NEW GOLD

Bay of Plenty Times, Volume LX, Issue 11045, 20 February 1933, Page 3

NEW GOLD

RECORD PRODUCTION THIS YEAR. The largest woTld production of new gold in history is predicted for 1933. A considerable body of expert opinion .holds That nothing would do more to hasten world recovery than a sudden and rapid increase in gold production, says . the Sydney “Sunday. Sun.” v Problems of bimetallism, managed currency, inflation, deflation, give Governments, furiously to think, but the search for gold goes on with greater intensity. From all, the goldfields of the world—-Africa, the two, Americas, the Congo, Russia, the Phillippines, New Guinea—come reports of. steeply increasing production. It. has been estimated authoritatively that the gold production for the full year 1932 will be equivalent to £138,000,000 —an increase of more than 7 per cent, from the 1931 lev.el and an even more marked increase from the levies'of 1930. Dr David Friday, a director of the United States Bureau of Economic Research, pictures the possibility, of the addition of something like £300,000,000 of new mnoetary gold to the world’s supply by the end of this year.

In the “Magazine of Wall-street,” recently, Mr Homer Dodge, an eminent American physicist and scientific author, declared that with the prospect of a record production of new gold, the emergence from hparding of hidden-gold supplies and a lower price-level enabling ’ such gold- as exists to go further in supplying a necessary credit structure, “whole fabrics of reform will fail because the necessity which evoked them has been exercised by this new accretion to the world’s gold.”

In every corner of the world where gold might be found men are combr ing over old workings, prospecting hills and mountains, panning rivers and creeks. ■ In California alone 50,000 prospectors are at work. All this concentrated effort to discover new sources of gold supply may eventually lead to another Klondike, another Coolgardie. another Rand.

More There Yet! Geologist and mining engineers say that this continent contains vastly more gold than has been won from it. Ho,w- many (realise the wealth' of gold won in Austx'alia — ; that.lt reaches the amazing total of £630,000,000? v . ; ; An“examination of the economic depressions through which Australia has passed discloses that the discovery of goldfields ~ contributed ‘enormously to her recoveries. In the United States new fields pulled the country out o£ the last century’s depression; ■*> » , Paradoxically, it was the depressions which to a large extent caused the "discovery of the. fields, which sent men out in search, of the new El Dorado —just as.tliey went to The Granites, and as tiey will doubtless go to other fields,‘either to success or failure,.