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By R. A. Stauffer

THE chief ore of lithium is spodumene, a lithium-aluminum silicate containing up to 3 pct lithium. The preparation of lithium salts from spodumene is costly because of the low concentration of the metal and the difficulty of separating it from the other alkali metals present. Dr. Kroll's and Dr. Schlecten's recent paper' has reviewed various methods proposed for preparation of lithium. It will be seen from this paper that the methods proposed to date have required one or another of the lithium salts as a raw material. The high cost of these salts has been the chief item of expense in the lithium metal produced. This situation has made it interesting to investigate the possibility of producing the metal directly from spodumene. When spodumene is calcined at 1000°C in the presence of lime, lithium oxide is replaced in the ore as is evidenced by the fact that it may be leached from the reaction mixture with water.2 Free energy calculations suggested that lithium oxide might be reduced with aluminum or silicon and the lithium produced distilled from the reaction mixture by heating to about 1000°C in a vacuum. These facts taken together suggested that it might be possible to prepare lithium metal directly from spodumene by heating a mixture of the ore, lime, and a suitable reducing agent in vacuum and distilling off the lithium metal as formed. THE REPLACEMENT OF Li20 IN SPODUMENE A series of experiments were undertaken to determine the ratio of lime to spodumene necessary to free substantially all the lithium oxide present in the ore. The spodumene used in these experiments was supplied by Foote Mineral Co. in the form of powder of about 200 mesh. Analysis of the spodumene was as follows: [ ] Lime (cp -200 mesh) was added in various ratios to spodumene and thoroughly mixed in a ball mill. Two hundred gram samples of spodumene-lime mixtures were charged loosely in fireclay crucibles and held at 1000°C in a gas-fired furnace for 5 hrs. The product in each case was ground to pass 140 mesh and then placed in a thimble in a soxhlet extractor. Extraction with water was carried on for 6 hrs. After this period the extract was reduced in volume by evaporation in order to precipitate dissolved lime and was then filtered and titrated with 1/4 normal hydrochloric acid. After correcting for residual calcium oxide in solution, the alkali present was calculated as lithium oxide. The results of these experiments are shown in Table I and Fig I. At lime-spodumene ratios less than 1.5, the products were invariably fused. At the ratio of 1.5 and above, the product was loosely sintered with little evidence of fusion. When the ratio of lime to spodumene was three, replacement of alkali oxides in the

Jan 1, 1947

By T. D. Yensen

I. INTRODUCTION IT is safe to say that of all the different materials that go to make up electrical machinery, iron is the most important. Upon its -magnetic and electrical quality depends not only the efficiency of the machine but, to a very large extent, the cost. Aside from the mechanical strength, there are three characteristics of iron that are of importance in this connection, viz., magnetic hysteresis, electrical resistance, and magnetic permeability. In the homopolar machine, where the magnetic flux is unidirectional, permeability is the only important factor, but in all other machines the flux is reversed in one or more parts and causes losses due to hysteresis and eddy currents. The eddy-current loss depends largely upon the electrical resistance of the iron; the higher the resistance the lower the loss, under otherwise identical conditions. These hysteresis and eddy-current losses cause heating of the machine, and as they depend upon the magnetic density in the iron, this density must be regulated so that the heating shall not be excessive. If the hysteresis and eddy-current Josses and the permeability of the magnetic circuit will permit an increase in the magnetic density, or, in other words, a decrease in the amount of iron, this in turn will mean a decrease in the amount of copper needed, with a consequent decrease in the copper loss. It is thus seen that; indirectly as well as directly, the above characteristics have an important bearing on both the efficiency and the cost of electrical machinery. In general, it may be said that iron for electrical machinery should have the following characteristics: (1) low hysteresis loss, (2) high electrical resistance, and (3) high permeability. These are the characteristics that investigators have been striving to attain since electrical machinery first came into use.

Jan 2, 1916

By T. D. Yensen

Discussion of the paper of T. D. YENSEN, presented at the New York meeting, February, 1916, and printed in Bulletin No. 110, February, 1916, pp. 483 to 512. JOHN A. MATHEWS, Syracuse, N. Y.-Concerning the critical composition of the steel containing 2.50 per cent. of silicon, I may say that 12 or 13 years ago we made some of these alloys. They. were not as pure as the alloys made by Mr. Yensen, nor were they melted in vacuo, but one of them contained exactly 2.50 per cent. silicon, and about 0.25 per cent. carbon. It gave us no trouble whatever in hammering to a billet or rolling into bars, nor even when rolling into ¼ -in. wire rods. The steel in question was practically free from everything except carbon or silicon and contained no manganese sulphur or phosphorus worth mention. The alloy containing 2.50 per cent. of silicon worked perfectly well, as well as one containing 0.5 per cent. silicon, and it seems to me that further work should be done by Mr. Yensen on the physical properties of alloys at this seemingly critical change point. W. E. -RUDER, Schenectady, N. Y.-We -have made silicon steels of practically every composition and have never obtained any material under 5 or 6 per cent. of silicon which was brittle. This may be due, of course, to the presence of carbon, in some of the 'commercial materials, and I presume that Mr. Yensen would argue that the: presence of this carbon might prevent inter-granular brittleness. However, all of our silicon steels, up to 5 per cent. of silicon, by treatment in hydrogen at temperatures near the melting point, can be made to show inter-granular brittleness. Furthermore, the material made brittle in this way could be restored by treating at the same temperature in hydrogen containing a hydrocarbon vapor. I discussed this matter some years ago in a paper on inter-granular cement. It therefore appears likely to me that Mr.

Jan 5, 1916

By John D. Gill

THIS paper assumes the incontrovertible nature of the statement that the validity of competition in the nonnatural resource industries is established firmly on the rate and extent of the economic development of the United States. It then demonstrates the nonexistence of any condition within the petroleum industry that would invalidate the principle of competition as applied to it. It points to the benefits that competition has effected in the oil industry and the reasons why the practice of the competitive principle should continue to keep the industry virile and progressive in meeting the requirements of future generations for the kind of products natural to it. Finally, it pleads for a clearer view of the affairs of the oil industry by seeing them against a background of the whole economy. INTRODUCTION Even a few years ago there would have been only an academic reason for presenting before this Institute a paper on the validity of competition in the oil industry or any other natural resource industry; today there is no more practical subject for this body to consider. In social importance it transcends attempted solutions of perplexing technical problems; and even the numerous legal and economic problems that grow out of administration of state regulatory measures appear to be of secondary importance because they would cease to exist if competition were abolished. The aspiration of certain elements of the Federal Government to acquire control of the oil industry has long been suspected The vital need for petroleum in the national defense ... confirms my belief in the urgent need of Federal legislation to safeguard our petroleum supply through prevention of waste and by establishment and maintenance of sound economic conditions in the oil industry... . But also it may be dismissed with this mere mention of it because it predicates government control and the abandonment or broad reduction of competition on a war emergency. Clearly, the fight for a nation's life may justify a government's control over men and resources that would be abhorrent and economically enervating under conditions of national security. More pertinent to the present matter, because it appears expressive neither of a personal ambition nor of an emergency condition but rather of the long-range view of a certain school of conservationists, is the pronouncement of no less an authority than the Attorney General of the United States, who has been repeatedly quoted by the press as saying that the American Petroleum Industry constituted a case "where the principle of conservation of an exhaustible and irreplaceable resource should replace the principle of competitive exploitation." The significance of this statement in the light of the commonly accepted meanings of the " principle of conservation" and of the "principle of competitive ex-

Jan 1, 1941

The United States Civil Service Commission announces open competitive examinations for the positions of valuation engineer, assistant valuation engineer, and valuation aid for the Income-tax Unit of the Internal Revenue Bureau. The duties of these positions will involve the estimating of: (1) The quantity of mineral, oil, and gas or timber; (2) the theoretical and market values of mineral, or oil and gas in place, standing timber, and their products; (3) the value of equipment ordinarily used in discovery, exploitation, and utilization of such natural resources; (4) the cost of development, exploitation, and utilization of such natural resources. The entrance salary for each grade, within the range stated, depending on the qualifications of the appointee, is: Valuation engineer, $3600 to $4800 a year, though in exceptional cases higher salaries may be paid; assistant valuation engineer, $2500 to $3600 a year; valuation aid, $1200 to $2500 a year. Applications for valuation aid must have had a bachelor's degree from a college of recognized standing, graduation from a four years' high-school course, or education equivalent to that required for such graduation, and at least four years' experience in the technical branches of one of the industries mentioned in positions tending to qualify them for the duties outlined above.

Jan 6, 1919

By Oliver Bradley

THE utilization of casing-head gas in the manufacture of casing-head gasoline by both the absorption and the compression method is a most important factor in the conservation of our natural resources.. Any industry connected with the oil business, in general, possesses particular attraction for a large number of people not conversant with its basic principles, for the reason that the large fortunes made in the production and utilization of petroleum and its products have been given undue prominence. The general impression of the public that enormous profits are to be realized in the casing-head gas industry with minimum expenditures of both capital and effort has, in a large measure, accounted for the phenomenal expansion of the industry in recent years and, likewise, has resulted in many mistakes and loss of investment funds. It is true that many installations have been very profitable, but such instances are always the result of careful planning, experienced judgment and conservative estimates. The inception and subsequent activity in the manufacture of casing-head gasoline, enabling the business to assume an important position in the petroleum industry, are of, comparatively recent origin, as its greatest growth, particularly in Oklahoma, occurred during the years 1917 and 1918. Much information must yet be secured and systematized concerning the methods of manufacture of gascline from high-yield casing-head gas, and a large field is still open for the application of accumulated experience and good engineering practice in devising better methods of extracting gasoline from casing-head gas of the poorer grades. The absorption process is coming into general use as a most efficient system of treating casing-head gas, and even so-called dry gas. In fact, there is a decided tendency toward the universal adoption of the absorption process as against compression methods. However, a general discussion of the relative merits of these two systems is not within the scope of this article.

Jan 9, 1920

By Kenneth A. Grace

Jan 1, 1985

By AIME AIME

A COMMITTEE, representing a number of the larger oil companies in California, met in San Francisco on Nov. 12, 1919, for the purpose of discussing the depletion deductions to be allowed in computing the Federal income taxes under the Internal Revenue Act of 1918. It was the general sense of the committee that a system based on sound engineering principles should be formulated for estimating the value of oil properties, so that better and more uniform results might be obtained by the various companies in filing their returns with the' Bureau of Internal Revenue. A subcommittee, consisting of five petroleum engineers, was thereupon appointed to collect information and draft a report. The committee consisted of G. C. Gester, Carl H. Beal, J. H. G. Wolf, E. G. Gaylord, and E. D. Nolan; this report is the work of that subcommittee.

Jan 1, 1920

Discussion * of the paper of H. M. Chance, presented at the butte meeting, august, 1913, and printed in bulletin No. 79, July, 1913, pp. 1315 to 1341. George H. Ashley,+ Washington, d. C.:-Mr. Chance's long practical experience in reporting on coal lands admirably fits him for a discussion of the value of such lands. On behalf of the government geologists, I wish to express my appreciation of Mr. Chance's friendly, constructive criticism of the government method of valuing coal land in the first part of his paper and, at the same time, to reply to some queries he makes. All admit that coal has no " intrinsic "-monetary value, in the sense that a pound of coal of certain chemical and physical characters is worth " intrinsically " so many cents or fractions of a cent. The term has, however, been found very useful as including those natural factors of coal value, among which are its position and location in the earth, that affect its sale price in contrast with the other cost elements involved in the labor and capital necessary in mining, preparing, transporting, and selling the coal (extrinsic factors). Mr. Chance, while recognizing the " dual origin of value," does not offer any better terms. The survey agrees with Mr. Chance in his definition of coal conservation, that it means the fuller utilization of the heat contents of the coal, and the more complete recovery of the coal from the ground. Coal land withdrawals have not been made to keep such lands off the market, but to prevent their acquisition as non-coal lands before they could be classified so as to be disposed of under the proper law. Nor has the pricing of the more valuable coal lands above the minimum been to raise money for the reclamation fund, to which the money goes, but primarily to discourage the alienation, for holding or speculation, of coal lands not intended or needed for development, and, secondarily, to secure to the people the ?unearned increment," which they are certain in any case to be charged.

Jan 11, 1913

By H. M. Chance

(Butte Meeting, August, 1913.) ADEQUATE treatment of the difficulties surrounding the valuation of mineral lands requires that agreement be first reached defining value as understood for the purpose of appraisal. To define value as the price of a product is not sufficient, and does not assist us in using the factors that cause variations in values and in relative values. The real value of any product depends primarily upon its relation to the necessities, comforts and pleasures of mankind. As the necessities, comforts and pleasures of the civilized races differ from those of more primitive man, the value of products varies with the degree of civilization and the environment of the consumer. Coal has no value to the savages of warm climates, and arrow-head flint none to the residents of New York. It has long been recognized that what has been termed ? intrinsic value " must be limited to materials that are essential to existence-air, water, food. But "intrinsic value" cannot be measured in monetary terms. The intrinsic value of a bushel of wheat is due to the fact that it will support the life of an individual for a certain definite time, but this fact does not enable us to measure or to express that value in monetary terms. It has often been proposed to adopt as a measure of the value of any product the quantity of labor necessary to produce it, but this method is of limited application, and will not apply to what may be termed "intrinsic values." For many reasons it might be well, while assenting to the fact that any material may he intrinsically valuable, to abandon the use of the term " intrinsic value." One of these reasons is the tendency to confuse the idea of intrinsic value with a value that is conferred by economic conditions, that is purely artificial and that may be permanent or evanescent; Intrinsic value must from its nature be permanent and unchangeable.

Jan 7, 1913

By H. M. Chance

(Butte Meeting, August, 1913.) ADEQUATE treatment of the difficulties surrounding the valuation of mineral lands requires that agreement be first reached defining value as understood for the purpose of appraisal. To define value as the price of a product is not sufficient, and does not assist us in using the factors that cause variations in values and in relative values. The real value of any product depends primarily upon its relation to the necessities, comforts and pleasures of mankind. As the necessities, comforts and pleasures of the civilized races differ-from those of more primitive man, the value of products varies with the degree of civilization and the environment of the consumer. Coal has no value to the savages of warm climates, and arrow-head flint none to the residents of New York. It has long been recognized that what has. been termed ?intrinsic value " must be limited to materials that are essential to existence-air, water, food. But " intrinsic value " cannot be measured in monetary terms. The intrinsic value of a bushel of wheat is due to the fact that it will support the life of an individual for a certain definite time, but this fact does not enable us to measure or to express that value in monetary terms. It has often been proposed to adopt as a measure of the value of any product the quantity of labor necessary to produce it, but this method is of limited application, and will not apply to what may be termed " intrinsic values." For many reasons it might be well, while assenting to the fact that any material may be intrinsically valuable, to abandon the use of the term "intrinsic value." One of these reasons is the tendency to confuse the idea of " intrinsic value with a value that is conferred by economic conditions, that is purely artificial and that may be permanent or evanescent. Intrinsic value must from its nature be permanent and unchangeable.

Jan 7, 1913

THE COMMITTEE, appointed early in May, met and organized in Washington, May 9, 1923, and were then advised that such data as they required would as far as obtainable be submitted to them in tabulations, and that they could not be allowed to see the individual reports nor know the identity of the operators on whose reports the figures submitted were based, therefore the Committee's valuation is based on data received from your statisticians, and on tonnages estimated by your staff and by the United States Geological Survey. Various methods of valuation for mining properties have been suggested, but all authorities seem to agree in accepting, as the fairest and most practicable and logical, a capitalization of the estimated future earnings, when such estimate can reasonably be made. Hoover and Finlay both emphasize this. The United States Supreme Court says in Cleveland, Cincinnati, Chicago & St. Louis Railway Co., v. Backus, 154 U. S. 439: But the value of the property results from the use to which it is put and varies with the profitableness of that use, present and prospective, actual and anticipated. There is no pecuniary value outside of that which results from such use. The amount and profitable character of such use determines the value. The Committee on Federal Taxation of the American Institute of Mining and Metallurgical Engineers, appointed in 1919, in its report states: A proper value of a mining property is the present value of the prospective net earnings, taking into account probable variations in output and value. Ingalls (" Wealth and Income of the American People," p. 97) says: The fundamental principle of mine valuation is the present worth of an annual dividend accruing during the period of years corresponding with the life of the mine. It is a convention that the estimated period shall not be more than 30 years.

Jan 1, 1924

By John Dilworth

THIS paper treats primarily of the valuation of developed coal properties by the method of capitalizing their estimated average future earnings. However, in it reference is also made to valuations of undeveloped coal lands and to various methods of appraisal other than by future earnings. FUNDAMENTAL VALUATION PRINCIPLES Before discussing in detail coal property valuations, a few statements bearing on the general subject will be made to present certain of the writer's views on the question as a whole. 1. A certain property at a given time has but, one true value. This is not universally admitted. The appraiser rather frequently finds that a coal owner has in mind three valuations for his holdings; one, the figure at which he feels they should be appraised for taxation purposes; another, the much higher one that should be used if a loan is to he negotiated on the property; and a third, intermediate between the other two, the price for which he would be willing to dispose of his holdings were they for sale. The last is usually nearest to the true value, and because this is so the statement is generally accepted that the fair value of such a property is the price arrived at by negotiation between a willing seller and a willing buyer who are otherwise disinterested. 2. Notwithstanding the foregoing, it is only very generally and approximately true that the proper measure of the value of a given developed1 coal acreage is the unit or per-acre price for which one or more bodies of similar coal in the salve district have been sold recently. To give a few reasons why such a measure of value can not be strictly applied, it may be noted:

Jan 1, 1927

By John Dilworth

IN considering the valuation of industrial properties in general, and of developed coal properties in par-ticular, it is assumed as fundamental that they have but one true value regardless of the object for which they are appraised. As regards developed coal lands, this value is only very approximately indicated by the recent sale price of neighboring lands, for the reason that it is rarely possible to find a sale of a coal property sufficiently similar in essential mining conditions to the one under consideration to serve as a measure of its value; and if such a one is found there are frequently incidental conditions peculiar to this particular transaction which invalidate the use of the sale price as a measure of general values. The true measure of the value of a coal mining opera-tion is the amount and rate of earnings it will afford with intelligent and experienced management. Prac-tically all of the features of a property which are gen-erally recognized as affecting its value relate either to the cost of producing the coal, or to the price it will bring, and so are intimately associated with earnings. In practice it is customary to appraise those portions of a developed coal property which are produced -by the industry of man-mine plant, equipment, development, town, etc.-at their cost of replacement at prevailing prices of materials, machinery, and labor, with such deductions for age, condition, obsolescence, and lack of usefulness as conditions warrant. Surface is appraised at the estimated cost of similar land in the district. Coal value is the difference between the worth of the entire property; considered as an industrial unit and

Jan 9, 1927

By E. E. White

I disagree with Mr. Brinsmade on serveral points, and I will discuss this remards under the same six topics which he has used.

Jan 1, 1915

By E. E. White

I DISAGREE with Mr. Brinsmade on several points, and I will discuss his remarks under the same six topics which he has used. 1. Rate of Interest Earned by Sinking-Fund.-I believe Mr. Brinsmade is confused in his ideas as to the effect of new gold on the interest earned on money. The flood of gold which he mentions certainly should not operate, to increase interest rates, but since it replaces and adds to liquid capital should reduce interest rates and counteract the destruction of liquid capital which he mentions. Furthermore, it is doubtful if the destruction of capital since 1897 by wars and catastrophes has been any greater in proportion than in similar periods before 1897. With regard to savings banks, I would say that only 3 per cent. is allowed on deposits through a large part of the West. As to bonds, they can be bought to yield any rate. of interest desired up to 6 per cent., but, a 5 per. cent. bond is not as safe as a 4 per cent. bond, nor a 4 per cent. bond as safe as a 3 per cent. government security. I do not understand why Mr. Brinsmade says that Mr. Denny's quoted opinion of a 3 per cent. rate is evidently based on English conditions before the Boer War. Certainly there is no reference to the Boer war or to English conditions in Mr. Denny's article. M. Howard Burnham, in his admirable work on mine valuation, says': ". For instance, redemption is taken at 3 per cent., because even 4 per cent. represents a greater risk, as is indicated by the purchase of Government paper to bear only 3 per cent., the great desideratum of the .latter being security." . Again, Mr. Burnham says:2 "The tables are calculated on the assumption that the dividends shall accumulate at 3 per cent. only, as in accordance with the general idea set out elsewhere, a rate greater than 3 per cent. involves appreciable risk with which it were inaccurate to saddle the sinking-fund if risks are to be segregated, this being the basis of all the writer's calculations."

Jan 6, 1914

By John C. Smock

THE question of the proper valuation of mines of iron ore was suggested to me by the difficulties experienced in getting answers for the United States Census Office, while I was engaged in the work of collecting the statistics of mines in New Jersey and New York The answers to the questions relating to values of real estate of mine properties varied so greatly that it was necessary to revise them according to some general principles of valuation. Generally the returns of mine proprietors Seemed to be too low. There were, however, examples of what would be termed excessive valuation. The Subject appeared to be of practical importance, and led to the paper here presented. The following table of selected mine statistics is given, prefacing the discussion of the principles of valuation. It is in part made up of census returns and partly of data obtained directly from mine owners and managers. The mines which were Selected for the Several groups and mining districts include nearly all of those from Which the more full and carefully filled returns were received, and are also representative of their respective districts. Hence the averages obtained from them become good types of these groups or districts. The mines of New Jersey appear in Six groups, each containing from three to eleven mines, or, in all, thirty-four mines. The magnetic iron ores of New York are in four well-marked groups, and there are twenty-six mines in them. Then follow the red hematite mines of St. Lawrence and Jefferson counties; and, lastly, the brown hematite groups of Dutchess and Columbia counties, and those of the adjacent parts of Connecticut and Massachusetts. The whole number of mines represented by the table is eighty-eight, of which twenty-eight are hematite mines. The first column gives the value of the real estate; the second that of the plant; the third is the sum of these two, or the capital invested. Then follow the number of men employed, the amount of wages paid during the census year, and the value of materials used in mining and preparing the ores for market.* The seventh column gives the total expendi- * The value of materials is somewhat uncertain in many cases, as royalties are included under this head. Likewise, under wages, the cost of explosives and light is often included. Hence it is impossible to draw the line sharply between these items of expenditure.

Jan 1, 1882

By James Finlay

(New York Meeting, February, 1913) AT first blush one is tempted to say that iron-mines are like any other mines, and that principles governing mining-property in general will apply to them. But there are certain considerations which seem to repay reflection. Gold and copper are more or less independent of transportation. The proof of this is that those metals are profitably mined and shipped from the remotest corners of the earth. Their value is determined by the cost of production on the ground. This is quite true of gold, not quite so true of copper, not at all true of iron. If New York were a fishing-village and Chicago' a swamp, Calumet & Hecla might still be a bonanza. The main element of its value is the 60 lb. of fine copper per ton which it produced for years. But the Mesabi Range is absolutely dependent upon the industrial activity in the United States. Iron-manufacture in Europe would give it no value whatever. If Chicago and New York had a population of Peruvians or Hindus, the Hull-Rust mine would be as worthless a bit of landscape as any tundra in Alaska. I have discussed these facts more or less casually and dimly in my book on the cost of mining and in my report to the Tax Commissioners of Michigan1 I shall try here to bring them out in more detail. I have already referred to some differences in the problem of mining as between the more precious metals, e.g., gold, and the less precious and more abundant minerals, like iron and coal; but it is interesting to note that the literature of the eco-

Jan 3, 1913

Discussion of the paper of James R. Finlay, presented at the New York meeting, February, 1912, and printed in Bulletin No. 75, March, 1913, pp. 487 to .503. CHAIRMAN JOHN BIRKINBINE :-Having been invited to preside at this session, the Chairman feels that the part he takes in discussions should be limited, although the subject presented is one of much interest to him and there are diverse viewpoints concerning methods of valuing expectancies from what may be considered " ore in sight," a term itself subject to various definitions. Estimates of quantities upon which valuations are made may differ without subjecting the estimators to criticism of unfairness if made by a prospective purchaser or by a seller, or if they are used as the basis for taxation. The hopes of the seller may influence a liberal allowance for estimated reserves, while the expectancies of a willing purchaser are less optimistic, and the tax assessor is expected to limit his consideration to the producing capacity of a mine, with possibly modest allowance for reserves. The knowledge that a property contains or yields mineral or the expectancy that it may be a producer of value adds to the estimate placed upon it by any of the above classes, and a just determination of this value is often a complex problem.

Jan 5, 1913

R. B. BRINSMADE, Puebla, Puebla, Mexico (communication to the Secretary*) :-As I have previously considered the general equations for mine-valuation,1 I will here discuss only that part of Mr. Finlay's paper criticized by E. E. White, along with some of the general principles of mining taxation, under the following six topics: 1. Rate of interest earned by sinking-fund. 2. Rate of interest earned by investment. 3. Place of royalty item in valuation. 4. Place of taxation item in valuation. 5. Calculation of future ore-prices. 6. Valuation of undeveloped mining land. 1. Rate of Interest Earned by Sinking-Fund.-Mr. Denny's quoted opinion of a 3 per cent. rate is evidently based on English conditions before the Boer war. The great destruction of liquid capital by the great wars and catastrophes since 1897, along with the flood of gold and consequent rise in the average index of commodity prices, has undoubtedly increased the rate of interest at least one-half per cent. In the United States sound savings banks now allow 4 per cent. on deposits, while safe bonds are quoted at prices which yield even 5 per cent.. 2. Rate of interest Earned by Investment.-Gold-mines with uncertain and scanty ore reserves, the objects of Mr. Denny's quoted remarks, are quite different from iron,. copper, or coal mines with definite mineral reserves blocked out ahead by drilling or driving. While 10 per cent is often all inadequate yield from gold-mines, the latter class of mines are often, as safe as city real estate and resemble it as an investment in more ways than one.

Jan 10, 1913