Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1932-08-13

creases IN gold production. II
all cases they viii be higher thar
the 7E required to set new
world mark.
other states probably win MOI
make proportionate increases
There are large gold projects an.
der way in Oregon but they can
hardly be placed in production be-
fore 1898.
Gold production will not in
crease In those districts where
gold is a by-product of copper
or silver mines; not for two OF
three years.
Nobody can estimate the pos
sible increase in gold from Rus
STA. which produces about 500
100000 a year.
The result Of Increased gold
production Is to increase the
amount Of money in circulation:
which in turn means better bust
ness and advancing prices for
commodities now or recently sell
ng below the cost Of production.
The Increase Is Temporary
-Four questions will occur to
the thoughtful reader. This Is
an attempt to state these ques-
lions and answer them.
FIRST-Is the increased gold
production temporary or per-
manent?
Most OF the evidence indi-
Gates it is temporary. Much Of
the increased production comes
from marginal gold deposits.
which would not pay to operate
IN normal times. Experienced
miners who lost their regular
jobs in copper. lead. zinc and
silver mines are producing gold
and making a few dollars 9 day
sometimes less. When commoid-
~ prices recover these men VIII
return to their regular Jobs.
That viii reduce production.
Mining engineers agree that
the mines OF the Transvaal are
nearing exhaustion. me time
is approaching when South
Africa will be filled with ghost
camps, like those OF Nevada,
California, Colorado and other
portions OF the West. There
have been no great new gold
discoveries since those OF South
Africa, Alaska and the Klondike.
New gold sources are being
opened in Canada. possibly in
Russia. But there Is no assur-
ance Of finding mines in Canada
that will take up the slack when
the Transvaal mines begin to
close. Nothing but a world
wide depression is responsible for
the present Increase In produc-
ton. Men will not mine gOld
for a few dollars a day when
they can find easier jobs at
higher wages.
BfmeGa1ism Necessary
SECOND VIII the renewed de-
mana for himetalism cease2
Not unless another Klondike
Is discovered, which is unlikely.
Even GOLD producers now admit
that silver must be restored to
monetary systems If the finan-
ciai world is to remain on an
even keel. Among the most
outspoken advocates OF restOr-
ing silver are the gold miners
OF south Africa. The two larg-
est producers Of gold in the
United States are insisting on
the return OF bimetalism.
Bryan was right in 1896, 50
far as men could see ahead.
The gold rush to the Klondike
and the Transvall interviewed,
and by 1899 there was enough
new gold in circulation to make
It appear that silver was an un-
necessary adjunct.
The World War brought paper
initiation. The decade after the
war brought stock-and-bond in.
flation-fIotations in which every
dollar Of actually invested CAPT
tai was represented BY 81 or 81
in watered and manipulated
securities.
These things concealed thu
lack Of gold until the inevitabl,
flop put the akids under pros
perity. II they are permitted t.
happen again they win merel,