THE GOLD BOUNTY.

Otago Witness, Issue 4014, 17 February 1931, Page 30

THE GOLD BOUNTY.

LATEST LEGISLATION EXPLAINED. In respect to the Gold Bounty Act, which came into force on December 16, 1930, the Under-secretary for the Department of Mines (Mr A. H. Kimbell) had the following remarks to make to our representative last week.

The Gold Bounty Act, he said, provides for the payment, for a period of 10 years from January 1, 1931. of a bounty calculated on the basis of one pound Australian currency for each ounce of fine gold produced in that year in excess of the average number of ounces of fine gold produced annually during the years 1928 r 1929, and 1930.

The bounty will be payable only to gold producers who register under the Act. A producer may be a company, a prospector, a syndicate, a partnership, a co-operative party or lessee, and registration involves an undertaking to comply with the conditions laid down by the Minister.

The bounty is also payable on gold in matte, concentrates or other material containing gold shipped abroad for treatment if the prescribed conditions are complied with.

The object of the Gold Bounty Act is to provide a stimulus to one of Australia’s most important industries. For many years the production of gold in Australia has shown a serious falling off. In 1919 the production was 1,068,102 fine ounces, valued at £5,454,806, while th« production for 1929 was 427,159 fine ounces, valued at £1,814.457. One of the most significant features of the gold production of 1929 was that it took considerably more miners to mine a less amount of gold than was produced in the previous year. That was due to decreased ore vahies and increased operation costs. Unfortunately for the gold

industry the increase in the cost of production does not result in an increased return for the gold won, because the price of gold is determined by a balanced standard fixed by the Bank of England. It is believed that the bounty will play a most important part in inducing people to invest their money in mining operations. This should result in the resumption of work on some of the mines that have been temporarily abandoned. It should make others more efficient, and it should put more fields into operation. It is confidently thought that the bounty will not only increase the production of gold in Australia, but also give employment to a considerable number of people. The Postmaster-general, after considering further representation by the Minister of Mines, has agreed to bullion up to 111 b in weight being transmitted through the Post Office instead of £lOO as formerly, thus reverting to the practice that was in vogue prior to June 30, 1929. This concession will be appreciated by a number of those engaged in the goldmining industry.