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

gold ratio may improve with con traction of the credit and currency structure of the country we shall, on account of our adverse trade balance, be forced to lose a considerable
 amount of the gold which might be thereby released.
 It is being demonstrated that vast amount of imitation cannot be reduced
 without causing hardships and loss of employment, and therefore is it not proper correction to make stronger the reserves and circulating
 media by increasing the production and conserving the use to which the
 gold is put, thereby increasing the
 production of commodities which are so greatly needed throughout the country today. By this means only can the currency and credit struc- ture of the country be deflated, while at the same time increasing the phy- Sical production of commodities so as to lower the cost of living, and with the idea always in view that it is the use to which money and credit are put that is the all-important thing. While the Committee has urged that defla- tion is te only remedy for the eco homie pressure to which the gold min ing industry is subjected, it is evi- dent that any process of deflation must be so gradual that it will not restore the purchasing power of the dollar in time to save the industry from complete destruction. Particu larly in view of the fact that Congress has fixed the price of gold, it seems that Congress has now the power to stimulate the production of gold by creating the machinery whereby the consumer of gold in the industrial arts may pay more nearly the cost of pro- duction for his raw material, thereby enabling the producer of new gold to increase his output to meet the indus trial requirements of the arts and trades, and protect the monetary gold reserve from further industrial deple tion. The government should legis | late to stimulate the domestic gold supply and thus relieve the strain and send into the currents of industry the ]. invigoration of this new gold. The process of deflation in order to serve as solution to the gold problem : would have to take place so rapidly that it would paralyze the entire in dustry of the country. It cannot be that the Committee would want to see deflation take place so rapidly. The attendant ills of a too rapid deflation | cannot be too strongly emphasized. . Labor difficulties will become more rather than less numerous. The loss of employment alone would create a burden upon the entire public in a lessened production, which could not be borne without suffering and the impairment of health. The loss in the production of new gold to the gold reserve will still further accentuate the volume of deflation. It will be necessary, also, to analyze our exports of gold more carefully and to increase the production of new gold at least . to satisfy the requirements of the manufacturers and the arts. Our gold should henceforth go to Euro pean countries whose reserves are . now depleted and not to Japan to swell it's already large reserves. Gold should not be sent in such large quan- , titles as last year to India and China, where it is hoarded and removed from international circulation. To prevent 1 this leak. of gold we must purchase no more goods in Oriental countries in value than they are purchasing