GOLD INDUSTRY

Evening Post, Volume CXXVIII, Issue 46, 23 August 1939, Page 6

GOLD INDUSTRY

GUARANTEED PRICE

AW OTAGO PROPOSAL

I (By Telegraph—Press Association.) I ' DUNED.IN. .August 22. A move is on foot, among producers in Otago to obtain a guaranteed price for. gold, and the signatures of -those interested directly or indirectly in gold mining are being obtained in order that a petition may be presented to Parliament. The granting of the request, its sponsors claim, would create a feeling of stability, not only in the industry, but also in finance generally, and would increase employment in mining operations, heavy industries and transport operations related, to th?m. "We pray," the petition states, "that the guaranteed price per ounce of fine gold shall be not less than the equivalent of what a free consignment of gold (ignoring shipping and export charges) would command in New" Zealand currency. This price we now- consider should be £10 4s 4d, as shown below:—. London price per ounce fine gold, £7 8s Id; add statutory exchange. 25 per. cent, £1 17s 2d; add extra exchange as shown by the price of representative stocks, 10 per cent, 18s 7d; actual value of gold in New Zea-] land currency today, £10 4s 4d. i "As New Zealand has a reserve bank of its own, the mining industry should not be charged with the cost of shipping gold to1 London, but such charges should fall on the Reserve Bank if and when it exports the gold it buys "We further contend that this exporting industry is harshly singled out for an export _ tax which .undoubtedly falls ■ heavily: V6ti marginal claims ana prevents many new enterprises being undertaken." The Central Shotover Gold Mining Company, Ltd., at its annual meeting tonight, decided to give its support to the petition:.