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coolly invest in speculations that require sums varying from fifteen to fifty thou 

 sand dollars, which three years experience before them has demonstrated to be a 

 failing and unprofitable business. We might torture the fact into such a conclu 

 sion, but the exercise of a little reason would be likely to dictate otherwise. 



At the present time we find parties entering the field with new and increased 

 facilities at their command, (and who, from mismanagement, in times gone by, 

 have lost heavily) and are now realizing their most sanguine expectations from a 

 judicious management of those operations in which they formerly failed to suc 

 ceed. 



The greater proportion of those who have embarked in this business within the 

 past year, are men who have heretofore lost heavily in the same business. Their 

 experience of former days taught them somewhat a severe lesson, but at the same 

 time, they learued enough of the value of these metallic veins to inspire that con 

 fidence in ultimate success which they are now realizing in an eminent degree. 

 This proves that their confidence was not misplaced, and the only error committed 

 in the premises was too hasty and inconsiderate action, and the use of means inade 

 quate to secure the desired end. 



Gold mining in this State has arrived at such a point, that it is now looked upon 

 by those in the least conversant with the business, as one of the principal and 

 best employments for Capital and labor ; yielding a higher rate of profit for the 

 means employed than any one branch of mercantile pursuits at present known in 

 this country ; and as an evidence of this it will be but necessary to state that sev 

 eral of the mercantile men of the larger cities have withdrawn their capital from 

 their former pursuits and invested the same in the latter. It is a rare thing to 

 find one of these mines doing a losing business, for it has become a settled prin 

 ciple, that the lodes will pay the expenses of opening the mine, and there are 

 but few that do not do it. 



Numerous instances of this character are found in the State, and so well has 

 this been demonstrated that those who engage in this business seldom fail to 

 realize that result. One of the best examples of this is the case of one of the 

 mines in the county of Amador, the aggregate expenses of which, in opening 

 their mine and the erection of their reduction works, amounted to seventy-one 

 thousand dollars, while the receipts from the mine, consisting of ore removed 

 from the shafts and gallerys in opening, amounted to sixty-two thousand, the 

 engine of the mill costing over twenty-two thousand. In this case the opening 

 of the mine paid nearly the entire expenses of the concern. This is not an 

 isolated instance, it is mentioned as illustrating what we have formerly said on 

 this subject, and is stated as a fact which speaks louder than words. 



Such is a brief history of the general phases which are presented in this branch 

 of employment at the present time in this State, and with what has been said 

 relating to this subject in my former reports, may serve, perhaps, to correct some 

 of the erroneous impressions that still attach themselves to this important source 

 of wealth, and which are as groundless as the wind. The sun' of that day has 

 set, when it will again be in the power of any man, or set of men, to again wreck 

 that confidence which now reposes in the value of the gold mines of this State ; 

 their results have placed them beyond the reach of cavil, and beyond the shade 

 of doubt. 



In what follows I shall confine myself to such statistics of mines as are at the 

 present time in my possession, with a catalogue of such new mines as have been 

 opened during the past year, and also a notice of such mines as were in operation 

 and unknown to me at the time of the publication of my former report. 



