BOOM IN GOLD

Greymouth Evening Star, 20 December 1934, Page 11

BOOM IN GOLD

EFFECT ON THE EMPIRE. One of the greatest developments that has taken place since this country went off the gold standard in September, 1931, and the overseas Dominions followed suit has been the expansion of the gold-mining industry in the British Empire, writes Herbert Meredith in the “Daily Mail.” This expansion has meant a revival of prosperity in many parts of the Empire. t The reason why gold mining and the search for valuable unworked deposits of the precious metal has been so greatly stimulated is, of course, that the sterling priqe of gold has risen from the old level of 85/- per ounce to over 140/- per ounce—-it touched the record level of 143/3 per dunce recently. Mining fields in the Transvaal (where the famous “Rand” goldfield is situated), Rhodesia, West Africa. East Africa, Canada, Australia, and New Zealand are now teeming with activity. Millions of pounds have been and are being provided for the reopening of old mines that had for one reason or another been lying idle; for the extension of the scale of operations at many of the mines that were regularly producing; and for intensive prospecting for new deposits. All the big mining finance houses are taking part in this gold-mining boom. Whereas several years ago the fashion was to acquire interests in mining properties yielding one or more of the principal base metals (copper, tin, lead, and zinc), mining financiers have in recent years been concentrating upon extending their gold interests, believing that there is no likelihood of the price of the precious metal returning to the old level of 85/- per ounce, but that a substantial “gold premium” will be long maintained. i The ramifications of the gold-min-ing boom are more widespread than many people realise. ' Increased activity in the opening up

of known gold mines and the search for new ones means that there is more employment for mining engineers and miners; and that more machinery is required; that there is a greater demand for supplies of power (coal, oil. or electricity); for building materials and equipment of all kinds; and for foodstuffs for thousands of men engaged in the mining fields. Railways and other transport systems also benefit. A striking example of the great benefits which gold mining has brought to the Empire is provided in the case of East Africa. It is only in the last three or four ‘years that Kenya ColoAy and Tanganyika Territory have come to the fore as potential goldfields. Previously they were regarded as almost entirely agricultural! Their products included coffee, sisal, maize, sugar, hides and skins, and a little cotton. So uninterested was Kenya in mining that it had no mining or geological department to fall back on when a survey for water supplies had to be made a few years , ago. The Colony thus had to borrow geologists from Uganda. These geologists surveyed for water, and they found gold—or traces of it! This fired the enthusiasm of the farmers in Kenya and Tanganyika. They were already being impoverished by the world slump in commodity prices. Many of them finding it a hard struggle to make both ends meet, so low were the prices which they were obtaining for their products. It was a Mr H. L. Johnson—a local resident—who set the prospecting stone rolling. His success brought about a veritable gold rush in Kenya, and its neighbour, Tanganyika, in 19’32, FARMERS JOIN IN. Hard-up farmers saw a chance to pay their bills and make some monev for themselves. They left their wives in charge of their farms and joined in the great search for gold. Many young men who had been working on farms as managers and assistant managers, but who had been > thrown out of employment by the

slump in commodity prices, joined in the gold rush too. As a result of the gold development, settlements have sprung up in many parts of the country. Kakamega, where gold was first found in the creeks and rivers, has become a flourishing little township which can boast three or four hotels. Thanks to these gold developments, farmers in Kenya and Tanganyika are now’ finding a better market for their produce, for which they are obtaining higher prices. No longer are they so completely dependent on the export market with all its difficulties. Gold mining brings to Kenya and Tanganyika the prospect of big developments in the near future. New railways will be required and roads will have to be built. Town will tend to grow, and the population to increase. With the rise in population more money will be available for spending and trade generally will prosper. These are the benefits of gold mining!