The Evening Star FRIDAY, MARCH 7, 1873

Evening Star, Issue 3135, 7 March 1873, Page 2

The Evening Star FRIDAY, MARCH 7, 1873

One of the most hopeful signs for the future of Otago is the increased interest manifested in mining industry by capitalists. We have often pointed out that a larger and (pucker return, In proportion to the money invested, is obtainable from gold mining than from any other form of industry. This is, however, only as it should be, for it is undeniable that there is at least a chance of loss. It is the liability to be over-sanguine as to prospects that has to be guarded against; and the consciousness of the difficulty of obtaining approximately correct inform, ation of the probable value of the ground, lias tended to deter cautious men from investing in gold mining. The mining interest has, in consequence, suffered, and much really valuable ground remains totally neglected- It was partly owing to this failing interest in gold mining that the exodus to the West Coast took place some few years ago, although at the time the general belief was that the richest ground in Otago was worked out, and that the eight or ten thousand men who left the Province could not make wages. Prom the accounts that come in from all parts of the goldfields, there is now reason to think that the real riches of the country have been scarcely touched, and that by means of improved appliances and well-applied science the yield of gold will in a short time—perhaps a year or two —fully equal the amount produced in the best clays since its discovery. It will be seen from the reports that we are enabled to publish from tho different goldfields, that one essential to successful working is water, and everywhere this is scarce. At Cromwell, “crushing operations have been much retarded,” owing to scarcity of water. At Gabriel’s Gully the operations of the Q, M. Company were so much interfered with through “ the lapprceedontod drought” so that only three weeks’ work was done in a month —a loss of twenty-live per cent, to tho company, to the revenue on the yield of their gold, and of capital to the Province. Water is so scarce at the Toviot that men are threatening to sue each other; wo suppose for encroachments on their fancied rights. Tho experience of those claimholders who luivo resorted to law to set themselves right proves that even when successful it would have been more profitable to have endured the wrong, than tohavc gone to the expense and worry, and to have'incurred the anxiety and uncertainty of a law suit, But that apart, it is

plain that tlio circumstances under which cold-milling can ho successfully prosecuted have changed. In Otago, as in \iotoria and California, the sur ace has been scratched, and that which lay on or near the surface has been carried oil. leaving behind a very marked ad\ance in prosperity, but yet not realising a 1 the benefits that would have resulted, mu those who have left, remained and settled down amongst us. The principle or cooperation in the form of joint-stock mining companies must now take the place of small parlies of miners handed together ephemerally for surface working merely; and such security must be presented as will induce reliance on the prospects of the payable character of the ground proposed to be worked. e think the miners themselves have not given sullieicnt attention to pressing upon the Government the advisability of retaining in their service a scientific and practical man, on the reliability of whose certificate a company could with confidence invite the co-operation of capitalists. It seems a very clumsy way of ascertaining and making public the value of a gold mine, that there must be a dispute and law suit about it before it becomes celebrated, lot it is very likely the Company formed tor working Chick’s and Eager s claims would never have known its value had their differences not become a cause rclehrcs. Yet practical men in the district understood the matter, as is evident from the letter of our correspondent, whose opinion fis <in illustration of oui argument wc reproduce : ■ I anticipate that the company who have purchased the celebrated claims of Grace and Eager will soon be in a position to commence operations, aid m the interests of the district I rejoice _ that the first mining company of here should have such a solid basis of prosperity as is afforded by the claims mentioned. No one but those who, like myself, have thoroughly explored every inch of the "round yet opened, can understand the magnitude and value of the auriferous deposits winch are passing into the company’s hands. It is very strange that the vendors have made no efforts to develop the vein of rich wash which is seen in the next claim (Hoyle’s), on the bed rock below any of the present levehs being worked. This level of wash proved immensely rich higher up the lead, at Skipper’s Point. It is most likely that, great as have been the returns from the small portion of false bottom yet worked in these claims, they will be ex ceeded when the deep ground on the mam bottom is made to yield up its wealth. The leading commercial men of this district are on the provisional directory.

Although for the sake of security to capitalists agaiust the deceptions of the designing, or the mistakes of the sanguine, we think there ought to he a reliable man in the service of the Provincial Government, to whom to refer for a sound opinion respecting the probable t alue of auriferous ground, we clo not think that the public should he saddled with the cost of his salary; but while that should be a fixed one, the Government should be recouped by those companies which may hereafter be formed, in proportion to the amounts invested. Had something of this sort been done some years ago, when the disposition to invest in quartz mining was checked by the swindles perpetrated, it seems very likely that Otago would never have suffered from the depression of mining industry in past years. Had something of that sort been done in Auckland, many would have been saved from being drawn into bubble companies, by means of which they have been plundered. Another reason for the appointment of such an officer is, that the Province seems likely to have its gold-containing ground pass into the hands of capitalists, through not being able to ascertain which of two or more conflicting statements is true. Our readers may perhaps remember that an application was made to purchase land at Waikouaiti, and at Macrowhenua, both of which applications were objected to, on the ground that the land was auriferous, The new Waste Lands hoard were desirous of a skilled opinion on the subject of the application, but were met with the preliminary objection that no money was available for the purpose. They were, therefore obliged to fall back upon a Hanger, whose report will satisfy neither party, We have every confidence in the integrity of the Goldfields Wardens ; but they must form their judgments from reports, for their time is otherwise engaged than in geological ,and mineral investigations, and, were it otherwise, we do not think it fair to place them in positions in which, in ease of error, they might he seriously blamed. It weakens their influence in cases falling within their properprovince ; and as for rangers' reports, were they scientilieally correct, they would no weight with them : beyond their own districts their names are scarcely known, and doubt and uncertainty, the great hindrances to enterprise, would not bo removed. Our Provincial development has hitherto been too hap-hazard, and in consequence hundreds of thousands of pounds have been wasted that should have been saved. This ought to be guarded agaiust in future, as far as human foresight can avoid it. Even with the wisest precautions, occasional failure will occur; the wonder is that the. hit-or-miss plan hitherto pursued has resulted iu so many succeeding.