MINING.

Otago Witness, Issue 4006, 23 December 1930, Page 30

MINING.

The Dunedin Stock Exchange will be closed on Tuesday afternoon for the holidays and will be re-opened on January 12. GOLD PRODUCTION AND THE LEVEL OF PRICES. "WILL THE GOLD STANDARD HAVE TO BE DISCARDED? In an article dealing with gold production and the level of prices, which appears in the annual international banking number of The Statist, a searching analysis is made of a problem which to-day is as important as it is controversial. It is not surprising that the interest taken, m the problem of our standard of value should be increasing in view of the advent of one of those major fluctuations in the level of prices which have punctuated the economic history of the world. Such changes have been, and are at the present time, detrimental to the even progress of economic development. The disastrous reactions of the slump in prices are selfevident. Yet there are those who still pretend to believe that we are not witnessing the consequences of a general appreciation in the value of money and that, as far as monetary policy is concerned, the best course for the authorities to follow is one of laissez faire. Their argument, that the main influence on prices at' the present time derives from the greater productivity of the world, may be quite valid; but their deduction that consequently such influences should be allowed to work wholly unchecked, without any endeavour being made to compensate them by corresponding changes in the “ money ” side of the price equation, is illogical. Mankind chooses a monetary standard to facilitate its economic intercourse and progress. Stability is one of the primary requirements expected of a standard whether it be of length, weight, or value. If a monetary standard proves too inelastic to adjust itself to increases in the volume of world trade, it must make way for another. Will the gold standard have to be discarded? To this question The Statist makes a reasoned answer, arguing that the gold standard holds within itself all the virtues of the ideal standard, but that if those attributes are to be brought out the gold standard calls for intelligent international management. It cites figures and reproduces a chart recently published by the gold delegation of the League of Nations’ Financial Committee, showing how in the past changes in price level have coincided ■with changes in the relative deflation that faces the economic world owing to the gradual exhaustion of the world’s gold deposits. How can this danger be averted? The Statist enumerates and supports a number of recommendations—the concentration of monetary gold in the reserves of the central banks, an international lowering of reserve ratios, increased economy of gold by an extended use of cheques. giro transfer and other banking facilities, anld a wider understanding and application of advantages of the gold exchange standard- —which, if adopted, should go far towards making the gold standard a stable basis of value as well as an instrument designed to maintain stability of exchange.

KING SOLOMON REPORT. The following report has been received by the secretary of the Dunedin Stock Exchange from the managing director of the King Solomon Deep Lead Company:— Since the issuing of the last report a change had been made in the management. Operations had then to be suspended pending the arrival of the new manager, Mr R. 0. Ruffin, of Cornish Point. Mr Ruffin took over operations on December 8. and has done good work in securing and making safe the shaft. Sinking operations were continued until a spring was tapped in the shaft which oozed up sand. The bottom of the shaft was then sealed off to prevent any large inflow. The manager is now preparing to open out from the shaft and start driving in the wash encountered in the shaft. The total depth of the shaft is 193 feet. Payable wash was encountered at a depth of 181 feet, and is at least an eight feet layer. This means that all wash brought to the top from now on will carry gold. The total amount of gold won from the wash encountered in the shaft is just on five ounces. Unfortunately much gold was lost in the tailings. This has now been overcome by entirely reconstructing the boxes. Further, through the amount of water falling to the bottom of the shaft it was impossible to clean up the bottom thoroughly. Indications are encouraging, and it is hoped that sufficient driving will have been done by the end of next week to show that as soon as the ground is opened out sufficiently to put on extra men good profits will be shown. OKARITO GOLD DREDGING COMPANY. An important stage in the progress of the Okarito Dredging Company’s works was reached on December 6, when the pontoons on which the dredging machinery is to be erected were successfully launched. Visitors from Hokitika, Matainui, Waiho Gorge, and Okarito to the number of ov.er 80 were present at the company’s invitation to witness the event. The day was fine, with Mount Cook and the whole range of the Southern Alps in full view-. The launching of tbe pontoons was carried out by Mr Noble Ruff, the builder. 1 he four mooring ropes, six inches in circumference, were cut simultaneously and the pontoons within a few seconds glided smoothy over the ways into the dock excavated to accommodate them while the erection of the top framing and the machinery was carried out. When this work has been completed the dredge will be floated from the dock into the paddock taken out by the hydraulic elevating plant, and the dredge will commence work there. Speeches appropriate to the occasion were delivered by Mr James Donovan (representing the Westland County Council), Mr Radford (general manager in New Zealand for the Rimu Flat Dredging Company), and Mr J. Hewer (Greymouth). Mr R. T. Stewart, the company’s engineer, replied. To prevent the workings carried out with the elevating plant from now on

affecting the water level in the paddock, it was necessary that the plant should be removed to a considerable distance. Last week a branch pipe line 13 inches in diameter was laid from the main line to a point some 27 chains northwards from the dredge paddock and there the sinking elevator was assembled and an opening was made for the main elevator. At a depth of 14 feet from the surface 12 15° c • ar i nR sands were found—a depth of nine feet of alternate layers of black and mixed sands, carrying gold to the same extent as the ground worked by the elevator at the dredge paddock. On three sides of the cut or opening made with the sinking plant, good prospects have been obtainable. A run of boxes has been erected, and it now only requires the addition of the gold-saving tables to enable a start to be made. Work at the claim has been suspended for the holidays and will be resumed on January 12 and continued until the dredge is ready to commence operations. The annual meeting of the Okarito Five-mile Beach Gold Dredging Company was held on Friday evening in the Chamber of Commerce Board Room, the chairman of directors (Mr J. E. Wheeler) presiding over a good attendance of shareholders. The chairman, in moving the adoption of_ the annual report and balance sheet, said that the part which concerned shareholders moot was the fact that the company had come to the end of its finances. This was attributable to the difficulties which had been encountered in the work of getting the machinery to the claim. It had been decided to put in better pipes than had been estimated for, and this had cost an extra £5OO. The company had counted upon carting the supplies over the beach, but it had beer, found that this route was extremely unreliable. The machinery, in consequence, had had to be carted over the hill on which there was only a track. This work then had been on e of the most substantial reasons for the present lack of finance, the amount spent in this direction being £ll7O. The engineer had made _an excellent job of laying the pipe line. There had been difficulties in getting the timber for the pontoons, which had been launched early this month, and this aloo had cost a great deal of money. With the . completion of the- pipe line sluicing operations had been commenced with the double object of trying out the ground and opening out a paddock for the dredge. This work had been done m the neighbourtood of bore 25. which was one of the richest parts of the claims. It was then found that under this part old mining works existed. The elevator had been shifted, and good prospects were being obtained. The deckin” and superstructure of the dred'm were now receiving attention. J- M- Stewart seconded the motion, and said he was confident that the dred" ln ?r' VO -r> P r °ve extremely satisfactory. Air R. Lee said that the difficulties of working the claim had now been practically overcome. He spoke of the great amount of work which tiad been incurred in taking in the pipes and machinery. Iney now- had excellent pontoons for the diedge and it had been found that a very high percentage of the gold could be i„ if -n . P ros P®cts to-day were undoubtedly better than they had been when the company was formed. , ij tribute was paid by several shareholders to the excellent work which had been done by the company’s engineer in getting the machinery mi to the claim under such great difficulties. Appreciative mention was also made of the manner ni which the directors had handled the affairs of the company in a difficult time. Um motion was carried The F etirin S director' (Mr J. E. Wheeler) was re-elected. Mr C E. Richards was re-elected to the position of auditor. .. Tll . e , chairman moved the adoption of the following resolutions: — f° r le P ur P ose of issuing the £<>ooo of debenture stock the nominal capital of the company be increased to £35.000 by the creation of 20,000 ordinary shares or 5s each (£5000), ranking pari passu with the existing shares of the company, and that these shares be first ottered for subscription as hereafter provided.’ “ That the proposed action of the directorate issue 10 per cent, debenture stock to the total value of £5OOO be approved, and that these debentures be convertible at the option of the debenture-holder into ordinary, shares at any time up to January, 31. 1932.” After a short discussion, the motion was carried. , At the conclusion of the business meeting, the company’s engineer (Mr R. T Stewart) gave a very interesting talk on the work done at the claim, the whole lecture being copiously illustrated with lantern slides. The difficulties of transport and the building of the dredge pontoons were all shown on the screen, and Mr Stewart also explained the work which was being carried on at present. The lantern was operated by Mr W Simpson.

TARANAKI OILFIELDS, LTD. * _ GISBORNE. December 16. Taranaki (N.Z.) Oilfields report as follows for the week ended December 13:

Waitangi No. 1 well: In order to make the 22in casing more secure, it was necessary to place an additional quantity of cement; now waiting for this to set; expect to start drilling for 15£in diameter casing December 17. GISBORNE, December 19. The Taranaki Oil Fields, Ltd., reports for December 19: Waitangi No. '1 well, good show of oil at 232 feet. DUNEDIN STOCK EXCHANGE. Friday Afternoon. The past week'has been'a fairly quiet one on the Dunedin Stock' Exchange, the volume of business transacted being about the same as that of the previous period. The sales have, however, been more scattered, and almost every section has seen some activity. Contributing New Zealand Refrigeratings have again attracted some attention, and they have, after easing considerably during the week, again reached about the same value as at the end of the previous week. At the end of the period there was a revival of interest in Taranaki Oils, and a sale took place on ’Change. Perpetual Trustets, which have not been dealt in for a long time, were the subject of another transaction, and there was also a deal in 5J per cent Inscribed Stock (1933). The banking section has had a very quiet week little demand being made for any shares National Bank of Australasias have been asked for at up to £lO 5s without attracting business. The contributing issue has also been in demand, the best offer being £5 2s 6d. There have not, however, been any sellers of these shares in the market. The offer for Commercial Banks nas remained at around 15s lOd, sellers being firm at IGs 3d. No offers have been made for National Insurances, which have been offered at 14s 3d. There has been a buyer of New Zealand Insurances at 39s 9d, but sellers have been unwilling to take less than 41s. Business was done in South British Insurances during the week at 54s 6d. They have since been in demand at 54s 3d without attracting further business. The offer fell at the close of the market, and the best buying quotation then was 51s 4d, no seller being forward. P. and O. Deferred Stock was offered during the week at 445. ’’ There was a buyer later at 41s, but sellers failed to come forward. The demand for Kaitangata Coals has remained firm at 2s discount, and there was a sale at that figure. It was still the offer at the close of the market, sellers then demanding par. Preferred Westport-Stoektons, which have been on offer lately at 3s 6d, were offered to-day at 3s without attracting a buyer. The long-standing offer of 68s for Perpetual Trustees was accepted during the week, one parcel changing hands. No further inquiries have been made for these shares. When the week was commenced there was a buyer of New Zealand Refrigerating shares at Is and a seller at 2s. The demand remained the same, but sellers reduced their quotation to Is 4d, and later to Is, buyers then failing to come forward. Five sales were reported at lid, and the shares were then quoted at 9d (buyers) and lid (sellers). The prices improved a day later to lid and Is 3d respectively. At the close of the market a sale was reported at Is 3d, and the last quotations were le (buyers) and Is 6d (sellers). Offers of 10s for ordinary Bruce Woollens have failed to attract a seller at less than 12s 6d. There has been a buyer of the preferred issue at 15s, sellers asking 20s. New Zealand Drugs were first asked for at 51s, sellers demanding 2s more. There was business at 52s 6d, and the shares were then offered at 53s 3d. New Zealand Breweries shares have been on offer at around 41s throughout the week, the only offer being 395. King Solomons, which were first quoted at 6d (buyers) and lid (sellers), were dealt in at 7d. They were still being asked for at 6d towards the close of the week, sellers then asking 2d more. There was a sale of a parcel of 5J per cent. Soldiers’ Inscribed Stock at £99 10s. A later offer of £99 7s 6d failed to attract further business.

Saturday Morning. No business was recorded on the Dunedin Stock Exchange this morning, but the demand for shares in most of the sections was about the same as during the week. There was a buyer of Commercial Banks at 15s lid, but sellers remained firm at 16s 4d. South British Insurances were asked for at 53s 6d, no seller coming forward. New Zealand Refrigerating contributing shares were inquired for at Is Id. the best selling quotation being Is 4d. There was a buyer of Nokomai Sluicing shares at 15s, but sellers failed to respond. The following are Saturday’s buying and selilng quotations, which are subject to the usual brokerage:— BANKING. Bank of Australasia —Sei £9 9s. Bank of N.S. Wales —Sei £2B 15s. Bank of New Zealand —Buy 495, sei 50s. Commercial Bank—Buy 15s lid, sei 16s 4d. E.S. and A. Bank—Sei £5. National Bank of Australasia —Buy £lO 2s 6d. National Bank of Aust, (cont.) —Buy £5 2s. Union Bank —Sei £9 6s. INSURANCE. National Insurance Co. —Sei 14s 3d. N.Z. Insurance Co. —Sei 425. South British Insur. Co. —Buy 53s 6d. Standard Insurance Co.—Sei 495. SHIPPING. P. and O. Deferred Stock—Sei 445. COAL. Kaitangata—Buy 2s dis., sei par. Westport Coal Co. —Sei 26s 9d. Westport-Stockton (pref.)—Sei 3s 3d. LOAN AND AGENCY. Goldsbrough, Mort—Sei 19s. National Mortgage—Sei 555. National Mortgage “ B ” —Sei 325. Wright, Stephenson (ord.) —Sei 19s. MEAT PRESERVING. N.Z. Refrigerating (cont.) —Buy Is Id sei Is 4d. ’

MISCELLANEOUS. Auckland Amusement Park (ord.) — Sei 2s. British Tobacco —Buy 29s 6d. Brown, Ewing (pref.)—Sei 20g 3d. Bruce Woollen Co. (pref.)—Buy 155,. sei 20s. D.I.C. (pref.)—Buy 20s. Donaghy’s Rope and Twine—Sei 355. Mosgiel Woollen Co.—Buy £6 10s. M'Leod Bros.—Buy £l9. National Electric—Buy 9s 6d. N.Z. Express (pref.)—Buy 15s 6d. N.Z. Paper Mills (ord.) —Buy 17s 6d, sei 18s 9d. Christchurch Gas—Sei 265. BREWERIES? N.Z. Breweries, Ltd.—Sei 40s. MINING. Nokomai Sluicing—Buy 15s. Waihi—Buy 14s. Waihi Grand Junction—Sei 2s 2d. North Broken Hill—Sei 42s 6d. Mahakipawa—Buy 7d. Kildare—Buy Bd. Paddy’s Point —Buy 4s 9d, sei ss. Golden Progress—Buy 2s 6d. Taranaki Oil—Sei 10s prem. WAR BONDS. 44 per cent. Bonds, 1938 —Sei £99. 44 per cent. Bonds, 1939—Sei £99. 4| per cent. Inscribed, 1938—Sei £99. SALES ON ’CHANGE. The following business was done on ’Changes during the week: — Tuesday. Auckland. —Sales: Inscribed Stock (1933), 54 per cent., £99 10s; Auckland Harbour Board (1936) 4 per cent., £9l; Bank of Australasia, £9 7s 6d; National Bank of New Zealand. £5 ss; Bank of New South Wales, £2B 10s; Bank of New Zealand, 50s 6d, 50s 3d; South British Insurance, 555; Goldsbrough, Mort, 19s; Mount Lyell, 19s 9d. Wellington.—Sales reported: Napier Borough 5 per cent. (1944),. £9l 2s 6d (two sales); Bank of Australasia, £9 9s (three sales); Consolidated Brick and Pipe, 13s; New Zealand Government 51 per cent. Bonds (1936) £99 10s. December 17.—Sale: King Solomon, 7d. Sales reported: South British Insurance, 54s 6d; New Zealand Refrigreating (cont.), lid (five); New Zealand Drugs, 52s 6d; 5J per cent. Inscribed Stock (1933), £99 10s. December 19. —Sale : Taranaki Oil. 3s. Sales reported: Perpetual Trustees. 68s; New Zealand Refrigerating (cont.), Is 3d.

NORTHERN EXCHANGES. The following business was done on Northern ’Changes during the week. Wednesday. Auckland.—Sales: Auckland Harbour Board (1939), 5} per cent., £95 ss: Mount Lyell (cum div.), 19s 6d, 19s 3d; Gear Meat, 29s 3d. Wellington.—Sales reported: Electrolytic Zine (pref.), 17s sd; Mount Lyell Mining (cum div.), 19s lid (late sale yesterday. Christchurch.—Sales: Bank of NewZealand, 50g Id (two parcels); Dalgety and Co., £6 10s; Goldsbrough, Mort, 19s (three parcels); New Zealand Refrigerating (10s paid), lid (six parcels); British Tobacco (cum div.), 39s 9d; Electro Zinc (pref.). 17s; Cornish Point, Id; Okarito, ss; Holden’s Motors, 9s 3d. Sales reported: New Zealand Refrigerating (10s paid), lid (two parcels); British Tobacco (cum div.). 30s 9d; Mount Lyell (ex div.), 18s 9d; Australian Bank of Commerce, 18s 9d. 18s lid, 18s 6d; Australian Glass, 25s 9d; Goldsbrough, Mort, 19s 3d. ~ Thursday. Auckland.—Sales: Inscribed Stock (1937), 5J .per cent., £96; Takapuna Borough (1945-6). £101; Mount Eden Borough (1964), ‘SJ per cent., £92; Tamaki West Road Board (1960), 5? per cent., £99 10s; Bank of Australasia, £9 ss; Commercial Bank of Australia, 16s 2Jd; Bank of New Zealand, 50s (two parcels); New Zealand Insurance, 41s; New Zealand Refrigerating (cont.), lid. Wellington.—Sales reported: Bank of New South Wales. £2B 15s; Staples and Co.. £1 17s 9d; British Tobacco, £1 10s and £1 10s Id.

Christchurch. —Sales; Commercial Bank of Australia. 16s Id. 16s 2d (two parcels) , 16s 2d (three parcels) ; Dalgety and Co., £6 7s 6d, £6 7s; Goldsbrough, Mort, 18s 9d; New Zealand Refrigerating (10s paid), Is Id, Is 3d; New Zealand Drug Company (odd lot), 51s; New Zealand Breweries. 39s 9d. 39s 6d. Sales reported: Mount Lyell, 18s Id, 18s 2d; New Zealand Brewery, 39s 6d; New Zealand Refrigerating (10s paid). Is 41<L Friday. Auckland.—Sales: War Bonds (1938), 44 per cent., £97 15s; Bank of New Zealand, 50s (two parcels, including late sale Thursday); New Zealand Insurance, 40s 9d; Devonport Ferry, 21s 3d; Taranaki Oil, 2s 3d. Wellington.—Sales reported: Bank of New Zealand. £2 10s; Christchurch Gas Co., £1 ss; New Zealand Drug Co.. £2 Ils 6d; New Zealand Government' 54 per cent. Stock (1933), £99 7s 6d; Dafgety and Co. (Melbourne register). £6 10s; Goldsbrough, Mort, and Co., 18s lid; New- Zealand Insurance Company, £2 0s 9d; British Tobacco Co. (ord.), £1 10s (cum div.). Christchurch. —Sales: Comm. Bank of Aust., 16s 3d; New Zealand Refrigerating (10s paid). Is 4d, Is 3d (tw-o parcels); New Zealand Breweries. 395; British Tobacco (cum div.). 29s lid; Henry Jones Co-op., 18s 6d; Mahakipawa, 7d. Sales reported: Goldsbrough, Mort, 18s lOd; Mount Lyell. 17s lid-; New Zealand Refrigerating (10s paid), is 3d, Is 2d. Saturday. Auckland. —Sales: War Bonds (1938), 44 per cent., £97 15s; Com. Bank of Aust., 16s; Bank of New South Wales. £2B 10s; Bank of New Zealand, 50s; Goldsbrough, Mort, 18s 6d; Robinson Ice Cream, 21s 6d: Taranakj Oil, 3s 2d. Wellington.—Sales reported: New Zealand Government 44 per cent. Stock (1939), £97 2s 6d; New Zealand Government 44 per cent. Stock (1938), £97 2s 6d; New- Zealand Government 5} per cent. Bonds (1933), £99 10s.