Free trader-journal. (Ottawa, Ill.) 1916-1920, 1920-02-18
SHR|NKACE Of GOLD
VALUE IS BLAMED
FOR PRESENT \. C.L. |.
$4,000 SALARY HAS WORTH OF
ONLY $3.50, ACCORDING TO STA
TtSTiCS COMPILED BY MINING
EXPERT AND PRESENTED TO
CONGRESS.

Washington, Feb Is The man
with an income Of $2,otN, Is now
actually drawing $50, upon the basis
of dollar value in 1919. This start
ling fact is brought out plainly in =
statement to congress today by llaf-
old n I.awle. Il nationally known
economist for the American Mining
Congress. The purchasing value OF
the ounce OF gold which under stat
ute cannot bring more than S2o.GI
has. Mr. I.awric shows, Shrnnken tiru
imitation of currency until 1t X no
longer possible for gold to be- profit
ably produced The expansion of The
national credit has lowered the pur-
chasing power of Il dollar thru in
creasing all commodity prices Based
upon the pre-War prices of 1915,
these prices gradually advanced
from loo per cent in 1913 TO 223 III
October, 1919. Each increase in cred
its has been absorbed by a cores
ponding increase in commodity prices
and has resulted in placing the nation
upon an artificial plane OF living. The
gold producer finds the actual pur-
chasing power of his ounce Of gold
is now 50 instead Of $2FG7
Gold mines OF the United States
are being closed down at an alarm
ing rate, Many Of these can never
he reopened owing to the prohibtive
costs OF retimbering and unwatpring.
gold camp, is taking on the appear
ance Of a city Of dead hopes Great
drainage tunnels, monster under
ground workings. vast areas of eX-
pensively constructed plants, whole
cities of homes are being deserted
and thousands of skilled miners are
being forced to seek new camps be
cause gold-'the basic monetary metal
Of the United States cannot longer
be produced at Il profit
The manufacturers Of the United
States used $21.S4S 500 more gold last
year than was produced in the Unit
ed States. The gold producer lost
millions during the year-foreed to
lose by peculiar circumstance not
II.
The manufacturing jeweler made Mill
lions because while his goods mount
ed in values, he secured the gold at
coinage price OF S2@G7 an ounce. an
amount less than the cost OF produc-
ton. Seventy-nve years ago the
world produced but $50 000,00o in
gold per year. In 1915, the world
produced $3.50 100000 Rapid in
crease in population. increase in per
capita wealth and adoption Of Il gold
standard OF finance in all civilized
countries together with waste and
boarding absorbed the increasing
gold.
The gold stock of the United
States suffered loss in 1919 of $292.-
1876, $50 by the excess gold exports
over imports. 70 further deplete the
gold reserve, the consumption Of
gold in the arts and trades during the
year was S20,H31 GOO, while the pro.
duction of new gold in the United
States and possessions was but $751; /
assoc, The .estintated production /.
in 1920 is $4,000 900 The ratio of
the gold reserve to the federal re-
serve net deposit and note liabilities /
continually declined since 1914. until |
it reached AIS per cent on December !
26 1919. a margin OF but 6S per cent /
above that required by the Federal /
Reserve Act.
Certain officials Of the government .
have persistently endeavored to min |
dniZe the danger of the failure OF do
nestle gold production. but leading .
financiers Of the United States are