The Cordova daily times., 1920-11-24

sociation passed resolution on Oc- tober 2, 1919, urging upon the gov ernment the necessity for main taining a domestic production of new gold in sufficient volume to satisfy the industrial requirements of the arts and trades. To comply | with the specifications of this resolu- ton, the soundness of which cannot | be questioned, I introduced H. R. 13201 on March 22, 1920.
 Since the industrial consumers of gold are the only ones in the country | receiving raw material at the pre- war price, while the general increase in all commodities was 112 per cent in 1919, as compared with 1914, it is evident that they are being heavi- ly subsidized. MT. McFadden em- phasizes that the imposition of this excise tax merely adjusts the cost and price equation between the producer of new gold and the con- sumer of gold in the industrial arts, and is free from all monetary en-
 tanglements. A free gold market is maintained under the provisions of this bill for the reason that ex- else tax is collected on the finished
 product as sold, and not upon the
 bullion which is sold to the manufac- turers. There is nothing in the
 bill which in any way alters the lar, the unit of our monetary sys- tenn. The bill creates the govern mental machinery by which the con- sumer of gold in the industrial arts may pay more nearly the cost of pro- duction for his raw material. Tho stimulus to the gold producer speci- fled in this bill is equal to the eX- else tax imposed and is no greater than the exchange premium paid by Great Britain in the latter part of 1919, to the South African producer, whose operating conditions are 'nore favorable than those in the United States.
 In addition to paying the exchange discount, which in the case of the French industrial consumer of gold would amount to 100 per cent more in, fro ,N,,ion Ir,fn the war, the French government has imposed sumptuary tax for the use of gold in the fabrication of articles (other than money) of 60 francs per hectogram ($3.73 per fine ounce) by law of June 25, 1920 Previous to that date the guarantee tax was 37 francs, 50 centimes per rectogram. The French government justifies this tax in a formal document transmit ted by the United States bureau of foreign and domestic commerce, as follows: Moreover this tax, striking as it does luxury goods, or unessential articles, enters into the category of a sumptuary tax, the levying of which is admitted by all economists as a legitimate proceed ure."
 It is important that the gold min ing industry be kept alive for fear that with greatly reduced production there will be difficulty in retaining the gold standard during a popular campaign for credit restriction ac- companied by declining prices. The continued depletion of the gold stock by excess eXportation and indus trial use will seriously impair the public confidence in the nations fin ance and currency unless a normal gold output is insured
 The gold mining industry will be completely shut down unless con- structiye aid is provided without de- lay, in which event it will take | years to develop a normal output of | gold at very much greater eX. pense. To allow the gold mines of the United States to cave in and fill With water entails a waste of de- veloped gold resources. which in a | most critical hour of financial need | will cause want. No argument can be made in favor of waste. The time to act is now before the in- dustry is shut down.