Douglas Island news., 1921-01-21
MINING EXPERT
 FAYORS INCREASE
Says That An Increased Price on Would Prevent a Decline
 in Production

That a rise in the price Of gold. while probably not tending to inc crease Che worlds output of that precious metal. would certainly tend 70 rotord los decline and to prevent prcdomlnato proportion Of the metal from going into channels other than for Che manufacture Of coin. is thc opinion Of Henry strakosch. ox- pressed at Che International Finan- cial Conference at Brussels Mir. strakosch is quoted in part as fol- lows in Che Amalist
 "Gold as tho standard Of value and as Che foundation of tho currency and credit organizations Of Che civilized world has proved go efficient that it cannot be supposed that it will be abandoned in Che future. 10 is well, therefore. to examine thc question or gold production, and Che uses Co which lt ia put Those factors are of very considerable importance in the consideration Of Che currency problems before us"
 Mr srakosch then reviewed Che production generally from 1893 to lgI5. when it reached the high water mark Of 96 millions sterling. rapidly declining uatn 1919, when Che value of Che total world output was reduced Co @ millions sterling.
 Judging from Che figures 80 far available for Che current year, Mr. srakosch estimates that Che yield win not exceed G9 millions sterling. while a review of gold mining gen- orally ho believes. points to the probability that Che world output win show a further decline in 1921, and that from then onward the out put win more or less steadily recede. The discovery Of new field, even of the size of Che Klondike. would only slightly aucct the situation. acc cordlug to Mr. strakosch, who de- clares that a radical change in gold production can only Doe expected if Che discovery is of an outstanding character or Che uses to which the gold output Of Che world has been put. he says
 "Taang Che years 1907 Co 1913. when Che output Of gold on an aver age amounted to 9i7 million strel- me Che available data indicate that that amount has been absorbed Co the extent of 22.6 millions Cor 23.S per ccntJ for industrial purposes and for Che arts In Europe and Am- erica. while Che East and especially India. has taken TIT millions storl- ing tor lS.7 per cent) Of Che worlds production SO that Che world consumption Of gold for purposes other than money has amounted to l0.8 millions tor l2.5 per cont). The balance of 5f4 millions tor 57.5 per centl may be assumed Co have been devoted Co monetary pur- poses
 The Movement of Gold
 "The destination of gold produced in Che Trausyaal since the free dis poau In the best market of that couutry's output was permitted In July 1919. is instructive not only because there are precise data avail able. but because they may fairly be taken as indicative Of the move mont Of gold produced in the rest Of Che world. From that time down to Sept last India. Che Straits Set dement's and coined gold rcshlppcd Co South Africa to replace exports Of specie from that country Co the East have accounted for no less than 5g.9 per cent. of Che gold production Of Che Tranwaal. while 6.5 per cent was used for industrial purposes in Europe. SO that total Of 6G.i per cent was devoted Go purposes other than money (which compares with i2.5 per cont for Che period Of l9o7- l3l. leaving for monetary purposes 88.6 per cent. which compares with 515 per cent for the period l9o7- 1913.
 "Tha rapidly diminishing world output Of gold and Che radical change which has taken place in the uscs to which that metal Is put at present. as compared with pre- war days. deserve special attention. What are the reasons for these phenomena and what lessons do they teach us?
 "As regards the diminution in output it Is clear that this has been brought about by increased cost Of production. which was unaccompa- nied by Q corresponding rise in the value of gold
 Oriental Demand Increasing
 "As Go the changes In Che uses Of rr tt .f.,.f.r fr frro.faf fItfn