APPENDIX SS. 1815 



the States and Territories west of the Missouri River, including British Columbia, 

 and receipts in San Francisco from the west coast of Mexico, during the year 1877 : 



California $18,174,716 



Nevada 51,580,290 



Utah 8,113,755 



Colorado 7,913,549 



Montana 2,644,912 



Arizona 2,388,622 



Idaho 1,832,495 



Mexico 1,432,992 



Dakota 1,500,000 



Oregon 1,191,997 



British Columbia 1,177,190 



New Mexico 379,010 



Washington 92,226 



Total 98,421,754 



From the above table it will be seen that Colorado occupies the fourth place in the 

 list of precious-metal regions of the Union, Nevada, California, and Utah only preced- 

 ing her. 



Under the same tremendous inrpnlses of capital, it may be presumed that the time 

 would not be far distant when she would occupy the first or second position. The 

 shrewd, far-seeing operators of the Pacific coast are already unloading, it is said, 

 large quantities of bonanza stock and seeking investments in Colorado. 



The table given being based upon known shipments, may be considered as proxi- 

 mate only. It will be safe to place the aggregate production for 1877 at one hundred 

 millions, and that for the present year at oue hundred and twenty millions, of which 

 amount Colorado may be placed at ten millions. 



In the San Juan itself it was impossible to obtain accurately her production. The 

 country as a whole, in the light of a mining region, is scarcely advanced beyond the 

 state of prospecting. 



Mills are wanted everywhere, and thousands of dollars are upon dump-piles for want 

 of a market. The cost of transportation being excessive, only selected ore is taken 

 for shipment to distant poinds. Moreover, the machinery having been brought in at 

 enormous cost, a high price for ore treatment must be paid. There is therefore but an 

 exceedingly limited market for low grades, such as would yield a high margin over 

 mining in the old districts of Nevada and California. 



The value of ore treated by such smelting-works as exist would not, therefore, be an 

 absolute index to the prospective amount of this year's production. 



There are numerous points where smelting-works would be fine investments, and if 

 carefully and honestly managed would realize a large amount, if not a moderate for- 

 tune, every year for five or ten years to come. 



Mining investments in general may be likened to a lottery ; the large and handsome 

 prizes are few and far between. But with reduction w.orks it is otherwise. The ore 

 is a staple commodity. Presented to the mill, the smelter carefully samples and ascer- 

 tains with mathematical accuracy and unfailing regularity its average value. He 

 pays an amount far below its market price, in order to realize the heavy margins for 

 which he has invested his capital. He can therefore suifer no loss, save from the total 

 exhaustion of the ore supply of the surrounding country, which is unlikely to occur. 

 He will therefore enjoy a monopoly for some time to come ; and even when competition 

 arrives the output of ore will iucrease from the discovery of new lodes, so that his 

 investment will still be one of the first class. But, like the building of toll-roads, the 

 sure, safe, and legitimate enterprise is thrown overboard for speculation. That the 

 mill-man will not dabble in one or more mines about him was found, without any 

 exception remembered, the rule. 



The San Juan is locally subdivided into mining districts. In speaking, therefore, of 

 mineral wealth as it appeared to an ordinary observer, it will be best to consider each 

 district visited in its practical development. 



The precious metal is mined in the form of both silver and gold, the former pre- 

 dominating. Of the latter the value of the placers is inconsiderable, and upon lodes 

 alone should any dependence be placed. 



In arriving at the value of a mineral dex^wsit, from a casual examination of speci- 

 mens of its ore, the most learned geologist, the most experienced assayer, may be at 

 fault. Nothing short of a complete assay will give its definite and precise value and 

 worth. 



The extension of this rule is equally true. The value of a mine can never be wholly 

 determined by any specimen. The market price of the ore in general must alone be 

 taken. In brief, the "mill-runs," or prices paid at the smelting-mill or other reduc- 

 tion-works, is the sole standard upon which dependence is to be placed. 



