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Show mi wm must I GILO INDUSTRY Appeal to Lawmakers Is Made Through American Mining Congress. FIGURES IN EVIDENCE Necessity for United States Keeping Vantage Point Is Urged. Some 'jf the reanons why iho United States should by legislation lend aid to the sold mines of tho country are set out In a letter signed by James F. Oall-breatli, Oall-breatli, secretary of the American Mining conpress, on belialf of that Institution. Mr. Callbreath is on his way to lteno, Nov., where a conference of western gold miners will be hold this week. Copies or this letter have been sent to Senator Charles B. 1-Jenderson, chairman of the senate committee on mines and mining, lo Representative D. B. Foster, chairman of the same committee of the house, and to each member of confess. This was accompanied by a short letter stating that the cost of pold production is above i-U per ounce, whilo its hxed value, protected protect-ed by the povernrnent, is $iU.G2, and that sold mining must cease unless help is given. " Should Keep Advantage. The letter of the American Mining congress con-gress follows: "The United States occupies a most enviable financial position a-monp the nations na-tions of the world. The gold reserves of the world aro approximately $1.0,000,000,-000. $1.0,000,000,-000. while the total indebtedness is being increased to approximately ? 1 25, 000, 000,-000. 000,-000. This indebtedness is being increased at the rate of more than $4i,00lt,OO0,0o0 Annually. Before the war the United States possessed approximately one and three-quarters billions of dollars in gold. At Lho present time our reserves have grown to approximn tely three and one-half one-half billions as against an indebtedness at the beginning of the year of $S, 000, 000,000. In other words, the world's obligations are more than twelve times its gold re- serves, while our own obligations are less than four times our gold reserves. We must not permit the loss of this relative advantage. "We are spending annually more than our total indebtedness at the beginning of the year. We are more than doubling our gold obligations this year, with no provisions for Increasing the supporting gold reserves. Allied Countries Lead. "Approximately 90 per cent of the world's gold production comes from the allied, countries; 60 per cent from Great Britain and her colonies, 19 per cent from the United States and 6 per cent from Russia. The United States occupies relatively rela-tively a most enviable position in the world of finance, but our war expenses are so rapidly increasing the burden of indebtedness, based upon our gold supply, as to command the attention of thoughtful thought-ful men concerning our financial stability stabil-ity in the future and to call for extraordinary extraor-dinary effort in maintaining our gold re-Mcrves re-Mcrves at a proper ratio. 'During the pre-war period, with gradually grad-ually Increasing costs of labor, gold mining min-ing arew less prolltable. as is shown by .he falling off in production from $101.-005.7OO. $101.-005.7OO. in Ifllo, to ?S4.456.600 in 1917. It has been estimated by the best authorities authori-ties that the production for the year WIS will be 35 per cent less than during the rear 1917. This estimate was based upon ihe belief that the large low-grade producing pro-ducing mines would continue operation. Much doubt is felt as to the accuracy of Mich expectation. Shutdown Feared. " At a conference of pold operators at Denver last week it was virtually agTeed that with the exception of one mine, evcrv mine in the Cripple Creek d'striet should hove stopped two months ago, if clirected bv Rood business judgment, and it was further admitted that, with one exception, unless continued for patriotic reasons, every mine in the Cripple Creek district would be compelled to stop within with-in three months. This reason applies to nil of the strictly sold producing districts of the country, except the very high grade mines, which are very few in number. "Secretary McAdoo, In a letter to Delegate Dele-gate Su!zor"of Alaska, stated that 'At no time has this country so much required the largest possible production of gold as at the present. Xext to food and ammunition, am-munition, sold is one of the most needed war essentials.' "We are properly and necessarily spending a vast amount of money. There is no practical way of increasing the lawful amount of money in the country, except bv digging gold out of ihe ground or importing it from ahroad. Already we have depleted foreign gold reserves to a dangerous poinL Can we afford to permit per-mit gold production to stop? If not. what can we do to insure its continuation ? George K. Collins, an eminent mining emrinper of Colorado and manager of a considerable number of gold producing mines, has made careful estimate, showing show-ing the cost of production at this tlmnS Is 67 per cent greater than during the prewar pre-war period, while the value of the output remains unchanged. Increasing operating expenses with stationary inrome neces-sarilv neces-sarilv leads to bankruptcy and a stoppage of operations. If there were no gold op- orators and the government could in no other way maintain Us currency system on a stable basis. It would not only be justified, but would, find it necessary to operate its gold mines, no matter what rhe production costs might be. Pertinent Questions. "Ts it not more feasible to provide Temporary aid which will offset the Increased In-creased burdens of war times? "How else can the Tnited States preserve pre-serve its financial credits? The question suhmi tied Is most vital, as it relates to our future prosperity. Congress is now encrageri In the preparation of a revenue lnw designed to yield approximately one-third one-third of the annual expense of carrying on the war. This task is one requiring most careful con sit oration and the exercise of the best possible Judgment- Should not 'his same body give equal consideration to the task of insuring the stability of thfi securities which are and must be -old to provide for the other two-thirds oi" this enormous war expense? "The American Mining congress urpres its belief that unless the replenishing :.trcam of goid production sh;Ul be kept open so thai gold reserves may cont tnue i) grow, sooner or later an excessive premium inns! be paid for that gold which will enahle us to keep the promise of our Liberty bonds. A premium on gold is another term for a depreciated currency. We a.sk your careful consideration." |