of the concern, it encourages misstatements, and tends to support a class of unscrupulous speculators, through whose agency this branch of industry has been chiefly brought into disrepute. All mineral explorations should be conducted as rapidly as possible, for the purpose of lessening the aggregate amount of dead charges, and a practical, intelligent, and honest man should be entrusted with the direction of the works. It is by no means essential that such a person should possess an elaborate education; but his ideas relative to the exigencies of his profession should be clear and well defined, and he ought, moreover, to be fully acquainted with the uses of the dial, and with all the various operations of dressing and preparing the ores for market. Grave mistakes are frequently committed by entrusting the local management of mineral undertakings to men who possess but a superficial acquaintance with the subject, and who sink large sums of money in the multiplicity of their schemes for economizing expenditure; such persons often make extensive surface erections before proceeding to the development of the underground works, and, from mere love of display, absorb an undue proportion of the capital, forgetting that their arrangements can only be valuable in proportion as the mine itself becomes productive. Hence the undertaking becomes prematurely embarrassed, and is sometimes obliged, from this cause alone, to terminate its existence. The radical principal to be observed by a capitalist, when about to invest money in profitable or established mines, is to distribute his means over a considerable number of them; since to adventure in any single concern is with the best advice a matter of considerable risk. Moreover, it is not judicious to confine investments to one district or to one class of mines alone, but to select the richest localities, and, according to their importance, give the best mines they contain a pro rata proportion of capital. It should also be borne in mind, that certain adventures are so worked as to afford regular periodical dividends, while others only yield returns at irregular intervals. These two classes of properties do not necessarily imply that different systems are pursued in their management. Permanent dividend mines are often more advanced in their explorations than those which yield irregular profits; and although the percentage of returns is steadier on the former, yet the probability of improvement in the market value may be considered greater in the latter; thus allowing the capitalists to realize a rate of profit in one case which could not be obtained in the other. In order to afford capitalists a few leading ideas relative to the peculiar features tending to make a mine valuable, we note some points on which distinct information should, if possible, be obtained prior to investment, presuming that, in the first instance, the con stitution of the company, as well as its repute and management, is duly approved. 1st. Situation of the mine, and the value of the locality for its specific produce as compared with other mining districts. 2nd. Relative position of the sett with regard to surrounding profitable mines, whether situated on the run of productive lodes, or parallel to them; and if on the latter, whether the ground in its general characteristics is analogous to that of the productive district. 3rd. Number, size, direction, and composition of the lodes, and their several lengths through the sett. 4th. Length and extent of ore ground developed, proximity of workings to the boundary, the dip or run of the metalliferous deposits, and whether they are shortening or lengthening in depth. 5th. Estimated quantity of ore in reserve, its average produce for metal, and if increasing or decreasing in its yield or in the monthly tonnage produced. 6th. The estimated average cost of bringing the ore to surface and rendering it fit for market, and an approximate estimate of its value per ton. 7th. Relative proportion of " dead work" to the quantity of ore ground taken away, and whether the reserves of ore are being increased or diminished. 8th. Works of trial which are in progress, the time required to complete them, and, if successful, to what extent they will enhance the value of the property. 9th. Quality and condition of the machinery, its value, amount of surplus power at command for deepening the mine and drawing stuff, its cost of maintenance as compared with the total mining expenditure, and the estimated amount which may be required for plant, say in four following years. 10th. General proportions of each distinct expenditure to the total cost. 11th. Estimated value of materials, amount of cash in hand, value of ore ground in reserve, less liabilities, as compared with the present and prospective value of shares. It is believed that the foregoing considerations will be found to embrace most of the chief points bearing on the value of a mining undertaking; but it is also possible that minor enquiries will be suggested by the answers which may be elicited. These must, however, be pursued according to the discernment and tact of the enquirer, who, from the general tone of the information obtained, will regulate the extent and importance of his intended investment. We, some years since, compiled a series of tables, with a view of ascertaining the amount of interest afforded by the most profitable mines, on the market as well as on the original cost price of shares, and of determining approximately the probable future remuneration which would accrue from a judicious outlay of money in securing an interest in a number of sound adventures. These tables cannot be published in extenso, since they involve a multitude of figures, as well as numerous columnar divisions inapplicable to this work; but it hoped that, after stating the principles on which they are constructed, as well as the general results, both will appear satisfactory. TABLE I.—A series of British and foreign dividend-paying mines were selected, 35 in number, and associated during a period of four years, without any reference to the fluctuations of the market or advantages arising from changing the investment. The market price per share at the commencement of each year was ascertained, as well as the dividends paid during the year: this amount, relatively with the price, gave the rate of profit per cent., and the mean of the whole afforded a fair criterion of the value resulting from investing in this description of mineral property. The following is a synopsis of the results obtained : : The columns marked A express the collective values of one share in each under taking. B give the amount of dividends realized by the amount in columns A. o give the profit of dividends per cent. on price in columns a. year, and the probable profit which would accrue on a given sum of money if invested in a specific number profit per cent. afforded on the market value; the results which might fairly be anticipated in the following TABLE II. This table shows the amount of dividends per share on the capital stock; the rate of of mines. The market value of one collective share in each British adventure was, on January 1st, 1853, £3,946, and January 1st, 1854, £5,127. 10s. ; difference £1,181. 10s., equal to an increase of In Foreign Mines the total value of one share in each undertaking was, on the 1st January, 1853, £83. 10s.; on the 1st January, 1854, it had increased to £99 5s.; the difference, £15. 15s., equal to an increase of... Total mean increase on the market 16 12 0,, 14 14 0 £16 10 0 27 12 0,, 18 16 0, £29 14 0 |