Douglas Island news., 1919-09-19
WANT PRICE OF
 GOLD INCREASED
Blaok Hills Miners Say It Costs $30 to Produce on Ounce of
 Gold Now

NN NAN NNNHNN NNWN NA N"AH n" N" AH AN
 seen by tho owners Of mines in the
 Black Ilins of South Dakota. where
 properties arc situated.
 Che famous Homcstake and other
 SIOUX FALLS. S. D-b there
 danger because Of Che increased cost of production that O number Of the 1 leading gold mines of the United States and other parts of Che world win have to cease operations unless tho pr-ce Of gold is advanced by means Of bonuses from the govern- mcns?
 ln tho opinion of mining experts Of Che Black Hls Of southDakota and other parts Of Che world such O danger is very real unless early ac- ton Is taken Co Increase the price of gold They assert that under mod crn conditions it costs &30 per ounce to produce gold. whose standard value is but g2O.67. which figure. they further declare. was "arbitrar- ny established two centuries ago" and is "wholy inadequate under Che present conditions"
 Some time ago Black Hills mining Interests pctltioned Che United States Bureau Of Mines for Che subsidizIng Of gold production by Che govern ment paying bonuses which would Increase tho price paid for gold to S30 an ounce.
 In recent statement by Van IT. Manning. director Of the Bureau of Mines. in regard to the proposal Of subsidizing Che gold production by thc payment Of a bonus. the claim was made. after investigation by two committees, that in their opinion it would not produce tho desired re- at tho present time. Mr. Manning Is credited by mining men with hav- ing given the subject careful cone sidcration. but his conclusions are not agreed to by them
 A. T. Roos. leading mining ex- pert of tho Black Hills who stands ! high in mining circles thoughout the country and to some extent In other countries regarded as am authority on gold mining. says.
 "m his letter Che director of the Bureau Of Mines states that the out put Of Che British empire is at pres cnt showing a general improvement except In those localities where the deposits are becoming exhausted. The Engineering and Mining Jour nal Of July 70 quotes Sir Evelyn Waller. president of tho Transvaal ! Chamber of Mines. in letter to the
 acting primo minister. as saying. The position foroshadowcd by the chamber SO many times is now at hand. So far as we can see. noth- | ing can now prevent a number Of important mines employing a large number of Europeans. and upon whose operations thc prosperity Of l considerable section Of tho Wiwat- orsrand depends. from ccasing opera tions in the next few months.
 There are other data mentioned in the same article. which evidently show thc serious conditions of the mining industry of South Africa. | Mir. Manning furthermore states that ! it is doubtful if the plan advanced ! by Che signers Of Che Black Hllls petition would bring about any sub- stantal addition to Che gold reserve.
 "It is apparent that tln increase in tho first year Of Tho premium or bonus would not be very large, but as new mines win be opened up and properties lying idle at present will resume operations an over the coun- try in case s30 DOT ounce should be paid instead or S2067. there win be a vast addition Co the gold re- serve in the future.
 "It is also mentioned in the same letter that many Of Che mines at | present being operated are either ! becoming exhausted or are produc- | lng ore Of a lower grade. and no
 new discoveries Of importance have
 been made. IT, N. Lawrio. in Che
 Engineering and Mining Journal.
 gives very plausible explanation
 of why no new discoveries have been
 made. He shows. by a careful anal- ysIs of conditions in the gold min ing industry. that tho cost of pro-
 duction during Che two years. t917- |191S. reached thc level Of over S30
 per ounce of gold. against S14 in I1916. causing. naturally, tho clos ling Of the mines and demonstrating ! chat tho Bonanza mine rare oc- curenco. and properties Of tho Home . stake type alone can keep up pro- } ductlon. 10 stands to reason that capital win not become interested In D the development Of properties which - can not be made to pay.
 b "Undor these conditions new dis- - covorlcs cannot be made lt take'
 prospecting and developing Co mako
 a mine. and money can only be se
 cured if there is at least a chance !. for success Iunumorablo deposits and s veins have been found in the Blacl t. Hnls alone. which were neglecte'