Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-05-02

the sickness itsen be remedied. Meanwh,,
recourse to artificial stimulation must Ia r.
garded as temporary expedients first aid
70 the body polite.
can imagine many Of you win conside
this rather strong assertion for mime
TO make. but let us marshal 8 few facts 4
they relate TO minerals and gold In kne val
being OF a nation These have been publishe,
time and time again By various authorities
so I shall merely condense them for you
consideration.
! Foundation Of Prosperity
Newspaper accounts reflect a marked i'm
provement in business thrOughout the conn.
try. a return OF confidence, and lpso aacao
q return to prosperity, but Is the fouudaklor
for that wen and truly laid7 Let US examine
the views Of one authority. Frederick Nau.
ssen, vice president, Thomas Gibson. Inc a.
condensed and quoted from Financial WorId
New York City. Dec. 10, 1885;
THE will to spend for personal long
term use is being reflected In the rains
recorded during this fourth recovery u0ve-
ment BY the electrical manufacturers, the
radio industry, the automotive industry
the farm implement makers and resfden-
tial builders and furnishers. All this tn
dcates that the crowd mind is UNDER
going a great and important change
Heavy industry, however is iagging.
What will It all lead tor There will be
a great boom and great collapse.
'All the ingredients necessary for a
and changing sentiment promises at come
time TO make them fully operative"
Aid TO Industry
Prom time to time we are impressed With
the fact that no single factor is Of more
importance to the welfare Of q nation than
minerals, not only in its economic welfare
but in its political effects. For example, so
percent OF the freight handled by railroads Is
in the form Of minerals taken from the
ground. AS the iron ores and coal measures Of
England enabled her to become the worlds
until our own deposits Of these
minerals enabled us to compete with her SO
did gold mines throughout the British ern-
pire enable England to become and astab-
lish herself as the worlds banker Miner
ais as they are produced from the ground
Is new wealth. and 1t Is the creating Of this
wealth that leads to the maintaining Of a
high standard Of living. the benefits OF which
are not restricted TO the miner, but are
shared by the nation.
Fixes Price Levels
Gold Is In itself one Of the least useful Of
ne metals, yet Rold-and to lesser degree
ilver-is accepted by all peoples and indi-
liduals as a symbol Of wealth OF the meas
are OF and concentrated form Of wealth. In
consequence OF which 1t would be difficult
not impossible to consider any change as
The rare metals also play an
role in the well-being Of nations
n the same way that any mineral does but
fundamentally all products Of the mine or
actory or farm are measured in terms Of
-old. AS one authority puts It the status Of
'rice levels Is at the bottom OF trade depres- |
ions. unemployment, labor unrest class hatred
md many other economic and social Ills
md 1t is the relative abundance OF gold, |
monetary gold which fixes price levels, or
t least 1t is one OF the factors In the Law
4 Supply and Demand
Ratio Of Production
During the past century the worlds pro-
uction Of wealth-as distinguished from the
Of gold-has increased at an aver
se rate OF about s75 percent per annum. 1
)urins the same period the worlds stock Of /
monetary gold has increased at a rate OF
bout percent per annum. 1t may be no !
lore than a coincidence that the increase IN
he price Of gold from a recent $20.s7 to /
$500 per ounce is very nearly in the same 1
alto as the cumulative increase Of wealth
0 gold over that period but the intelligent
nalyst will recognize tangible economic forces
work. We have no evidence that a surplus
the metal existed a century ago, hence
he inference that our present stock Is not
/ excess, as the cumulative shortage has
roceeded at an average rate Of LIS percent
yer the century.
But for the neglect of gold mining during
nd following the war, 1t is not unlikely new
would have mitigated the short
&c OF gold. Again no great gold PRODUCING
in Canada-and within the
asst two years Russia, had been discovered
} renew declining production of gold, but
contrast to that, each year sees an alarm
g increase in the volume Of paper, misnamed
paper wealth."
End OF Paper" Era
Have we reached the end Of the paper
a, or is It Just beginning? So far, the
edit Of the United States has given thess
lst and growing paper obligations a market / 5
DE value, but how long viii this credit con- I
nue2 These are questions for the economist S
answer and for the politician to heed but Z
as already mentioned the credit Of the 4
ltion is sufficient unto itself to support p
obhgations-as some OF our political lead =
5 appear to believe-then we don't require &
Id and we can do away with It altogether n
Institute some other Standard No, that is a
t necessary; the credit Of the country is h
fficient till the inevitable happens a
Can anyone fail to be impressed with the Il
ct that gold is Of fundamental import in p
e worlds affairs and the we'll being Of its II
ople that gold has a direct and indirect Il
airing on the welfare OF our homes. Bear in q
nd that the status Of price levels is at q
e bottom Of trade depressions. unemploy- Of
mt, labor unrest. class hatred, etc" and q
II gold is that mysterious element which Il
inmates the stabilized" level OF prices b
n anyone doubt the calamity that would q
sue If gold mining were 10 cease or be ma Ell
half deeade7 The resulting chaos would as q
ne proportions beside which our recent "
1t recent-depression would fade into CT
ignificance. Gold mining is q great indus m
:, nay more, Il is an essential industry not CT
nc in the sense that It's product can be
ged into plow shares. into useful articles m
trade or be consumed as food. but most Al
,ideoly basic in tine sense that gold repre- ~
its wealth in a concentrated and SUBJ IN
ntially permanent form, indelibly i'm 81
ssed upon the race consciousness as the -
al and true symbol and measure of wealth
Is II 8 Gambler &C
Yet in spite OF these fundamental facts, Il
frequently hears of an investment in gold pE
ming enterprises referred TO as ''the last bl