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GOLD AND SILVER.

By H. D. MCCASKEY."

INTRODUCTION.

This report gives final figures for the production of gold and silver in the United States, together with a presentation of the relative. classes and quantities of ores producing the metals and a summary review of the gold and silver industries, for the calendar year 1909. The report has been greatly delayed owing to cooperation with the Bureau of the Census in obtaining statistics for 1909, the detailed nature of the inquiries of that bureau necessitating personal visits by special agents to mines and plants whose figures are ordinarily obtained by the United States Geological Survey by correspondence with the operators.

To the many thousands of mining and metallurgical men throughout the United States and Alaska who have cooperated with the United States Geological Survey in furnishing information for the mine reports on the metal production thanks are heartily given. Their interest and spirit, as shown by the considerable time and trouble they have often taken to fill out the Survey inquiries in detail, have been extremely gratifying. It is hoped to make the results of the reports as useful as possible to them in return.

PRODUCTION.

The production of gold and silver in the United States from domestic ores in 1909 is shown in the following table in distribution by States and Territories:

Approximate distribution by producing States and Territories of the product of gold and silver in the United States for the calendar year 1909, in fine ounces.

Valuable aid has been rendered by J. P. Dunlop in the preparation of the majority of the tables of this eport, and in verification of all of the figures.

Gold value, $20.671834625323 per fine ounce. Average commercial silver value in 1909, 52 cents per fine ounce.

Approximate distribution by producing States and Territories of the product of gold and silver in the United States for the calendar year 1909, in fine ounces-Continued.

The figures in this table are also those of the Director of the Mint. They result from cooperation of the Bureau of the Mint and the United States Geological Survey and are agreed upon after conference and adjustment between the two bureaus. They are therefore final for both.

The data used for this table are based on bullion deposits in the United States mints and assay offices and returns to the Bureau of the Mint from the smelting and refining companies. The distribution is checked and verified by information collected by the United States Geological Survey direct from the producing mines and tabulated for the mine reports later discussed. The data giving the total production, and in part the distribution, are obtained from records of: (1) The unrefined domestic gold and silver deposited in United States mints and assay offices; (2) the domestic gold and silver in fine bars reported by private refineries; and (3) the unrefined domestic gold and silver contained in ores, copper matte, etc., exported for reduction. The last item is of small relative importance.

In addition to production of gold and silver from domestic sources. in 1909, the smelters and refineries produced from foreign ore, matte, and unrefined bullion, 965,007 fine ounces of gold, valued at $19,948,465, and 71,882,005 fine ounces of silver, valued at $37,378,643. Of this foreign gold nearly $9,000,000 may be credited to Canada, about $8,250,000 to Mexico, about $1,000,000 to Central America, principally to Salvador and Honduras, about $400,000 to South America, principally to Bolivia and Peru, and about $200,000 to the Orient, mainly to Australia. Of the foreign silver nearly 42,000,000 fine ounces may be credited to Mexico, over 20,250,000 ounces to Canada, chiefly to Cobalt, nearly 4,000,000 ounces to South America, and about 1,500,000 ounces to Central America, while a third of a million came from the Orient and a quarter of a million from Europe.

Gains and losses in the production of gold and silver in the various States and Territories, as compared with the output of 1908, are shown in the following table:

Increase (+) or decrease (-) in production of precious metals in the United States in 1909, by States and Territories, in fine ounces.

Gold. The total production of gold in the United States in 1909 was 4,821,701 fine ounces, valued at $99,673,400. Compared with the production of 1908 this was an increase of 247,361 ounces, or $5,113,400. It was also the largest output of gold in the history of the country.

Twenty-two States and Territories contributed to the production of gold in 1909 and the Philippine Islands and Porto Rico added to the output. Of these 24 geographic divisions, increased production was recorded from 11 and decreased output from 13. The greatest gains were as follows: Nevada, $4,696,800; California, $1,373,900; Montana, $590,100; Alaska, $480,800; Utah, $266,600; and Arizona, $126,800. A heavy decrease of $1,168,600 was shown from South Dakota and another of $1,024,400 from Colorado. In no other State did the production decrease $100,000.

The gold-mining industry was again generally prosperous in 1909. The production would have been considerably over $100,000,000 but for certain abnormal conditions preventing operations for the entire twelve months of the year at the Homestake mines in the IBlack Hills, and for reduced mining in the Cripple Creek district pending the completion of the deep drainage tunnel. Although production from the great Goldfield district was from a smaller number of mines than originally expected, the output has been great and on the increase. Elsewhere, in many Nevada camps especially, development and exploration have been vigorous, and prospecting has been active throughout most of the West, adding some new camps. The dredging industry continued prosperous in general, especially in California. A normal annual production of about $100,000,000 in gold from the United States, Alaska, and the Philippines may reasonably be expected, although present conditions do not indicate an output in considerable excess of this amount.

Silver. The production of silver from domestic ores in 1909 was 54,721,500 fine ounces, with a commercial value of $28,455,200. This represents an increase in quantity of 2,280,700 fine ounces and in value of $404,600 over the output for 1908.

Twenty-three States and Territories supplied the production of silver for 1909, and a nominal quantity was derived from refining gold bullion produced in the Philippines. Of these States an increased output for 1909 was shown from only 8, and decreases are indicated for the remaining 16. The largest gain was from Utah, whose production increased 2,099,800 ounces, mainly from lead ores; the next most important increase was of 1,678,300 ounces from Montana, from augmented copper production; the production of Nevada increased by 610,700 fine ounces, mainly from lead ores, but also from increase of siliceous ores; and California increased her output 601,200 ounces from copper ores. The most notable decrease in silver production was from Colorado, where the output declined by 1,303,900 ounces, mainly from copper ores, but also from dry or siliceous and mixed ores; there was a decrease of 802,400 ounces noted from Idaho from all classes of ore; and a decrease of 376,400 ounces from Arizona from dry or siliceous ores. In each of the other States increased or decreased production for 1909 was under 100,000 ounces, and in 11 of them the changes were not 10,000 ounces either

way.

The silver-mining industry as such is relatively small under present mining conditions in the United States, only 36 per cent of the silver production being derived from precious-metal ores in 1909, and only a small portion of this being from those classed primarily as silver ores. The great bulk of the silver production is from the refining of gold, copper, and lead from gold-silver ores, copper ores, and lead ores. The prosperity of the copper and lead mining and smelting industries is, therefore, a large factor. With better prices for silver the mining of silver-lead ores would largely increase. Undoubtedly the price of silver is of great importance in western mining especially, being the final factor often in the decision whether a mine can be worked at a profit or not. As 1909 was a fairly good year for both copper and lead industries, silver production from copper and lead ores increased largely.

The average monthly price of silver in New York in 1909 showed remarkably little fluctuation, never falling to 50 cents nor rising to 53 cents, the average New York price for the year being 52 cents. Undoubtedly heavy production from Canada and Mexico kept down the market price, and there is little present indication of decrease in output from either country. On the other hand, the Canadian production, mostly from Cobalt, is on the increase. The output from Canada in 1909 was 27,529,473 fine ounces and that of Mexico about 73,000,000 ounces. The production of Mexico showed no material increase over that of 1908, but that of Canada increased nearly 6,000,000 ounces.

In the world's production of silver Mexico leads, with about onethird of the total to her credit, followed by the United States with one-fourth of the total and by Canada with about one-eighth. The total increase in world's output for 1909 was only about 5,000,000 ounces or approximately the increase from Canada, as other producing countries maintained an even output, or, like Australasia, suffered a decline. Demand continues to be mainly from India and

China, although it is increasing in the arts-as, for instance, in photography.

The average New York commercial value of silver since 1900 has been as follows: 1900, $0.62; 1901, $0.60; 1902, $0.53; 1903, $0.54; 1904, $0.58; 1905, $0.61; 1906, $0.68; 1907, $0.66; 1908, $0.53; and 1909, $0.52.

PRODUCTION OF GOLD AND SILVER IN THE UNITED STATES SINCE 1792.

According to tables published by the Director of the Mint, the total production of gold and silver in the United States from 1792 to 1909, inclusive, is as follows:

Production of gold and silver in the United States, 1792–1909, by periods, in fine ounces. [The estimate for 1792-1872 is by R. W. Raymond, commissioner, and since by the Director of the Mint.]

The following table, from the report of the Director of the Mint on the production of gold and silver, shows the quantity and value of these metals produced in the United States since 1880:

Production of gold and silver in the United States from 1880 to 1909, inclusive, in fine