Pine Bluff daily graphic., 1919-01-17
PURCHASING POWtR.
 IOF GOLD DECREASED
Decline in Gold Production Alarming to Department of Interior WMch Starts investigation.

w WdSIllISlOu3 JdL. huI thS NS cline in the production of gold In the United States is of serious national concern is indicated by a report of a speclal committee of gold eNpeitts made to Secretary of the Interior Lane yesterday
 Several months ago the Secretary's attention was called to the rapidly in creasing cost of gold production and the consequent decline of output and, realizing the importance of the gold mining industry, he appointed a spe- cial committee headed by Hennen Jen- nings the we'll known gold mining en- gineer, and consulting engineer of the Bureau of Mines, to go thoroughly into the situation and make the accessory recommendations.
 The report, of interest not only to the gold mining industry, but also to financial and business men as hay ing an important bearing on finance and credits and the consequent pros perity of the country, declares that "gold mining has been seriously ln- jured by the war, and has been dls- crinlinated against for the protection and benefit of the treasury in that the export of gold and even the internal free trade in the metal was inter- rupted."
 The committee says that prices on all commodities have advanced in terms of the governments paper money except that of the ounce of gold, which has fined price of Sz0.61. Thus in reality" says the committee, ''the purchasing power of gold has de- creased in proportion to the increase of other commodities which in one way or another are factors ill the oD- tanning of new gold"
 "The present decrease in gold pro- duction is serious" says the commit tee, Gas the maintenance of sufn- cient gold reserve is essential to the security of our national finances and credits. The United States is the most favored nation in regard to gold re- serves, holding over three billion dol lars, or nearly one-third of that of the world, but it has contracted debts on a gold basis many times that existing before the war"
 The committee gives as the princi- pal reason for the decline in gold pro- ductiOn the increase in operating costs in the most favored quartz mines from 57 cents to produce a dollars ] worth of gold in 1918 to 70 cents in 1918.
 Various means of stimulating the production of gold at this time were considered by the committee. Pay ment of a bonus on newly mined gold, advocated by many, is frowned upon hx,t tho ali n of Cf the excess profits tax on gold mining, and the encouragement of larger out puts thereby, ,-issadvocated and the statemeht issySde that larger divi- dends paid < hareholders will mean greater reveYShA for general taxation than could B .btained through any excess profltsN Ex.
 The privilsgAf fofAfree export and of sale to manufacturers would stimulate production and Faid gold mining, says the committee, and might also be a safeguard against imitation. The gov ernment might increase production by ; assisting in improvng methods of min ing and metanurgy of gold ores. Pos sible methods of maintaining the vis- ible gold reserve would be in the cur tailment of the use of gold for manu- factures and making call on the pub lie to turn in hoarded gold. In France voluntary contributions by the people since the war began have amounted to more than two billion francs. Fur ther relief might be obtained, the committee says. by amending the War Minerals bill to include gold and voting an appropriation to be used in directing the search for new deposits.
 Future Mining Probiematical. The committee declares that the future of gold mining in the world is problematical; that the gold out put of the world seems to have passed it's zenith and to be on the decline.
 Virtually all economists agree that the gold standard should be maintained" says the committee. Even those who have profound ideas as to the advisa bility of a diff ferent standard concur that it would be dangerous to attempt any drastic <,t, &IH0