The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-08-22
THE PRICE OF GOLD
SHOULD Be RAISED
The Only LogicalSo-
luton to the
Problem
NO PRECEDENT TOO GUIDE
The Production of Metal Was
Short and Declining Be-
fore the War.
NO PRECEDENT TO GUIDE

"HE NECESSITY of increasing
the price of gold as a monetary
standard as means OF not
merely encouraging the pro-
ducton of gold to meet the emergency
created by the war, but to adapt 1t to
the changed world conditions which
were clearly manifest before the war
and which will be even more pressing
when peace Is restored, is again forci-
bly, presented by Colonel Chester L.
kennan in a letter to Senator f. M.
Simmons chairman of the senate fin
ance committee. The question Is one
that Is now receiving the most serious
attention of the government and the
solution proposed by Colonel Kennan
is the only logical one, all other rem
edes suggested to encourage the pro-
duction of gold being mere makeshift
measures to tide over the period OF
the war. Colonel Kennan's letter fol-
lows
Immediate Action Necessary.
Spokane, Wash, August 19, 1918.
Senator f. M. Simmons, Chairman
Senate Committee on Finance,
Washington, d. C.
Dear Senator Prospecting for gold
mines has come to a complete stand
still. The business of prospecting for
gold mines can only be carried on
when ground is bare of snow. SNOW
begins to fall in the early part of Oc-
tober on the high western mountains
where gold mines are found; therefore
| If prospecting for gold is to be COM
menced again before next June or
July, the law raising gold to $50 per
ounce 9-1O fine should be Immediately
passed. If it were passed now, then
development work on great number
of prospective gold mines would be
instantly started and vigorously car
ried on all the coming winter. But If
the enactment of the law is put off un-
til snow flies no prospecting Will be
done before next June. and no new
gold mines will start operations be-
fore next spring or summer, while all
the old gold mines now abandoned
will not be reopened before next
summer.
Snow soon accumulates so deep in
the high mountains that 1t Is practc-
ally impossible to take in supplies,
tools and machinery for mining dur
ing the winter, unless the miners
start to take them in early in the fall,
before snow comes, or before 1t comes
too deep. The same il true of gold
mining in general out In the noun
tains during the winter, the mines can
not be operated unless there is time
to get in tools, supplies and machn-
cry, before snow accumulates too
deep.
If the law is quickly passed then all
gold mines of whatsoever nature, in
cluding a great many new ones never
operated before, will promptly be in
full swing and be operated at highest
capacity all the coming winter and
continuously thereafter. And under
such new law much lower grade gold
ores than before can be worked at
good profit.
Mines Closing Down.
Practically all low grade gold mines
have been closed down now. Nearly
all gold mines Of comparatively high
grade ores have also either been clos
ed. down, or are being operated at
greatly reduced output, or simply for
the purpose of keeping the water out,
preventing "cave-ins" and destruction
of timbering; or in other words, they
are being operated at lowest capacity,
merely to preserve the mine in good
working order until conditions are
made such that a just and fair price
can be obtained for the product. III
such mines were closed down and al
. lowed to fill with water, it would, in
I many instances, cost more to reopen
, and place them in operation again
than the mines would be worth-and
, at the same time the process of thus
/ keeping them open and in running or
| der, ie.. the process Of "watchful
1 waiting" Is extremely expensive to
gold mine owners.
The conditions which have called q
!. worldwide halt in gold mining arc
r themselves essentially worldwide con-
! ditions, viz:
s 1. The holding down by law Of thu
general parity. or standard price o.
: gold to the standard fixed over 20'
: years ago by England, while the price.
z of labor and all other commoditie!
(ctnntinnad On page 6l