The Daily Alaska empire., 1939-03-14
END OF THE GOLD BOOM NOT YET
 IN SIGHT

Preliminary estimates indicate that world gold pro- duction in l938 amounted to over 370ooOoO ounces, against 35 100000 in 1887 and barely 193l8000 in 1929 The story thus continues be of steady expansion to successive higher levels of output that would have been regarded as fantastic dreams few years ago. And the end has apparently not been reached yet.
 With the exception of Russia, which is reported to have encountered technical and administrative diff faculties and for which estimates in any case open to question there indication of a slowing up in the growth of gold production in 1888. Assuming the Russian estimates to be approximately correct the physical output of gold in 1899 will be fully twice large the last half of the 'twenties In immedi atey succeeding years this high level of production will almost certainly be maintained
 Growth of gold production during the present decade been largely the higher prices paid for gold by monetary authorities throughout the world direct outcome of the world depression. As the value of foreign trade strank and nervous money began to shuttle back and forth between kets one country after another found that its re- ceipts from sale of goods and services, and from financial transactions, insufficient to its outgo Gold payments were suspended and the gold value of currencies declined
 In the United States this decline as reflected in
 70 percent increase in the price of gold from 1929 to December 1s38 less drastic than in most nations Of the principal gold producers the increase in the price cf gold was approximately 40 percent in Belgium 70 in Canada 75 in British India and in England, 30 in South Africa 125 in Australia 185 in Japan Korea and Formosa, 190 in Colombia and BIO in Mexico.
 At these higher prices IL has been profitable for mines to mill with gold content below the previ- limit of payablity and to increase substantially the scale of operations This has been the experience in Alaska where the rise in the gold price has re- c,,1tn ty ,,ft,{,,u be touched before with consequent beneficial effect employment and Territorial prosperity. In most countries the response has been rapid. Production in the United States and Canada for example t much than double that of 1929 and in many other countries the increase has been treefold more
 Some consideration must be given to the poSs blity That the conditions which have made gold min ing exceptionally profitable in recent years will no persist and that the expansion of gold output will b. checked contraction initiated the result eithe of rise in mining costs reduction in prices paic for gold
 Any considerable increase in business activit, and prices throughout the world is almost certain t. be accompanied by rise in costs of mine labor, ices, and materials It is true that gold mining wage and the cost of services may rise less steeply thai those in other types of industry and it may be take as certain that the prices of mining materials will rise much the established indexes of whoesal prices. None the less, increase in the costs gold mining is to be expected during period of gen eral business recovery.
 Prospects for reduction in the prices paid fo gold by monetary authorities difficult appraise At s35 the value of gold outpu in 1888 nearly sl,sOOooOOoo or more than thre times as large in the late twenties. Although gold output double in volume and triple in value tha of decade ago is longer fantastic dream, it ha become something of nightmare to monetary author ities. particularly in the United States. This countr has acquired more than s7OO0O0OOO0 of gold sine January 1884 and there be little doubt that tn high level of gold output important factor i the magnitude of the gold flow to the United State and in the problems of monetary management ths il has created
 However, nothing has been done at Washingto or elsewhere to take any of the glitter out of tn present gold boom In its annual survey and outloo number, the Engineering and Mining Journal predict
 that the period of high production will continue fc many months to