MINING.

Press, Volume LXVIII, Issue 20621, 10 August 1932, Page 12

MINING.

BIG RIVER GOLD MINES. The mine report for July is as follows: — Ko. 2 Adit Level, West Cross-cut.— This passed through favourable country up to 225 feet from shaft, but, it was considered the limit of the goldbearing belt in which the reefs in this mine occur had been reached, so driving was suspended. A branch drive from the 225 ft point to prospect ground in the south-west of shaft, where several quartz formations were worked to shallow depths in the early days, has been commenced. South-East Branch Drive Off West Crosscut. —A contract for driving 200 feet has been let; ten feet has been advanced from cross-cut. Winze on Jones's Reef at 60 Feet from Adit. —Sunk to 41ft on new body of stone, which was cut at 30 feet down. This reef widened to four feet, and showed visible gold, fair prospects also being obtained by panning. An intermediate drive was then opened out on south-east end of winze, and driven on well mineralised gold-bearing lode over 4ft wide for a distance of seven feet. At this point the reef was cut off by a fault. North Drive on Mineral Lode at 191 Feet from Adit. —Extended to 43 feet from cross-cut on formation three feet wide, consisting of a mixture of quartz, country rock, and pyrites. Assays up to loz 4dwts per ton show that this formation is gold bearing, and representative samples from full length of drive are being forwarded for assay. No. 3 Level. —The work of reopening the chamber was completed, and at 30 feet from the shaft the east branch of the main level was entered. The drivo has been retimbered and cleaned out to 80ft from shaft, and it is hoped to reach the face at 160 feet, and resume driving by end of next week.

NEW ECONOMIC POLICY RAISING WHOLESALE PRICES. CO-OPERATION WITH AMERICA. (KROM CUB OWN COBBESPONDENT.) LONDON, July 8. Sir Arthur Salter, in a special article contributed to "The Times," calls for a concerted effort to raise prices by monetary action enough to restart economic activities . and without destructive reactions. He believes we can do so by a concerted policy of controlled reflation. "By this policy," he says, "1 mean, of course, the raising of the general level of wholesale prices, by concerted monetary action, to a selected level not higher than that of the beginning of the world depression in 1929, and its maintenance at that level thereafter. Separate- national action is not impossible, and should perhaps in any case be pursued to a certain extent. But the limits of such action are narrower, and the dangers and difficulties greater than if a number of countries simultaneously aim at the same objective. A world policy would be desirable and may ultimately be secured. But time is short; and a specific policy initiated and formulated r>y this country and concerted with America (which is already working in this direction but without a clearly defined objective), with the Dominions, and with 'sterling area countries' would be effective. "That such an increase in price* would bring great advantages needs no argument. It would make profitable enterprises to which present prices mean a loss; it would revive purchasing by those who, while prices fall, hold back in expectation of a further fall, and so restart the whole machine; it would reduce without injustice the j real burden of all fixed obligations (public debts, mortgages, etc.), which has become intolerable." Sir Arthur Salter stresses two requirements to carry out such a policy —an increase of the available Tesources; of money and credit, and a responsive demand for it.

America's Policy. It is to the advantage of the whole world (the writer goes on to explain) that America should succeed in the reflation policy she is now pursuing. Its greatest difficulties arise from the lack of confidence of the American citizen, due largely to the fact that the American Government has announced no definite policy, and to the absence of any knowledge of what other countries, especially ours, will do. This want of confidence expresses itself in hoarding and a flight from the dollar which, if carried far enough, will defeat every monetary increase. A clear and concerted declaration of objective would immensely reduce this difficulty; it would "make reflation respectable.'' Subject to this, the following monetary measures could be taken nere to increase the supply of money. The Bank of England could continue, and press further, the present cheap money policy based on a low discount rate. It could next proceed much farther in purchasing securities, and so throwing additional liquid resources on the market. These two measures, apart from their effect in creating extra money, would have the further advantage of raising the price of . Government securities and facilitating conversion. Next, it is extremely desirable that the joint stock banks, now that they are paying only % per cent, on deposits, should charge less than the present 5 per cent, for the accommodation to industry. Simultaneously, the building societies might by agreement reduce the rates they are giving to their depositors (4 per cent., 4i per cent., and even 5 per cent., free of income tax, with the right of almost immediate withdrawal), and at the same time give some encouragement to building by reducing the charges to their clients who want houses. The building, trade is always a key point in the economic structure, and any improvement there would quickly radiate. The writer then suggests schemes. for stimulating demand. On the day following the publication of this article, sixteen well-known public men signed the following letter to "The Times": "Sensible of the immense gravity of the present economic and financial situation of the world, we. the undersigned, sinking minor differences of opinion on points of detail, wish to express our whole-hearted support tor the policy advocated by Sir Arthur Salter in his admirable article in your issue of yesterday's date. We urge the Government to take steps to put th'is policy into operation at the earliest possible moment.'' The signatories were D'Abernon, Cyril Asquith, Abe Bailey. Maurice BonhanuCarter, C. R. V. Coutts, James Currie. Win. Cecil Dampier, Oswald T. Falk, Edward Grigg, .T. AHobson, R. S. Home. Oliver Lyttelton, Eric Macfadyen. Geoffrev Marks, W. S. Robinson, and H. Withers.