GOLD VALUES

Otago Daily Times, Issue 23894, 23 August 1939, Page 7

GOLD VALUES

GUARANTEED PRICE SOUGHT GREATER STABILITY DESIRED PETITION IN CIRCULATION A move is on foot among producers in Otago to obtain a guaranteed price for gold, and the signatures of those interested directly or indirectly in gold mining are being obtained in order that a petition may be presented to Parliament. The granting of the request, its sponsors claim, would create a feeling of stability not only in the industry but also in finance generally, and would increase employment in mining operations, the heavy industries, and the transport operations related to them. "We pray," the petition states, "that the guaranteed price per ounce of fine gold shall be not less than the equivalent of what a free consignment of gold (ignoring shipping and export charges) would command in New Zealand currency. This price we now consider should be £lO 4s 4d, as shown below:— £ s. d. London price per ounce fine gold 7 8 .7 Add statutory exchange, 25 per cent 1 17 2 Add extra exchange as shown by price of re- • presentative stocks. 10 per cent 0 18 7 Actual value of gold in New Zealand currency to-day .. .. £lO 4 4 "Your petitioners contend that as New Zealand has a Reserve Bank of its own the mining industry should not be charged with the cost of shipping gold to London, but that such charges should fall on the Reserve Bank if and when it exports the gold it buys. "We further contend.that this exporting industry is harshly singled out for an export tax, which undoubtedly falls heavily on the marginal claims, and prevents many new enterprises being undertaken." The Central Shotover Gold Mining Company, Ltd., at its annual meeting last night, decided to give its support to the petition.