FRIDAY, MAY 30, 1919. THE GOLD QUESTION.

Hawera & Normanby Star, Volume LXXVII, Issue LXXVII, 30 May 1919, Page 4

FRIDAY, MAY 30, 1919. THE GOLD QUESTION.

A cable received ith© other day* reported a serious condition of affairs in connection iwith gold mining in South Africa, and that an influential deputa- | t'ion had put (before the premier the imminence of the closing down of some of the greatest mining undertakings in the country. The position is also most difficult in other gold producing countries. In the first place the prospect is that a large amount of capital and labor employed in imining will be idled, but further, if the output of gold is insufficient there nuay^ ibe economic effects- of a disturbing character, true though it be that of late yeans paper has to an astonish/ing degree replaced gold currency. The situation from' the mining point of view is discussed in an article in Chambers' * Journal for March last, and the following extract ■will be found interesting: "It may seem that gold is hardly topical at the (moment. But it is. The war's influence on prices hias affected.the goldmining industry throughout the world to such an extent that gold ore, paylable to 'mine in pre-war days, ha.s now become unprofitable to treat. Some little time ago,' representatives of the /world's gold-producing countries formed a committee to make representations to the Government on the matter. "While the (standard pnc e of gold has remained stationary at four pounds

five shilling's per fine ounce, eveiyfhingi connected with the winning and working of gold 'has increased ia cost— plant, machinery, .tools, stores, wages, etc. With, (the maining of all other metals, an increase in the price of the imet..ls themselves :hae met the enhanced working costs. Bu<t not >so in the case of gold. There has ibeen no compensating influence in the way of ■an increased pi'ice paid for the metal to set off against the great increase in the cost of ifas production. It has 'been said that during the war the only thing in the world ithat has hot increaised in price is gold. The Chancellor of the Exchequer appointed a committee to enquire into (the (matter. It consisted of well-known men; and after an exhaustive enquiry, in which the Empire's most- expert authorities on currency, finance and gold mining put forward opinions ,it was decided that nothing could he done to aid the industry, ss 'that iwould tend to produce an increase in the price of all* other eommoditis'3. 'The Geld Committee' asked fqgf aid 'by way of a 'Subsidy or a bonus on production, more especially to low-grade mines. ' In the Transvaal there are many large properties working at as low a3 threepence per ton profit. Seme are merely paying expenses, and it is a well-known fact that they have ibeen kept working for patriotic reasons. It is the. same with many Australian mines. The decision of -the Treasury Committee not to ad- j vise the Government to help low-grade | .mines sand offer some enppu^ageaneiiifc to the industry ih'ay'hjive a tserious' influence on the Empire's production of j gold. Irideed, the result of 'the enquiry is sufficiently disappointing to create the' possibility of further negotiations';; ■■an.cL more may <be heard of what is now known as ' The Goid Question.' " It may foe noted that the British Empire produces <more gold •than any other couniry in the world. In 1917 it obtained from its mines in differint parts of the world 13,324,759 ounces, valued at £56,498,873, out of the to't-al world's production of 20,756,384 ounces,' value dg88,083,123, a' contribution of about 64 per cent, of ■the world's supply. The largest and j j richest *n:nes are in the Transvaal, but Australia produces & gcod deal, and Russia; has been a valuable source o*f supply, whereas Germany (says the, Chambers' Journal -writer) does not possess any gold mines, nor have any ever been discovered in her colonies. New Zealand in the past has produced large quantities, its total output being Valued:■-■ at £88,648,463, as against £572,453,770 for all Australia, of which Victoria produced, roughly, one-half, and Western Australia a little less than one-fourth. . But fch.e output in both Australia aad New Zealand has 'been on the decline for 'many years. Jlven between 1900 Itad 1915, the latest year for twhioh figures are available, the annual value declined; from £15,000,000 to £10,000,000 in round figures. A large conference was held on the West Coast of the South Island the other day wfith the view of giving more encouragement to; prospecting in the belief .that new field© might thereby ibe discovered. Let us hope ithat examination of the project will show "that it may 'be worth while to pursue it • further. The Minister for Mines hap. assured 'the mining people that the Department is well aware of the importance of reviving the industry if possible, and has promised active assistance to any reasonable proposal.