The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, OCTOBER 25, 1930. MORE GOLD WANTED.

Hokitika Guardian, 25 October 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, OCTOBER 25, 1930. MORE GOLD WANTED.

Although it is given out that tho United States has too much gold, there are other countries who aim at least to secure more gold and are evidently not afraid of. any ill-con-sequences thereby. There has been a strong agitation for some time past to subsidise the procVuctiqn of gold in Australia—-where the commodity is very scarce. Recently there was a report, which proved to be premature, that the Federal Government had resolved to subsidise the production of more gold. As the Federal economic policy will be disclosed shortly, it would appear that the subsidising of gold is among the proposals in mind for helping to retrieve the economical 'situation. The appeal for similar help in New Zealand has so far fallen on deaf ears, the Government having vetoed the request, hut if the Australian experiment is a success this Dominion may be disposed to revise its policy. Gold of course has a standard value, and for that reason it is the basic means of ■ exchange. Any paper issued to ensure its face value, the gold backing. It. has 'been held to grant a subsidy is to give for gold more than it is worth in the open market, and inflate values and for that reason the action is said to be not economic. On the other hand, Australia has to pay very dearly for its exchange because of tho lack of gold backing, and if the offer of the subsidy will bring more gold to the use of the country, then there will be a national saving on exchange, and there will be a profit from that source also. It is held also, that gold from other countries would be attracted for the increased price, which would mean exchanging sterling gold for Australian paper money. Still, much credit in Australia could be used profitably no doubt, and at the increased price there will the inducement to place gold on the Australian market from outside place is. IP this he realised, it will he helpful to Australia and will assist more rapidly still to overcome the present financial stringency. It will constitute something of an artificial aid, and while it will he experimental, it will be optional for the Commonwealth to withdraw as easily an it offers the subsidy. A special aspect of the position is with regard to employment. If the Government can induce more mining within its borders the result will be twofold. Not only will more wealth of a useful character- be produced to assist the financial position, (but a neglected avenue of employment can he followed up. Not only will there be the actual extra labour, but there will be the further use of tools and machinery, which will add to the general business of tho country. Gold miners are essentially loon,sumelts, land iconsun<ers of dutiable goods, so that there will be help also through the enhanced customs’ duties. With more attention to gold mining there is tho possibility always of fresh discoveries, and “a new rush” would be a very spec-

ial aid to tlio return of prosperity. Activity in mining and more ol it, carries in its train great possibilities, and it would be 'bettor tor any country to hand out help through that channel, than to aid unemployed won; :is with ye.ie!'., A .subsidy on gold as a bare statement of fact, may not sound nor appear an economic produce to be commended, specially, but in the light of an effort to deal with a vary present, situation in Australia, with the double purpose of helping both exchange and employment, there is a good deal to be said for the proposal, and certainly much to he expected from it 'Pile venture, it is possible, might prove the turning point for Australia. Its production is so extensive that with glutted markets, price values have dropped seriously. Here are the possibilities for the opening up of a now industry; and giving, the country a revival along lines which would carry much prosperity in its train. It has to be home in mind that. Australia is in a very '’serious position indeed when Mr bang hints at raiding the banks for national funds. The country must resort to something more hopeful of ultimate success than, such extreme action as Mr Lang would lead. For that reason though the proposal may not please The economists, still the subsidy on gold hals attractions for Australia at this particular time, which makes the experiment worth while.