Show THE OUTLOOK the year of nineteen hundred eleven is drawing to a close and the revival in the local mining stock business has not come as many had expected it may be worth while to make some investigations as to the cause or causes there is much interest in the mining industry and the production in this state is running ahead of that of last year the same is true of nevada idaho and other surrounding states nevada was third state in the union in the production of gold the settlements for ore and bullion in this city are showing considerable improvement over the records of previous years since the mining and smelting smelling sm elting indus treis are flourishing and prospering why is there not more demand for our mining stocks this is a reasonable and a seasonable question there are some grounds for the present low and inactive condition of the stock market first firs t we ve are passing through one of the cycles which have characterized the trading before we ave have had periods of two to three years of steady declines and then the pendulum has swung to the high point on the other side it would seem that the low point in the are arc of oscillation had been reached second there is need or some great strike one like that made in the grand central in 1898 like that made in colorado in 1907 and a little later in sioux consolidated this will come in time but may not be in tintic gintic district park city or bingham it may be made in park valley or it may be made in some of the promising camps of nevada like seven troughs manhattan fairview or jarbidge harbidge Jar bidge third there are not so many prospectors in the hills now as there were a few years ago but there is some very systematic prospecting being done by this method about all the great mines have been located this work will tell and the results will be manifest in a revival in stock transactions fourth the mining stock business has been greatly abused by promoters who knew little and cared less for the best plans for developing a good prospect to a mine taking advantage of an active market millions of shares of stock were floated and a very small part of the money paid for the stock was used in development As a result many a valuable prospect has been lost for the company the stock was and when the slump came there was no market for more stock if any remained to be sold and there was no way to raise funds to continue work others later came along and relocated the ground and a rich mine was developed fifth some writers who have had little experience in mine development or efforts to finance a company have been publishing articles discouraging investments for developing a prospect to a mine A writer in a recent article in a great weekly paper makes this statement 1 I wish it were possible for me to convince the readers of how unwise it is for either the small or large investor to purchase the stocks of such companies such companies means those that are undertaking to develop prospects this prohibition would include such companies as the calumet and hecla when the stock was selling at 1 per share in the effort to rai se e funds to make a mine such as the utah copper when the stock was selling at less than 5 a share such as the goldfield consolidated whose stock was selling at 10 cents a share such as the centennial eureka whose stock went begging at 75 cents a share when the capitalization was only shares but whose prospect became and is still one of the richest mines in the state if no one invested any money to develop a prospect there would be no mines to pay dividends such teachings must be overcome they show a lack of thought the advice of cecil rhodes is much better he said less money is lost proportionately in gold mining than in any other business or investment on earth buy a good mining stock buy it low when it has made a profitable advancement sell it buy another good stock pursue this policy and before you dream of it you will find your dollars have increased into thousands and during all the time your dividends have been one hundred per cent higher than they would have been in any mothr investment you could nave made |