Evening star., 1933-08-30
GOLD EXPORT OK.
INCREASES PROFITS
$15,OOO,OOO Gain for Miners
Seen-Ban Raising Hits
at H0arderS.
By the Associated Press.

By the Associated Press.
New gold may now be shipped freely
from the United States under the pro-
visions of President Roosevelts decree,
but hoarders remain in just as much
0iscredit as ever with the admins
tration.
Thus gold miners, ranging from those
who have panned Rocky Mountain
creeks with kitchen sieves to the great
corporations with elaborate chemical
processes, find they can make 80 per
cent more dollars today than they could
yesterday.
But gold in the form of money or
gold that was bullion when the en-
barge was declared still must remain
in the United States, and no person,
excepting collectors or those specially
licensed, may hold more than sl0o in
gold
The miners who now may ship pure
new gold abroad hitherto were forced
to sell their gold in the United States
for S2067 an ounce, or, more recently,
to ship it in the form of amalgam, with
consequent loss to American refinerS
and the added expense of shipping such
unre1ined metal.
S15,OO0,OOO Profit Seen.
This means profit of at least SIS
100000, and perhaps much more if gold
mining is as stimulated as mining ex-
perts anticipate. Gold mining has been
exceedingly profitable during the de-
preston, because while costs of labor
and other expenses were going down,
the price of gold was fixed by the Gov
ernment at s20.67 an ounce. When the
United States left the gold standard
miners feared those profits might go
gllmmering. since rising prices meant
rising expenses with gold prices still
kept fixed at S2067.
Meanwhile, however, gold was being
sold freely in England at no fixed price
just as any other commodity-wheat,
for instance-is sold on the market
The price of gold in England rose to
about $50 in terms of American money,
but American miners were not permitted
to benefit from this rise because of the
gold erfbargo.
Treasury to Direct Sale.
Now this new gold may be refined
sold to the highest bidder any place
out of the countr. under the supervi-
sion of the Treasury.
The reason why any gold should be
permitted to leave the country may be
answered in several ways First, the
United States has no special need for
more of the metal for monetary pur-
poses. Second, the rest of the world
does need it, and in buying our gold
miners in this country are directly ben
Gifted with increased earnings. Third
an increase of the floating supply of
gold in the world should serve to in
crease prices.
A basic reason involves somewhat
abstract distinction between gold as
money and gold as commodity. To
permit the free sale Of our present
stocks of monetary gold would give to
hoarders or speculators profits which
non-hoarders may not get. On the
other hand. those persons who pro-
duce the gold from the ground. literally
creating new wealth, are held to be en-
titled to the profit therefrom.
VIII Combat Hoarders.
Federal officials described the two
Executive orders as providing an effec-
tive method of combating hoarders as
well as a stimulus to the domestic gold
mining industry.
The Justice Department last night
issued a formal statement expressing
qualification at the order relating to
holders of gold and predicting it would
prove a helpful instrument in the drive
against hoarders.
The Executive order issued today by
the President supplies an efficient means
of reaching hitherto unidentified in
dividuals who are holding gold gold
coin and gold certificates, contrary to
the public interest," the department
said.
It added that detailed instructions
and the necessary printed forms would
be issued later by the Treasury.
All of the foregoing is in pursuance
OF the general plan which has been
followed since the matter became one
of national Importance" the statement
continued. The Department of JUS
tice is continuing its work of classifying
and interviewing the known gold hoard
ers. who will be expected. of course, to
comply with the new Executive order"
Both orders were drawn up by Treas
ury experts several days ago after an
intensive study by President Roosevelt
and his intimate advisers.