The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-09-19

standard of value to figure cores
ponding 20 the cost of production,
which Is the true value OF gold.
Letter to Senator Henderson.
Spokane, Wash, Sept. II, 1918
Senator Charles b. Henderson,
Chairman of Senate Committe on
Mines and Mining, Washington, d. c.,
Dear Senator: 1. In the worlds pres
ent financial situation. we can not ar
que from precedent-the existing fin
ancial world conditions have no pre-
cedent.
2. If there were only a few millions
of dollars, or even few hundred mil
lions extra new gold needed then
there might possibly be some sense In
talking of temporary expedients for
increasing the production Of golds
but 1t is many billions of extra new
gold we need, not merely millions or
few hundred millions.
8. Postwar conditions will make
the production Of gold rather more
expensive than 1t was under pre- war
conditions.
A. The present annual rate Of pro-
duction of gold by the United States
is far under $1OO,000,OOO, probably not
over $65,000,OOO, and very rapidly de-
creasing The production in 1911 was
sos, 900, in 1912 it was $93, ,451 900,
in 1918 it was $SS,SS4, 400, in 1914 1t
hn nn1A dtIn
tion of the u. s. for the last 40 years
amounted to scarcely two and one
| half billions, and, Of course, by no
means all OF that was minted into
coin.
| 5. For several decades prior to our
present world war not enough gold
was being produced for legitimate
uses in peace times, and with the
mountain of war burden now added,
to now merely continue quantity pro-
ducton at what it was before the war
spells certain, absolute and speedy
destruction Of the gold standard
6. This gold problem has two sides,
one for the financer and one for the
gold miner The gold miner Is con-
fronted by two mighty stubborn facts:
| (a) The ponderously magnificent
pile Of yellow metal needed.
(b) The necessarily long time 1t
must take--perhaps two generations
of men-to produce this vast supply
of gold, even under the most favor
able conditions possible, and with
gold standard raised to $33.33 1-3 per
ounce Of fine gold.
Production and Cost.
7. The magnitude of the present
standard can be protected and pre-
served only by raising the price Of
gold to point that will enable and
induce gold miners to produce the ne
cessary vast supply Of gold within a
reasonable time.
Temporary and makeshift legisla-
ton would, simply hinder and vitality
endanger the steady maintenance of
a gold standard.
The same law that permanently
saves the gold miner permanently
saves a gold standard.
8. The actual value Of gold when
such stupendous quantity of new
gold Is required within a specified
time, can not be less than its cost OF
production.
9. There Is not the slightest doubt
among gold miners but that we can
produce the requisite amount within
the reasonable time, IL gold Is raised
, to a price by law that will enable the
miners to dig it at fair profit within
that time.
, 10. There are many other SOUND
reasons recounted in my previous let.
ters why gold is actually worth more
today than 200 years ago when tho
present standard was fixed upon it.
q II. The mere fact that we are sc
short Of II proves that we are no
, paying a high enough price to get 1t
: that 1t is worth more and costs mor'
| to get than we are paying.
g IL. The new gold standard shoult
e be the price per ounce that It will cos
to get sufficient gold within the re
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