THE IMPORTANCE OF GOLD

New Zealand Herald, Volume 78, Issue 24049, 21 August 1941, Page 8

THE IMPORTANCE OF GOLD

In the annual mines statement presented to Parliament by the Minister of Mines yesterday there occurs the following statement, referring to the production and export of gold: "It is of especial importance at the present time, in relation to the provision of overseas funds and the war effort, and the Government is determined to do all in its power to assist all genuine and legitimate goldmining operations." That is correct as applied solely to New Zealand's own position and problems. There is a further factor, that gold has a leading place among the resources which go to meet the demand for dollars. It was stated at the outset, and has been repeatedly emphasised since, that the operation of the Lease and Lend Act has not dissipated all anxiety over dollar credits. The need to husband the Empire's resources still remains. Newly mined gold from Empire countries is estimated to average about 750,000,000 dollars a year, a substantial contribution toward meeting the bill for war supplies to Great Britain and the Dominions. The more it can be increased the better, and even small accretions are not to be despised. The mines statement shows a gi'adual rise in the volume and value of gold bullion in the recent past. The figures for the last five years have been : Oz. £ 1936 . . 164,575 1,233.178 1937 . . 168,487 1,279,893 1938 . . 152.050 1,182,719 1939 . . 178,955 1,530,857 1940 . . 185,665 1,891,'447 These returns are small compared with production in South Africa, Canada and Australia, but it is more important to-day than ever before that they should be increased by any economically sound means possible.