STATE OF THE GOLDFIELDS.

Dunstan Times, Issue 517, 15 March 1872, Page 3

STATE OF THE GOLDFIELDS.

—o— J TO THE EDITOR OF THE' UTJNSTAN TIMES. Sir, The contraction of credit taking place upon the gold-fields,, pointed out in my former letter, is theJVesult and indication oi a change in the condition_and circumstances of mining industry. Astherichnessof the gold deposits on their first discovery, caused the influx of capital, to participate by its ministrations to the process of development in the highly remunerative produce of the mines, so its retention is dependent on the prospect of profit—on the reproduetlveness of mining operations : and consequently, changes in the condition of the goldfields, limiting the extent of the workings or impairing the efficiency of labor, by difficulties, discovery, .or exhumation, affect correspondently the movements of capital, causing stagnation or retrocession of its flow.

Capital employed in productive occupations possesses a nerve-like sensibility. Its ■lamificatiourextend throughout the" bodypolitic, and thus it becomes a most sensitive barometer of social and political change. If -fertile lauds—pastoral, agricultural or auriferous—are discovered, there by a thousand wavelets its refreshing waters accumulate ; their advance at once an evidence of progress, and measure of the-dcgice of pros-perity-their recession an indication of decline. I his-general fact, which experience on the gold - fields has satisfactory established ; the productiveness of labor applied to gold - mining is greatest in the early periods of the occupation of the mines, in consequence of the greater facility of working the superficial deposits, which, being patent to observation, are always the first discovered. These superficial auriferous deposits soon become exhausted, and as the workings are extended, a greater degree of labor is required to produce an equal return, and their productiveness -as a rule—is impaired ; i.e., their proJucti veness relatively to the amount of labor and capital expended.

The continued prosperity of a gold country requires that there be frequent and successive discoveries of new auriferous tracts, in order to provide new resources for labor as the older workings cease to be remunerative, and when this is not, the case the march of progress is arrested, and their must decline. The richest ground being “ worked out,” all subsequent resource is to tracts of a lessdegree of rep’-oductiveness. The same amount of labor no longer yields an equal product. This is the present condition of the principal gold-fields of New Zealand, and especially those within the province of Otago. Mining has become less remunerative than formerly, by the of working poorer ground, or engaging in enterprises of a speculative character, necessitating increased working expenses, or them vestment of a larger amount of capital in preliminary and subsidiary operations. Reference to statistical returns will substantiate this position. The mining population of the province after various fluctuations, was reduced to its minimum about 1807, and since that period has been gradually increasing—and recently very greatly augmented by the Chinese Immigration. Yet the escort returns for that period show a progressive diminution in the quantities of gold produced Quantities of gold oonv»yed from the Otago gold-fields in each year from 1836 to 1871: 1886 ... ... 132,4370z. 1807 ... .. 149,334 1338 ... ... 163,089 1839 ... ... 150,575 1870 143,297 . 1871 113,937 What then is the significance and effect on the general interests of the country of this state of decadence of mining industry The diminished yield of gold relatively to the number of miners means less individual incomes, and consequently diminished expenditure in domestic luxuries and conveniences, as also in private industrial enterprises or public improvements and consequently diminished incomes and impaired resources of all classes of the community. Hence diminished imports and falling off in every department of -the public revenue, and contemporaneous with these deplorable circumstances in the condition of the staple industrial interest of the country, an amount of indebtedness existing in the community, which will sooner or later exercise an unfavorable influence on the financial-credit of the colony.

Such is the result and consequences of the limitation of the productiveness of mining labor. It is in perfect accordance with the common experience of gold-mining in all countries and ages. It is the result of natural laws and conditions, invariable and immutable, and might have been anticipated by consideration of the nature of tho case. Gold once extracted from any locality, is not (like vegetation) reproduced again by the return of seasons, or the lapse of ages : but is gone for ever, leaving behind it irretrievable sterility. It is not to be understood from these remarks that the gold-fields are exhausted. Treasures in abundance are yet in store —in river bed and mountain peak. For a generation yet to come now discoveries will be made, from time to time, that will add to the country’s prosperity. But this does not invalidate the truth of the general fact which the preceding considerations tend to establish, namely, that the productiveness of gold-mining, in a national point of view, has passed its climax in this country, and that a greater amount of capital and labor will be required in the future to obtain an equal produce. The profits of gold-mining

w ill consequently* be*'diminished; and,, in’ stead of being greater (as heretofore) will approximate to the legit’inato and ordinary profits of other branches of productive industry. The limits of progress fixed by natural laws having been already attained, the gold-fields are now experiencing the evils or (disadvantages of .the “stationary state.” Their prosperity is checked and “ stagnation” is the Characteristic feature of the times. The European population is unsettled, which is symptomatic of prospective decline, and it can only’’maintain its ground by adopting more economical habits, or by increasing the efficiency of mining labor by scientific appliances, f more effective combination, or more persistent energy. I am, &C., AGRICOLA. March 0, 1872.