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Press, Volume LXXII, Issue 21686, 21 January 1936, Page 11

MINING'

GOLDFIELDS RETURN (PEBS3 ASSOCIATIOK TBI-EGBA.It.) DUNEDIN, January 20. The Goldfields Dredging return is 30oz 9dwt. OKARITO (PEBBS ASSOCIATION MXEOBAM.) DUNEDIN, January 20. The Okarito return is 220z for 120 hours. TALISMAN DUBBO Talisman Dubbo Gold Mines, Ltd., report that 61$ tons were treated at the Golden Dawn battery ior an approximate realisation of £505. i MOUNT ISA MINES In the year ended June 30, 1935, Mount lea Mines, Ltd., showed a loss of £811)5 in Australian currency after it had charged all interest and overhead expenses, but before it had allowed for depreciation. This compares wjith a loss of £166,315 in the preceding year. This information is contained in the report of the directors, which will be presented at the third annual meeting on January 21. In August, 1934. the company made an issue of £500,000 sterling 4J per cent, third mortgage guaranteed debentures, and the Issue was fully subscribed. Items on the debtor side of the profit and loss account are:—To mining, milling, smelting, transport, realisation (less local receipts), £742,551; head and branch office expenses and technical fees, £27,090; directors' fees, £777; interest on debentures and loans, £229,662. On the credit side are: By metal sales, £991,886; balance, loss for year before charging depreciation, £8195. The report of the general manager states that 38,405 tons of lead and 2,343,4390z of silver were extracted from 551,259 tons of ore. . MATAKI RETURN (races association telegram.) • AUCKLAND. January 20. The Mataki Gold Dredging Company, Ltd.. reports that the return for the week ending January 19 was 42 ounces for 113 hours' work. THE AUSTRALIAN OUTLOOK BRIGHTEST FOR FIVE YEARS MANY FAVOURABLE INFLUENCES The last year ended with trade more buoyant, employment more general, and the outlook more attractive than in any of the previous five years, states the January review of the National Bank of Australasia, Ltd. Many causes have operated to produce this welcome condition of affairs, but it is hardly possible that the all round improvement made since 1931 could have been effected but for the run of fair to' good seasons for rural production enjoyed since 1930. There have been unfavourable conditions at various times in one or more of the states, but the general condition has been marked by absence of widespread drought or other great hindrance to either pastoral or agricultural industries. The major movement in rural operations is the decline in the area sown 'to wheat from 18,000,000 acres in 1930-31 to 12,000,000 acres (approximately) for the current season. This shrinkage was forced on farmers by the low prices ruling between the latter half of 1930 and the closing months of the last year, but it was accompanied by increased activity in other rural industries, mainly dairy? ing and lamb raising. Another markedly favourable influence is the recent upward movement in prices of primary products. In 1932-33 wool rose for a time to a profitable level; but there was a marked drop the following year. Wheat and butter have fluctuated considerably, but upward movements always proved to lack stability. There are grounds for hoping—if not believing—that the latest rises in prices are more firmly based, and that the major gains will be sustained for some time to come. , Zinc has risen from the average of £l2 2s in January, 1935, to £l4 6s 3d on January 6, 1936; lead from £lO 8s 4d to £ls 5s over the same period; while silver, though quoted on January 6 at Is 9Jd an ounce spot, has been realising 2s 8d an ounce during the period February-November, 1935, which is well above the average values quoted during the year 1926 to 1934. The future of silver prices is clouded with uncertainty. Many other factors have contributed toward the restoration of prosperity, some of them tangible, others abstract. The continuance of sound government, absence of industrial disturbances of note, the maintenance of public confidence in the financial institutions of the country, and the many individual adjustments made to meet changed conditions, have all helped; but the run of good seasons, and, now, the higher prices for rural products and base metals, have provided the base upon which secondary industry has expanded its activities and the national income has been so largely restored. It is difficult to determine a normal state of economic conditions within a country, but it is thought that present conditions are at least equal to a 20year average, with' the exception Of the incidence of unemployment. The actual condition of employment, is however, very difficult to gauge, and It is quite possible that, when the widespread relief afforded through governmental and other agencies in the way of full-time and part-time Work, sustenance payments, and other means, is brought into account, the labour position is close to the average of the last quarter centurjr, THE SILVER MARKET EFFECT OF CHINESE DECISION LOWER VALUES POSSIBLE Discussing the outlook for silver the National City Bank of New York refers to the abandonment of silver as a standard money by China. Thus the last of the great countries adhering to silver as a monetary, base has been forced to desert the metal. The bank states that China has now a huge quantity of the metal which she can sell as freely as she wishes in world market without, injury to her internal credit structure. Should she elect to dispose of her vast silver hoards, the effect upon silver, would be catastrophic. Either the united States Treasury would be forced to hold the bag, enabling China to united at "high prices, or see the whole scheme lor raising silver prices go

into collapse. When consideration is given to the depressing influence exerted upon silver prices from 1926 on by the stocks in the Indian Treasury, which-never amounted to more, than 470,000,000 ounces, it Is possible to visualise what it would mean to have China's 2,000,000,000 or so ounces overhanging the market. No doubt it would be an exaggeration to assume that any such quantity of silver could or would be disposed of. at least, not for a considerable period. However, the fact is that a Solicy supposedly friendly to silver is aving the effect of giving the Chinese people an enforced education in, the use of another form of currency, paper. To the extent that the Chinese,prove to be apt pupils in this schooling, by just so much will silver have one of Its most important uses permanently curtailed, It has been claimed by friends of the American silver policy that the raising and holding up of the price of silver would encourage a wider use of the metal among nations. As a matter of fact, the reverse appears, to be happening. As silver has been made more costly, country after country, includ<ina at last China, has found it advantageous to discontinue its use as money. Unless the United States can persuade the other nations to use more silver money—something which thus far they have shown little disposition to do —before its buying power as defined in the Silver Purchase Act is exhausted, it looks as though silver were headed eventually for another slump, possibly to levels lower even than before. In that event, not only will the silver producers pay dearly for this experiment, but, the United States Treasury will be left* carrying an asset against the currency that could not be liquidated save at tremendous sacrifice.