Arizona republican., 1915-01-10

favorable trade balances will quite largely meet this situation. although there can be no question that the present conditions are increasing the strain upon gold.
 The present world situation as af fected by gold supply seems 10 Jusu- fy and strengthen the continuing ap- peal of the American Mining Con gross for adequate federal aid in this behalf
 While general prosperity induces an increased productions of other minerals, through the increase in price which ali active demand stmu- lates, it is unique that increased prosperity in other lines makes more difficult the production of gold.
 Increases in the cost of labor, ma chinery and supplies add to the cost of gold production. while its value remains unchanged The incentive for increased production of commo- dities can only operate to stimulate gold production when gold goes to d premium. which means depreciation of our currency. More economic mining and treatment methods are | necessary if gold production is to be kept normal while other lines are prospering:
 Comparatively few new bodies of high grade gold ore have been dis 1 covered for many years past, while i those previously discovered are ra- | pidly becoming exhausted of their reserves. This is one of the chief reasons for the decrease in gold pro- 1 duction. When these reserves are exhausted the enormous capital the great amount of engineering and metallurgical skill, and the labor which is now utilized in these mines will each be required to find em- l ployment elsewhere, unless in the meantime through some agency 1t is 1 made economically possible to mine i and treat at a profit the enormous bodies of low grade ores which can not be economically treated at this 1 time. The shifting of these enor- i nous productive forces in itself would create d condition demanding gov
 ernmental attention.
 The worlds strain upon gold is being rapidly increased. The world s gold production IS decreasing In the | United States these conditions aro
 being emphasized by the increas sing | demand for money resulting from our marvellous industrial development To 1 meet these conditions We must either
 produce gold ourselves or secure it 1 through favorable trade balances
 from countries to some of which we are already greatly indebted. I be-
 lieve that the very best we can hope
 from favorable trade balances will
 still leave a great necessity for an
 increased home production.
 Let me epitomize my ideas on this
 subject:
 l CD The need for gold to main
 tain a proper ratio between base and
 structure of credit is increasing with
 the great increase in our commerce ! t2) Increased costs of opera tior
 now and always will add to the bur
 dens of gold production so long as
 our credit money is at par.
 (3) The increased foreign demand
 for gold reserves is absorbing a great part of the worlds production
 (D The increased use of credi
 money. made possible by the new
 currency bill-that may not be mis
 understood, let me say that l con , slider this bill the most important
 the most valuab and that in effec
 it will be the most useful legislatio,
 of recent tmes-increases the bur den upon an already overburdene,
 gold supply by requiring it to sup port q greatly enlarged "superstruc ture of credit"
 ; CD The highly productive mine of the country are being rapidly eX hausted and no comprehensive effor is being made to develop other mine to thereafter maintain continued pro duction or to employ the labor tn skill, and the capital now so em ployed.
 The importance of this subject wa: emphasized before the Internationa Congress, recently held in Paris, b, Mr. F. F. Begg. president of tn, London Chamber of Commerce. Mir Begg advocated the internationaliz ing of the worlds gold reserves through the establishment by tn, leading commercial nations of a join
 metallic money reserve. to be avail able for the prevention of financia panics in any of the contributing countries
 II MT Begg says: "It is on thes stocks of gold that the enormous superstructure of credit, which is tn, leading feature of modern financ rests. It is on the ebb and flow 0 these stocks of gold that the eye of all business men are lived. and aj
 these stocks wax or wane at parti l cular points. so credit, and conse
 Guently business under modern con
 ditions. increases or decreases
 This plan anticipates first aid
 to the financially injured the neces
 sty for which we should prevent bl
 the development of our enormous
 low grade gold resources. We should
 scientific research and investigation
 and should this fail We may well con-
 slider the importance and perhaps
 the necessity or offering q bounty
 for the product of low grade refrac
 tory gold bearing ores
 It must be remembered that any
 substantial increase in gold produc.
 tion must come as a result of years
 of development. Mines are made