PRICE OF COLD

Greymouth Evening Star, 23 August 1939, Page 3

PRICE OF COLD

OTAGO SEEKS GUARANTEE [PEB PRESS ASSOCIATION.] DUNEDIN. August 23. A move is on foot among producers 1 in Otago to obtain a guaranteed price ( for gold, and signatures of those inItetesled directly or indirectly, in gold i mining, are being obtained in order I that a petition may be presented to ' Parliament. The granting of the reI (juest. its sponsors claim, would create a feeling of stability, not. only in the . industry, but also in finance generalI ly, and would increase employment in mining operations, heavy industries, 'and transport operations, related io , litem. "We pray." the petition states, “that ; the guaranteed price per ounce of 'fin:' gold shall he not less than the ' I ,t;ivali'ii: of what free consignment of gold (ignoring shipping and export charges), would command in New Zealand currency. This price. we now consider, should be £lO 4s -Id. as shown below: — London price per ounce of fine gold, £7 8s 7d: add statutory exchange (25 per cent). £1 17 2; add extra exchange, as shown by the price of representative stocks (10 per. (•mil.). 18s 7d: actual value of gold in L'ew Zealand currency to-day, £lO 4s 4d. As New Zealand has a Reserve Bank of its own. the mining industry should not be charged with the cost of shipping the gold to London, but such charges should fall on the Deserve Bank if. and when, it exports the gold it buys. “We further contend that this experting industry is harshly singled out for an export tax. which undoubtedly falls heavily on marginal claims, and prevents many new enterprises being undertaken.” The Central Shotover Gold Mining Company. Ltd., at its annual meeting to-night, decided to give its support to the petition.