The Washington herald., 1918-09-21
GOLD SUPPLY
ON DECREASE
Cost Of Producing Precious
Metal Handicaps Out
put, Says Holland.

stoned to secure here much-needed
mining apparatus. They visited vari-
Gus plants where apparatus Of this
kind is made, spending several days
at Easton, Pennsylvania. They made
large purchases OF mining apparatus
They were enthusiastic in their pre-
diction Of what the new output Of
gold in the South African gold nelds
would be after the needed mining APP
paratus was secured and installed.
They estimated that possibly as much
as two hundred millions in new gold,
even more. would be taken each year
from these mines. all OF which would
be absorbed by Great Britain, and
would enable That country to regain
her prestige in the money market and
in world commerce.
These engineers professed to be-
leve that it was possible for the
United States to take each year from
our gold mines, including Alaska,
where gold development had just be-
gun. new supplies OF gold aggregat-
ing about a hundred million a year,
They confessed that they spoke with
out accurate knowledge, basing their
statement only on general informs-
ton.
Shortly after the early develop
ment Of gold mining in Alaska was
made and the indications were that
from SIS, 900. 900 to s20,0oO.00O of
new gold might be received from
these mines, the late John P. Jones.
who for thirty years was United
States Senator from Nevada and was
esteemed one Of the best authorities
upon the production OF precious
metals, said. when referring to
Alaska. that he believed that the
time was not distant. depending of
course upon the improvement OF
transportation facilities. when AL
aska would become one OF the larg-
est EOld-prodUcing areas in the
world.
The late Maurice l. Muhleman.
for many years an executive otticer
Of the sub-treasury of New York
and. recognized as one Of the high
est authorities upon gold produc-
ton saw no reason why our mines
should not yield each year well in
excess of 100000. 900 in new gold
and maintain that production for a
long time. He spoke Of the new
methods adopted in California
whereby deep mining was made
available and profita BILE, making it
tain her prestige as a gold-produc-
ing state, although closely pressed
by Colorado. In the northwest. Mr..
MUhleman expected greatly in
creased production of gold.
Gold Failing on.
Now gold as a measure Of purchas-
ing power has greatly decreased and
az the same time our production OF
gold is falling of alarmingly. Con-
Eress has been called upon to recog-
nize the danger which confronts the
country by reason Of the deplorable
situation, with respect to gold pro-
dUction. In 1915 the money value OF
The gold taken from the mines was a
little over a S111. 10000. and there was
a good deal OF proper pride mani
tested in banking and financial circles
when the announcement was made
that the American mines were begin
ming to yield more than 800 900 900 of
gold each year.
Now Congress is asked to consider
the fact that instead OF an increase
in gold production there was a falling
0t in two years Of $1,000. 600 in this
production. and the probabllitie are
that in the year 1915 our mines will
produce even less than the $4,000 90
1
fact, il is aUthoritativelv stated that
the yield Of new gold in the first six
months Of the present year from the
California mines has fallen of 5000
90
Il is not because the gold deposits
are becoming exhausted. The belief
Of the men Of science is that under
wise direction and economic treat
nlent the gold mines Of the United
States and Alaska should continue a
production which would yield con-
sItcrably in excess Of 800 900 go each
year.
The difficulty seems to be due TO
the high cost and the shortage Of
labor. as well as the increase in price
Of materials and apparatus which are
needed in gold production. The con-
diuon Is said to he so serious that
capital is being withdrawn from gold
mining and the situation is such as
to demand, In the view Of all Of the
authorities, such legislation as will
make ii possible to maintain our golG-
mining activities.
Courtenay De KaIb stated recently
that very few OF our gold mines are
fortunate enough TO possess reserves
u hIgh-grade ore. The Home Stake
mine, in South Dakota, whose mana
gers have been conspicuous in th>-
attempt to secure the highest pos
siole aid from science in operating
their mines, records only about $40
for each ton OF ore. The average
value OF ore in the Mother Lode mine
u California is only about 81 a ton,
whereas the lode mines OF Alaska
-ecOyer from 10 cents TO 81 20 a ton
In the early days Of mining in Cali
fornia 50 small a recovery as this by
he miners would not have been worth
considering. We have in this coun-
try considerably in excess Of three
billions in gold, but the amount Is
not likely to be Increased TO any great
extent by imports from our debtors
across the sea- so that II there Is to
be a yearly increase in our stores of
gold It must principally come from
American mines. Such condition as
was recently reported from California
the authorities say should not be per-
mitted while there is power in Con-
Eress to prevent II. For instance, the
Federal law fixes the money value
Of gold at S20.671s per ounce. and yet
there are mining properties in Cali
foTnia where since 1915 Il has cost
bout 500 an ounce to mine the gold.
some OF the mines are running be-
hind since the cost OF producing the
gold IL greater than the amount for
which the gold can be sold at the
mint
Mr.. De Kalb says that the La
Grange hydraulic mine in California,
which has been in operation since
the discovery OF gold in that State!
had been compelled to suspend oper-
alton and to scrap its plant. Many
other smaller minez have closed.
The problem Is a difficult one. II
cannot be solved by tampering with
the standard s2O.571s an ounce which
the .EoveTnment has fixed Yet in