The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-08-01
mining Congress JournaD


Money Is the life blood of commerce.
Gold is the basis of money.
The gold supply of the world has
been falling off very rapidly. The
credits placed upon gold have been
increasing with startling rapidity. The
increase in demand for money, Gre
ated by the increase in business trans
actions, has been met with currency
promises to pay-notes of credit, good
notes so long as the gold foundation
upon which they rest is kept at a pro-
per ratio. AS commodity prices, based
on a rapidly increasing circulating
medium, go up, the relative value of
gold goes down. The >cost of gold
mining has been and is rapidly in
creasing while the value of the output
remains stationary. Gold production
has reached crisis. While production
has been gradually growing less, pres
ent conditions will shut off production
altogether, except in mines where the
gold is by-product. Gold production
is on the verge of precipice and un-
less help is given, can not continue
Low grade gold mines are now Operat-
ed at a loss and there appears to be
no hope for the future. A bonanza
gold deposit in which twenty years
effort eliminates in one or two years
excessive profits have the profit of the
twenty years effort treated as the
profit of one year, and the war excess
profit tax law takes all the profit and
"a large part of the original capital
There is nothing to stimulate the gam
bling instinct which searches for high
grade mines. There is no hope for
regular low grade gold mining opera
tions. This presents startling stu
alton when it's consequences are con-
sidered. The structure of credit can
not continue to grow while the foun-
dation upon which it rests remains
the same.
Our Liberty bonds are a promise to
pay in gold If production is stopped
the gold can not be available for their
redemption. A world effort to liqui-
date would produce a money panic
which would put gold in its proper re-
lation tos general prices. "A better
method must be found to meet this
situation.
1t now costs nearly double as much
to produce gold as In normal times.
Gold therefore should be and IL not
controlled by governments would be,
at a 100 per cent premium. Gold is
now at a premium in foreign coun-
tries. The hope of being able to take
advantage of possible premium ad-
vances would give hope to the gold
mining industry. Many small things
may properly be done for gold min
ing. First. gold production may be
relieved from the requirements of the
war excess profits tax law. This
would justify speculative effort In the
finding Of high grade ore bodies, but
would be Of no assistance to the reg
ular operations which are not making
a profit. Second, gold mining may be
classed as a war industry through
which preference might be given in
obtaining its supplies. Third, freight
rate advances as relating to gold min
ing might be RENTED. Fourth, Its
employees may be made immune from
draft into war service. These things
would be helpful, but this help would
not be sufficient to keep up the pro-
per ratio Of production. The Mining
Congress Journal is on record to the
effect that sooner or later govern
ments will find It expedient to offer
bounty on gold production from low