Those were the days
By Tim Pershing, Outpost contributor
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From the comstock to casinos to corporations |
But Nevada's solid economic foundation was not a major factor in Nevada receiving its statehood in 1864. State Archivist Guy Rocha says Nevada's entry into the United States was political, not economical.
President Lincoln needed Nevada to help him win re-election in 1964, Rocha says. Nevada became a state not by being rich but by being politically correct.
Between 1859 and 1900, more silver was mined in the Comstock than in any other place in the world. Mark Twain wrote one of his most famous books, Roughing It, about his experiences in the state during this time.
"By and by I was smitten with the silver fever. 'Prospecting parties' were leaving for the mountains every day and discovering and taking possession of rich silver-bearing lodes and ledges of quartz. Plainly this was the road to fortune."
With these words, Twain captured the thoughts of fortune seekers hungry for a stake in Nevada's new-found wealth.
But the mining industry boom would last only a few decades. By the turn of the century, its impact on Nevada's economy was minimal.
"Mining has not been a strong factor in the 20th century," says Mike Clarke, an economist and labor market information supervisor with the state Department of Employment, Training and Rehabilitation. "Out of the 900,000 jobs in Nevada, only 14,000 are in mining. That wouldn't staff two big casinos in Las Vegas."
While Nevada still produces a large amount of the world's gold, silver and barite, mining is not the reason for the overall strength of Nevada's economy, Clark said.
According to the Nevada Bureau of Mines and Geology, 160,000 mining claims were made in the state in 1996, producint roughly $3.3 billion in minerals. But the tax revenue generated for the state by mining only topped $150 million in 1997. In comparison, tourists visiting Washoe County casinos alone generated more than $480 million in revenue for the state's general fund.
"We produce two-thirds of the gold in the nation," Clark says. "That makes us number two or three in the world for gold output. So mining does make money, but it does more for rural Nevada than anywhere else."
A good example of mining's effect on outlying areas is the once sleepish town of Elko. Elko, located in the northeast corner of the state, used to be a small, rural community. Ten years ago there wasn't much there. Today, it's hard to find room at the inn.
Buoyed by the rising price of gold, towns like Elko are seeing prosperous times like never before. The average salary of a Nevada miner in 1997 was $48,000, while the average salary for a non-mining Nevadan was about $26,000.
But the effects of a modern-day mining boom also can be a detriment if a small community can't keep up with the rapid growth.
Carla Wille, executive director of the Elko Chamber of Commerce, says although there have been a few rough spots, in all the mining boom has been good for her city.
"It's been wonderful but it has put a strain on the city's infrastructure," Wille says. "We have had great difficulty keeping up with the growth in housing. People weren't able to find anything. They were living in tents and out of fifth-wheel trailers -- whatever they could find. And our traffic has increased enormously."
But Wille emphasizes that Elko is slowly learning to deal with the influx of people.
"We still have that small-town atmosphere, and we're catching up with the growth," Wille says. "And we need to work on diversification. We're in a boom-and-bust situation. It's not good for businesses when the gold dies out."
copyright 11/15/97 Nevada Outpost
http://www.jour.unr.edu/outpost
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