aubreyguynn
One Opening Divided by Stream: Why The Mine Closed
I have wondered why the mine closed suddenly in about 1913. I had guessed it was gold or silver prices that caused the eastern banking interests to call the note due that Pierre Peugeot had taken out to develop the mine. But a look at the history of gold and silver prices were constant during this time.
I thought, maybe it was WW I that made the banks shift their interest from mining speculation to war production that caused them to demand payment from Peugeot and forced him into receivership in 1911-1912--just months after reporting record shipping numbers and great improvements on the mine operations designed to improve production performance.
Maybe it was changes in banking regulations that forced the Chicago financiers to demand payment. In 1913 the Federal Reserve Act was passed by congress after several years of a national debate that must have shaken every banker in the nation leading up to its passing.
I suspect it was a combination of eventsand circumstances. In a website hosted by Utah's Division of Natural Resources covering the topic of Utah's Gold History two paragraphs give a hint:
"Gold production declined and many gold mines closed during World War I (1914-1918) due to a shortage of manpower, decreasing ore reserves, and increasing costs. During the depression in the early 1930s, gold mines were brought back to life and prospectors thoroughly searched the known and little-known gold-producing areas. Gold production increased rapidly when the government-regulated price of gold was raised in 1934 from $20.67 to $35.00 per ounce. This interval of increased productivity ended during World War II when gold mines were closed in 1942 by the War Production Board and were not permitted to reopen until the war ended. By-product gold, such as the gold recovered with the copper ores in the Bingham mining district, accounted for most of the gold produced during the war.
After the war, some gold mines remained closed due to the fixed selling price and rising operation costs. The active Utah gold-producing areas at this time included the Bingham, Cottonwood (Big & Little), East Tintic, Gold Mountain, Mt. Baldy, Ophir-Rush Valley, Park City, Tintic, and Willow Springs districts, and the Notch Peak (in the House Range) and La Sal Mountain placers, although some only operated intermittently or produced small amounts." (See: geology.utah.gov/online_html/pi/pi-50/pi50hist.htm)
One Opening Divided by Stream: Why The Mine Closed
I have wondered why the mine closed suddenly in about 1913. I had guessed it was gold or silver prices that caused the eastern banking interests to call the note due that Pierre Peugeot had taken out to develop the mine. But a look at the history of gold and silver prices were constant during this time.
I thought, maybe it was WW I that made the banks shift their interest from mining speculation to war production that caused them to demand payment from Peugeot and forced him into receivership in 1911-1912--just months after reporting record shipping numbers and great improvements on the mine operations designed to improve production performance.
Maybe it was changes in banking regulations that forced the Chicago financiers to demand payment. In 1913 the Federal Reserve Act was passed by congress after several years of a national debate that must have shaken every banker in the nation leading up to its passing.
I suspect it was a combination of eventsand circumstances. In a website hosted by Utah's Division of Natural Resources covering the topic of Utah's Gold History two paragraphs give a hint:
"Gold production declined and many gold mines closed during World War I (1914-1918) due to a shortage of manpower, decreasing ore reserves, and increasing costs. During the depression in the early 1930s, gold mines were brought back to life and prospectors thoroughly searched the known and little-known gold-producing areas. Gold production increased rapidly when the government-regulated price of gold was raised in 1934 from $20.67 to $35.00 per ounce. This interval of increased productivity ended during World War II when gold mines were closed in 1942 by the War Production Board and were not permitted to reopen until the war ended. By-product gold, such as the gold recovered with the copper ores in the Bingham mining district, accounted for most of the gold produced during the war.
After the war, some gold mines remained closed due to the fixed selling price and rising operation costs. The active Utah gold-producing areas at this time included the Bingham, Cottonwood (Big & Little), East Tintic, Gold Mountain, Mt. Baldy, Ophir-Rush Valley, Park City, Tintic, and Willow Springs districts, and the Notch Peak (in the House Range) and La Sal Mountain placers, although some only operated intermittently or produced small amounts." (See: geology.utah.gov/online_html/pi/pi-50/pi50hist.htm)