Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-12-10
GOLD PRODUCTION SHORT

ONE of the problems with which
Congress will apparently he
called upon to deal is that OF
encouraging production of gold ana
/ protecting the monetary supply from
! the demands upon that metal for the
arts and other uses. During tie war
production of gold decreased and the
use of gold in the arts increased, d.,
until now there is "A deficit of S1o,-
O0O 600 in the annual domestic sup
ply for coinage purposes.
The reasons for this deficit are
readily apparent. The war cmer-
gcncy increased the demand for ard
value of almost every other metal.
particularly copper. zinc. lead and
iron. Owners of mines producing
these metals were able to pay enor-
nous wages to mine workers. with
the result that it was more profit
metals than 10 produce gold. Many
men left the gold mines for that
reason, others were drafted into the
Army and still others went into vari-
Gus war industries more promising
than gold mining. As a consequence,
mine production of gold fell from
about $90.OOO.000 prior to the war
to $4,000. 900 during 1919.
Along with this decrease in gold
production there was an increase in
consumption in the arts. due largely,
no doubt. 10 wartime prosperity.
The high wages workmen were gel
ting, the high salaries paid 10 women
in every occupation ana the general
tendency toward eXtraVagance and
luxury. resulted in an increase i'll
consumption of gold in the arts from
$45. 100000 before the war to $65,-
O00. 600 in 1919. In other words,
instead of a surplus of gold 10 tha
amount of $4,000, 0G0, as in 1914,
we have deficit of St0.000.000 in
1919. That is to say, in 1919 the
arts used 100000 more gold than
the country produced in that year.
Most of it. of course. went into
jewelry.
That does not mean. however. that
there is less total gold in the country
the early years of the war. before
the United States became a partici-
pant, we Were shipping war supplies
to the belligerents and getting much
GOLD in, rat 4 mt nf trI
exports of supplies was covered by,
credits. but shipments of gold to this
country gave us a net increase II
over billion dollars in that metal
before the United States entered the
conflict Since our entry into tine
war we have been buying heavily
abroad and have been reducing oU~l
net balance of gold until now it
amounts TO about $500. 100000 and
is steadil,' and rapidly falling.
As means of increasing domestic
production of gold and making
larger proportion available for none
tary uses. the American Mining Con
crcss recently suggested novel plan
and bonus for the producer. The
scheme Contemplates a tax of SO.
per ounce upon all gold used TO-
manufacturing purposes, this tax 10
go into fund to be paid at the
rate of SO per ounce to the pro-
ducer of new gold.
This would mean an increase OF
approximately so per cent. in the cost
of gold going into jewelry. etc. and
would grve the gold miner an in
crease of about so per cent i'm the
value of his output. The Mining
Congress justifies its scheme upon
the ground that since its use TN
money fixes the price of gold, the
gold miner was not able to increase
the value of his output along with
the increases in value OF other prod
ucts nor in proportion to the increase
in his cost of production. His cost
of production went up more than 90
per cent. but he sold his gold for
practically the same old price
The plan of the American Mining
Congress will probably he subm tied
to the United States Congress by
some Senator or Congressman from
a gold-mining state. but it will be
opposed by the jewelry interests.