EMPIRE’S GOLD

Greymouth Evening Star, 25 February 1928, Page 12

EMPIRE’S GOLD

HIGH COST OF LABOUR. The necessity for economy in the use of gold, both as a commodity and as money, is emphasised by the deputy master of the Royal Mint, Mr Robert A. A. Johnson, in his annual report (states the Morning Post). Considering the position of the mints of the Empire in regard to the coinage of gold, he says the suggestions for the dislodgment of gold as the basis of the world’s currency, whether sound or unsound in theory, are not likely to be put into practice in the immediate future.

“The discovery of new fields,” Mr Johnson states, “is, of course, not an impossibility, but, in the absence of such an accession to the world’s stock of gold, the problem of economy in the use of the metal will certainly assume considerable importance. Production is hampered in some fields by the growing cost of labour and working expenses, especially where the metal is becoming more inaccessible. The recent developments in flying and the growing tendency to transport gold by air are encouraging factors, since the interest involved where long distances are in question is in itself a considerable item in the calculations of cost.” • The most rapid development in gold mining in the Empire recently has taken place in Canada, it is stated. We are informed that the Dominion “bids fair to become the second largest producer of the world unless the discovery of new fields should enable the United States to maintain its present position. Ontario, indeed, the gold output of which has steadily advanced since pre-war times, may .well come to rank with the most prolific fields elsewhere.” In 1926 the output of gold by mines in the Union of South Africa exceeded that of any previous year. On the other hand, the rise of working costs in the Rand “is regarded with apprehension and, although on a general view, the problem has been obscured by the returns from recently-opened districts, it is asserted that a substantial further rise would render it impossible to work many of the older mines.” To counterbalance the development in Canada and South Africa, there is the severe fall in the output in Australia which has necessitated the closing of the branch mint in Sydney. “In Australia,” the report continues, “the first 10 years of the century saw an average annual production of some 3,825,0000 z fine, while in the last five years the average has been less than 800,000 oz fine. As the branch mints have in the main depended entirely on the Australian output, their work has certainly shown a verv considerable decline.”