Mohave County miner and our mineral wealth., 1920-11-06

tured article containing gold will en- able the industrial consumer of gold to pay more nearly the cost of pro- duction for his raw material, although he will still be subsidized in being able to obtain his metal at a price equivalent to less than half of the general average increase of all other commodities in the United States.
 Heavy French Tax
 In addition to paying the exchange discount, which in the case of the | French industrial consumer of gold in 1919 amounted to over 100 per cent more in francs than the price paid before the war, the French govern ment has imposed a sumptuary tax for the use of gold in the fabrication of articles (other than money) of 60 francs per hectogram ($3.6O per fine ounce, par exchange) by law of June 25, 1920. The French Government has imposed a tax of 37 francs, 50 centimes per hectogram of fine gold contained in articles of manufacture since 1873, and justifies this tax in a formal document transmitted 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 stump tuary tax, the levying of which IS admitted by all economists as legit- innate procedure" This fact is re- ferred to for the reason that it would seem that foreign governments are exercising greater precautions to pro- tect their monetary gold reserves than is the United States, a creditor nation from which Europe expects should receive every assistance in re- storing it's monetary reserves to nor nal as means of protecting the gold standard throughout the world.
 Premium Not a Subsidy
 As compared to 1914, the purchas- ing power of the dollar in terms of all commodities in 1919 was AZ cents. The gold producers ounce in 1914 had a purchasing power of $20.67, whereas during 1919 the same ounce could purchase in terms of all commodities but $9.70. Since the price of gold has been arbitrarily fixed by statute at $20.67 an ounce, the gold producer is in the same position as person who Lo irnnp,,o in 1010 c in 1914 and finds that $2,O0O income has shrunken in purchasing power to $970 This is the principal reason for the decline in the gold production from $101 100000 in 1915 to less than $5O,000,000 this year. Were it not for the fact that the government has arbitrarily fixed the price of gold, in which event the law of supply and de- mand does not operate, it would not be necessary to consider compensat- ing the gold producer for a part of the decline in the purchasing power of the dollar which has taken place the last four years. The premium to be paid to the gold producer, based upon the new ounce of production, cannot be construed as a bonus or subsidy for the above reason. Most of the wage increases that have been allow ed by various industries and the ln- creases in transportation rates, car fares, and for municipal gas and cleo tric services throughout the country have been based upon the increase in commodity prices or the decline in the purchasing power of the dollar. The products of all other industries ex- cept that of the gold mining indus try have been automatically increased in price during this period, so that the cost of production is fully covered together with a profit, by which alone future production of such commod- ities may be assured. If we are to maintain the normal gold production of the United States it will be nec- essary to take this into consideration Gold is the only product, because it is fixed in price, that has not been able to respond to the law of supply and demand, and special provision must be made if we are to keep the gold production of the country from vanishing altogether.
 Free Gold Market Maintained
 The Gold Committees refers to the excise tax proposed as interfering with the free flow of gold into the arts, thus violating one of the basic elements of the gold standard. In another place the Committee refers to the excise as a differential tax on a raw material. In this most impor- tant provision of the bill the Commit tee has overlooked the fact that the excise is to be paid only upon the sale of the manufactured article, and not upon the bullion, which the man. ufacturers will receive from the Mint as they always have at the fixed price of S20:67 per ounce. In this way free gold market is maintained, and there is no interference with the free flow of gold either into the arts or ,a{o lo M,,,t Tho foot