WORLD’S GOLD SUPPLY

Hawera Star, Volume XLVII, 10 March 1928, Page 11

WORLD’S GOLD SUPPLY

“TTNfjESS vvc fire prepared to face • a prolonged fall in commodity prices, it is imperative to economise gold, both in regard to its use as commodity and -to‘its use as money,” says the Deputy-Master and Comptroller of t hi' Royal Mint, Colonel Robert A. Johnson, iii his report for 1926.

Reviewing present tendencies Colonel Johnson says, it may perhaps be safely said that the suggestions for the dislodge men t of gold as the basis of the world s currency, whether sound or uns'j'.uid in theory, aaj not likely to be pur. nto practice in tne immediate future. Gold, then, appears destined to euii'inuj in usefulness as a basis for international trade, an.: that being s o, it is not surprising that with the growing demand, consequent on the return to stabilised conditions by one country after another, the question of th*’ probable amount of the output of the virgin metal in the immediate future, a most important economic factaiy should be widely discussed. The discovery of new fields is, cf course, not 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 OF GOLD.

'The out-turn of gold by mines in the Union of South Africa in 3 926 exceeded that of any previous year, but cn the Rand the rise in working costs is regarded with apprehension. It is asserted that a 1 substantial further rise wouid render it impossible to work many of the older mines. Meanwhile, the Pretoria Mint continues to receive considerable quantities for conversion into sovereigns. At present gold sovereigns circulate freely within the union, and no less than £11.800,000* in gold coin was issued from the Mint in 1925, the greater proportion of them being exported to England and the East. The coinage of so much gold in these times is itself remarkable, but, even so, the amount does not approach even a third of the South African output. In Canada gold mining has developed verv rapidlv in recent years, and that Dominion bids fair to become the second largest producer in the world, unless discovery of new fie-lds should enable the United States to maintain their present position. In 1926 the total production of Canada, was upward of £5.000.000. In Australia, the first 10 years of the century saw an

NEED FOR - ECONOMY

average annual of some 3,525,1>000z. fine, while in the last five years the average has been less than SflO.OOOoz fine. SUDDEN RUSH FOR PENNIES. During the years 1923-25 the mint ceased entirely to strike pennies owiinr to the very large surplus of stocks hdi. by bankers, tramway and gv.s companies and other large users of the “humble penny.” Up to the summer of 1926 enormous . accumulations continued to exist. The banks alone in June, 1926, reported a net surplus of s ome £2oo,(Wu.' By the la.'3 autumn, however, these excess stocks appeared tci have <l'sal poured, and do man .i for new coins came pouring in with evi r increasing urgency. EXPENS IvE lIA LF-S'OVE R ETC NS. The vear of the return of the gold standard, states the report, coincided with a large coinage of sovereigns, at the mint at home and overseas, but in 1926 this coinage was confined to the establishment in Australia South Africa. Half-sovereigns were struck during 1926 only at the Pretoria Mint, the total exceeding 800,000 pieces.

It i s well known that this piece is expensive to manufacture and that its life compared with that of the sovereign is short. Obviously, therefore, in the interests of economy, the circulation of the smaller denomination is a luxury which it is impossible to justify under present conditions. Colonel Johnson savs he has, therefore, instructed Mr Pearson, of the Pretoria 'Mint, to discourage applications for half-sovereigns, and, in fact, dics_ for this denomination have not been furnished to Pretoria for the current year.

No fold bullion was received from the Bank of England for coinage during the Royal Mint. The number of new Imperial silver coins issued in 1926, excluding Maundy money, was 39,217,000. Nearly all the threepenny bits went to agents *of Colonial Governments, neither the Bank of England nor the banks in Ireland takino- any. British coin is rapidly disappearing from circulation IT I Australia. 1 says the report, For the fifth year in succession there was in 1926 aw oveess of expenses over receipts at. the Roval Mint..' the figure being £4.7,08-, compared with £87.925 in 192...