Edward L. Plumb to William H. Seward, June 24, 1868
Mr. Plumb to Mr. Seward.
Sir: On the 16th of March last a commission was appointed by this government for the purpose of examining into the present state of mining in the republic, and especially into the system of imposts which now weighs upon that important branch of industry.
This commission was composed of a number of persons named by the government, and of delegates from each of the mining States, to be named by the miners themselves.
A translation is inclosed herewith of the order issued by the department of treasury appointing the commission, which fully explains the objects sought to be attained.
On the 25th ultimo this commission made a voluminous report upon the special subject of the existing imposts, which was submitted to congress by the minister of treasury just before the close of the last session.
This report concludes with the following important recommendation, viz: “The mining junta propose to the minister of treasury, as the sole means of rapidly raising this branch of industry to the grade of prosperity of which it is immediately susceptible, the absolute exemption of gold and silver from all duties.”
Should action be taken by the Mexican congress at its next session, or at an early period, in conformity with this report, it would be of incalculable advantage to the industrial and commercial interests of this country.
It is almost too much to hope, however, that such action will soon be taken.
To show the burden resting upon the mining interests of Mexico, under the system of imposts in force at the date of the 1st ultimo, I inclose herewith a statement of the charges incurred by silver from the time it leaves the mine in bars until the proceeds are deposited in bank in England.
These charges, it will be seen, amount altogether to the enormous sum of twenty-five per cent., of which nineteen and one-half per cent. is for account of the government and the mint.
In addition to this burden, weighing upon this branch of industry, it is estimated that twenty per cent. or upwards of the silver contained in the ore is lost in the process of reduction.
It is very evident that against such obstacles mining in this country can progress only with difficulty.
I have the honor to be, very respectfully, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.
Statement of the charges on silver produced in the mines of Mexico, from the time of leaving the mine in bars until the proceeds are deposited in hank in England.
| Per cent. | |
| 1. Freight from the mine, (say mines of Real del Monte, twenty-two leagues from the city of Mexico,) including the necessary escort, on account of the want of | 1 |
| 2. Difference between the intrinsic value of the bars of silver arriving at the mint and the rate at which they are accounted for in coined dollars, being the compensation and profit of the mint, stated in official reports to be five and one-eighth per cent., and acknowledged by the mint to be four and one-half per cent. | 4.50 |
| 3. Government duties and other charges made in the mint, 5⅗ per cent, to 7½ per cent., as per statement s herewith—say six and one-quarter per cent. | 6.25 |
| 4. Agent’s commission in city of Mexico, receiving and forwarding dollars, one-half of one per cent. | 0.50 |
| 5. Freight by government conductor to Yera Cruz, three-quarters of one per cent. | 0.75 |
| 6. Circulation duty, two per cent.; export duty, live per cent.; federal contribution, twenty-five per cent, on amount of the two preceding duties, or one and three-quarters per cent., making eight and three-quarters per cent, government duties on dollars | 8.75 |
| 7. Agent’s commission, receiving and forwarding at Vera Cruz, one-half of one per cent. | 0.50 |
| 8. Petty charges at city of Mexico and Vera Cruz, as bags at Mexico, boxes at Vera Cruz, porter’s charges, &c., one-eighth of one per cent. | 0.12½ |
| 9. Steamship agent’s charge for embarking at Vera Cruz, which includes boat-hire, one-eighth of one per cent. | 0.12½ |
| 10. Freight from Vera Cruz to bank of London, one and one-eighth per cent. | 1.12½ |
| 11. Insurance, five-eighths of one per cent. | 0.62½ |
| 12. Brokerage on insurance, one-quarter of one per cent. | 0.25 |
| 13. Agent’s commission, receiving and selling dollars in London, and depositing proceeds in bank to credit of miner, one-half of one per cent. | 0.50 |
| Total | 25 |
RECAPITULATION.
| Per cent. | |
| Government and mint charges | 19½ |
| Freight in Mexico | 1¾ |
| Freight and insurance to Europe | 1¾ |
| Commercial charges | 2 |
| Total | 25 |
The export of uncoined silver, as also of ores, is prohibited.
From the best authorities it is also learned that, of the silver contained in the ores raised from the mines and carried to the reduction works in the most advanced mines in Mexico, upwards of twenty per cent, escapes and is lost, even under the most improved processes now in use.
This important branch of industry, therefore, labors under the disadvantage not only of the failure to extract that portion of the silver contained in the ore worked over, but also of having to bear charges to the amount of twenty-five per cent. upon the silver actually produced, and this whether the mines are yielding any returns upon the capital invested or not.
The foregoing statement is of charges as existing May 1, 1868.
1. Statement of return made of 166 bars of silver from the mines of Real del Monte, delivered to the mint at the city of Mexico for coinage.
| Value reported at $8 25 per marc | $193,678 99 | |
| Duties: | ||
| Three per cent. | $5,810 36 | |
| Assay | 166 00 | |
| Real per marc | 2,934 52 | |
| 8,910 88 | ||
| Federal contribution, 25 per cent. on above | 2,227 72 | |
| 11,138 60 | ||
| Net | 182,540 39 |
July 13, 1867.—Percentage of duties on value reported, 5¾ per cent.
[It is to be observed that the intrinsic value of silver in bars is $9 41 per marc]
2. Statement of return made of 77 bars of silver from the mines of Real del Monte, delivered to the mint at the city of Mexico for coinage.
| Value reported—silver | $89,643 99 | ||
| “ “ gold | 1,058 49 |
| 90,702 48 | |||
| Charges: | |||
| Separation, gold from silver | $635 90 | ||
| Government duties: | |||
| Three per cent | $2,721 07 | ||
| Assay | 83 00 | ||
| Real per marc | 1,358 24 | ||
| 4,162 31 | |||
| Feberal contribution | 1,040 57 | ||
| Municipal and desagua | 75 70 | ||
| 5,278 58 | |||
| 5,914 48 | |||
| Net | 84,788 00 |
January 23, 1868.—Percentage of charges on value reported, 6.52 per cent.
3. Statement of return of 77 bars of silver from the mines of Real del Monte, delivered to the mint at the city of Mexico for coinage.
| Value reported—silver | $89,560 45 | ||
| “ “ gold | 1,730 04 | ||
| 91,290 49 | |||
| Charges: | |||
| Separation | $1,184 32 | ||
| Duties: | |||
| Three per cent | $2,738 | 71 | |
| Assay | 89 00 | ||
| Real per marc | 1,356 97 | ||
| 4,184 68 | |||
| Federal contribution | 1,046 17 | ||
| Municipal and desagua | 111 22 | ||
| 5,342 07 | |||
| 6,526 39 | |||
| Net | 84,764 10 |
February 10, 1868.—Percentage of charges on value reported, 7.14 per cent.
4. Statement of return made of 85 bars of silver from the mines of Real del Monte, delivered to the mint at the city of Mexico for coinage.
| Value reported—silver | 198,653 14 | ||
| “ “ gold | 139 23 | ||
| 98,792 37 |
| Charges: | |||
| Separation | $100 73 | ||
| Duties: | |||
| Three per cent | $2,963 77 | ||
| Assay | 84 00 | ||
| Real per marc | 1,494 74 | ||
| 4,542 51 | |||
| Federal contribution | 1,135 62 | ||
| Municipal and desagua | 119 34 | ||
| 5,797 47 | |||
| 5,898 20 | |||
| Net | 92,894 17 |
February 22, 1868.—Percentage of charged on value reported, 5.97 per cent.