Herbert Hoover& The Birth Of Mining Finance Globalization

An exercise of scouting a preliminary list of mining history’s most important books, documents and manuscripts  has been a fascinating journey.  Technology advances but the fundamentals of “extraction” are eternal in all cultures for all time.  Those eternals play out over and over across the millennia.

Take for example, Herbert Hoover’s first overseas assignment and the “misunderstanding” with the Chinese government  a story that still plays out in one form or another everywhere.

Mr & Mrs Hoover

Hoover had negotiated the deal with China in good faith .  His employer without consulting him  made changes they felt were essential to preserving access to capital on London exchanges needed to develop the project.  Hoover went along to get along.
Chang [Yen-mao] described the circumstances under which he signed the deed…. He said he repeatedly refused to sign... its terms did not agree… with his agreement with [Herbert] Hoover. Upon being told by Hoover that the deed was merely meant for the purpose of registration in England, and that the memorandum would be the ruling instrument, he eventually signed… with reluctance….
Chang told in detail of… threats… by Hoover… that the mines would be confiscated by the [European] Allied governments and that he and the Chinese stockholders would get nothing [if he did not agree to the terms]….”
Ouch!!!
Yikes!!!
This is the future President of the United States Mr Chang is testifying against in complete truth alleging a bait and switch.
After maintaining in court that he was not aware of the changes that had been made until he got back to London  it came out in court that he was aware of the changes, argued with his employers for preservation of the terms he & Chang had agreed on, but did not insist or even ask that changes be made to reflect the deal he had negotiated with Chang.
Hoover admitted that he had not asked de Wouters to alter the letter, or not to send it, but insisted nevertheless that he was not in accord with de Wouters on this point and that the letter did not correctly represent the situation.
The China deal gave Hoover a ginormous salary that made it possible to ask his brilliant fellow geologist wife to marry him. 
They shortly  left China returning to an elegant mansion in the heart of London where together they translated  De Re Metallica( Giorgius Agricola 1556 ( George Bauer latinized).
220px-De_re_metallica_title_page_1556
Mining was a great love of Hoovers  in that sort of cowboy appeal of adventure, camels, horses in wild  far away places, the hunt for the hidden .
I expected to see Hoover’s stamp on U.S. mining law & policy but after De Re Metallica he turned to civic duty and public affairs and at least as far as I have gone I see no Hoover stamp on US mining policy.  He was very concerned though with efficient and reliable global and international markets.
And so it goes.  A history untold and little referenced but  very much present in the headline news on mining today including the rise of nationalism the drama around unmet expectations, uncompensated losses, and the  BHP investor law suits and the lingering  unresolved $47.5 bn damage claims.
Lindsay Newland Bowker, Stonington Maine , August 13,2018
LNBowker@BowkerAssociates.org

About lindsaynewlandbowker

Bowker Associates, Science & Research In The Public Interest, is an independent non profit providing self initiated pro bono analysis on key issues with a potential for massive adverse environmental impact . Bowker Associates has been an internationally recognized and cited voice in analysis of the Samarco failure, its consequence, and the possibilties for recovery. In 2017 we partnered with Daveid M. Chambers, a world leader in responsible mining, in our third joint work on the economics of tailings failures. Bowker, L.N.; Chambers, D.M. In the Dark Shadow of the Supercycle Tailings Failure Risk & Public Liability Reach All Time Highs. Environments 2017, 4, 75. http://www.mdpi.com/2076-3298/4/4/75 A peer reviewed journal published investigation of the cowboy economics of the supercycle and the resulting escalation on the number and magnitude of catastrophic failures. In 2016 we parnered with Dave Chambers in our 2nd joint work together looking at root causes of failures at a conference . Bowker, L.N.; Chambers, D.M. Root Causes of Tailings Management Failures: The Severity of Consequence of Failures Attributed to Overtopping 1915–2015. In Proceedings of the Protections 2016, Fort Collins, CO, USA, 14 June 2016. [Google Scholar] In 2015 Bowker Associates collaborated with geophysicist David M. Chambers to recompile global authoritative accounts of significant TSF failures in recorded history and to analyze these data in the context of global mining economics 1910-2010 ( Risk, Economics and Public Liability of TSF Failures, Bowker/Chambers July 2015) The third annual update of this globally referenced and used compilation was just released at Researchgate. (https://www.researchgate.net/publication/324594429_World_Tailings_Dam_Failures_From_1915_-_as_of_Mar_31_2018) In 2014 Bowker Associates commissioned globally respected geophysicist and hydrogeologist Dr. David Chambers to undertake two technical works: (1) development of technical go no go criteria for vetting mine applications tp://lindsaynewlandbowker.wordpress.com/2014/01/05/a-new-statutory-regulatory-framework-for-responble-sulfide-mining-should-this-mine-be-built/ and (2) a case study of Maine's Bald Mountain, an un mined low grade high risk VMS deposit demonstrating the efficacy and accuracy of two risk assessment tools in vetting mine proposals https://lindsaynewlandbowker.wordpress.com/2014/02/28/mountain-x-would-you-issue-a-permit-to-this-mine/ In Maine, Bowker Associates has deeply engaged and been a public voice in the Searsport DCP LPG Tank, The Cianbro proposal for a Private East West Toll Road, JD Irvings rolling pipeline of Bakken crude to its plant in St. John and review of Phase II plans at The Callahan Superfund site in Brooksville, Maine, and Maine's revisitation of mining in statute and regulation... Our only “client”: is always “the pubic interest”. Our model is to focus on only one or two issues at a time so that we have a substantive command of the relevant field as our foundation for ongoing engagement. Our core work is in envirommental risk management, science and technology as well as bringing any available “best practices” models to the fore. The legal and regulatory history/best models are also a major thrust of our work in building and evaluating public policy. Director/Principal Lindsay Newland Bowker, CPCU, ARM is a recognized expert in Environmental Risk Management., Heavy Construction Risk Management and Marine and Transit Risks and has more than 3 decades of engagement in buiding public policy. Appointed by Governor Mario Cuomo to New York State Banking Board (served 1986-1996); President New York Chapter Chartered Property and Casualty Insurers; Environmental Committee, Risk and Insurance Management Society; Director, Convenor/Co-Chair Bermuda Market Briefing "From Captive to Cats" Hamilton Bermuda. Published Articles of Significance The Risk Economics and Public Liability of Tailings Facility Failures, co-authored with David M. Chambers, July 2015 Beyond. Polarization: Superfund Reform in Perspective, Risk & Insurance Managing Risk For Loss Prevention & Cost Control (Jan. 24, 1997). Lead Hazards and Abatement Technologies in Construction: A Risk Management Approach CPCU Journal 1997 Employee Leasing: Liability in Limbo Risk Management June 1 1997 Environmental Audit Privilege and the Public interest Risk & Insurance Managing Risk For Loss Prevention & Cost Control, April 1997 Asbestos:Holes In Abatement Policies Need To Be Plugged, Lloyd’s Environmental Risk International, May 1993 Editor Published Letters Evironmental Risk Management Beware of Facile Policies Like Fetal Protection Business Insurance 1995(?) High Court Review May Increase Sale of Bank Annuities Business Insurances August 8, 1995 Professional Profiles Protecting the Big Apple’s Core Managing Risk For Loss Prevention & Control December 1996 Major Career Highlights First rigorous analysis showing Relationship Between declining ore grades and TSF Failures of increasing consequence ( July 2015) FIrst Documentation that Gentrification Has Same Impacts as Unassisted Displacement from Urban Renewal Sites Direted Court Ordered EIS of FHA Mortgage Scandal Created Nation's First Homeownership Program for Low Income People (SHIP) Created Earliest Geographic Information Systems Using Defense Technology Developed By IBM Designed and Conducted Parallel Census Count to Show Systematic undercount in minority neighborhoods Documented Bias in ISO Territory Rating Plans for Private Passenger Auto Insurance Using ISO's own Rating Techniques Demonstrated Inherent Bias in Mortgage Policies of Banks With Inner City Branches Demonstrated that NY Telephones Plan for Area Code Split To accommodate anticipated cell phone demand was not efficient and would exhaust in 5 years ( which it did) Undertook First Systematic Evaluation of Child Protective Services Caseload Using Multi Variate Analyic Techniques Developed Child Protective Caseload Management and Tracking System (CANTS) and directed implementation in 4 client states including Illinois, Florida and New York Created and Ran Office of Risk Management for NYC DEP the Nations largest Water & Sewer Authority . Designed, Created and Administered Nation's First Owner Controlled Insurance Program (OCIP)for High Risk Tunneling Education Masters NYU Graduate School of Public Administration BSC New School For Social Research Maine Public Schools Deering High School
This entry was posted in BHP Investor Lawsuits, De Re Metallica, Herbert Hoover, Mining Finance, Nationalism, Uncategorized. Bookmark the permalink.

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