PRICE OF GOLD

Nelson Evening Mail, Volume LXIV, 3 February 1931, Page 7

PRICE OF GOLD

LONDON RATE WANTED SUBSIDY ON PROSPECTING DEPUTATION TO .MINISTER Asking that the Government should make arrangements for the payment of the London rate of 05s an ounce for gold in New Zealand, instead of the standard rale, of 775, now being paid by (ho banks, and that it should bring into operation, lint provision of the Mining Act subsidising prospecting at (he rale of 5s in the i! on expenditure, a deputation representing the mining interests of Hie South Island, waited on the Minister for Mines (the lion. A. J. Murdoch), at the Chiislclnmli railway station, reports the “Press.” The reason given for their second request was that there is a great deal of low grade ground that could he worked and give employment lo a large number ol men. The deputation was also anxious for (lie Government lo make arrangements for tho gold to he taken over in Marlborough, near tho goldfields, and save the present transportation to Dunedin.

Staling his sympathy with (he mining industry, the Minister promised his consideration to the requests. “Now is the time that the. more gold we produce tho heller for Ibe community,” he. said.

Tho deputation comprised Messrs J. A. I’edp.'il h, chairman of directors, P. W. Soanes, It. Newell, (!. S. McDonald (Moolaptt Gold Mining Company, Ltd.). YV. C. Tiseh (chairman of directors, Bell llill Gold Sluicing Company, Ltd.), ,T. D. Ronton, deputy-chairman of directors, IT. McTlwraith. W. UNicholls (Alahakipawa Goldfields, Ltd.).

GOVERNMENT SHOULD BUY GOLD

Mr Red pa 111, who acted as spokesman, said that on behalf of investors and others in Christchurch intcrcslcd in tho mining industry, he bad been asked to place before the Minister the question of a. bonus on gold won. He was not quite sure, however, whether it was sound policy to pay tlie bonus when allot her effective course could be taken. “Our suggestion is that instead of mines lining forced to send their gold out of the Dominion lo enable them to get a market nearer I lie actual value Hum it is possible to obtain horn, the Government should liny the gold at (lie value obtainable in London,” added Air Rodpatb. “The price the hanks are paying is practically 77s an ounce, and tho advertised price in London is 85s, showing a discrepancy of 8s an ounce, which is not a fair rale when all the minors get is the bank naper. At piesent in our district and tlie West Coast, gold is sent by the banks on commission to Australia.. There is no incentive to minors to dig for gold as Ihe local hanks in Marlborough do not buy it. All lias to bo sent to Dunedin.” They knew of a case where two people had to take their ear all tho way to Dunedin to get rid of two small ihgots of gold from Marlborough. The Munster would see that if only 7s were added to the present price, it would mean a great incentive lo mining, and would, they claimed, materially help mines which were working near tlie border line of profit and loss. Also in alluvial ami quartz districts it would cause miners to do morn prospecting, which would bring increased prosperity to the Dominion.

SUBSIDY ON PROSPECTING Mr Rodpalh drew the Minister's altontion to Paragraph 419, Part 13, of (ho Alining Act. where it was stated that.a subsidy might ,be granted to any person engaged in prospecting or pioneer mining ol 5s for every £ expended. The company in which lie was interested bad spent £BOO in prospecting up to August, 1930. Having been granted only £SOO towards further dcvelopment, it had been forced to remain idle until further capital was obtained, whereas if the Government bad granted assistance at least, live men would have been employed, all practically unskilled labour. “We have an ironstone lode carrying gold, and the quantity and quality of gold in sight warrants more work being done,” lie continued. “Should the lode value continue or improve, it will mean employment for many men, since Hie. conditions are such that unlimited quantities of stone could he. mined cheaply. In fact, it is one of those fields ol low grade ore that in oilier countries are being worked profitably. Should this he proved payable, the lead can. be traced in Alarlborough over 20 miles, which will mean a very large outlet for the unskilled worker. One lias lo remember that when this takes place the whole of the requirements of those workers and dependents arc produced in the Dominion, so that it will benefit oilier producers. The Dominion geologist, Dr. Henderson, has been on. tlie field at our invitation, and has strongly recommended further development. ANXIOUS TO HELP The Minister, promising his consideration of tho deputation’s requests, emphasised that Hie Government was anxious to help them as far as it could, although funds at present were scarce. He hoped that next year they would get a better "slice” for the payment ot bonuses. , , , __ Air Murdoch said he thought 77s an ounce a very low price, and was greatly surprised to hear that tho gold had to bo sent, to Dunedin. “I don't sec any reason why gold in Picton should not he tlie same value as gojd m Dunedin or gold at the North Cape,” ho said. “If Hicre is any way wo can lake it over at Picton we will try to arrange that, and wc will also look into the difference of price without wasting any time.” T A member of tho deputation : Is the Government considering a bonus. DECISION ABOUT BONUS “At the present time, I’m afraid there is not much chance of it, but » cannot say that definitely. Australia is giving a ‘bonus, but while the impression is that there it is paid on the whole output of gold, actually it is paid only on the increase over tho previous year’s. Now that Air Forbes is back we. will be aide In come to some definite decision about the bonus.” ~ Mr Murdoch mentioned that the Government had now 44 or 45 parties out, and was paying thorn aL the rate of 3Js a mail. Each party comprised two men or more. It was hoped io work in conjunction with the Unemployment Board so that one or two unskilled' men among Hie unemployed might ho put out in each parly with'a good prospector. Another member: A bonus would help open lip a lot more mining. Air Murdoch: I would very much like to lie able to give it Now is Hie time Hint Hie. more gold we can produce, the better for Ibe community.