The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun. WEDNESDAY, AUGUST 30, 1933. SCRAMBLE FOR GOLD.

Auckland Star, Volume LXIV, Issue 204, 30 August 1933, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun.

WEDNESDAY, AUGUST 30, 1933. SCRAMBLE FOR GOLD.

. i For the cause that lacks assistance, For the wrong that needs resistane* For the future in the d'stance, And the good 'chat tee can dn.

While gold is being won in largo quantities from.the world's mines, there is an unsatisfied demand for it at prices which arc exceptionally high. Production is stimulated in many countries, and especially South Africa and Canada, which now rank first and second as sources of supply. The United States, having fallen oil' in importance, has lost further ground in the past few months, duo to the embargo on exports of gold, and President lioosevelt now finds it advisable to modify the restrictions sufficiently to allow American producers to take advantage of the higher prices ruling in the world's markets. It is a significant move. And, to ; ecompany it, the President has tightened the regulations against hoarding. One immediate effect of the new order will ho, to quicken mining activity in the United States and to swell the world output, with the probability that the figures for the present year will set a new record. Last year's production of £101,500,000 from all countries, was the highest ever known. Prior to the departure ol: the United States from the gold standard,. Britain maintained tho pound in a fairly steady relation to the dollar, but the recent heavy fall in the dollar has had the effect, to some extent, of drawing the pound further away from its gold basis. This is seen In the advance of the French franc, the German mark and other gold currencies, and although there lias been no declaration of a change in British policy, the further fall in sterling causes a natural feeling of apprehension on the Continent. The question uppermost in the minds of the French and other adherents to the gold standard is whether Britain is leaning towards the American policy of inflation, and, if so, will they be able to hold their present ground. It is a situation bristling with uncertainties, although at least one London opinion is to the effect that France should be able to preserve the gold standard. The past six months have been for her a severe test, and confidence has been seriously lacking within France itself, as evidenced by the heavy transfers of French money for deposit in London. But even ii: there are further suspensions of the gold standard among the few countries which now remain on it, the same observer discounts the possibility of gold falling in price. To British countries it is the price at present that is of most concern, for without the maintenance of the premium it would be impossible to bring the lower grade ores to the mill.