The Parker post., 1918-08-31
GOLD INDUSTRY
AS It IS TO-DAY

| What is the story since the out
break of the war? In 1915 the mines
of the United States produced SlO1,-
! O35, ZOO, with world production of
$46S,724,91S; in 1916 the production
was $92, 300 and tue world pro-
duction S457, 7,OO6,O45: in 1917 pro-
duction fell to $84,456,589 in the
United States, and it is estimated
that for 1918 production will fall 5
per cent below that of 1917, or about
$55, 200 for the year. The stag
gering fact that production has fallen
off nearly one half in three years
ought to stir the government to i'm
mediate action to relieve the industry
and foster it's growth.
These figures reflect accurately the
crisis in the industry, and the de-
creased production is the direct result
of increased cost of labor and sup
plies, due to the war and correlated
conditions. The average increased
operating cost is in excess of so per
cent and in many cases double what
it was prior to the war.
Unlike all other metals, the law of
supply and demand has no economic
bearing on the gold industry. The
price of the product is fixed and in
variable, and on account of the enor-
nous increase in the cost of labor and
supplies since August, 1914, nina
after mine has been forced to close
down or run at loss, and more and
more of them are gong out of busi-
ness if relief is not found.
To levy income and excess profits
taxes against gold mining companies
is so evident an injustice that, 1t
should be abandoned and the income
tax of the Individual stockholder
relied on to secure the government its
legitimate share of profits made by
company and distributed in divi-
dends. 1t should not be hard for the
layman to understand that in the
case of the gold mining industry the
very fact that the price of the pro-
duct, an ounce of gold, is unchange-
able and that war conditions have
only increased the cost of producing
it and are are responsible for the
decreased production, and to tax
such decreased value of production
for war purposes simply tends to fur
ther restrict and kill the industry.
1t is estimated that every ounce of
gold is actually costing $50 or more
at the present time, with a fixed sale
value of $2O67.
The mere removal or remission Of
war taxes which should never have
been levied against the industry
would of course help in minor way,
but the real need is a present remedy
that will result in the reopening of
closed mines, the development of new
mines, and the speeding of produc-
t1on in mines now running.
AS it is manifestly impossible to
change without international agree
ment and readjustment the arbitrary
value of the ounce of gold, it would
seem that the most feasible, the most
just and quick method would be to
have the government pay fixed
bonus per ounce OF the new gold
produced, on the same plan as is now
proposed in Australia, of $40 per
ounce
On account of the term bonus
this may sound Questionable, but
when we get down to facts, we are
directly or indirectly paying bonus
today in every line of labor or in
dustry in which the government is
exercising it's price-fxing preroga-
tive. The product of the farm. the
shipyard, labor itself, is working on
bonus system. The fact that the
profit included in any price fixed by
the government on labor or material,
whether in copper, zinc, cotton, ships
or what you will, is not paid out
directly by the government as a
bonus does not alter the fact that
1t is bonus in the last analysis, paid
by the people at large, and the peo-
pie at large constitute the govern
tment of these United States.-Min-
ing and Oil Bulletin.