LETTER FROM J. ROSS BROWNE. SPECIAL COMMISSIONER FOR THE COLLECTION OF MINING STATISTICS, TO THE SECRETARY OF THE TREASURY. SAN FRANCISCO, CALIFORNIA, November, 24, 1866. SIR: I had the honor to send you by last steamer a preliminary report on the mineral resources of the States and Territories west of the Rocky mountains. Congress at its last session appropriated ten thousand dollars "to enable the Secretary of the Treasury to collect reliable statistical information concerning the gold and silver mines of the western States and Territories," &c. Under a letter of appointment, dated August 2, 1866, and in accordance with detailed instructions of same date, I entered upon the discharge of the duties assigned to me, immediately upon my arrival at San Francisco, September 3, ultimo. The views of the department, as to the impracticability of reporting in detail by the next session of Congress, were fully realized when I came to consider the magnitude of the subject and the immense scope of country over which the inquiry extended. You were pleased to express the hope, however, that I would be enabled to collect by the meeting of Congress "sufficient data to furnish, in the form of a preliminary report, the basis of a plan of operations" by which information of a more detailed and comprehensive character could be procured in future. To obtain any geological or statistical data whatever, within the brief space of two months, precluded the possibility of a personal visit to the mineral regions prior to the transmission of my report. The experience of Mr. William Ashburner and of Mr. A. Rémond, members of the State geological survey, satisfied me that it would be utterly impracticable to examine the mines of a single district, much less of all the States and Territories west of the Rocky mountains, within that time. Mr. Ashburner spent eight months in procuring data for a single table, showing the operations of the principal quartz mills in Mariposa, Tuolumne, Calaveras, Amador, El Dorado, Plumas, Sierra, and Nevada counties. Mr. Rémond spent three months in visiting the principal mines and mills in that part of Mariposa and Tuolumne counties lying between the Merced and Stanislaus rivers; and three months more in preparing tables showing the results of his observations. Under these circumstances, and in view of the fact that I had already visited nearly every mining district within the range of my instructions, and was familiar with the topography of the country and the general condition of the mining interest, I deemed it best to avail myself of such reliable sources of information as were immediately accessible. San Francisco being the central point of trade and commerce for the Pacific coast, afforded facilities in the way of statistical data and scientific aid which could not be obtained elsewhere. From this point nearly all the capital radiates; here the records of all mining enterprises are kept; and here centre the products of the mines. The report to which your attention is respectfully invited embodies the results of many years of careful and laborious research. It is compiled from original data furnished by the most intelligent statisticians and experts known on this coast, as well as from notes made by myself during the past three years. In many respects this report is imperfect. No reliable system has hitherto existed for the collection of mining statistics, such as the governments of Europe have long since deemed it expedient to establish. The existing system in the British colonies of Australia and North America, though not adapted to our mineral regions, or to the habits and customs of our people, is both thorough and comprehensive. Surveyors and registrars are appointed for each district ; and all mining operations are carried on under their inspection. Monthly and quarterly reports are made by them, under the direction of a supervising officer, whose duty it is to collect and arrange all the data thus furnished for publication. These reports show the actual condition of every branch of mining industry from month to month and quarter to quarter, so that at the expiration of the year a complete history is given of the progress of development and the profits and losses of mining. A permanent system like this, established upon a somewhat different basis, is greatly needed in our country. One of the difficulties already experienced in the collection of mining statistics on this coast is the disinclination of parties interested to expose the secrets of their business. Either the business is not remunerative and they desire to encourage further investments by false representations, or by withholding the truth; or, if unusually successful, they may consider it to their interest, in view of further purchases, arrangements, or contracts, to avoid giving publicity to the facts. I am inclined to believe, however, that the advantages of fair and truthful statements, in the encouragement of immigration, the reduction of the cost of labor, the promotion of confidence in mining enterprises, and the establishment of a more uniform system of laws, will soon become apparent. Indeed, the difficulty to which I refer is not so general, even now, as might be supposed. I have found mining companies, doing a steady and reliable business, nearly always disposed to furnish the desired information. The cases of refusal are exceptional, and there is usually a cause for it, well understood by persons familiar with mining enterprises. Another difficulty, which, however, will not exist to so great an extent hereafter, has been the conflicting character of statements made by different parties. In many instances where the sources of information are equally reliable, but where conflicting influences prevail, it is almost impossible, after the lapse of any great length of time, to get at the exact truth. Even facts, seen from different stand-points, appear differently to the most conscientious persons. In cases of this kind, where the proofs on either side are not positive, I have preferred-sometimes at the expense of prolixity-to give the different statements, especially where there is a general concurrence of testimony as to the main facts. Thus, it will be seen that the amount of bullion produced on the Pacific coast is variously estimated by the best informed and most intelligent men. Mr. Ashburner's estimates are somewhat lower than those usually accepted by the public, but I believe they are well-considered. Gold and silver are so generally blended together under the head of "bullion," that none of the express companies or bankers have hitherto kept separate records of the products of each. It would be very difficult to obtain correct returns on this point, unless the numerous assay offices and the authorities at the branch mint could furnish details of the quantity obtained by parting, or by estimating the bullion passing through their establishments-the two metals are so universally alloyed with each other. Mr. Swain, superintendent of the branch mint at San Francisco, a gentleman possessing both the means and the disposition to inform himself on this subject. estimates the product of gold and silver for Oregon, California, Nevada, and Washington Territory, as follows: In 1861... In 1862... In 1863... In 1865... Well-informed parties estimate the product for 1866 as follows: California.... $43, 391, 000 49, 370,000 52, 500, 000 63, 450, 000 70, 000, 000 $25, 000, 000 Great differences of opinion, however, exist as to the accuracy of this estimate. To some it appears exaggerated, while others pronounce it far below the actual yield. The imperfect returns received for the last nine months would seem to warrant the conclusion that it is not an unreasonable estimate. For instance, the product of Oregon is assumed to be $8,000,000. Statistical tables, supposed to be worthy of credit, show a probable yield for that State of $20,000,000. In 1865 the generally accepted estimate for Oregon was $19,000,000, though that was probably above the actual product. There is good ground for believing that the result this year will be considerably above that of the last year. The same may be said of the Territories of Idaho and Montana. In like manner, the capital in circulation in California, and necessary for the transaction of business within the limits of the State, is variously estimated at from $25,000,000 to $50,000,000. It is believed that $10,000,000 is annually shipped up to the mines to defray the current expenses of mining; but there is no record of the return of this amount in the form of a circulating medium. Assuming the estimate of the product of bullion, as above given, to be approximately correct, it will be seen that the States and Territories on the Pacific slope produce annually upwards of $100,000,000 of the precious metals, a quantity more than four times as great as the total product of the world less. than thirty years ago. The improved processes for the extraction of these metals from their ores, made within the past two years, and the constantly increasing area over which gold and silver mines are being developed, furnish strong guarantees that there will be no abatement in the product for years to come, provided government places no impediments in the way by impolitic legislation. The recent financial panic in Europe afforded an illustration of the importance of encouraging this branch of industry. Within sixty days, during that panic, there was exported from San Francisco the enormus sum of $12,000,000 in gold and silver, without which, it is well known, the commercial interests of the United States would have suffered in sympathy with those of our best customers in England. The shipments of specie from San Francisco to New York during the first eight months of 166 amounted to $27,729,010. There is a more striking form in which the importance of the gold and silver mines of the Pacific coast on the national welfare may be illustrated. The product of these metals for the present year exceeds in amount all the gold and silver in the national treasury, and in all the banks in all the States The report of the Secretary of the Treasury shows that the bul- The last quarterly report of all the national banks in the United State banks outside of those cities estimated at. Total. $61, 000, 000 5, 000, 000 600,000 1, 600, 000 1,500,000 69, 700,000 The approximate estimate already given of the gold and silver product of the Pacific States and Territories for 1866 shows a total of $106,000,000, or nearly double the combined bullion of the government and all the banks in the country. For convenience of reference the report transmitted to you is divided into sections and clauses, of which the following is a brief summary:. Section 1 contains a historical sketch of the discovery of gold and silver in the territory of the United States west of the Rocky mountains; the excitement consequent upon the development of rich placer diggings in California; the crude means adopted in the early stages of gold mining on the Pacific coast; the introduction of improved processes, and the extraordinary results that followed in the sudden increase of commerce and the extension of the area of civilization. In this section a sketch is also given of the discovery of the Comstock lode and the development of the silver mining interest east of the Sierra Nevada mountains. Section 2 refers chiefly to the geological features of California, and the prominent characteristics of the principal lodes in the great mineral belt. The present production of the gold mines is given from actual data derived from investigations made by Professor Ashburner, of the State geological survey, and a comparison is made between the products of California and Australia. Detailed descriptions are given of a few leading mines in Grass Valley and Mariposa, showing the expenses and profits of gold mining as a permanent business. Section 3 gives minute details and statistics of the gold and silver mining interests on the Pacific coast; the improved processes and results; the exports of treasure from San Francisco, with the amounts received from the mines; cost of extracting the ore and reducing it; the average yield; the machinery in use; capital and labor employed, and cost of working. Section 4 gives a historical and topographical sketch of Nevada; the prominent characteristics of the principal silver mines; the alkali lakes, salt-beds, wood and water privileges, and general products. Carefully prepared statistics are given in this section, showing the expenses of silver mining, the various processes of crushing and amalgamating the ores, the number of mills in actual operation, the profits and losses, with a general review of the condition of the mining interest. It also contains brief sketches of Utah, Idaho, Oregon, Washten Territory, Montana and Arizona, with such reliable data, showing the condition and prospects of the mines, as could be obtained. Section 5 is devoted to the copper mines of the Pacific coast. In this paper a history of the discovery of every notable copper lode is given; the extent of the veins; the quality of the ore; the processes of reduction; the costs of machinery and working; the yield, and the profits and losses. Special attention is called to the great national importance of this interest. Section 6 contains a report on the quicksilver mines of California, with statistics of production. Section 7 gives the history of the discovery of borax in California; the process of working the borax deposits; their extent and value; some account of |