properties are opened, which they will be on the extension of this railroad, which is a possibility in a very short time.

That is all I have to say on that area.

There is another point that I have to bring up-this is in my files in my office. I have numerous complaints as to the operation of this 640-acre homestead act. As you know, it goes into the mountains and takes in the semimountainous and mountainous regions. Title is vested in the party who takes up this land, the mineral being exempted, and in order for the prospector to go onto this land and do any prospecting he has to put up a bond of $1,000. Now, that is an impossibility, and it was brought out in the gold and silver inquiry hearings, over which Senator Oddie presided and in which Mr. Hamilton had much of the work, that in the State of California prospecting has fallen off materially. I cover myself from 20,000 to 25,000 miles a year throughout the State in the mining sections, and of the prospectors I used to know I would say I don't know of one to-day, due to the fact that they can not go on these lands without putting up a bond. Any man that goes onto a piece of land would not use, at the most, more than an acre to do his prospecting, and he is required to give $1,000 bond in order to do that. He will stay on there maybe a few days, and then he will move on to another section, and it is an impossibility for the prospector to be putting up a $1,000 bond every time he wants to go over a piece of property.

If there are any questions I can answer, I would be glad to do so. The CHAIRMAN. What remedial legislation would you propose so far as the 640-acre homestead provisions are concerned?

Mr. Rooт. Under the present system I think this bond should be repealed. I think a prospector should not be required to put up a bond of that size. If there is any damage done he should pay for it; he should not be allowed to go on a piece of land and cause damage without some compensation to the people to whom he causes it, but the idea of making him put up a $1,000 bond is absolutely out of the question and impossible.

All our mines are discovered by the prospector. There is no large company that is discovering mines to-day; it is done by the individual prospector, and if we do not have that prospector in the field within a very short time we are going to be out of luck for mines. And as you know, mining is the foundation of this Nation.

Senator ODDIE. Mr. Root, what is the financial condition of the prospector in general?

Mr. Rooт. The average financial condition of the prospector is very low. The prospector at the best has very little money. He depends upon his mining in the different localities for his subsistence. Once in a while when he does find a prospect he will sell that before it goes to a developmental stage for a very nominal sum; sometimes for a very few thousand dollars, and sometimes for a few hundred. And he uses that up in further prospecting.

Senator ODDIE. You have stated that some of the best mines have been found by prospectors with small means?

Mr. Rooт. Absolutely.

Senator ODDIE. If a further burden were placed on the prospector would it result in curtailing the finding of new mines?

Mr. Root. It is absolutely doing that to-day. There are very few prospectors now in existence.

Senator ODDIE. Does the welfare of this Nation demand that more prospecting be done?

Mr. Roor. Yes. As you know, the credit of this Nation during the Civil War period was saved by our prospectors and our miners. If it had not been for the gold and silver of California and Nevada we would have been in a very sorry plight.

Senator ODDIE. Do you believe that the mineral resources of our Nation are being used to such an extent that for national protection and defense new mines should be found?

Mr. ROOT. Absolutely. The life of a metal mine is generally of very short duration. The life of your larger mines, your iron mines and mines of that nature, is usually somewhat longer. If new mines are not found to replace our old mines, why, in a very short time we will be in need. That can be very readily explained by taking our gold production of the State of California. During the ordinary period when I speak of the ordinary period I mean anywhere back to 1916-we were nominally producing around $20,000,000 in gold. At the present time we are producing about $13.000,000 a little over $13,000,000. At that earlier period, say 1917 or 1916, we had in the State of California a little over 700 mines and prospects operating. To-day I dare say there are not over 200. Senator ODDIE. Do you know of any other product of the earth. or any manufactured product, the price of which was held to the same level, irrespective of the cost of production, as gold has been since the war started?

Mr. Roor. That was the only product of mother nature that has been held constant; everything else has varied with the supply and demand. The price of gold per ounce remained stationary. There was absolutely no increase or any relief of any kind or nature afforded to the gold miner. That is one of the reasons why California gold production has dropped from where it was down to the point where it is to-day. The costs of production have curtailed the mining. During the World War period, when labor and prices were so exceedingly high, many of the prospecting mines in the early stages were shut down and some of the larger mines curtailed operations. That naturally caused some of those mines not to be reopened.

Senator ODDIE. Are you aware of the fact that England allowed her gold producers to take advantage of the exchange premium during the war and to benefit thereby?

Mr. ROOT. I have a little article right here that might interest you [handing a paper to Senator Oddie].

Senator ODDIE. This refers to the gold bonus?

Mr. ROOT. The gold bonus in Australia.

Senator ODDIE. Did England in allowing her gold producers to take advantage of the exchange premium do what the people of our West generally wanted done-paid what amounted to a bonus on the production of gold?

Mr. RooT. Yes.

Senator ODDIE. Taking a very broad view of it, do you believe that the production of gold generally throughout the world has fallen below the necessary amount?

Mr. Roor. I can not say as to the world, but the gold production of the United States has fallen to a point away below the ordinary production that it could maintain, and the reserve of our gold is being utilized and depleted at a much faster rate than we are now getting gold from the earth. In other words, the arts and the manufacturing jewelers are consuming much more than we produce annually in the United States.

Senator ODDIE. Then, the gold that is being used for coinage and in the arts must come out of our stores of gold?

Mr. Root. Absolutely.

Senator ODDIE. Do you believe, then, that in order that the finan cial structure of this country and of the world be maintained on a stable basis that more gold should be produced?

Mr. Root. Absolutely.

The CHAIRMAN. That is all, Mr. Root. Mr. Wilson.

STATEMENT OF OSWALD WILSON, REPRESENTING WESTERN CONSERVATION AND DEVELOPMENT LEAGUE, SAN FRANCISCO,

CALIF.

The CHAIRMAN. Mr. Wilson, you have a statement that you wish to make?

Mr. WILSON. Yes. Mr. Chairman, I would just like to file a written statement, because the time is limited. We are interested, in defining a settled policy for the public lands, in seeing that due consideration is given to irrigation. We think irrigation ought to come first-the conservation of any resources that we have on our lands, from the standpoint of the production of food.

Rather than take the time to read this statement, I would like to file it with the committee.

The CHAIRMAN. You may do so.

(The prepared statement submitted by Mr. Wilson is here printed in full, as follows:)

WESTERN CONSERVATION AND DEVELOPMENT LEAGUE,

Hon. ROBERT STANFIELD,

San Francisco, Calif., September 23, 1925.

Chairman Public Land Committee,

United States Senate, Washington, D. C.

DEAR SENATOR: In determining a policy for the beneficial use of the public lands of the United States we would respectfully urge the conservation and full development of the water sheds and resources of the Western States for irrigation be given first consideration and all others second, because

1. Our national independence rests upon the production with the continental United States of all our principal foods, and the time has come when we must look to the present and future irrigable areas of the Western States for an adequate and dependable supply of food for this and coming generations.

2. Sugar is one of our most essential foods, not only a factor in the domestic welfare of every family every day, but is the determining factor in fruit canning, condensed milk, ice cream, confectionery, soft drinks, and other related industries. in which millions are employed, with large capital invested, and to these irrigated and irrigable areas we must look for our domestic sugar.

3. More than $2,000,000,000 has been invested in irrigation, drainage, and hydroelectric power to reclaim the arid lands of our 12 Western States, providing homes and employment for 13,581,461 American taxpayers, and it has been demonstrated that these irrigated areas require sugar-beet culture so that they may have the necessary diversification and crop rotation to insure

success. Irrigated farms require intensive cultivation in crops that will yield a return sufficient to justify the investment and labor required.

In 1924 we imported $377,318,961.84 of sugar from Cuba, a foreign country. On the basis of the returns from all the Government irrigation projects, it would take the value of all the crops on 6,844,167 acres to pay for this Cuban sugar. Yet this same amount of sugar could be produced from 2,000,000 acres in sugar beets on these same irrigated projects. This is an economic loss that bears heavily on every industrial enterprise in the United States and affects every wage earner from the New York bank president to the cotton picker of the south.

The production of sugar in the irrigated areas of the Western States would not only make these districts more prosperous, giving farmers greater purchasing power, but would add $500,000,000 annually to the commerce of our Nation, contributing in no small degree to the reduction of taxation and the prosperity of every section.

4. We hand you herewith copy of Water and the New West, prepared by J. R. Mason & Co., the leading investment broker in western irrigation district securities, from which the following extract is quoted:

"Directly and indirectly, water applied on the western land has had more to do in development of the West than any other single factor. Western America needs no greater incentive to proceed definitely forward in gradually converting the other 100,000,000 acres from aridity into homes for millions than an alert consciousness of what 20,000,000 acres already made fertile and productive by water' means to her people and institutions. National growth and symmetry are best insured and maintained through development of each western resource and industry-forests, mines, water power, fisheries, waterways, manufacturing, commerce, and irrigated farms. Each cooperating with the other and all working in harmony will create a potent impact industrially, commercially, and agriculturally on our American life which will favorably affect every western interest and attract additional millions of her people and billions in capital from less-favored regions to the new West."

Yours very truly,

OSWALD WILSON.

Mr. WILSON. If there are any questions, Mr. Chairman, I would be glad to answer them.

The CHAIRMAN. I believe there are no questions, Mr. Wilson. We will file your statement and take it under consideration. Mr. Smith. STATEMENT OF EDWIN F. SMITH, SUPERVISOR ELDORADO NATIONAL FOREST, PLACERVILLE, ELDORADO COUNTY, CALIF.

The CHAIRMAN. Mr. Smith, have you a statement that you wish to make?

Mr. SMITH. Yes, Senator; I would like to make a statement touching upon the stability of the present administration of the national. forests. I am at the present time supervisor of the Eldorado National Forest.

I might say that under our present policy and regulations we take into consideration the many uses that are made of the national forests, bearing in mind to try and conform each use so that it will be in harmony with the other uses. As an example, in grazing quite frequently the problem comes where the recreational use might in some way interfere with the grazing use. We have therefore a policy established--I am speaking particularly of the Eldorado Forest, with which I am familiar-wherein we have laid out a plan that certain areas will be set aside for grazing and other uses and recreational uses will not be allowed to interfere with such uses. We have also set aside areas wherein the adjustment of the grazing use will be made so as to interfere as little as possible with the recreational use.

As a protection to the permittees, in carrying out a plan of this kind no drastic reductions are made. Usually the maximum reduction of any permittee is 10 per cent of the total number of stock run. It is so managed that in cases where a permittee goes out of business or ceases to operate in an area set aside for grazing and other uses, we transfer a permittee within a recreational-use area to this particular area, which in no way interferes with or disrupts the management of the grazer's business.

I might say that the recreational use of the national forests has become one of the major uses in certain portions of the forests, with the result that it brings about greater increased value in taxable property to the county wherein such areas lie.

By this is meant as an example, we have in the neighborhood of 500 homes or special use allotments upon the Eldorado National Forest. These particular users pay a minimum of $15 for each use. The personal property, such as buildings, etc., has a value of $250,000, which is taxable by the county. In addition to that, the county receives 25 per cent of the gross income from these particular uses, or $3.75 per use per year. In addition 10 per cent is returned for roads.

Now, this particular income might be said to be everlasting, unlike the income from the harvesting of a crop of timber. When the timber crop is harvested one must necessarily wait for a regrowth, but with this particular income the matter is settled on the basis of a yearly proposition, and the only thing that might destroy it would be fire, and possibly the area would again be built up for that purpose.

One might think that such a large amount of use would necessarily restrict grazing over a large area, which is not so. As I stated before, over 500 of these uses are in existence to-day, and they cover an area of about 640 acres, which is a small amount compared with the size of the forest reserve, which is 836,500 acres. The use for what is known as the recreationists or tourist travel causes small areas at times to be set aside, wherein no grazing is allowed. These particular areas are especially wanted by scientists, etc., for their experimental and investigational purposes. I might say that upon this national forest, the Eldorado Forest, there is to-day an area of about 1,200 acres that is so set aside, after being administered for a period of 15 or 20 years.

I merely bring this to your attention to show that the recreational use has not as yet been developed to such an extent that it does in any way at this time interfere with grazing, and we have so planned under our policy and regulations now in existence to take care of both uses when the time arrives when there might be some conflict.

I would like to also state as to the stability of the present permit granted to graze on a national forest-I having had some experience in that particular line, being boosted on my first horse when I was seven years old, and following the cattle business until I was 21-that in my estimation this is the most stable commodity, the yearly permit, that is issued to-day that the stockman has, as I see it. By this I mean that he at least knows further in advance just what it is going to cost him to run his stock upon the national forest