Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1920-05-20
STATEMENT BY GOVERNOR
d. ". DAVIS OF IDAHO

AS a banker, l have viewed wit
extreme alarm the vanishing gol
reserve and it is with hearty COZ
currenee that I subscribe to the a
titude of the American Bankers Al
ISOLATION in urging Congress to us
every possible means to increase til
production OF gold.
We are facing, and have, a perio
of deflation which must be me
with the very acme of public conf
dence. Financial panics, as we al
know, have been attributable through
out financial history to fear and W,
can establish confidence and builC
it on the rock of stability, should VIZ
have a gold reserve which will war
rant confidence.
1t may be of interest for us tc
know more of the condition of gold
production in Idaho, for Idaho typi-
flies the apathy in gold production OF
other States. 1t shows that something
radical must be done to encourage
the production of gold. | favor the
method suggested by the American
Mining Congress of imposing an ex-
else on gold articles to produce a
premium to the producers of new
gold
There is absolutely no incentive
for capital to invest in the develop
ment and equipment of low grade
gold-bearing deposits in Idaho with
the present fixed price of the metal
and with the mining conditions of
today. We have huge deposits and
extensive resources, but it is neces.
sary that, in some way, a reasonable
margin of profit be arranged for.
Under the suggested bonus plan, this
might be done
We have an exceptional field in |
Idaho under the most promising geo
logical conditions for the develop |
ment of copper ore deposits of large
capacity. These all carry relative
good values in gold and the by-pro-
duct composed of that precious met
al would prove alluring should the
price be worth what it costs to pro-
duce. The proposal of giving a bonus
would be instantly recognized in
this line and would bring an induce
ment to rapid development in all
gold-bearing ore deposit production
in this and other states.
l have taken this matter up with ,
the members of our State Bureau of
Mines and Geology and particularly
with our State Inspector of Mines.
the latter having acted in a substi, ,
tute capacity as state geologist thru
a continuous service in Idaho for
the past fifteen years. With a previ-
Gus practical experience as a gold =
miner for an additional fifteen years. !,
Mr.. Bell is probably more thoroughly
familiar with our gold resources
han any other man. !,
According to Mr.. Bell, the placer ),
gold production of Idaho in about
ixty years is conservatively estimat- :,
d at $500, 100000, which he con- :,
iders the dotrital or float evidence a,
L much larger permanent resource =
I gold in the form of lode deposits. o.
while the richer veins have proba. =,
ly largely been discovered and work
d, yet we have in Idaho some yeryl
deposits of low grade gold
caring veins varying in width from
90 1T. to 300 it., on which consid- ~
'able preliminary development and :,
1perlmental testing indicates aver, n
&c values of 50 to SO per ton. This -,
equal to, or better than the great
ainland low grade gold ore deposits -,
southeastern Alaska, whose DO ~
initial capacity, backed by the opin- ~
OF the leading engineers of Amer =,
a, was put at maximum feasible 90.
Itput of s10,OO0,0e0 to s20.OOO.- soc
~ worth of new gold per year. co,
1t can readily be seen from these on,
cures what it would mean to gold ltba
oduction here should some en- ,o,,
uragement be given the industry ond
owing reasonable return for con
slness investment of money in the tah-
ming of low grade ore. s+a.