The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-10-03
BRITISH GOLD MINERS
FIXED PRICES OF GOLD
REPRESENT TO CHANCELLOR
THAT HIGHER PRICE MUST
BE ESTABLISHED.
(By Herbert N. Casson, London Cor
respondent of Boston News Bureau),

(By Herbert N. Casson, London Cor
respondent of Boston News Bureau).
The latest non-p popular song in Lon
don, in the vaudeville of finance, hai
refrain somewhat as follows:
Good Sirs! Kind Sirs!
Pity the sorrows of the Gold Pro
ducers."
1t is now being sung as a duet by
Lord Harris and Sir Lionel Phillips
who represent the gold producers OF
the British empire.
In other words, a strong letter oil
protest has recently been sent to the
chancellor of the exchequer from the
gold producers alleging that the fixed
price of gold is too low to pay for the
increasing costs of mining.
Almost all the gold from British
mines finds it way quickly to London,
but the quantity has been decreasing.
The low grade mines are being closed
down.
The reason for this is that the
standard price for gold is still held
fast at IS shillings an ounce-$2O. 40.
This price has not been raised during
the war. 1t is practically the only
price, at present, that has not gone
skywards.
Low Market Value of Gold.
The real market value of gold, say
the gold producers, is at least lis shill-
ings an ounce-$2760.
The cost Of working the gold mines
has not been standardized by the gov
eminent. Miners have demanded
higher wages. Machinery has more
than doubled in cost. Freights have
gone to incredible heights; and insur-
ance has become well nigh as rapac-
ious as the income tax.
Yet the price paid for gold at the
mint remains precisely what it was in
the far-away days Of peace.
Better own a gravel pit than a gold
mine," say the gold producers Bet
ter produce bricks, kindling wood, po
tatoes-anything rather than gold"
l interviewed Sir Lionel Phillips on
the matter. for the Boston News Bu-
reau and found him very positive.
"The present price for gold does not
represent it's true value" he said. 'If
gold is essential in our economic sys-
tenn, as We believe it is. the govern
ment must take into considerat ton the
increased costs of production. If it is
true that the government is actually |
making a large profit by it's purchases
of gold, it is only reasonable to ask
that fair portion of that profit should
be paid to the gold producers, so as to
stimulate output"
Sir Lionel, by the way, was former
ly an associate of Cecil Rhodes in |
South Africa. He was caught in the
Jameson raid and lay under sentence
of death in Boer prison. During the |
war he has been at the Flanders front. |
Why Kill the Goose?
But to return to the question of gold, |
it is quite possible that new policy |
may be adopted. Certainly, it will not |
pay to enter future of stupendous
debt, with any sort of handicap on gold |
production. At a time like this, why
kill the goose that lays the golden
eggs?
There has never been any net profit
in gold production-so says Jacobs, the
gold mining expert On the average,
about $112 is put into the ground for
every 500 taken out.
Gold mining is, and always must be,
such a gamble that it cannot exist on
the small margins of the grocery and
provision business. |,
Since the Boer war; the deep gold
mines Of South Africa have been send
ing gold to London at the rate of
about $10,O0O,0OO a month. There is
probably about $2,O00,OO0,O00 more of
it on the Rand, and Britain needs it
ALL In fact, instead of throttling gold
production by low fixed price, 1t
would be much wiser to encourage pro-
duction in some definite generous way
Now that the total war debt of all
nations is reaching the incredible total
Of O00,OO0,0O0, there can scarcely |
be more useful patriot than the man
who discovers a new gold mine. At
any rate, so say the gold producers.