The Waterbury Democrat., 1931-08-12
SLUMP REVIVES
 AGE OLD HUNT
 FOR GOLD MINES
Greater Buying Power Spurs on Search for
 Metal
DY RICHARD l.. GRIDLEY limited press Financial Writer

(United Press Financial Writcr)
 New York.-The age-old greed for gold has cropped up anew. The days of the Klondike are being re- lived. Mines are being drilled deep CT; new discoveries are being made and old mines are being worked.
 The reason is simple. In times of depression there is no better in- vestment than gold. Its value grad ually increases in direct proportion to the fall in prisec of various com- modities. In other words, a quantity of the metal now will purchase per- haps 35 to 40 per cent more goods than it could have several years ago.
 Because of it's importance as a money basis in major countries of the world, the gold question has excited much comment in banking quarters. Currency of several coun- tries has been impaired by dwind- ling gold reserves.
 Two Opinions
 One school of thought claims that if there was enough gold in the world to finance the greatest stock market boom in history, there certainly is enough to finance legi- innate business now with credit values dehated as much as 75 per cent. On the other hand, equally responsible economists point to prospects of Q gradual decline in production of the metal and say that if the supply of the metal is only sufficient now, it will not be in the future, provided business continues to increase in scope. Many countries now are suffering from a lack of gold which they could use for a base to expand their credit facilities. This country and France have more than enough for their current needs, about 60 per cent of the worlds metal now be. ing in the vaults of the Bank of France and the Federal Reserve system. These gains appear to be at the center of the prsent con- trovrsy. Deeper causes than mere greed account for the large &C., emulation. The last three years have seen gains In gold holdings by United States, France, Belgium, Sweden and Switzerland. and losses by the South American countries. Japan and Australia. The losses by the latter group appear to be be- cause of increases in foreign in- debtedness, larger importations and price changes.
 FrOuuCLlOH OI tHo HlctdIt bilCc the discovery of America, has amounted to 1,042,800,000 ounces, of which more than half has been produced during the twentieth cen- tury. Output In 1882 amounted to slightly under five million ounces. Since then production steadily in- creased until 1915, when it amount ed to 22,718.154 ounces. After dip- ping to 15,467,223 ounces in 1922. output increased nearly 25 per cent to 20,191,478 ounces in 1880. Pro- duction for the current year was slightly in excess of the 1930 fig ures.
 Experts Idea
 H. A. Kursell of the American Smelling and Refining Co.,, one of the worlds largest refiners of the metal, has little hopes for any in- crease in production. Production will remain stable at around 20,- O0O,000 ounces annually during the next few years, he believes. until not later than 1885, when a slow decrease will probably begin, bring Ing world production down to about 15,000,000 ounces by 1940.
 Spurred by the business depres- sion, however, production of the metal has increased sharply this year, several large companies re- porting the discovery of impor- lant new deposits.