QUARTZ-MINING AND CAPITAL.

New Zealand Herald, Volume XXXI, Issue 9480, 9 April 1894, Page 5

QUARTZ-MINING AND CAPITAL.

,' ""' ' [by aboriginal.] ■'*' -;-.;' ; :! According to statistics £45,000 was the sum of money paid in calls for the development of gold and " silver ; mines on , the Hauraki Goldfield in the year 1892. ' During the year: 1893 r the. amount •of - money„ called up for a 'similar purpose was £10,357. This 'shows"a' falling ,off of £34,643 in the • amount ,• subscribed i in . one • year, and . some people are 1 short-sighted enough to consider the difference as being a subject for "congratulation." However, in my humble opinion, " lamentation'' would be a more appropriate term; because the falling' off referred to, points clearly to the fact that capital is being rapidly I withdrawn from mining in New Zealand, and, as a natural sequence, there are how, more miners looking for work than at any previous time in the history of quartz mining in ;ithe colony, ;• Most people who have any knowledge of gold and silver mining;; consider" the • Mining•; Act| introduced in the year'- 1890, did more to injure that branch of industry in the estimation of moneyed. people," than all other. deterring elements -put; together, and ;the \ following will ; perhaps v serve to illustrabe what is meant in this' connection. : ~, .• 'v■■.>•, I; About two years ago,-a: friend of the writer■■ went il- to England, •;. in ' order to float a "miningi\venture,- which offered splendid facilities the investment of capital,- and from-/ which £18,000 ; worth oil bullion had already been extracted 1 by the most primitive appliances.. Armed with a bundle of letters of introduction to some of tho : best people in London, • together with the exquisite , plans and reports, my friend started, out .with »a i Hghb hear believing .: that; he would have bub little difficulty .in; accomplishing his purpose. In;!■ due course -V he ( ; arrived !in London, where he lost'' no ' time |_'' in making the object of . his mission" known, and delivering his credentials. v At a meeting of mining investors convened for his special benefit, he produced his plans and reports ; explaining that personally he wanbed no money, bub was willing to make any reasonable - terms •; bo ',>, obtain '-• capital for ■:" the systematic working of the property. Several of the leading mining engineers of the Old World. were present, and after examining: the plans and reports one of them said : Mr. .'—™ v, the i great objections which, speculators here have against putting their money into New Zealand mines ■ is on : ac-. counb of the defective bibles which you have to offer as security- j their investments. We.can go to America,. Africa, or Australia and ' get good \ titles to mineral areasV but thiis is nob the case in : : New Zealand, where bhe tenure,"according,to your latest Mining Act, is simply"hot worth one hour's purchase. ;We quite believe your mine to be a most promising one, ; requiring, only the sinews of war, capital judiciously expended bo ;; bring it;' to the front ?. as a bullion producer, and : prospective !l>dividendpayer ;' 'but,'' at ■• the same : \ time, we cannot advise our clients to risk. their money in the opening '■- up 'of a•, mining area, which, according to" section 51 of the Alining Act, now in force,; is always at the mercy of any outsider who chooses bo lay a plaint against ib." Suffice ib tosay thab my friend returned in disgust to New Zealand, where he sold his mining property for less than one-third :of the amount it had cost him, and cleared out for Australia,. where common-sense is brought i to bear on gold and silver mining as well as upon other. matters. «■• ~.>'' Without capital itis impossible to start any quartz mining enterprise in New Zealand, ! and carry it'; on to a successful issue. Even when sufficient money has been obtained to float a quartz mining concern, and set it going, there .is no guarantee that it will be able to weather the. storm of ill success that invariably accompanies all such ventures ab the outset. Many; a ship founders on the ocean: of mining '■- because it cannot,' keep i afloat until, the hurricane of bad luck gives way and makes room for the gentle breeze of good .luck,.,prosperity,; or : whatever else it may be termed. - The capitalist is an indispensable . wheel in the, machinery required to carry on quartz-mining operations, and every other miner., one meets on tho Thames goldfields will tell you that the country is - going" to the dogs for want , of money to exploit the mines. Neverthe- ( less,- whenever' opportunity offers of having i 'mining laws formed in consonance with the wants and requirements of the: place, these very men, or ; their mouth-pieces, ; will do the prompting for a 'measure such as thab produced, by the present Ministry some time since, and then they will attribute the consequent depression ? in; mining to' anything and everything but the right cause.: 'The- latesb; fad 'in ■' connecbion with our mining laws is a circular sent to all goldfields wardens instructing ; them '.to ; insist upon every application' for protection ;of mines being ; accompanied ■ by a "substantial sum ' of V money," „which. is to be deposited in the: warden's office as a guarantee of : good faith thab ; work will ibe resumed in mine as soon as the term of protection .expires, f.Failing an early start subsequent to bhe expiry of the protection, then the money 'deposit ■is to be forfeited, and I do nob know whether ib becomes local or general, revenue. This.is a very pretty clause, taken, I believe, from the .Mining Act already referred to, and it should'; be framed and: hung-up in every Warden's office in the colony. Now I should like toW know i what is meant by the t words " substantial * sum ,; 5 of money." :■' The',- very v- fact "of -an '; appli- ; canb • for"' -protection ;' having a ' " substantial" sum j- of money in his possession should j' of itself be a sufficient reason why his application ought to be refused. , From ya - personal experience «of quartz mining for gold and silver extending over a period of 26 years, I am certain thab in 95 cases oub of every hundred, wanb of ' money to, carry. on with is the real , reason why persons approach ;,; the Warden's Department;; ; seeking ( :'' protection for • their claims—hence the absurdity: of asking such 1 ; persons to supplement their, applications 1 with " substantial" ; sums .of money.. - i]There is, as a • rule, a terrible let of nonsense talked about gold and silver mining; both publicly: and ; privately.: t Yet no one >of the many people interested seems to have the moral: courage bo backle the subjepb, and place industry on all four's;with, other branches worked by : bhe "human hive." One" often hears the stereotyped phrase, "Oh, so-and-so is holding his mine for speculation purpose," and there is a, general s upraising Sof ' eyes and < hands with horror ab so-and-so's speculative rascality: Now 1C have never hoard any sound or - sensible i reasons d advanced for selecting the mining investor as an awful example s of depravity f in: this, respect. .Is nob everything saleable ;in ; this world held for speculative purposes ?.gThat being conceded, why should philanthropy and, total disregard of self be expected from the mine owner more than from anyone else? The whole fabrication of ■ laws and regulations, both written and unwritten, as applied to quartz mining, is a relic of the barbaric alluvial days, when i the pick, ; shovel, : and: , dish, backed ; up by a strong arm, were the : only requirements. To-day capital, backed up by skill and intelligence are absolutely necessary to success, and the i sooner our i rulers recognise the fact ? and frame. their laws accordingly, the better it will be for, all concerned. ■, - -' i ■ ■■■ .;;,■■-.;: . :;,.;-.■;■".; ■'•■■" ."■■-.•-' -. ■:[ . -,'-.. ■~-■-.■ ;■',■;..[.'..; ' : '-'i'yy''''.\.'■:•'■'■'-. r^' : .;>V : .:;,;,-/ rv. ;; \r'■/.\;:]/:]'■~:i\>/X : ;:'-i.}':~.>. • '