Douglas Island news., 1920-08-13
BUREAU OF MINES
 DISCUSSES GOLD
Speaks of Che Gold Premium and the McFadjen Bin and Analyzes
 Difficulties

|"" U.... N. .NN .N.N ".NINH ." rdm.ry. Its cause. and tho remedy have boon thc ubIcc, of much dis cua.on I'm Che nast tow years but tbc results of ail Che conferences and debates have not furnished any c,- fs.ut. means to relieve Che gold mines from tbcr difficulties Dur- nr One past year and at tho pros- ont um. tho-e pro economic forces at work which are aGordIuE. in a peculiar vav some lons.ncelei compensation for Che gold miners In various parts ot the world but sH- murIy enough th.s economic rcad- Ins.mert has rot accomplished Che ramo r..u.ts Iu thc United States
 A re.ert ara',ss of ,bc gold s.t- mutton br hc r & Bureau of Nues quoted r part follows.
 rr. economic forces referred to rfI noted In previous reports orc no.e which now permit tbc Cana Iar Australian and South African gold mrul companies to rcc..ye In a fr.e market. a premium ou tlc.r .r.d production. thr amount of pre-. mnm depending upon thc lorc.m e1.r.rr. raue ol Che currency m u.e m .lc -o.l.p-oiue.ne country Thus Che recently Appreciated Can. aIan currency ras brought cau- aiaa gold mines i'm thc premium receiving .a.. . Canadian gold can b. so.d I'm ,f era.tei states and n. United snt.. currency received Tn payment exchanged Cor moro Cam aIan mono. har vae formerly pro- cured I'm fna. settlement
 rrc erc.. ol tte rrcm.rm has already become apparent .H th. umu given to Canadian ro'd- mining ...rH.. Aithoueh tl. premium intangible. I'm chat no. urr. ran. 1. really received a1y- uh.r. for n nn.f of gold. it provide. or. distinct afranaee .o Che pre- urur... ..r.rr cour.r. namely chat labor and m1t.ra. o. home mauu- rrme con be bought and raid lor vIfr ttc larre..r.oI currency TO- -e.r.I n- tr. ro't vIth ,f. p-oh- ability chat those oommoi'u. win rrr. r.r.f Hul. eh.uea iu price. n |. particularly whom foreign sup r... .-. u..I ,Ha. .no de.r.a..l nur rrnare power ot appreciated eur- rsr.r s fo-.hIr apparent Thus f. would .em ttrt Ono gold mines pro- fr.r- In n country ufh ienre..- at.I .u-rn., hato hear temporarily pu..I .r a peculiar and someNhat nfarar.oH. position Furthermore. ha condition win tend to Iucrcas. hr gold production m .rmtr.e o-h.- tH.n m. United states. and tsr.. .e.roa.. One proportion Of Che world. eaI produced .u ths com- rr
 rn. ..aIr I.asa-c of gold from tre United state. has had 1u appre rablr rr... or tH. e'd holdings ot trr FIe-I Bo.v. Banks and. coupled uh no-aei credit de- mrrI. has lowered tre Federal Re- ss-re rro o. gold holdings against f.ra below che arbitrary mimic mum established by ,ac board As tr. gold r..e-,e Is Che aas.. ol credit rrr dunu.or .a the gold toa- re con. .-ahIr contracts the erode 10 rra.h. This has eausei a fce.- .r- i'm ru. quarters hat Che export rf gold should be prohibited and th.t tne United states should con- se-r. H. eoH
 Arguments or tr. other hand ar. advanced to show tbat Che prc.- err utrr .s n to.l ot our claim an fr.. gold market and ability fo a.t n. international bankers n Is certainly ruc that country which rrano..I to keep .s currency at ah- .r.u. equality wfr gold must he ah.. .o provide gold oH d0mrrl .o- export While token coins and Iu- amcr.. o. .rei.t may serve for inc ter.o- circulation rrrno.ce. to meet foreign obligation. .feg mus' bc eE- .rrrr..h'r nfh gold thc essence of One maintenance. of Che gold cy- enrr-e standard Considering the .arrt-v a. whole. |. Is aIso notco- ahe thl. Che ratio ot gold coin and bullion to other forms ol currency. and -r.,nbIc deposits has apDroc- ably d.--assl. due Co a concurrent decrease .n gold reserves and an ina c-r1se in credit demands.
 rhr rrux of che whole maat,er however, H. m tfe oHh of tho prbH. haf mlorvre .hc ur'ou forms oI rlncr money .s sufficient gold to moot Che redemption Of aH obligations required br busucs and commerce so 'orr rs aIth Is us. uusI a relatively small amount ol gold . necessary.
 Conference hearings before th.
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