COMMERCE. 343 



Francisco capital invested in Santa Clara county alone than in 

 all the gold mines of the state. There is scarcely a county 

 near the coast, between latitude 40° and 33°, in which there is 

 not a large amount of capital invested by non-residents, to 

 the evident benefit of the county. Although gold mining has 

 been the chief industry of the state for fourteen years, and 

 although Washoe is of late discovery, and has less population 

 than single counties of California, yet more San Francisco 

 capital is invested in Washoe silver leads than in all the gold 

 mines of the state. 



There is a great difference of opinion among business men in 

 regard to the causes of this alleged insecurity. One will say 

 that the cause is in the want of fee-simple titles ; that the 

 ownership of mining claims depends upon possession, and is a 

 kind of personal property with a still w^eaker title, for a man 

 may lay his purse down, or let his horse go, and both will 

 belong to him in law for years ; but when he shoulders his 

 pick and blankets, and leaves his claim for three days in the 

 w^orking season, he has not the least interest in it. Another 

 consideration, however, will show that this cause alone, al- 

 though it may contribute much to the general result, is not 

 sufficient in itself to render gold-mining investments insecure, 

 even in any one case of note. Most of the valuable mines in 

 the world are held by mere possession, and abandonment or 

 cessation of work w^ould lead to a forfeiture of title. This 

 is the rule throughout the rich mineral districts of Spanish 

 America, in most of the countries of Europe, and even in 

 Washoe; and yet the value of these mines, w^hose title depends 

 only on undisputed possession, is almost as good as if held in 

 fee simple, for it is plain that so long as the mine is profitable 

 there will be no cessation of work. 



Another theory to explain the aversion entertained by capi- 

 tal for gold-mining enterprises is, that the business is too un- 

 certain as to its profits ; that prudent business men avoid great 

 risks, and will not venture their principal ; and that they cannot 

 invest in gold mines without the greatest perils, because it is 



