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GOLD AND SILVER.
743
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Some
aid in reducing costs might be obtained by cooperative buying of
supplies by mining companies through central agencies in each State or
district, but the organization of a general system of cooperative
buying would be very difficult.
Possible
methods of maintaining the visible gold reserve, apart from mine
production, are: (1) The curtailment of the use of gold for
manufactures, and (2) making a call on the public to turn in hoarded
gold. In France voluntary contributions by the populace since the war
began have amounted to more than 2,000,000,000 francs.
Further
relief might be obtained by amending the war-minerals bill to include
gold and voting an appropriation to be used in directing the search for
new deposits.
The
findings of the committee did not give any present tangible relief to
the producers of gold, and it is reported that further efforts will be
made under the direction of the mining congress to bring about
legislation by Congress which will relieve the burden now imposed on
them by advanced costs and a stationary value of their product, and yet
prevent tampering with the standard of international monetary systems.
John Clausen, vice president of the Chemical National Bank, New York
City, has suggested1 that gold be withdrawn from circulation
and used solely to support credit, bringing gold mines under Government
supervision to insure the delivery of an appreciable part of the gold
produced at the standard fixed price of $20.67 a fine ounce. The
remainder of the gold produced, which would be available for use in
arts and industries would be sold at a price of $40 to $45 an ounce so
that the net selling price of all the gold from mines would average
about $30 an ounce and thus offset the much increased cost of labor and
materials. It is argued that the arts and industries could readily
absorb the increased cost of gold, that there would be no radical
reduction in the output of the trades that use gold, and that such
increased cost would be a tax mainly on luxuries. The proposal has some
merit, for certainly the very largely increased price of articles made
from platinum has not resulted in any lessening in the demand. The
sales of diamonds and jewelry have also increased with advanced prices.
To put such a plan into effective operation, however, would require an
act of Congress imposing very stringent penalties for defacing or using
gold coins and for selling new gold and gold scrap and wastes to others
than the Government. There would also have to be careful supervision to
prevent the smuggling of foreign gold, for considerable quantities of
foreign gold have always eluded the customs officials, and the
proposed bonus would be a great incentive for illicit traffic.
It
is apparent that conditions imposed by the World War are responsible
for much of the decrease in the production of gold, but in the United
States there have been contributing causes which are more fully
discussed in the separate State chapters of Mineral Resources for 1917
and 1918 that relate to gold, silver, copper, lead, and zinc.
MINES REPORT.
METHOD OP COLLECTING STATISTICS.
The first table in this report presents the final official figures of the production
of gold and silver in the United States in 1918 as agreed upon by the
Bureau of the Mint and the United States Geological Survey. With the
comparatively unimportant. exceptions of do-mestic gold and silver contained in ores and mattes exported for reduc-
1 Saturday Kvening Post, Oct. 11,1919.
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