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Show SUGGESTS REMEDY FOB GOLD CRISIS Writer in Mining Congress Journal Makes Review of Situation. TAKES SERIOUS VIEW i Would Lift the Embargo on All Newly-produced Gold. In view of the fact that wwilcrn congressmen con-gressmen and senators are now busily concerning themselves with the alarming dr, -rea.se in the gold output of the Fnil.ei Slates and the prospect that 'unless speedy nclion is taken many ol" the low-grade gold mines will be lorced to close. I he following ai-llde in the current issue of llu- Mining Congress Journal is of special interest ; "Money is (he life blood of commerce. Gold is I he basis of money. "The gold supply of the world has been falling off very rapidly. The credits' placed upon gold have been increasing with startling rapidity. The increase in demand for money, created by the increase in-crease in business transact Ions, has been met with currency promises lo pay notes of credit, good notes so long as the gold foundation upon which they rest is kept at a proper ratio. As commodity prices, based on a rapidly Increasing circulating medium, go up, the relative value of gold goes down. The cost ol gold mining has been and is rapidly increasing in-creasing while the value of the output remains stationary. Gold production has reached a crisis. While production has been gradually growing less, present .conditions will shut oft production allo-gclher. allo-gclher. except in mines where KOld is a by-product. Gold production Is on the verge of a. precipice and, unless help is given, cannot continue. Loss in Seme Mines. "I.ow-grade gold mines are now operated oper-ated at a loss, and there appears to be no hope for the future. A bonanza, gold deoosit in which twenty years' cflort culminates in one or two years' excessive ex-cessive profits has the prolit of I he twenty years' effort treated an the prolit of one vcar. and Hie war excess prolit tax law' takes all the profit and a large v part of the original capital. There Is nothing to stimulate the gambling Instinct which searches for high-grade mines. There is no hope for regular low-grade gold mining operations. This presents a startling situation when its consequences are considered. The structure of credit cannot continue to glow while the foundation foun-dation upon which it rests remains the same. . "Our Liberty bonds are a promise to pa,' In gold. If production is stopped the gold cannot be available for their redemption. re-demption. A world effort to liquidate would produce a money panic . which would put gold in Its proper relation to general prices. A better method must "be found to meet the situation. Cost Nearly Double. . "It now costs neatly double as much to produce gold as in normal limes. Gold herefore should he. and 11 not controiicu by governments would be, at a 100 per cent ' premium. Gold is now at a premium pre-mium in foreign countries. The hope ol being able to take advantage ot possio c premium advances would give hope to the gold mining industry. Many small things may properly oe done lor gold mining. First, gold production may be relieved from the requirements ol the war excess profits tax law. This would Uistifv speculative effort in the finding of hi 'h-grade ore bodies, but would be of no assistance to the regular operations which are not making a prolit. Second, gold mining may he classed as a war industry in-dustry through which preference might be given in obtaining its supplies. Third, froirht rate advances as relating to god ion'ing might be remitted. Fourth, lis emploees may be made immune rrom draft "into war service. These things .would be helpful, but this help would not be sufficient to keep up the proper ratio of production. The Mining Congress Journal is on record to the effect ha sooner or later governments will tmd it expedient lo offer a bounty on gold production, pro-duction, from low-grade ores. This can not he suggested as a practical solution at this time, because immediate aid is necessary. What is there, then that can he done to prevent Ihe extinction of the gold mining industry? Suggestion for Remedy. "Our suggestion is that the embargo shall be lifted upon the exportation of all newlv produced gold, and allow the pres- cnt and future gold production 10 uinc advantage of the premiums which now or hereafter mav obtain. The present foreign for-eign premium of 4 per cent is not consequential conse-quential exeent that it brings hope to H.c gold miner that he has an even ,.i,Hrice In the world's markets. The Mining concre.ss Journal now predicts tl-nt unless some substantial help is given ti, Ihe "old industry, gold will be at a premium of f.i tier cent within five years. To s.a'o it differenlb. currency w,n be depreciated to 66 'A per cent of Us face wiluc. The appeal ol the gold industry lo the nation h is been unheeded. I he umeal or the nation lo the gold industry will be heeded, but the unwatering cf ihandoned mines, the rebuilding of aoan-donel aoan-donel treatment plants, the assembling of working oreanUntions. will be as tedious and as exasperatingly slow as the ..e-mblilig. the tieiiiing and the equip-' equip-' "eut of an armv from raw material to meet the oncoming rapacity of a web dls-,-inlined Hun army. This country will loie no gold hv this plan because, without with-out aid. no gold will be produced." , |