PRODUCTION OF GOLD

New Zealand Herald, Volume LXX, Issue 21462, 8 April 1933, Page 10

PRODUCTION OF GOLD

Many accounts combine to create a picture of renewed enthusiasm and increased energy devoted to winning gold in New Zealand. It is a policy of unimpeachable soundness in the crisis of industry and employment the country faces. It is also part of a movement of world-wide extent. Figures just issued show that in Victoria —last century the scene of as spectacular a boom in alluvial mining as the world has known—the yield of gold almost doubled between 1930 and 1932, and an increase even on this is expected for the current year. Returns compiled by the National City Bank of New York, reflecting the position to the end of 1932, reveal a spectacular increase not only in mine output, but in the return t,o daylight of metal previously hoarded, during the past three years. In 1929 the production of new gold amounted to £80,600,000, in 1930 to £86,200,000, in 1931 to £91,800,000, and in 1932 to £98.800,000. In the last two years the value of gold released from China and India was £31,000,000 and £•44,000,000. Thus in these four years Ihe addition to the world's visible gold stocks was £432,000,000, these figures being calculated as though (he pound sterling had not left gold. 7'his, as is noted, is exclusive of gold released from private holding in the years considered, for which definite figures are not available, though the total is important. Heavy further expansion of output is predicted for the two leading gold countries of the world, South Africa and Canada. Russia is believed to have great possibilities, while in a host of other countries, comparable with Australia and New Zealand, activity is on the increase. The premium commanded by the metal in countries where cur-

rency is off gold, coupled with reduced costs making profitable the working of low-grade ores, are largely responsible for the rise in production. In the extensive discussions of monetary theory that have been heard, it has frequently been suggested that gold should be entirely abandoned as the basis of value. If this happened, the precious metal.would be in demand only so far as its use in the arts and in industry extended. The result would be a glut of incalculable dimensions. No mining country takes this possibility seriously, as the output shows. Two factors are on their side. The abandonment of gold in monetary systems is much more easily suggested than effected, and deeply implanted instinct will keep it the symbol of value in popular estimation. The psychological factor cannot be ignored. Like the rest of the world, New Zealand works soundly in striving to expand the output of gold.