Mohave County miner and our mineral wealth., 1920-01-24
GOLD SHORTAGE
 IN 1920 SERIOUS

A heavy drop in gold production, as expected, developed throughout the world in 1919, including the United States. World production dropped to about $355, 100000, as estimated, yer sus $3SO, 100000 in 1918, and compar- ing with $423,000,000 in 1917 and a high record of $470, 0,OOO,0 ,0O0 in 1915.
 The United States, the second rank ing producer after the Rand, turned out $55,00O,000 last year, versus $6S,- 100000 in 1918 and high record of $101 100000 in 1915. The Rand, in British South Africa, produced about $160 100000 in 1919 versus $192,000,- 900 in 1916. |.
 The decline in gold production is the result of increased wages and increas- ed costs of all commodities entering into the cost of producing gold, with out any increase in the value of gold. Other industries have increased price of their product, to meet increased costs of manufacture. This is, of course, impossible with gold, the stan dard of value. A "bonus" on gold was vetoed by American and by British government commissions, about year ago. The "bonus" propaganda is be- ing revived again at the end of 1919 and early 1920.
 What seems to be a "bonus" on gold is the so-called "premium" on gold, amounting to from 15 to as high as 40 per cent. in the London and Lisbon world markets for gold. However, this is more in the nature of a partial offset of depreciated exchange value of sterling exchange, or paper money, than of any actual bonus or premium on gold. i@rr|.. a;a, Ii ,>t
 The only important special consid- eration' given to the gold mining in dustry is the exemption from profits taxes practically throughout the world. The Canadian Government has also provided that Canadian gold min es shall be paid for their gold at the Canadian Mints, in "New York funds" As Canadian money is now at a dis count near 15 per cent. below New York funds, this is an important premium in Canada, but results in the gold fetching, after all, no more than par value of s20.67 per ounce in New York funds.
 The increase in costs of operation, without compensating "bonus" result ed in many mines closing down in 1919. This was especially the case where as at the once mighty Gold field Consolidated (ten years ago the worlds foremost gold mine) and some of the deep Rand mines, and some Yukon and Alaska ahtiquated dredg- ing plants, it happened that the values of remaining ore also showed a de- cline, impinging on increased costs.
 It is likely that the mines which pulled through" in 1919 will continue to do so in future years, since 1919 probably saw the peak of high war time costs of production. The gold mine that survived 1919 with it's high costs should do better in fu- ture yearsrapart, of course, from the consideration of natural decline in re- naining ore reserves, incident to prac- tically all mines.
 Whether or no bonus be voted up- 'n production of new gold, higher prices for silver and stimulation to silver mining will be in order. The otal gold-silver production of bullion n 1916 in the world, the record year, vas worth $5sO,OOO,OOO with silver at 'Oc. and gold at $2O an ounce, and iguring the entire world production. The entire bullion production was worth $515, 5,000,000 in 1919 with silver $1.10 and gold $2O. The oinage value of the coinable gold and liver produced in the world was $590,- 00,0O0 in 1916, whereas only $391,- 00,000 in coin could have been pro- uced from all the coinable gold and liver production of 1919. The coin ge figures reckon one ounce of sil- CT as coinable into $1.35 silver coin, nd allow $50,0O0,000 gold and 50,0OO,- % ounces silver used in the arts in 916 and not available for coin pur- ] Dcac anl xxrskl, QOn nnn I