The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1918-08-06
Want BONUS FOR
GOLD PRODUCERS

The American Mining Congress, with
headquarters in Washington, d. c.,
composed Of seventy-fiye per cent of
the producing operators of the coun-
try, is sounding an alarm intended to
secure early relief for gold producers
in the United States. There is danger
that unless some such relief is ac-
corded by congress thousands of gold
miners will be out of employment and
millions of dollars worth of equip
ment will lie Idle until cost of produc-
tion can be adjusted.
The Mining Congress is acting
promptly to prevent disaster. Reports
from such camps as Cripple Greek in
dicate that while producers dislike to
stop the operation of properties and
| producing forces which have been
years in organization, not a wheel will
be turning in most of the district in
/ three months unless some relief is
| agreed upon.
Startling figures have just been
placed before Senator Henderson and
| Congressman Foster, chairmen re-
| spectively Of the committees on mines
and mining, by James F. Callbreath,
secretary of the mining congress, and
| the attention of several administration
leaders and officials is being called to
! the situation.
! All gold producers in the country
are called to a conference which will
I IN,
Boyle will preside and Secretary Call
breath will assemble and present to
the conference concrete suggestions
| assembled from producing mines
! showing conclusively that unless the
| administration quickly meets the sit
uation gold production will be auto
matically shut off and this within a
short time. In an interview with Il
group of western senators, Mr. Call
breath said:
1--WE are spending annually more
than our total Indebtedness at the
beginning of the war. We are more
than doubling our gold obligation this
years, but we are making no provision
to increase the supporting gold re.
serve. The worlds obligations ar,
only about four times our gold re
serve. Our financial position is stil
most enviable as compared with ou
/ allies. The gold reserves of the worl
/ are approximately ten billion dollars
while the total Indebtedness is bein
increased to ,000,O00,000 The in
crease is about forty billion dollar
annually. Before the war the Unite
States possessed approximately on
and three-quarter billions of dollar
in gold and today be have increase,
our reserve to about thre and one-hal
billions of dollars, against an indebt
edness of eight billions of dollars
This Indebtedness is based upon the
gold supply. In 1915 we produced a
little over one hundred and one mil
lions of dollars and this, in the face
of greater need, fell to less than
eighty-five millions in 1917. The pro-
duction will fall thirty-five per cent
below that figure this year under pres
ent conditions.
I'VE are told by Secretary McAdoo
that next to munitions and food, gold
is the most important of our natural
resources as a war necessity, and
facing as we do the most critical time
in the financial condition of the entire
world, | consider that there must be
some very earnest and prompt con-
sideration given to the gold situation.
"One eminent Colorado mining en-
gineer places the average increase of
operating cost at 81 per cent. 1t costs
an average of $50 an ounce to produce
gold. It's value is fixed at $20.67. The
mass of gold is produced from low
grade mines.
THE gold miners of Australia are
asking the British government for d
bonus of $40 per ounce for gold pro-
duced during present conditions.
While various plans have been sug-
gested, including remission of taxes
and reduced transportation charges to
gold producers, there is a strong pre-
diction in the west that a similar
bonus will be the only practical and
effective relief which can be accorded
with sufficient promptness to prevent
a more serious falling off in produc-
tion than present demands will allow
q