RETURN FOR GOLD

Waikato Times, Volume 125, Issue 20890, 23 August 1939, Page 9

RETURN FOR GOLD

GUARANTEE SOUGHT £lO/4/4 AN OZ. CONSIDERED JUST (By Telegraph.—Press Association) DUNEDIN, Tuesday 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 tin order that a petition may be presented to Parliament for the granting of the request. Its sponsors claim that it would create a feeling of stability not only in the industry, but also in finance generally, and would increase employment in mining operations, and lhe heavy industries and transport operations related to them. “We pray,” the petition states, “that the guaranteed p'-’ice per ounce of fine gold be not less than the equivalent of what the free consignment of gold ignoring shipping and export charges) would command in New Zealand curren t. Ynis price we now consider should be £lO 4s 4d, as shown below. London price per ounce fine gold. £7 8s 7d: add statutory exchange, 25 per cent, £1 17s 2d; add

extra exchange as shown by the price of representative stocks. .0 per cent, 18s 7d; actual value of Hie gold in New r Zealand currency today, £lO 4s 4d. Cost of Shipping “As New Zealand lias a Reserve Bank of its own, the mining industry should not he charged with the cost of shipping gold to London, but such charges should fall on the Reserve Bank if and when it exports the gold it buys. “Wo further cou’end that this exporting industry is harshly singled ; out for an export tax which undoubtedly falls heavily on marginal claims and prevents many new enterprises being undertaken.” Then Central Shotover Gold Mining Company, Limited, at its annual meetJ irig tonight, decided to give its supI port to the petition.