the last ten years, and it is not probable that this ratio has
PRECIOUS METALS TN THE UNITED STATES.
33
been maintained in Europe. The people of the United States have been gaining' in wealth more rapidly than those of any other country, and their expenditures for articles of luxury have been increasing with even more than corresponding rapidity. This reasoning would lead to the opinion that the annual industrial consumption of the coun- tries named prior to 1900 was less than $75,000,000. The Bureau of the Mint accepts this conclusion.
Since 1893 this Bureau has endeavored to obtain, through United
States representatives abroad, official estimates of the consumption of the precious metals in the arts and industries in the various countries of the world. The interrogatories sent out in 1904 bearing upon this subject were:
(4) What was the weight of fine gold used in the industrial arts during the calendar year 1904? Same question as to silver.
(5) State what amount of this was new gold, what amount old gold, and what amount coin. Give same particulars as to silver.
The reply “no data” was received from the following countries: Argentina, Brazil, Canada, Cape Colony, Denmark, Dutch Guiana, Egypt, Germany, Greece, Haiti, Italy, Japan, Mexico, New Zealand, Norway, Persia, Peru, Russia, Siam, South Australia, Spain, Tasmania, Venezuela, and Victoria. The reply “so small as to be a negligible quantity” was received from Costa Rica, Guatemala, Honduras, Nica- ragua, San Domingo, and Straits Settlements.
In the case of the countries enumerated below, sufficient informa- tion was elicited b}r the interrogatories for making the estimates given:
Austria. — Articles of gold and silver brought to the stamping office in the year 1904 to be stamped, showed the domestic consumption of the precious metals to have been as follows:
(a) GOLD.
|
Description. |
Gross weight. |
At the average standard of 1903. |
In fine gold. |
|
Dnm ps fiu. gold articles |
Kilograms. 5, 402. 937 |
581.052 |
Kilograms. 3, 141. 916 2. 805 27. 948 |
|
Domestic double (plated) ware; that is, the amount of gold placed upon them at the rate of 2.5 per cent of the total weight of 112 190 kilograms |
|||
|
Domestic wire; that is, the amount of gold placed upon it at a rate of 1.695 per cent of the total weight of 1,648.853 kilograms. Total |
|||
|
3, 172. 669 |
|||
No data are available regarding the fine gold consumed during the year 1904 for other industrial uses (especially gilding by fire and galvanism). In the last three years this consumption of gold was as follows:
Kilograms line gold.
1901 343.376
1902 418.522
1903 423.610
According to the average of these three years we may assume this consumption of gold during 1904 to have been 395.169 kilograms of fine gold.
11442—05 3
PRECIOUS METALS IN THE UNITED STATES.
1
O-T
(b) SILVER.
|
Description. |
Gross weight. |
At the aver- age .stand- ard of 1903. |
Fine silver. |
|
Domestic articles of silver |
Kiloqrams. 60, 102. 810 |
0. 797089 |
Kiloqrams. 48, 146.415 |
|
Domestic wire |
2, 186. 947 |
.990 |
2, 165. 078 |
|
Total |
50, 311. 493 |
||
No data are on hand as yet regarding the use of silver during the year 1904 for other industrial purposes; during the last three years it was as follows :
Kilograms, fine.
1901 8,453.797
1902 11,250.113
1903 11,133.536
We may therefore assume the same during the year 1904 to have been equal to the average of these three years, i. e., 10,279.149 kilo- grams of line silver.
Besides this there must also be taken into consideration the silver used for alloying domestic gold articles, at an average of 10 per cent of the gross weight of the gold articles, i. e., 540.294 kilograms of fine silver.
According to former experiences it may be assumed that of the amount of precious metals used for industrial purposes during the year 1904, 27 per cent of articles of gold and 15 per cent of articles of silver were manufactured from old material. Therefore, there were used in 1904, 856.621 kilograms fine old gold and 2,316.048 kilograms, or 74,463 ounces, fine new gold.
We may assume that the total weight of the new gold (2,316.048 kilograms) was derived from coins melted down: 7,627.768 kilograms tine old silver, and 43,224.019 kilograms, or 1,389,682 ounces, tine new silver.
The use of silver coins is constantly decreasing and amounted in the year 1904 to not quite one-half per cent of the total consumption.
Hungary. — No detailed data are available relative to gold and silver used for industrial purposes. There were presented in the year 1904 at the royal Hungarian stamping office for the purpose of being offi- cially stamped:
(A) Domestic goods: Kilograms.
Gold ware 1, 683. 956
Silverware 10, 899. 240 #
Gilt wire 227.010
Silver wire 82.550
(B) Foreign goods:
Miscellaneous gold ware 294. 661
Miscellaneous silverware 2, 186. 745
Gold watches 148. 252
Silver watches 1,419.914
Gilt wire 1. 930
Silver wire 4.200
For the coinage of medals 0.4017 kilogram of line gold and 19.373 kilograms of fine silver were used.
The estimated consumption of new gold in Hungary in 1904 is 718 kilograms, or 23,084 ounces, line; silver, 7,375 kilograms, or 237,111 ounces, fine.
PRECIOUS METALS IN TIIE UNITED STATES.
35
Ecuador. — The amount of gold and silver used in industrial arts luring 11)04: was about 400 ounces of gold and about 3,500 ounces of ;ilver. About 250 ounces was new gold, 50 ounces old gold, and 100 unices of coins; about 1,000 ounces of old silver and 2,500 ounces of liver coins.
Ft '(nice. — Fine gold and fine silver, new and old, used in industrial irts during the calendar year 1004:
Kilograms.
told 27, 800
silver 264,500
The weight of gold and silver ware stamped at the mint during the /ear 1904 is as follows:
told (kilograms 0.750 fine) 11,900
Silver (kilograms 0.950 and 0.800 line) >, 143, 200
No information as to what amount of this was new or old gold and liver. This Bureau estimates the industrial consumption of new gold it .20,300 kilograms or 652,659 ounces line, and silver at 225,000 kilo- grams or 7,233,900 ounces line.
Great Britain. — The interrogatories elicited the statement that no nformation was available regarding the industrial consumption of the precious metals in Great Britain in 1904 and recourse is therefore had, is last year, to an estimate of the same.
According to the memorandum of Dr. T. Kirkc Rose, chemist and issayer of the royal mint, published in the report of the deputy naster of that institution, the number of ounces of gold wares assayed md marked by the wardens of the assay offices at Birmingham, Chester, and Sheffield in the liscal year 1903-4 was 478,726.
The wares marked at Edinburgh, Dublin, and Glasgow are not ncluded, as the amounts were small.
These figures are far from representing the total industrial gold con- sumption of the United Kingdom, which must, if we are to be guided >y earlier estimates, be placed at nearly twice these amounts.
Professor Lexis estimated it in 1895 at 500,000 ounces, or about L5,500 kilograms net, or, in other words, that the wares stamped represented approximately 60 per cent of the actual consumption of ine gold in the industrial arts.
On the assumption that the ratio of the marked to the unmarked wares remained the same, namely, 60 to 40, the total consumption in he fiscal year 1903-4 would be approximately 800,000 ounces. It has ieen found in certain countries that of the gold consumed for indus- trial purposes about 27 per cent was old material. Assuming that in he United Kingdom the proportion was the same the consumption of lew gold would be 535,333 fine ounces. The Bureau is satisfied that he consumption of gold in the United Kingdom should not be esti- natecl below that of France, and therefore raises these figures to 555,000 fine ounces.
The amount of silver marked in 1903-4 at Birmingham, Sheffield, ind Chester was 6,016,258 ounces, in addition to which numerous small articles whose weight was not recorded were marked. If the stamped wares represent 60 per cent of the whole, the total consump- tion was 10,027,098 ounces. Assuming that 85 per cent of this was lew material (a figure which has been, found to represent the con- sumption in certain countries), the actual consumption of new silver for industrial purposes in the United Kingdom in 1903-4 is estimated
36
PRECIOUS METALS IN TPIE UNITED STATES.
at 8,523,033 standard or 7,883,805 tine ounces, equal to 245, 2Ul kilograms.
A marked falling off is observable in the amounts of both gold anc silver received at the several offices. A reduction in the total silver wares occurs for the first time in many years.
Netherlands . — The amount of gold used in industrial works may be estimated at 714 kilograms or 21,956 ounces of line gold. Wha amount of this was new and what amount old gold can not be stated
Portugal. — Amount of gold and silver, new and old, used in indus- trial arts during 1904: The gold-working industries employed in tin manufacture of its articles during the calendar year 1904 approxi mately 2,581 kilograms or 82,980 ounces of tine gold, and 13,711 kilograms or 440,979 ounces of tine silver.
The greater part of the gold used in the gold-working industries ir i the manufacture of its articles was obtained by the melting of ok i objects. As for the silver used for the same purposes, the mint is no t in possession of the data from which an answer to this question can be worked out.
Sweden. — At least 600 kilograms, or 19,290 ounces, of tine gold and
6.000 kilograms, or 192,900 ounces, of tine silver are annually used ii i Sweden in the industrial arts, but the exact quantity can not be stated:. It is impossible to state how much of this is new or old gold or gok ! coin, new or old silver or silver coin.
Switzerland. — The total weight of tine gold used for industrial pur poses in 1904 has risen to about 9,300 kilograms, or 299,000 ounces'. The total weight of tine silver used for industrial purposes in 1904 ha:- risen to about 60,000 kilograms, or 1,929,000 ounces. Exact informal tion as to what portion of this amount was new or old gold and silven can not be given, because an investigation of this question is not pos- sible. It is probable that gold coins in considerable quantities am melted, while as far as silver coins are concerned manufacturers take good care not to melt them because of the loss of about 60 per cen t which would result to them.
Turkey. — It is impossible to state what amount of gold was employed in the industrial arts, as there are no statistics available. During 190d about 4,425 kilograms of gold objects and ware were brought to tin 1 mint at Constantinople to be hall-marked. A considerable amount o: : silver was used for similar purposes, but it is impossible to state the exact quantity, as jewelers in the interior seldom comply" with the1 formality of having their wares stamped and a considerable portion of the ware manufactured in Constantinople is left unstamped.
United States. — Gold, 1,109,240 line ounces or 34,501 kilograms' silver, 17,925,299 tine ounces or 557,539 kilograms, only new material and coin being taken into consideration in the case of each metal.
The figures for the United States are known to be very near the truth, and while it is admitted that the returns from the other conn tries are far from accurate, it is believed that they are sufficiently sc to warrant making an estimate of the world’s industrial consumption of the precious metals.
Basing the estimate on the figures given above, this Bureau place; the world’s consumption of gold for industrial purposes in 1904 ant 120,373 fine kilograms, of the value of $80,000,000, equivalent tc >
3.870.000 fine ounces, and the silver at 1,784,652 fine kilograms, of the value of $30,000,000, equivalent to 57,377,800 tine ounces.
PRECIOUS METALS IN THE UNITED STATES.
87
WORLD’S PRODUCTION OF GOLD AND SILVER IN 1904.
GOLD.
During the calendar year 1904 the world produced 10,780,913 fine ounces of gold, of the value of $346,892,200, thus exceeding the out- put of 1903 by 1,012,536 tine ounces, or $20,930,700, equivalent to about 6.5 per cent. The most marked increases were in Africa and in the United States, respectively 866,675 and 332,480 ounces, while there was i diminution in the Australian yield of 86,675 fine ounces; Australia, however, produced 4,245,744 ounces, thus retaining first place, while Vfrica followed with 4,156,084, and the United States with 3,892,480 line ounces. The remaining large producers, arranged in accordance with the magnitude of their yields, were: Russia, 1,199,857; Canada, 793,350; Mexico, 609,781, and British India, 556,097 fine ounces. The seven above-named countries therefore produced 15,453,393 line nances, or 92 per cent of the world’s gold }Tield in 1904.
Separated according to political divisions the British Empire leads, it having produced, approximately, 9,832,527 fine ounces, or over 58 per cent of the whole, while the United States was second, it having yielded over 23 per cent of the total.
The following table shows the amount of gold produced by each of the great continents:
Fine ounces.
Vorth and Central America 5, 349, 825
Australasia 4, 245, 744
Africa . 4,156,084
Europe 1,315,835
Asia 1,213,565
South America 499,860
Total 16,780,913
SILVER.
In 1904 the world produced 168,390,238 fine ounces of silver of the tommercial value, at 58 cents per ounce — the average price in New Y ork in that year — of $97,666,300, an increase, as compared with the yield of 1903, of 452,344 fine ounces, and an increase in value, owing to the rise of 4 cents per ounce in the average price, of $6,978,800.
Mexico held its place as the greatest silver producer, her output imounting to 60,808,978 fine ounces, while the United States followed with 57,682,800 ounces. The remaining large producers were: Aus- tralasia, 14,558,892; Bolivia, 6,083,333; Germany, 5,799,133, and ■Ipain, 4,876,076 fine ounces. These six countries together produced 149,809,212 fine ounces of silver, or nearly 90 per cent of the total yield of the world.
The geographical origin of the product, by continents, was as
’ollows:
Fine ounces.
\Torth and Central America 122, 865, 803
Europe 16,121,619
Australasia 14,558,892
kmth America 10, 973, 417
Asia 3, 384, 099
Africa 486, 408
Total
168, 390, 238
38 PRECIOUS METALS IN THE UNITED STATES.
The commercial value of the world’s production of gold and silve i in 1904 was $4-44,558,500, an increase, as compared with the value o I the output of 1903, of $27,910,500.
Increase and Decrease during 1904 as Compared with 1903.
|
Country. |
Gold. |
Silver. |
||
|
Increase in 190-1. |
Decrease in 1904. |
Increase in 1904. |
Decrease ir i 1904. |
|
|
United States |
Fine ounces. 332, 480 93, 257 |
Fine ounces. |
Fine ounces, 3, 382, 800 |
Fine ouncet < 9. 690, 9( |
|
Mexico |
||||
|
Canada |
117, 768 |
569,077 143, 194 4, 876, 036 21,077 363, 749 |
||
|
Africa |
866, 675 |
|||
|
Australasia |
69, 794 |
|||
|
Russia |
8, 275 |
|||
|
Rustria-Hungary |
6,186 282 129 |
|||
|
Germany |
23,3! |
|||
|
Norway |
62, 282 |
|||
|
Sweden |
305 837 |
10,4 : 48, 55' 2, 0< |
||
|
Italy |
||||
|
Spain |
262 63 |
|||
|
Portugal |
||||
|
Greece |
167,01 |
|||
|
Turkey |
401 |
105, 855 |
||
|
Finland |
96 |
9,6: 137, 7:'. |
||
|
France |
||||
|
Great Britain |
1,215 |
28, 228 |
||
|
Argentina |
1,005 |
26, 4M |
||
|
Bolivia |
5 |
|||
|
Chile |
||||
|
Colombia |
36, 282 6.842 11,460 |
182,73; |
||
|
Ecuador |
||||
|
Brazil |
||||
|
Venezuela |
10, 425 |
|||
|
British Guiana |
120 |
|||
|
Dutch Guiana .• |
5,094 |
|||
|
French Guiana |
15,126 |
|||
|
Peru |
35, 631 |
1,262,031 1,093 |
||
|
1,282 36, 502 |
||||
|
Central America |
1, 460, 7('J |
|||
|
Japan |
92, 043 |
1,396,398 |
||
|
136, 646 |
||||
|
Korea |
||||
|
Siam |
2, 508 3,224 |
|||
|
British Fast Indies |
2 2 |
|||
|
Dutch East Indies |
2 |
|||
|
Total |
||||
|
1,452,375 |
439, 849 |
12,211,822 |
11, 759, 4' 7 |
|
|
1, 012, 526 |
452,344 |
|||
|
|
PRECIOUS METALS IN
THE UNITED STATES.
39
The following- table shows, by calendar years, the production and value of gold and silver in the world since L860:
Product of Gold and Silver in the World Since 1860.
[The annual production of I860 to 1872 is obtained from 5-year period estimates, compiled by Dr. Adolph Soetbeer. Since 1872 the estimates are those of the Bureau of the Mint.]
Calendar year.
1800
1801
1862
1863
1804
1805
1860
1807
1808
1 869
1870
1871
1872
Total
1873
1874
1875
1870
1877
1878
1879
1880
1881
1882
1883
1884
1885
1880
1887
1888
1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
Total
Grand total
Gold.
Fine ounces.
0. 480, 202
5, 949, 582 5,949,682
5, 949, 582
5, 949, 582 5, 949, 582
6, 270, 080 0, 270, 080 0, 270, 086 0, 270, 080
6, 270, 080
5,591,014
5,591,014
Value.
78, 706, 030
4, 653, 675 4, 390, 031 4, 716, 503 5,016,488
5. 512. 190 5,761,114 5, 262, 174 5, 148, 880 4, 983, 742
4, 934,080 4,614,588 4,921,169 5, 245, 572 5, 135, 679 5,116,861 5, 330, 775 5, 973, 790 5,749,306 6, 320, 194 7, 094, 260 7,018,811 8, 764, 362
9.015.190 9, 783, 914
11,420,008 13, 877, 806 14, 837, 775 12,315,135 12, 625, 527 14, 354, 680 15, 768, 387 10,780,913
253, 643, 717
332, 410, 347
$134, 083, 000
122, 989, 000 122, 989, 000
122, 989, 000
122, 989, 000
122. 989. 000
129.614.000
129. 014. 000
129. 014.000
129. 614. 000
129. 014. 000
116. 577. 000
115. 577. 000
1 , 628, 252, 000
90. 200. 000
90. 750. 000
97. 500. 000 103, 700, 000
113.947.200
119.092.800 108, 778, 800
100. 430. 800
103.023.100
101.990.000 95, 392, 000
101 , 729, 000
108.435.600
100.103.900
105. 774. 900
110.190.900
123.489.200
118. 848.700
130. 650. 000
146.051.500
157.494.800
181.175.600
198.763.600
202. 251. 600
236. 073. 700 286, 879, 700
306. 724. 100
254, 570, 300
260. 992. 900
296. 737. 600
325.961.500
310. 892. 200
Fine ounces.
29, 095, 428
35, 401,972
35,401,972
35, 401,972
35,401,972
35,401,972
43,051,583
43, 051 , 583
43, 051 , 583
43,051,583
43,051,583
03.317.014
63.317.014
547,997,231
03, 207, 187 55, 300, 781 62,201,719 07, 753, 125 62, 679, 910 73, 385, 451 74,383,495 74, 795, 273 79, 020, 872 86,472,091 89,175,023 81,567,801 91,009,959 93, 297, 290 96, 123, 586 108, 827, 606 120,213,011 126, 095, 062 137,170,919 153, 151 , 762 165, 472, 021 164,010,394 167, 500, 960 157,001,370 160,421,082 169, 055, 253 168, 337, 453 173, 591 , 304 173,011,283 162, 763, 483 167, 937, 894 168, 390, 238
5,243,281,200 3,794,705,924
0,872,133,200 j 4,342,703,155
Silver.
Commercial
value.
$39,337,000
46. 191.000
47.051.000
47. 016. 000
47. 016. 000
47. 368. 000
57. 640. 000
57. 173. 000
57. 080. 000
57. 043. 000
57. 173.000
83. 958. 000
83. 705. 000
729, 563, 000
82, 120, 800 70, 074,400
77, 578, 100 78, 322, 600 75, 278, 000
84. 540. 000
83. 532. 700
85. 640. 600
89. 925. 700
98. 232. 300
98. 984. 300
90. 785. 000
97,518,800 92, 793, 500
94.031.000
102. 185. 900
112,414,100
131.937.000
135, 500, 200
133.404.400
129. 119. 900
104. 493. 000 109, 545, 600
105, 859, 300
96, 252, 700
99. 742. 600
101, 002, 600
107. 626. 400
103, 805, 700
86. 264. 700 90, 686, 500
97. 666. 300
3, 147, 465, 300
Coining value.
$37,618,000
45, 772, 000
45, 772, 600
45, 772, 000
45, 772, 000
45. 772. 000
55. 603. 000 55, 003, 000
55. 603. 000
55. 663. 000
55. 663. 000
81.864.000
81,864,000
708, 521 , 000
81,800,000
71.500.000
80. 500. 000 87, 000, 000
81,010,700
94, 882, 200
96, 172, 600
90. 705. 000
102.108.400
111.802.300
115.297.000
105. 461.400
118. 445. 200
120, 626, 800
124.281.000
140. 706. 400 155, 427, 700
163. 032. 000
177. 352. 300
198.014.400
213. 944. 400
212, 829, 600
216, 566, 900
203. 069. 200 207, 413. 000 218, 570, 800
217. 648. 200
224.441.200 223,®, 300 210, ”,900
217,131,800
217,716,700
4, 906,286,400
3,877,028,300 , 5,614,807,400
40
PRECIOUS METALS IN THE UNITED STATES
WORLD'S COINAGE, 1902 , 1903, AN1) 190R
Iii the Appendix will be found a table, revised from the latest infor- mation received, exhibiting the coinages of the various countries of the world during the calendar years 1902, 1903, and 1904.
Coinage of Nations.
|
Calendar year. |
Gold. |
Silver. |
|
1902 |
$220, 405, 126 240, 49(i, 274 455, 427, 025 |
$193,715, 362 208,367,8)9 170, 270, 379 |
|
1902 |
||
|
1904 |
||
While the above figures represent, as accurately as the Bureau has been able to ascertain, the total value of the gold and silver coinage of the world during the calendar years 1902, 1903, and 1904, the}7 do not accurately represent the value of the coinage from new material alone, but include the value of the recoinage of foreign and domestic coins and that derived from old material, plate, jewelry, etc., melted and used in coinage. Many foreign governments in their reports to the Bureau failed to separate the values of the coinage derived from these various sources.
The following table exhibits, by calendar years, the tine ounces and value of the gold and silver coinage of the world since 1873:
Coinage of Gold and Silver by the Mints of the World for the Calendar
Years since 1873.
|
Calendar year. |
Gold, |
Silver. |
||
|
Fine ounces. |
Value. |
Fine ounces. |
Coining value. |
|
|
1873 . |
12, 462, 890 6, 568, 279 |
$257, 630, 802 135, 778, 387 195, 987, 428 213,119, 278 201, 616, 466 |
101,741,421 |
$131, 544, 464 102,931,232 |
|
1874 |
79, 610, 875 |
|||
|
9i 180, 892 10, 309, 645 9, 753, 196 |
92,747, 118 |
119,915; 467 126, 577, 1 64 |
||
|
1870 |
97; 899, 525 |
|||
|
1877 : |
88, 449, 796 |
1 14, 359, 332 161, 191.913 |
||
|
1878 |
9i 113; 202 4, 390, 167 7. 242, 951 |
188, 386, 611 |
124,671,870 |
|
|
1879 |
90,752,811 |
81, 124, 555 |
104, 888, 313 |
|
|
1880 |
149, 725, 081 147, 015, 275 |
65, 442, 074 |
84,611,974 |
|
|
issdb |
7,111,864 |
83, 5$9, 051 85, 685, 996 |
108, 010, 086 110, 785, 934 |
|
|
188^ |
4, 822, 851 5, 071,882 |
99,697,170 104,845,114 |
||
|
1883 |
S4, 541, 904 |
109, 306, 705 95, 832, 084 126, 764, 574 |
||
|
1884 |
4,810,001 4, 032, 273 |
99, 432, 795 |
74, 120. 127 |
|
|
1885 |
95, 757, 582 |
98,044,475 |
||
|
1880 |
4, 578, 310 |
94, 642, 070 |
96, 566, 844 |
124,854, 101 |
|
1887 |
6,046,510 6, 522, 346 |
124, 992, 465 |
126, 388, 502 |
163,411,397 |
|
1888 |
134,828,855 |
104,354,000 |
131. 922, 344 |
|
|
1889 W |
8, 170, 611 7,219,725 |
168. 901 . 519 |
107, 788, 256 |
139,362,595 |
|
1890 |
. 149,244,965 119,534,122 |
117, 789, 228 |
152,293,144 |
|
|
189i |
5, 782, 463 |
106, 962, 049 |
138. 294, 367 |
|
|
1892 |
8, 343, 387 |
172,473, 124 |
120, 282, 947 |
155,517,347 137. 952, 690 |
|
j 893 |
11,243,342 |
232,420,517 |
106,697,783 |
|
|
1894 |
11,025,680 |
227,921,032 |
87, 472, 523 |
113,095,788 |
|
1895 |
11,178,855 |
231,087,438 |
98, 128, 832 |
120, 873, 042 |
|
1890 |
9, 476, 639 |
195,899,517 |
123,394,239 |
159,540,027 |
|
1897 |
21, 174,850 |
437, 722, 992 395, 477, 905 |
129, 775, 082 |
167, 790, 006 1 49, 282, 936 |
|
i898 |
19, 131,244 |
115, 461,020 |
||
|
1899 |
22,548,101 |
466,110,614 |
128, 566, 1 67 |
166, 226. 964 |
|
1<)()0 |
17, 170, 053 |
354, 936, 497 |
143, 362, 948 |
185,858,156 |
|
1901 |
12,001,537 10,662,098 11,634,007 |
248, 093, 787 220, 405, 125 |
107, 439, 660 |
138, 911, 801 |
|
1902 |
149, 826, 725 |
193.715,362 |
||
|
1903 |
240,496,274 |
161,159,508 |
208, 367, 849 |
|
|
1904 |
22,031,285 |
455, 427, 085 |
« 1 15, 332, 335 |
170,270,379 |
|
Total |
321,711,196 |
6, 650, 360, 703 |
3,434,367,441 |
4,422, 760,227 |
« Actual weight consumed in coinage.
PRECIOUS METALS TN THE UNITED STATES.
41
THE COSTS OF GOLD MINING.
In view of current discussion upon the effect of increasing gold sup- plies upon commodity prices and wages, it is of interest to know whether the rise of prices and wages is increasing mining costs, and thus acting as an automatic check upon gold production.
This Bureau has been at some pains to collect data upon this point, and reaches the conclusion that although some items of mining costs have increased the tendency on the whole is still downward. Improve- ments in mechanical appliances and metallurgical methods have so far more than offset the influences making for higher costs. ‘There are many mines in operation now at a profit which could not have been worked at a profit ten years ago. There has been an important addi- tion to the gold and silver product by the recovery of these metals from lead and copper ores by modern processes. The most impor- tant gains seem to have come, however, through economies in man- agement, particularly by enlarging the scale of operations and by more complete extraction of the values from the ores treated. On the largest and best-managed properties it is claimed that the margin for further gains in these respects is very small. It is not likely, however, that an end has come to metallurgical progress, and doubtless many ore bodies of low grade and refractory character which have defied profitable treatment heretofore will be made to yield up their treasures in the future.
Assuming that ne.w supplies of gold come upon the markets so much faster than they can be absorbed in the natural expansion of business that a new relation is forced between gold and commodities, of course the costs of gold production would rise. The mine owner would have to give more of his product in exchange for the labor and supplies required to operate his property. The effect of rising costs upon the production of gold would depend upon the marginal profits of the industry, which vary with almost every mine. In every mining dis- trict there are mines producing at good profits, mines producing at small profits, mines barely paying expenses, and mines operated at a loss, but with the hope that the}^ will do better. Every increase in costs would submerge the latter more deepl}", add to the list of the unprofitable, and probably close some of them.
The most important gold field in the world is that of the Transvaal, and for that the data for working costs and profits is quite complete. The total output for 1904 was $78,130,728, produced by seventy-four companies. Their working profits, after paying the 10 per cent tax on profits to the government, are reported at $26,402,163. The amount actually divided in dividends was $19,114,784.70. Only thirty- five companies paid dividends, and these produced 70 per cent of the total 3‘ield. The cost of production per ton of rock handled was prac- tically the same as in 1898.
West Australia produced in 1903, $42,685,226 in gold, of which 66 per cent was by 24 reporting companies, and these companies paid in iividends $9,935,311, or 35 per cent of their product. In 1904 the cotal yield of all Australasia was $86,800,325, and the dividends by isted companies amounted to $19,978,644. These figures for dividends would be considerably increased if the net profits of privately operated properties could be added. The tendency of costs is reported as still lownward.
42
PRECIOUS METALS IN THE UNITED STATES.
The gold Held of India is one of small area, ducers. Its yield in 190-1 was S12.500.000. Four
with a few large pro- Its yield in 190-1 was 112,500,000. Four companies, pro- ducing about $10,000,000 of this, paid dividends amounting to about $5,000,000. The tendency of costs is reported to be downward.
In the United States the conditions vary widely with districts and mines, and it is difficult to give any figures for costs and profits of gen- eral significance. The Homestake mine in the Black Hills has pro- duced $80,000,000 and paid $20,000,000 in dividends. The Treadwell mine, a great producer of extremely low-grade ores, has realized about 40 per cent of its product in profits. The Cripple Creek district has-* been estimated by the Engineering and Mining Journal and the Colo- rado Springs Mining Stock Association to have produced $139,000,001
r I -tn/Wr riAi • T ^ ^ Clnf-r
to flanuary 1, 1905. These figures include the estimate of the State
bureau of mines since they became available in 1897. The Mining. Investor gives the amount paid in publicly announced dividends by incorporated companies as approximately $35,000,000, and sa}Ts this would be materially increased by the profits of individual operators and leasers. To this time the tendency of costs in the United States has been downward.
In all fields an important percentage of the output has come fron i properties that have not yielded a profit, and large expenditures have 1 been made in prospecting which have never yielded any returns. .A striking demonstration of this willingness to spend money in hunting- for the precious metals is shown by the history of the Comstock Lode. . Of 28 important companies which operated mines on this lode, fron i 1859 to 1902, 5 were successful, paying dividends aggregating $117, - 772,100, with assessments aggregating $10,815,150. The stockholders of the other 23 paid $69,285,879 in assessments, and received $15,501,791 in dividends. A great many other companies and a great many indi vidual prospectors made expenditures in that vicinity of which no record was made. The total output in gold and silver of the Comstocl ; to January 1, 1902, is estimated to have been $371,248,288, and thte total dividends, $133,273,890.
Such disregard of losses is doubtless due to the fact that so man 3 people inexperienced in mining are willing’ to k‘try their luck In buying shares which represent ventures in a district where rich deposit; - have been found. In such a locality a mine that will partly pay ex penses will pass through many reorganizations before it is finally abandoned. Nevertheless, it must be assumed that a higher scale o t working costs will bring such experiments to an earlier conclusion reduce profits, and make mining ventures generally less attractive, ant thus diminish the output.
In this report are given two papers upon this subject which wil repay reading. One is by Hon. Frank A. Leach, superintendent o the United States mint at San Francisco, who has made an extendet and careful inquiry into mining conditions in California. He has gon< into the question of mining costs in detail. The other is by Prof Franklin R. Carpenter, a mining engineer of scholarly attainments formerly president of the South Dakota State school of mines, nov\ following his profession at Denver. Professor Carpenter reviews the progress of metallurgy in the recovery of the precious metals fron quartz and makes some startling predictions as to the development o
dredge mining and its influence upon quartz mining and upon monotar
and commercial conditions.
PRECIOUS METALS TN THE UNITED STATES.
43
Another contribution of special interest at this time and in this con- nection is that by Mr. Charles G. Yale, of San Francisco, upon dredge mining in California. It will be seen that Mr. Yale and Mr. Leach, who have both given special attention to this subject in the State where dredge mining has made its greatest development, do not have the same opinion of its possibilities as Professor Carpenter. They agree that the profits under favorable conditions are ample to allow the dredges to run upon a scale of general costs which would close most of the quartz mines, but they find it to be the consensus of opinion in California that only a comparatively small area of territory is of suitable formation for dredge operations.
MINING CONDITIONS IN CALIFORNIA.
Mint of the United States at San Francisco,
Superintendent’s Office,
September S\ 1905.
Sir: In June last you called attention to the interest in financial circles as to the probable influence upon the market prices of com- modities and securities of the present great output of gold, and requested that I should aid you in information on the following queries:
Q. What effect will a rising scale of. cost have upon the gold-mining industry itself?
A. Any material increase of cost would have the immediate effect of curtailing the output of gold.
Q. Is there observable any noticeable increase in mining costs since 1898?
A. Taken as a whole, it is my opinion that the cost of mining has not been mate- rially increased since the date mentioned. There has been an increase in some of the divisions of the expenses of mining and a decrease in others. The cost of sup- plies is greater now than in 1898 and it is so with labor in some localities, but no change in other places.
The cost of timbering remains, generally speaking, about the same; the cost of labor has been increased in some localities; the cost of power has been considerably reduced in the principal mining districts by the introduction of electricity and oil for fuel. The pushing of railroads into the mining districts, the construction of better roads, improvements in transportation, has had the effect of decreasing the cost of supplies and timber, and the improvements in plants in some of our principal mines has decreased the cost of operation so that where a greater amount may now be paid for labor and first cost for supplies, the amount paid out per ton for mining and mill- ing is less than in 1898.
Q. Has this increase in costs as yet affected development work?
A. I assume from this question that you refer to prospecting or search for and the opening of new mines. Most decidedly not. There seems to be as great an amount of prospecting work going on at this time as ever before. In fact, if it were possi- ble to obtain the amount of money expended in this direction, I am of the opinion that it would represent considerably more than the protits yielded from the estab- lished productive mines.
Q. How far would an increase have to go before it began to cut off production by making some of the mines unprofitable?
A. Any increase in cost would ioegin immediately to cut off production, and the process of reduction would be in ratio to the increase in cost. To illustrate: There is a mine in one of our principal counties which has for the past year or more been working about 4,000 tons of ore per month from which it is barely meeting the cost of the mining and milling, and I am informed by the managers that any increase in the cost of operation would immediately cause them to shut down the mine.
In conversation with the owner of another large property in the adjoining county, that has been in operation for several years and yielding but slight profit, I was informed that if there should be an increase in any of the expenses of mining that would raise the cost 10 cents per ton, that they would immediately close up the works and discharge the miners. There are many mines, however, whose produc- tions would not be affected by a very large increase in the cost. When a mine man-
44
PRECIOUS METALS IN THE UNITED STATES.
agement is brought face to face with the increase in cost of some division of its oper- ation, the ingenuity of the management shows itself in an effort to meet the increase by some improvement in methods of operation of the plant. The same applies in properties where a reduction in the value of the ores of the mine has materially shrunk and the working of the same at old expensive methods would be prohibitive of prolit, but by the introduction of labor-saving devices, cheaper power and im- proved methods of operation, the mine is made to pay. Whether the mine owners have reached the limit of a reduction in cost by improved methods is a disputed question among the best of our mining people.
The bulk of the gold produced in California to-day from quartz mines is from ore bodies that twenty-five or thirty years ago were generally considered worthless. Perhaps the following from the lips of one of our best mine owners and operators will give a concise reply to last query. He says: “One of my properties you refer to produced a tonnage last year of over 150,000 tons, which yielded but little over oper- ating cost, although it is one of the most conqdetely equipped mines in the State, and in its operations for the last nine or ten years no profits have been realized, and it is questionable now whether the property will return the amount invested for development and equipment, unless the value of ore should improve. But a small reduction in ore values, or a small increase in the cost of operation, would decide immediately a discontinuance of operations.”
Q. If the cost of production increased 25 per cent, what proportion of the Cali- fornia product would become unprofitable?
A. It would be impossible to make even an approximate answer to this question, but the consensus of opinion seems to be that it would cause the shutting down of a number of mines, and if the cost should be increased 40 per cent we might reasonably look for a very large curtailment of the output of gold in California. I would not be surprised if it would cut off one-third or more of the output.
Q. Is it possible to make a reasonably approximate estimate of the percentage of profit on the gold product of California under present conditions?
A. If this question should include the outlay made for prospecting and developing of new properties it would be impossible to answer the query, but even eliminating the cost for developing new properties it would be very difficult to arrive at a satis- factory conclusion as to the amount of profits returned for the investment. We have mines operating on a large scale in all sorts of conditions as to profits. These include properties which have been dividend payers but now operated at a loss, but with the hope of yet developing profitable ore bodies. Other mines barely meet expenses of operation, and others pay dividends all the way up the scale to where the owners have had returned to them their original investment in a very few months of operation.
Q. What are the approximate profits of dredging, and how will an increase in cost affect this branch of the mining industry?
A. This branch of the mining enterprise is hardly out of its swaddling clothes so far as this State is concerned. From what I can learn from conversation with those disposed to impart information, the yearly profits on average ground must be some- where about 50 per cent, out of which will have to be paid the cost for the land and the first cost for the plant. It would take a very great increase in cost of supplies, labor, and power to curtail the output of the dredges. Contrary, perhaps, to the general opinion, this branch of mining is limited to a comparatively small amount of territory. I am informed by what should be good authority that the territory available for dredging in California does not exceed 25,000 acres — that is, available for the present method of dredging. The present dredger can not be used effectively in all kinds of gravel banks; it is only where the bed rock is favorable and freedom from large bowlders exists. It is quite possible that the output of the dredging industry in California will reach six or seven million dollars per annum.
What mine owners say.
Mr. Alex. Chalmers, superintendent and a director of the Lightner mine, which is classed among the new mines, furnished me with reports showing receipts and dis- bursements for the past two calendar years: Last year produced bullion to the value of $254,221.90, making (he total production of the mine since it was opened almost one and a half million dollars. In 1903 65,150 tons of ore were mined and milled, yielding an average of $4.36 per ton, at a cost for —
Per ton.
Mining $1.9091
Milling 2740
Chlorination 2047
General expenses 2556
Total 2. 6434
PRECIOUS METALS IN THE UNITED STATES.
45
In 1904 the mine produced 09,040 tons of ore yielding $0.74 per ton. The falling off in value was partly due to a large amount of waste in cleaning out a couple of levels. The cost for the year was divided as follows:
Per ton.
Mining $1.7000
Milling 2638
Chlorination 2124
General expenses - 3085
Repair, development, etc 2681
Total 2. 7528
The company paid out $81,804 and $51,127.50 in dividends in the last two years.
At this mine the introduction of fuel oil and electricity since the opening of the mine have been important factors in reducing the cost of operations. There has been no increase in cost of labor since 1898, and the cost of timber is practically the same, and the company has a three-year contract for logs at old rates with a privi- lege of extension.
With the depth of the mine there has been some impoverishment in the value of the ores, but Mr. Chalmers says they have fully five years’ supply of ore in sight, and developments indicate they have reached the limitation of impoverishment.
The Gwin mine is one of the dividend properties of the State with the reputation of being operated with the best mining skill. It is one of the oldest mines, and after producing several million dollars was closed down in 1882, as the ores had ceased to be profitable under the existing methods and cost of mining. The property lay idle - for twelve years when it was purchased by the present owners, who put in an entire new plant, and with the introduction of modern methods and skillful management soon made it a dividend mine. President F. F. Thomas and Secretary J. J. Craw- ford say the cost of mining in the way of labor and supplies has increased since 1898.
In their opinion a further increase of 25 per cent would greatly curtail the produc- tion of bullion in the State, and with an increase of 40 per cent a majority of the large plants working low-grade ores would close, and that only high-grade ores could be worked profitably in plants favorably situated.
The following are the actual returns from the ore and cost per ton the last five years:
|
Year ending April 1 — |
Returns from ore. |
Actual cost. |
|
1901 |
84. 3835 4. 2790 |
$2. 7084 |
|
1902 |
2. 5212 |
|
|
1903 |
3. 8861 |
2. 1089 2. 5793 2. 7433 |
|
3901 |
3. 4541 |
|
|
1905 |
3. 0069 |
|
The above costs do not include the “amounts written off” on those accounts marked with a star for deterioration. The less ore crushed per month, the greater is the cost per ton when the “written-off” amounts are included, they being the same whether 100 tons or 100,000 tons are worked.
The Standard mine of Mono County has been in operation for about twenty-five years, and belongs to the dividend class. It has disbursed to its stockholders the sum of $4,160,334 in dividends. During its earlier history the mine produced some wonderfully rich ores. Mr. R. Gilman Biown, vice-president and manager, says that he considers that about 15 per cent of the total products of the Standard should be considered as profits, but, however, this percentage is variable, depending on the grade of ore being extracted from the mine. Mr. Brown says in reply to my queries:
First. While costs of mining in general have undoubtedly decreased in our gold mines since 1898, it is decidedly open to question whether they have decreased per dollar of production. As a rule, I am of the opinion that the grade of ore has fallen off at a greater rate than has the cost of production, so that actually to-day the cost of producing an ounce of gold is greater than it was in 1898.
Second. While there is undoubtedly an increase in the cost of producing a dollar’s worth of bullion, this is due to the lower grade of ore. There is a decrease in cost per ton which, however, does not fully offset the decreased value of the product. There has, however, been an increase in the extraction, due to better metallurgical methods, primarily.
Third. It appears that, as yet, the limit of change, due to better metallurgical methods and better mining methods, has not been reached, but it seems hardly prob-
46
rRECIOUS METALS IN TEIE UNITED STATES.
able that future steps will be other than short ones. To explain more definitely what 1 mean in reference to the Standard Company, our former saving in 1898, say, from the stamp mill and the cyandine plant, represented a total of about 88 per cent; to-day it is about 95 per cent. It is clear that this leaves but a small margin for further improvements in extraction.
Fourth. I am under the impression that any increase in costs, due to enhanced labor and supplies, would approximately lessen the production of gold by about the same percentage.
This would be true probably up to 10 or 15 per cent increase in costs.
Fifth. When we reach a 25 per cent increase of costs the rate of the falling off of gold production would increase faster than the increase of costs. This is virtually the same as saying that few of the ordinary run of gold mines make a profit of 25 per cent of their output.
Sixth. A 40 per cent increase would cut down the production at a still faster ratio.
Mr. John Rosenfeld, a large mine owner and operator on this coast, says that it is his opinion “that the cost of quartz mining has increased in this State by reason of higher wages to labor, increase of cost of timber and powder, the principal supplies in mining,” and that another contributing cause of greater expense is the increase of depth of the older mines. He thinks the limit of increase of cost has not been reached, “for it is only a question of time when the placer and shallow deposits will be exhausted, and with the increase of depth and nonrefractory ores to treat the cost must increase. ’ ’
Mr. Rosenfeld further says: “An increase of 25 per cent in cost, I believe, would begin to cause a perceptible reduction in production. I have knowledge of many places where 10 per cent increase of costs would close the mines. I believe an increase of 25 per cent in costs would shut down a number of quartz mines that are working on a very narrow margin of profits, particularly the large low-grade mines. An increase of 40 per cent would, in my opinion, close down about 40 per cent of the mines now working.
“As to the increase in wages and supplies since 1898: Wages have advanced an average of 10 per cent. Powder has advanced 10 per cent, and timber 14 per cent, in some places. I believe wages will stay about where they are. Not much, if any, reduction can be expected in the price of powder unless, or until, some new explo- sive is invented. We have followed up reports of new articles in this line the past ten years, and must say that at this date we see no relief in sight. Timber must be expected to keep increasing in price, and at any rate no reduction can be looked for as cutting down of the forests continues. At first that is cut that is nearest the point of consumption, and as the line of cutting recedes from the line of consumption, which latter does not follow it but remains fixed, it is but natural that the cost of timber at point of consumption should increase.
“ Since 1898 there have been no improvements of consequence in machinery or appliances that would decrease the cost of mining. There have been some improve- ments in reduction methods, but those apply wholly to refractory ores, such as con- tain copper, lead, zinc, etc. Except the introduction of the cyanide process, there has been little or no improvement made in reduction methods applicable to gold ores for upward of twenty years, and I do not think wTe can look for much in this line.
“ I am not debating the question as of the present or within a year or two, as the changes will be effected from time to time by new large discoveries of gold at shal- low depths that will tend for a few years to reduce the average costs, but in the course of time this must come to an end and the main source of gold must come from vein mining at yearly increasing depth, and that means the cost of production must increase. ’ ’
Mr. Mark B. Kerr, a consulting mining engineer of prominence on this coast, says in reply to the queries made the subject of this article:
“The cost of mining or producing gold bullion has increased for the following reasons:
“ First. As to hydraulic mining: The debris act prevents the miner from working, except by building dams to restrain the debris or by driving long crosscuts to strike the pay gravel. After striking the gravel, drifts must be run and the gravel brought out. By the old method of hydraulic mining the cost of these dams, crosscuts, and drifts would be eliminated.
“In California quartz mines, there is, generally, especially on the Mother Lode, a point or zone of impoverishment. In Tuolumne and Mariposa counties this zone appears to be between the 800 and the 1,600 foot levels. In Amador and Calaveras it is deeper, as both the Kennedy and Gwin mines have struck milling ore below the 2, 000- foot level. In El Dorada the mines are still in the zone of impoverishment, and none of them have reached depth enough to yet prove at what point the values will come in again.
47
PRECIOUS METALS TN THE
UNITED STATES.
t: The expense of raining at so great a depth would necessarily increase the costs per on of ore hoisted. The increase in tonnage by a large mill would more than balance his, however, were it not that recently both the price of labor and cost of supplies lave advanced, rendering very careful, efficient, and systematic management neees- ary to create dividends. An increase of 40 per cent in costs would make quartz uining in California almost prohibitive with the present low-grade values of the ore >odies now being worked.”
Respectfully, yours,
Hon. Geo. E. Roberts,
Director of the Mint ,
Washington , J). C.
Frank A. Leach,
S uperintendent.
THE HISTORY AND FUTURE PRODUCTION OF GOLD.
>y Franklin R. Carpenter, Ph. I)., F. G. S. A., mining and metallurgical engineer.
The future of gold production with regard to South Dakota and the iocky Mountain region generally can not be considered alone. It nust be taken in connection with the rising Hood of gold and its effect ipon the price of gold itself; therefore, of wages and the cost of living, n fact the future of this section can not be separated from that of the vorld at laro-e.
The gold of antiquity all came from placers. The great additions o the world’s stock in modern times also were derived mainly from his source. This was supplemented by the working of quartz mines >y the free-milling or stamp mill process, but in general only the out- ■rops or backs of gold veins are free milling. When the veins are vorked beyond atmospheric influences they rapidly become refractory, •ailing for supplementary processes, such as panamalgamation upon lie Comstock, or water concentration and subsequent chemical treat- nent of the concentrates, such as chlorination; or fire treatment, such is smelting with lead, copper, or iron pvrite as a medium of collection.
Such were the methods of gold-lode mining at the time of theinven- ion and application of the cyanide process which is typically applied n the Black Hills:
First. To the treatment of the sands of the Homestake mine, whereby vhat formerly would have been called “traces” of gold are saved and iddeci to the output. The cost of treating the Homestake sands by ;yanide is about 25 cents per ton of sand, so that 0.1 ounce of gold, or nuch less gives a very handsome return.
Second. To the treatment of certain auriferous sandstones which are iot free- milling and which formerly were treated by chlorination or >y smelting, as at the Wasp No. 2 and Horseshoe mines, where ores Tinning $2.50, or only 0.125 ounce per ton are worked at a large irofft.
The cyanide process has immensely increased the world’s supply of 'old by cheapening its production.
OTHER WET PROCESSES.
Certain ores that do not yield their gold either by free-milling or jyanide are still treated by chlorination. C^yanide is essentially (but iot always) a u raw ” process — that is, the ores need no preliminary 'oasting — but in chlorination they are usually first roasted to free the 'old from combination and then treated with chlorine, and the result- ng chloride of gold leached or washed out of the sands or pulp.
48
PRECIOUS METALS IN THE UNITED STATES.
Next to cyanide it is the cheapest of the wet processes, and is yet largely employed, especially at Cripple Creek, where certain ores do not yield readily to cyanide and are not rich enough to pay smelting- charges. Smelting, while a safer process and applicable to all ores of sufficiently high grade, is nevertheless a costly process. Chlorination,, therefore, has its applications, but is not, save at Cripple Creek, of its* former importance.
Next to the increase due to the free milling and cyanide processes' the world’s stock of gold was and is receiving great additions from smelting, which may be considered under two heads:
First. Lead smelting, the process of the American Smelting and Refining Company.
Second. Copper matte smelting, the process of the Amalgamated Company.
LEAD SMELTING.
Formerly neither of these processes added much gold to the world’s' stock. In the smelting of lead ores it was known from the earliest times, . before the dawn of history even, that lead carried silver and that this- silver could be recovered by burning the lead.
The ancient process of cupellation held its own until Pattison dis- covered that lead might be concentrated from two or three ounces pen- ton to a valuable product, which would pay to cupel; and here wee received an unexpected addition to our stock of precious metals. The Pattison process held the field until after the discovery of our owm great silver-lead mines in America.
Lead smelting for precious metals was essentially a silver process, but even the smallest traces of gold were saved by it, and in time itt developed into a great gold process. This was owing not only to the great improvement in the lead-smelting method itself, but to the dis- covery of the Parkes process of desilverization of lead bullion, ini which a small amount of zinc is added to the kettles of refined lead,, stirred in and allowed to rise to the surface. It not only collects the1 silver, but has a far greater affinity for gold, so that the process cam almost be divided into a gold separation and a silver separation — the first “crusts” or skimmings that rise carrying the whole (almost) ot the gold, the second and third “crusts” being mainly silver bearing. Refractory gold ores or, for that matter, free-milling if rich enough,, are smelted with lead ores and the resulting lead bullion refined in the above manner, and not only is the gold thus saved, but many other- metals, the lead, copper, silver, and gold, all helping to bear a part oi: the cost of the process.
COPPER-MATTE PROCESS.
Copper sulphide may be employed as a collector of gold and silver, much as metallic lead is, and almost all copper ores carry both gold: silver in varying quantities. In smelting such copper ores to matte these small quantities of precious metals are collected in the matte, anc 1 their separation from it, or the subsequently resulting copper, hae given rise to several beautiful metallurgical processes, one of them at least, liquation, being so ancient that we do not know where it was- invented. Other methods, such as the Augustine and Ziervogel pro
PRECIOUS METALS IN THE UNITED STATES.
49
cesses, have been invented. The latter process still survives in two places at least, at Argo, near Denver, and at Mansfield, where it orig- inated. These were silver processes, but gold was got from the cop- per by “ secret ” processes, one still being employed at Argo. All these methods were rendered practically useless so far as copper smelting was concerned by the development of copper refining by the electrolytic methods, whereby even the traces of gold and silver occur- ring in the ores were saved. This copper matte smelting has received its greatest development at Butte, but Arizona and Mexico are rapidly becoming great producers, and even the small traces of silver produced by some of the Lake Superior native copper mines are saved wherever electrolytic copper refining is employed, as, for instance, by the Calu- met and Heela at their Buffalo refinery. Except these native copper mines, however, almost all other copper mines must make matte, hence impure copper, hence electrolytic refining, hence still further additions to the world’s stock of precious metals.
LODE MINING CONSIDERED AS A SOURCE OF SUPPLY.
All of these processes, free milling, chlorination, and smelting, have had to do with lode mining and not placers. Before the ore can be treated it must be mined. This means an expensive hoisting plant, cross-cut tunnels, or other means of access to the deposit. The mining calls for tools, dynamite, and above all, timber, fuel, and miners.
The ore treatment requires metallurgical works and technical skill, and from the day the mine is opened we may expect a progressive impoverishment of the vein with increased depth and a progressive increase in the costs of mining, owing to increasing cost of hoisting and pumping and other increased expenses incident to deep mining. The ores are not onty less valuable but are less docile in treatment as the mine deepens, and each day’s work renders the mine itself less valuable by what is taken out of it; and as the ubiquitous prospector has practically been over every square mile of the ground, we can look for no more Cripple Creeks, Homestakes, or Comstocks to take the place of our present ones. The country is not only thoroughly prospected, but the rich surface accumulations are largely exhausted. The increase of gold from this source could never reach the propor- tions of a “flood,” even (perhaps) with the surprises that Asia and Africa may contain.
Probably all of it could have been absorbed without disturbance of values. The very means of producing it from the veins gives employ- ment to many men, not only directly but indirectly, in their call for railroads, mills, and mining machinery and mining supplies. The amount of gold produced was limited by these very expenses, and, as a whole, it probably has cost $20 per ounce.
Cripple Creek is the greatest single producer, but even here the veins will not justify expensive management, and the greatest pro- ducers have been forced to let their mines to individual workers, the “leasers,” who only seem able to work them profitably. The end of Cripple Creek can be predicted. The rich surface ores were long ago exhausted. The backs of the veins that could be located by walking- over the ground have nearly all been found. The geologists are agreed that there is a progressive impoverishment with depth, and new ore
11442—05 4
50
PRECIOUS METALS IN THE UNITED STATES.
bodies must be sought, not from surface examination but by driving or boring through solid rock. The amount of productive ground above the present drainage tunnel will add 770 feet additional depth to this, so that no “flood of gold” can come from here. The history of the Comstock in time will bo repeated, and from the causes set forth the new drainage tunnel will mark the limits of profitable extraction at Cripple Creek, even if gold does not decline in purchasing power.
The next greatest gold deposit in America is undoubtedly the Home- stake mine in South Dakota. Here 4,000 tonsper day of low-grade gold ore are mined, stamped, and amalgamated for free gold and the “sands” cyanided for the gold that does not amalgamate. The deposit is large, exceeding 450 feet in width at the widest place and several times this distance in length. This is the main ore body.
It is admitted that there are others, but they are neither so large nor so rich and perhaps not so free milling in character. It is probable from the water supply and other limiting conditions that the Home- stake has nearly reached its maximum production, but for apparent reasons, such as increasing depth, it is probable that it will never pro- duce gold for less per ounce than it now does. The same may be said of the remaining Black Hills gold mines. It is admitted in my report that there are other deposits, some underlying the “flat” deposits, that are as yet unworked, but after conceding all that the future may do the “flood” can not be much increased from this source.
The amount of gold to be had from smelters also probably is very near its limit. That from copper is limited largely by the price of copper itself. Should the demand for copper fall, the gold from this source will fall also. That from the lead smelters in a manner, but not to the same extent, is limited by the demand for lead, but both are limited by the progressive impoverishment of the mines with depth, the increased cost of mining with depth, and the limit of territory in which we may expect new discoveries.
What applies to mining in America applies in a similar way to other countries.
Note. — I am aware that these statements may appear not to agree with certain facts; for instance, that Cripple Creek for the past half year paid 30 per cent of its gross output in dividends. It is explained by the fact that some mines paid very well, but others did not pay at ail, or even produce anything, for that matter. In the case of Cripple Creek we can conclude that the cost of production was the difference between the gross output and the dividends paid, because very many lessees made but little and received little or nothing for wages, but whether they made wsfges or not the royalty was paid.
In the case of the Homestake, where every cost is paid by the com- pany, the dividends paid is a measure of the profits made, and the difference is the cost of running the mine. A little thought will show that this can not be the case at Cripple Creek. The early liquidation of the companies operating on the Band is predicted by several recent South African writers.
In predicting the immense increase of gold by dredging, I do not overlook the fact that more than 80 per cent of the United States production is at present from quartz.
The companies mining the surface claims on the Rand are in sight of liquidation. The deeper parts of the mines will continue to be worked, but no greater increase is in sight, and lessening profit may
51
PRECIOUS METALS IN THE UNITED
STATES.
>e confidently expected. What surprises the interior of Africa may told we do not know, but if the gold supply of the world were to come rom lodes, in mv opinion we need fear no very sudden decline in its alue, but there has been invented and introduced a new method of nining placer ground which threatens to flood the world with gold. I efer to the gold dredge.
1 believe there would have been no gold beyond the needs of the vorld were it not for this new method of working old deposits. If ve correctly forecast the future, it will lessen the value of every ^old-producing mine in this section, and will inevitably close many if lot all of them. Some of them have already reached the point where, t costs more than $20 per ounce to produce gold. And it is possible o operate them in two ways only:
First. The extra cost must lie made good by outsiders who pay for he “dead work,” equipment, etc., and lose it.
Second. Because of the “leaser,” who “must live” and will work i pon a lease for less than average wages, probably hoping that in the ottery of mining he may win a prize. Some, indeed, do so, but the najority live only in hopes and upon a sum which they dare not or vould not accept for day’s pay.
One by one, if left to natural causes, all these mines would fall >elow the promoter’s power to float or the leaser’s power to work. ?hus, if it were not for the new invention now to be considered we rould have no Hood of gold, but this very invention will shorten the ife of local mines by lessening the purchasing power of gold.
PLACERS.
I have spoken of the concentration and enrichment of the outcrop >f veins caused by surface agencies. These agencies have eroded housands of feet, if not miles, from the outcrops of some veins, and he amount of enrichment which the remaining parts of the veins have eceived from this erosion is but a small part of that which has gone o form gold placers. This erosion and concentration of the gold has ;one on from the earliest geological ages, and from all gold deposits, ixge and small. Oceans, rivers, and glaciers have been but huge lining engines, eroding, concentrating, and placer-building machines, o that the amount of gold in the placers must be more than man can ver hope to win from veins. It was from this easily accessible source hat he obtained his first gold. His most remote legends are concerned nth this acquisition. The first land commended in the Bible is com- lended for its gold (“the land of Havilah, where there is gold, and he gold of that land is good.” Genesis ii, 11). “The voyage of the irgonauts” was but a Grecian rush to some new gold field; the ; Golden Fleece” but the woolly sheep’s hide still used in Mexico to ollect gold. The “Rhine Gold” legends relate to the same subject, rold, therefore, was the object of man’s first search, the means of his ivilization, and the inspiration of his grandest poetry and legends.
This search has never really ended. If not secured by one people rom mines, it was got from another by conquest. As the tide of the old supply ebbed and flowed, so man’s prosperity ebbed and flowed.
At present the tide is coming in. Within limits we can predict its rrival and its height. It is, indeed, a flood tide.
52
PRECIOUS METALS IN THE UNITED STATES.
THE GOLD DREDGE.
[See Alex. Delmar, in the July Engineering Magazine.]
This high tide in the output of gold is coming through the gol ■ dredge— “the gold ship” it has not inappropriately been called. JI is the engine which is to render available the gold which has been Ion stored in placers. They are boundless, not in Colorado, indeed, nc in the Black Hills, but in the Pacific coast States, in Alaska, Centn i and South America, in Asia, and the Southern Hemisphere.
Many of these placers were never worked by reason of lying belou the water level, where the bed rock could not be bared or where suffii cient fall could not be had for the tailings. Others have not bee i worked because of adverse legislation, as in California, where the d( 1 filement of the streams is not permitted. Others, because the amourn produced by hand labor was not sufficient to pay day wages. Eve those which have “been worked out” by primitive means nary b reworked at a profit.
The gold dredge makes money where a cooly would starve. ). requires no pumping to free the bed rock for miners to work. It it > quires no fall to carry awa}^ the tailings. It defiles no streams. ]' requires little water, using that in which it floats over and over.
It requires no land for dumping, using that which it worked for tin i purpose. It requires but few men to operate it. It is not costl}T tti build compared with mills and smelters. It “mines,” “treats,” an « turns out that which the Government stamps as money, without regar to quantity, without distinction, giving to every ounce a face value o> $20.67, receivable for all debts, both public and private, without 1 i 11 ; itation or exception. “Ore” carrying not more than 5 cents per cubii yard or, say, 2£ cents per ton, is treated at a profit of 33^- per centt while placers carrying 10, 20, and even 50 cents per yard are common those of average value being limitless. If these dredges continue t < work, Alex. Delmar says that the world will “not only be saturate* with gold, but it will be nauseated with it.”
For the past three years the world’s output of gold in dollars haa been as follows:
1901 $260, 992, 90 X
1902 296, 048, 804
1903 325,527,2001
This output, great as it is, will at the present rate of increase soo 1 be doubled, mainly by means of the dredge. It will produce gold ai the following cost per troy ounce:
Placer ground yielding 5 cents per cubic yard produces gold at $16.5 •' per ounce.
Placer ground yielding 10 cents per cubic yard produces gold at $8.3 per ounce.
Placer ground yielding 20 cents per cubic yard produces gold at $1. 1 ■ per ounce.
Placer ground yielding 40 cents per cubic yard produces gold at $2.0 * per ounce.
The average cost of producing gold by means of the dredge is prob ably about $10 per troy ounce. It. is not likely to ever fall below this> hence this is the limit to which we must figure.
precious metals in the united states.
53
In the Engineering' Magazine for -July, Alex. Delnmr says:
A brief statement of what the principal auriferous have produced from hand labor /ill perhaps prepare us better to appreciate what they are capable of yielding to this mphibious invention:
During the ninety years from 1710 to 1800 the placers of Brazil produced by slave ibor $750,000,000 in gold.
During the thirty years from 1848 to 1878 the placers of California produced, lostly by hand labor, $880,000,000 in gold.
During the twenty-seven years, 1851 to 1878, the placers of Australia produced, vostly by hand labor, $900,000,000 in gold.
During the seventy-five years from 1830 to 1904, inclusive, Russia produced, largely rom the placers of Siberia, $1,300,000,000 in gold, the present production being bout $25,000,000 a year.
During the past ten years, 1895 to 1904, the placers of Alaska produced, chiefly by iand labor, $140,000,000 in gold.
All these placers or auriferous can be profitably worked over by the gold dredge ml more gold taken from them than they have already yielded. (The italics are mine.)
Judging from present experience, the whole might be reworked vithin twenty years if the dredges could be had; but probably this vill not be done while so much virgin ground remains untouched, jode mining for gold only probably will not increase, for reasons b eady shown, but where it is produced in connection with copper and ead it will at least not fall off, so that after a careful survey of the ield the estimate of a doubled output within the next ten years seems lot out of the way, and an increase to our stock of gold within twenty rears of $15,000,000,000 need not surprise us.
What will be the effect of this flood of gold?
It has been pointed out many times that Europe awoke from the larkness and poverty of the middle ages to the wealth and prosperity >f modern times by means of the metal riches brought to her by the iiscovery of America. So, also, it is evident that our present high vave of prosperity is coincident with the present flood of gold and loubtless, indirectly at least, is owing to it. It is fair, therefore, to onsider what will be the effect of a greatly increased arid continued >utput of gold.
I think the following may be safely admitted:
First. The rate of gold production has doubled in ten years, and irobably will again double in ten years more.
Second. It has declined in value— i. e., in purchasing power per mit — and will continue to decline.
Third. Notwithstanding this, we are in the midst of unexampled )i*osperity by reason of this very increase in gold production.
If these points are well taken, there is a seeming paradox, but we nay rest assured that in reality there is none, and that our prosperity s governed by some sound underlying law. It is necessary to dis- over this law that we may predict the effect of the coming flood upon >ur future prosperity.
We must then consider the following:
First. If gold has declined in value, why has its decline brought n'osperity ?
Second. If it will continue to decline with increased production, is ts increased production desirable?
The answer to these questions seems to be that while there has been l decline in value per unit of gold it has not been proportioned to the ^ain in “units,” so that our aggregate wealth in gold has greatly in- reased, and so long as the one does not overtake the other increased
54
PRECIOUS METALS IN THE UNITED STATES.
production is desirable. It is by this that I would forecast the effects of the coming flood of gold. For instance, should gold decline to even $10 per ounce, and at the same time the world’s stock of gold be increased, sav, ten times, it would still in the aggregate have live times the purchasing power of the present stocks, at the present value; hence, such increase would be desirable.
The danger would come only when the decline per unit was not offset by the increase in the number of units. Will that time ever arrive?
The value of gold like that of other things is determined by its cost of production and not by the stamp of the mint. In the course of time, from its having* been used as a measure of value, everything has been adjusted to it. The measure of its future value will be just in proportion to its cost, but so complex are the laws of commerce that trade will not at once adjust itself to a new valuation, though in the end it must inevitably do so.
There is in the world a certain stock of gold which we may figure as having cost its present value to produce. If this could be doubled without expense, 1 imagine its value would be only one-half as much. If it could be doubled by adding as much more gold at a cost of $15 per ounce, the resulting average should be about $17.87 per ounce, but the sum of the values of the two lots is far greater at the reduced price than the first lot was alone.
I think that this is the real reason why gold may decline in value, yet its production really brings prosperity, and that we may safely leave its production to regulate itself so far as the world at large is : concerned; but the effect of this decline upon our individual gold miner, which you have asked me to consider, is a different question, and we may illustrate it as follows:
At the Homestake mines, let us suppose that gold is now produced at $16 per ounce.
At Cripple Creek, let us suppose it now costs $19 per ounce, and at both places it is worth $20.67. So long as this state of affairs contin- ' ues gold will be profitably mined at both places. But at both places gold mining will inevitably cease, as already pointed out, by reason of increased costs of hoisting, working, and the decrease in ore value.
If we now add to this the decrease owing to the great increase in gold derived from the output of placers, the death of these mines must be hastened.
It seems, therefore, that the increased gold production at cheaper rates elsewhere must react unfavorably upon the production of gold in the Rocky Mountain region.
DREDGING FOR GOLD IN CALIFORNIA.
Charles G. Yale.
There are many more gold dredgers in operation in California than there are in all the other States of the Union combined, and in that State the dredging business is now taking rank with other methods of gold mining which have been highly developed during the course of many years. This system of obtaining gold from the auriferous grav- els is showing much more rapid growth than the older ones, both in
PRECIOUS METALS TN THE UNITED STATES.
55
expansion of operations and in annual output. W hile this plan of obtaining* gold from the gravels and sands originated in New Zealand, new types and methods have been evolved in this country, particularly in California.
The industry may be said, however, to be still in its infancy in this State, although there are now some 40 machines at work, and numbers of others are in course of construction, and still more are being arranged for. The dredging industry may be said to have only com- menced in California in 1898, although many years before that time a few were built, but operated unsuccessfully. They were not of the type since proved to be the most practicable.
In 1903 the dredges operating in California returned an output of $703,524 more than in 1902, the total for the year being $1,504,819.
According to figures collected by the United States mint at San Francisco, the dredges yielded in 1904 the sum of $681,093 more than in 1903, or a total of $2,185,912. These figures show how rapidly this industry is gaining in annual output. It is by no means, however, showing the gross increase derived from quartz mining, as may be .seen by statements in the chapter on “California"1 in this report.
So far as known at present the area of auriferous lands available for dredging in California amount to between 25,000 and 50,000 acres. Already in the Sacramento Valley some 25,000 acres are known to be suitable for this purpose, and machines are at work on most of this ground. Naturally, in view of the success attained at certain places, other tracts at widely divergent points are being prospected and tested as prospectively available dredging ground.
The yield in California from the dredges now exceeds the combined yield of the hydraulic and drift mines of the State, and also greatly exceeds the surface placer yield. Bv the end of 1905 it will doubtless exceed the output of the placer, drift, and hydraulic mines combined. The system of dredging is practically a form of placer mining where modern improved appliances are utilized to handle large quantities of auriferous material in a brief space of time and without the use of water under high heads.
All sorts of absurd ideas prevail, however, as to the comparative importance of the gold-dredging industry, its costs, profits, and gross output. Some of the machines are supposed to be yielding $25,000, $30,000, or even $50,000 per month. The actual facts are that, con- sidering the number of dredges at work in California, the average gross output is practically $54,000 a year for each one — some getting more and some less. The ground worked varies in value per cubic yard in different districts and in different parts of the same district.
The machines themselves vary in size and capacity. The cost of ground, cost of machinery and plant, character of ground worked, and character of bed rock, are all factors in the operation of the dredges and their profits. Even the age of the machine itself is a consideration, as newer dredges cost less for repairs than older ones. Where the bed rock is too hard, the best part of the ground can not be utilized, and where there is an excess of “black sand” the propor- tion of values in gold saved is not satisfactory. The washing of very sandy soil is more difficult than that of pure gravel, and the amount of digging may have to be reduced because with full buckets the riffles become crowded.
56
PRECIOUS METALS IN THE UNITED STATES.
Mr. L. J. Hohl, of Oroville, an experienced dredge manager, gives the following as the principal features of a good gold dredging property :
First. Paying values in the ground.
Second. Good bed rock which can be cut into and scraped up by the digging buckets.
Third. Depth not exceeding, say, 60 feet below the water line.
Fourth. Easy digging ground.
Fifth. Good facilities for power.
Sixth. Proximity of water.
Seventh. Good long working season.
Eighth. Proper contour of ground.
Ninth. Accessibility.
Tenth. Reasonable first cost of land.
The first of these conditions is, of course, influenced b}r all the rest of them, but practically all these conditions were met with at one time in the Oroville district; at present, however, land with all the ear- marks of excellence is not easy to find and the limit of dredgeable area in the district is being rapidly reached.
As will appear further on in this chapter, the area of land available for dredging is limited in California, both in the proven districts and those being prospected. Of course new tracts may eventually be found where dredges may be used, but the presence of auriferous gravel or sands is by no means the only factor to be considered.
The varying conditions of rich deposits naturally determine the methods by which they may be exploited. Some deposits to be worked profitably must be hydraulicked, others drifted, others handled by l^draulic elevators, and others again by dredging. It is useless to try and hydraulic drifting ground, and very few have succeeded in drifting hydraulic ground. Neither of these classes of ground can be dredged. Bars and beds of rivers can not be dredged where the bed rock is hard, and in most places hydraulic elevators are necessary where there are no dumping facilities. There are places where excess of water does not admit of using hydraulic elevators and hardness of bed rock prevents the use of dredges.
In many places where there are extensive deposits of auriferous material, perfectly suitable for dredging, the values are not sufficient or regular to warrant the installation of a dredging plant. In fact the prominent dredging men are constantly examining and prospect- ing tracts in newer regions, but the proportion of failures is very large.
These few more important facts are here cited in order that the precise and acknowledged limitations of the dredger as a factor in the production of gold may be realized by those who have given the sub- ject no more than superficial attention. No dredges are to-day work- ing in any of the old fields of California, except in a few places where superficial work was done.
No gravels suitable for hydraulic mining are being or can be dredged. No gravels suitable for drift mining can be dredged. No gravels suitable for working by hydraulic elevators can be dredged unless the bed rock is soft. No gravels lying in hard bed rock can be dredged. Gravels which are too deep or too shallow can not be dredged.
In California none of the hydraulic mines which were closed down after the decision of the courts against that class of mines in certain parts of the State are being or can ever be worked with dredges.
precious metals in the united states.
57
None of the great auriferous deposits of the ancient river channels along the foothills of the Sierra Nevada range, nor of the other deposits on benches and bars along the streams in the mountains, cov- ering practically all the gravel mines which were worked from 1848 to the present time, can be or will be worked by dredges, except such few deposits of gravel as were washed down from the mountains to the edge of the Sacramento Valley where the valley joins the foothills.
There are three principal deposits of these “ washed-down” gravels. One on the Feather River, at Oroville; one on the Yuba River, between Smartsville and Marysville, and one on the American River, near Fol- som. These gravel deposits so far proven to be of sufficient value for dredging cover an area of some 17,500 acres; other deposits under consideration but not entirely proved cover 7,000 acres more. Other gravels reaching further out into the Sacramento Valley, of lower value, may in time be worked as costs are lowered. These amount to some 25,000 acres.
The total of these gravels in cubic yards is somewhere between two and three thousand millions, and their yield will hardly exceed $200,000,000 or $300,000,000 They will all be worked out within thirty to fifty years.
In the greatest hydraulic gravel-mining districts there are very few dredges and these are only working over what may be termed tailings from nature's hydraulic mines.
The original gravels — the great gravels — can not be touched by the
dredges.
Even if we consider 100 dredges at work in the State, on the average yield per dredge, as shown by recent experience, there would only be $5,400,000 per annum, and under the best circumstances would not exceed $7,000,000. In fact the average per cubic 3^ard would probably be less than at present, for the reason that the richest gravels are being worked first. In Colorado, Montana, and Idaho, where successful dredging is being done, it is carried on only in comparatively limited areas, as in California and outside the limits of the old hydraulic mining- area. The proportion of dredging ground will probably always be smaller in those States than in California.
In order to give a suitable description of the methods of prospecting and dredging as carried on in California, free use has been made in what follows of certain papers on the subject, recently prepared.
' One of these is a paper b}7 George W. Kimble, of Placerville, on the' methods of prospecting the gravel before dredging is commenced; another is by L. J. Ilohl, of Oroville, on the dredging conditions at that place; both these papers having been read before the last con- vention of the California Miners’ Association. The third is a bulletin ’ (No. 36) of the California State Mining Bureau on the subject of gold i dredging, which treats of the matter quite exhaustively and is fully illustrated. The papers have been, for use in this report, materially condensed, and the extended tables of costs, etc., have been omitted,
• as of interest to those only who are engaged in the actual business of dredging for gold.
Prospecting the gravel beds when dredging is proposed is a neces- sary preliminary in all cases, for there are certain conditions to be considered before a suitable estimate of costs and profits can be made or a style of dredger chosen. These conditions are: Value in gold per cubic yard, and its distribution; hardness of gravel; total depth of
58
PRECIOUS METALS IN THE UNITED STATES.
gravel to bed rock; depth of gravel from water level to bed rock; whether level or rough on surface; size of bowlders; amount of clay in gravel; hardness of bed rock; whether bed rock is level or not; water — amount of supply and cost; cost of power run in; wages; cost of transportation; cost of supplies; cost of repairs; cost of land; cli- matic conditions.
Any gravel that may be picked without the use of powder may be dredged. The machines work to a depth of 60 to TO feet, and later ones in the Yuba River district are designed for 75 feet. Very large bowlders can not be handled, so that much gravel may have to be left in the ground. Clay in the ground will not permit of clean dumping of the buckets, and it carries off line gold and amalgam from the sluices.
If the bed rock is too hard to dig the gold in the crevices or lying- near the bed rock it is not recovered. The bed rock should be near enough level to allow the boats to float over all the ground to be worked. In prospecting nearly all this work in the Sacramento Valley districts of California has been done with Keystone drills. No. 3 traction. Owing to the presence of water in the gravel in most instances it has been found impracticable to sink shafts. The cost of the drill, includ- ing freight, etc., is about 81,900 complete. Three men required to work it, with wages from 83.50 to 84 and 82.50 and 82 per day. To this must be added the cost of fuel, water, repairs, etc., and wages of one or two men to do the sampling. The sampling, if properly done, would require a skilled man, and his pay will add much to the cost. The total cost per day to run the drill and do the sampling varies from 815 to $30. About 12 or 15 feet per day is a good average speed for sinking in the gravels of the Sacramento River basin. In compara- tively shallow ground, where there is not much water, it is much more economical to sink shafts than to drill, and the results will be found more satisfactory. By proper sampling is meant the determination from a comparatively small sample of the values in a much larger vol- ume of the same material. Care, judgment, and experience are neces- sary, and all such work, whether done by drilling or by sinking shafts, should be put in charge of an experienced man.
Gravel lifted by drills or taken from a shaft must be accurately measured or weighed and proper allowances made for expansion when loosened. Allowance must be made for excess of bowlders not sam- pled and for excess of gravel beyond the normal width of the drills that may come in and be lifted.
There is no rule as to the number of holes that should be sunk. More drill holes would be required to give satisfactory results than shafts. If the values are comparatively evenly distributed over the tract to lie examined, fewer holes would enable nearer approach to a correct estimate of values than where the pay is uneven. In districts where the character and values are comparatively well known in parts of the gravel that have been sampled, less careful examination is neces- sary on intervening tracts in order to determine most of the con- ditions and even the values.
Errors in sampling frequently occur from the squeezing in of mate- rial around the bottom of the casing so that more gravel than is called for by the size of the hole i-s lifted. A check on this is to drill and pump in a section of a foot or so and weigh the material. Sliming and consequent loss of gold sometimes result when too long a period of churning transpires before pumping the hole.
PRECIOUS METALS TN THE UNITED STATES.
59
In a paper read before the California Miner’s Association by Mr. George W. Kimble, the method of prospecting auriferous gravels with drills is fully described. To prospect a piece of ground thoroughly with this machine is not so simple an operation as it seems at first to be. The failures of subsequent mining are often unjustly charged wholly against the machine, while the real cause was that the engineer in charge of the prospecting did not properly stake out and drill a suflicient number of holes; that he did not carefully measure and take into consideration the quantity of material the holes produced; that he did not use sufficient care in preventing the possible vitiation of the golden results by interested parties, or that the management of the subsequent operations did .not obtain all the gold which the ground really contained. The last result arises most frequently from not cleanly mining the ground, or from not determining the quantity of gold that is carried away in the tailings.
The drilling machine is universally used in testing dredging ground. When the engineer is called upon to test a piece of ground to ascer- tain whether it is worthy of consideration as a dredging proposition, the following system should be adopted:
In company with an assistant and by the use of a modern prelimi- nary transit, stadia rod, steel tape, and camera he should make the necessary surveys and take such photographs as will enable him to make a topographical map of the ground with contour lines. In making the surveys he should sufficiently study, not only the particular piece of ground to be tested, but also the surrounding country to determine if there are an}r channels crossing the land, and if so, to ascertain their probable course, that they may be not only outlined on the map, but also marked out on the ground to be tested.
Lines 500 feet apart, indicated b}7 consecutively numbered stakes, marking the place*for drill holes, these holes to be either 100 or 150 feet apart, and the lines set at right angles to the source of the chan- nels, should be laid out upon the ground and also on the map.
Should the values obtained from these holes be satisfactory, suffi- cient intervening lines of holes and intervening holes on the previously staked lines can be laid out and drilled to accurately determine the value of the ground per cubic yard. The engineer — with his log book, which has been prefaced with the date of commencement of opera- tions, the name of the tract of land, the name of the employer, the kind of drilling machine, the size of drill bit, diameters of casing and shoe, and the pipe factor that will be used in calculating the cubic contents of the drill holes — should be in attendance every moment of the time that the drill hole is open, watching the drilling, preventing it from being carried ahead of the casing, examining and measuring the material removed, and either actually doing the washing or at least closely watching the process of cleaning up the material extracted with the sand pump.
He should note in his log book, previously ruled into columns with their required headings, the hour of commencing and stopping work; the length of time and cause of any stoppage; the quantity and kind of material and supplies used; also the thickness, the nature, and the solidity of the material in each stratum, with the number of the differ- ent sized colors of gold found in each. The level of the water and, in the case of a drifting proposition, its quantity should be noted, together with the physical characteristics of the gold. At the conclusion of
60
PRECIOUS METALS IN THE UNITED STATES.
the record for each hole, the weight and value of all the gold, with the cubic contents of material removed and its value per cubic yard, should be stated.
When the necessar}7 drilling is completed it would be advisable in some instances to sink a few shafts, if possible, to further determine the material of which the bedrock is composed, the nature of its sur- face, the size of the bowlders, and whether there are any nuggets.
All the acquired information should be recorded, not only in the log book but on the topographical map and supplemental transverse and longitudinal profiles, which should show the profile of the surface and bedrock, the thickness and character of each stratum, and of a detailed statement of its value, from which the cubic contents of the different grades of the material can be calculated for the entire prop- erty. The careful engineer will observe and note in his book the quantity and kind of timber and the nature of the brush to be dis- posed of; the cost of water and the means of disposing of the same with the tailings; the cost of power, all building material and sup- plies; the nature of the roads and the climate. lie is now ready with his records and maps to report on the proposed