Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-12-17
SHARP DROP NOTED
IN GOLD OUTPUT
Britain's Return to Former
Standard Has Failed to
Stimulate Mining.
BY j. c. ROYLE.
Special Dispatch to The Star.

special Dispatch to The Star.
NEW YORK. December 17.-Plac-
Ing of Great Britain and other ma
tons on Il gold basis has failed 10
stimulate gold production. The
United States production OF gold this
year, it became known from Govern
ment officials today, is expected to
drop below $4,000, 900. This IS less
than half the amount produced in
1915, when gold output was at It's
peak. That year United States gold
ores yielded S101. 075 900. Then this
amount represented 21.5 per cent of
the entire amount produced in the
world, but the percentage has &C.
creased sharply since thai time.
World out-turn since 1873 has
ranged downward from Says, 900 to
1884. 10000 in 1924. 1t probably will
be slightly higher than the latter
produce more gold. owing to diScov-
cry OF new high-grade deposits. and
South Africa and Russia are expected
to show increases.
Mining Experts Worried.
In America, the phrase its gold
mine" has ceased to express richness.
In many cases gold mines, once val
liable, now are liabilities rather than
to mine and treat their ores than the
ores return. This fact Is causing con-
siderable anxiety In mining circles,
and various efforts have been lmade to
rectify the situation and encourage
gold mining. To date, these have not
been effective.
1t is conservatively estimated that
the cost of producing gold has risen
100 per cent since 1914. The selling
price of gold in America has been
fixed by law at S20.67 an ounce since
1905. In London there is slightrange
In prices caused by the fluctuations OF
exchange. Other metals have adj
ranced in price. as costs moved up
ward. but this has been legally inn
possible with gold.
Use of Gold Declines.
The use of gold In manufacture of
jewelry and the arts has declined
rather than increased recently. The
vogue tor platinum wedding rings has
had a decided effect on the amount of
gold used for ring manufacture. Cir
culation OF gold coins, which entailed
wear. destruction and loss with con
sequent placement, has ceased to Il
large extent. Notwithstanding this
there is about 40 per cent more gold
used In the arts than is produced in
this country annually.
Hundreds of thousands of dollars
worth of the metal on which world
values are based is being wasted and
lost. The working of only rich parts
of gold bearing veins entails the loss
beyond recovery of lower garde ore.
Yet only tire richest deposits pay to
mine.
About 10 to 10 per cent Of the world
production of gold comes through the
mining of copper. lead and zinc. ac-
cording to Government officials. and
the Improvement in the output of
metals this year has caused "A further
falling off in activity of properties, the
main product of which is gold
Want Tax Removed
Stimulation of the demand for gold
bullion by the return to the gold
standard of European countries failed
to make its appearance, largely be.
cause central banks and agencies in
those countries made successful efforts
TO control the movement and use of
gold. Mining men Of the Western
S.c.eL headed by Representative
Charles +. Curry of California. have
strongly urged that the Federal in
come tax on gold bullion be removed.
Income tax reports in 1923 show that
81 producers of precious metals re-
ported net income of S5,533.110, on
which a tax of S626.5S1 was paid. while
3S2 producers reported deficits aggre-
eating S9925.262.
A bill has just been introduced in
the Senate which provides for an un.
dersecretary of commerce. who would
head the Bureau Of Mines. and whose
duty il would be to devise solutions for
this and other problems affecting the
mining industry.
Copyright. 1925