Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-29
FIXED PRICE MAY
CAUSE GOLD GAIN
Low Cost OF Commodities
and Labor Also Seen Fac
tor In New Mining.
y u. Associated Press.

- the Associated Press.
NEW YORK. October 7s.--Altllough
various obstacles are in the way, efforts
are 10 be made during the coming year
70 increase the production Of gold In
the United States Mining experts are
nov perfecting their plans 10 get more
Of The yellow metal Out Of the ground.
The present incentive is due to the
Lev cost Of commodities generally, more
reasonably priced labor than In num-
her of years and the fact that there
Il o fixed price for gold Of S20.67 an
ounce. In other words. the going mines
can make money under present condi-
tiuns. and the producers intend to
s@stTzke while thesfron Is hot
For the first time in many years the
United States, for the moment, Is third
mrnong world gold producers. having
dropped from second place when Can
ada Increased her production Il Ia es-
ttnated the total quantity Of gold
Hnined In America during 1891 will be
around 2.2o0 600 ounces. while the
probabie Canadian production viii be
IN the neighborhood OF 2,700 900 ounces.
The Rand mines Of the Transyaal lead
more than 100000 ounces.
u. s. Output May Grow.
While the views of mining experts
differ considerably regarding potential
production Of the metal IN the United
States. there are some who insist that
an annual total Of some 5000, 900
ounces is not only possible. but prob
able, II the low grade producer Is given
announcement to operate and Is prop
eriy protected against variations in
commodity price levels. so that he may
show q profit on the present hxed metal
pwtce
ALTHOUGH England has gone on the
acld standard and Canada has prohib-
ted the export Of gold. with resultant
drop in the exchange value OF the
pOund and the Canadian dollar OF
around 40 per cent, the price paid for
ctrrencies. The mines. therefore, receive
q bonus for each ounce Of the metal
which viii make their receipts equal TO
those under the gold standard. At the
same time, labor is paid on the basis
OF the decreased exchange value Of the
currency and the advance In commodity
prices has not equaled the bonus re-
ceived by the mines. Therefore, 1t u
figured, both the Canadian and Afri-
can producers stand to profit nicely, ~
least for the time being.
Notwithstanding the seeming eager
ness Of various mines 70 increase pro-
duction, some stAtistieians have called
attention to the theory that the supply
az gold apparently had nothing TO do
with the economic decline Of 1921 and
the present one.
Russia Unknown Factor.
In considering future world gold
production, Soviet Russia is still among
the unknown factors. The Soviet regime
has made large claims for prospects in
siberia. the urals, the Tomsk and
Semipalatinsk districts and In the Far
East, but the output of the U. s. s. r..
Is not believed 70 have exceeded 1000
600 ounces annually IN recent years.
The Russians, however, are continu-
ang their explorations in the hope OF
locating a new field that will put them
on q gold production par with capital
ist nations. American experts who
have travelled extensively throughout
Siberia have little expectation that any
bonanza will be found.
A certain revival in mining u nov
being contemplated in other countries
which have not previously been heavy
producers New explorations are pro-
ceeding In Australia, New Guinea and
South America.