Show COST MAKING MAKIN G GOLD INCREASE 67 PER CENT According J to lo a n. Colorado mining man Iho cost of ot gold production has Increased 67 per cent since the great world war broke broko out This Indicates that the Iho gold ohl dollar Is Iii worth only onh 33 c cents to tho miner or hi his dollar will buy Just third one-third as aa much as ns In Prewar prewar prewar pre pre- war days das Relative to the tho gold hold situation situa- situa llon tion the tho Mining Congress s Journal says that Its estimate is that the tho tho costs of at gold old production are arc 60 per percent percent cent greater than before the war George E. E Collins of at Colorado a I mining engineer of at large Jarge experience In the tho operation of ot gold sold mines and a careful student of at Its economies economics has made mado a n. careful estimate which shows shows' 3 I that the tho actual cost cont of oC gold production production I tion in tho the State of oC is 67 per perc percent c cent nt greater now than In the Iho prewar I period Largely because of at the upward upward upward up up- I ward trend of prices price gold production I had hod bc been beon tn falling off ott during the tho J war period In 1 1915 15 the United States I produced In 1917 this production had fallen off oft to lo S 56 COO It has been estimated that this production will fall tall off ore 33 35 r per c cent nt during tho the current year ear This estimate estimate esti esti- mate was made without full consideration consideration consider consider- atlon of oC the additional burdens In operating operating op op- op- op costs for tor which there can cnn be beno beno beno no recompense b because of ot the fixed price of ot the product It seems certain that with few tew exceptions the tho large largo I strictly producing gold mines mineR of ot th the country will be forced to lo close unless some come artificial aid Is given which will enable them to lo operate The closing down of or tho the average deep gold mine Is practically equivalent equivalent lent to nn an abandonment of at the prop prop- ert erly erty The mine fills with water waler tho the timbers which protect the workings soon decay and permit the caving ln In Inot of ot the works Tho The cost of oC and rehabilitating the tho mine equipment Is so great greal that a mine mine- once abandoned abandoned aban aban- Is likely to remain closed until conditions are very er much more moro favorable favorable favor favor- able thon at the time lime of oC closing Tho The shutting off are of or the replenishing stream of or gold rold In the reservoir which maintains tho the of oC the nation cannot add to lo the confidence which the bondholders have in tho the stability of oC their securities Unless production Is kept up there must be bo a n gradually s il Im I n I li t n 8 rr r f of resort i- i 1 c he ln- ln In In- In t i consumption n t o of u gold oi In I li the world has hns for Cor some years past been In excess of or annual annually DurIng During During Dur Dur- ing these same years cars tho the gold production production tion of ot the world has approximated annual annually Tho gold re reserve reserves reserves re- re serves serve of or the world do not show that thai annually have havo been heen added to lo their volume The best estimate Indicates that about will willmore willmore willmore more than measure the tho total Increase In the tho tho worlds world's gold reserve Whenever Whenever When hen ever the tho worlds world's s 's gold production shall fall below elow annually we may anticipate that the Iho volumes of oC I reserve K geld ld will begin to o be depleted At a n time of at contracting currency this might not 1 lo to e Jan dangerous Brous but during du ln a period of ot vastly increasing financial transactions and unprecedented dented In Increase Increase In- In crease In bonds and debts this condition condition condition condi condi- tion becomes cs serious I IT Il S. S Gold ohl cn t I Tho rho United States occupies a most enviable position among the nations I of at the world world- The rile gold reserves of ot tho the world aro are approximately while the total indebtedness Is being being- Increased to lo approximately Indebtedness 1 ls being Increased at tho the rate of at more than annually Before Detore the tho war tho the united States Stales possessed approximately one ono and three quarters billions of at dollars In gold At tho the present time our reserves r cs have havo grown to lo approximately aa as against an Indebtedness at the tho beginning begin hogin- ning of at tho the year of ot In other words the Iho worlds world's obligations are arc more than twelve times Its gold reserves while our own obligations are aro less than four tour times our gold re re- re serves We must not permit the loss of or this relative advantage rho Tho foregoing Is la tho first paragraph paragraph paragraph para para- graph of at 11 u letter sent flent to Senator Henderson Hen lien Foster b by derson and Representative James I F F. the secretary of oC the t American n. mining congress |