Salt Lake Telegram | 1933-07-21 | Page 12 | Gold Proves Exception in Price Advance

GOLD PROVES EXCEPTION IN PRICE ADVANCE Uncle Sam Only Buyer for U. U S. S Product Value Is Fixed By Dy HIRAM I ERTELL Associated d Press Financial Writer NEW YORK July 21 Seemingly 21 a glittering exception to the general genera rule gold stands unique as the one American commodity which has failed to share in the spectacular price rise of ol recent months Many prominent bankers are arc wondering won won- wong dering how long this contradiction will continue but recognize the of ol changing it The Unit United d States is the third largest larg larg- est cst producer of ol gold in the world but the American gold miner with his market rigidly restricted by the new gold d laws has only one Uncle Un cle dc Sam Moreover this customer still stilt pays in ordinary currency at the legal lecal rate of ol 2067 per ounce or some 30 per cent below the world price quoted In n London MARKET URGED The eventual establishment of ol a aIree afree afree free Iree gold market in America which America which would result in a higher price for lor the yellow metal metal metal-is is being urged in certain tam tain quarters in Wall street Atthe the same time it is admitted that the problem is unusually complex IThe The administration under the recent edict has demanded the return of ol all private gold holdings A Afree Afree Afree free gold market would mean that the government would have to pay a premium premium pre pre- on domestic gold This would create a situation it is said which would be manifestly unfair to citizens citizen Iwho who have obeyed the gold laws ol of the country and turned in their gold cold Moreover if il a free Irce gold market were confined to a strictly domestic basis there would probably be little advantage to the American producer bankers explain inasmuch as he would be prohibited from tram enjoying the full lull advantage of ol the higher world quotation PAYS PREMIUM Canada pays pas a premium for lor gold equal to the difference between the gold value of its currency and the actual actual actual ac ac- ac- ac value in the exchange e markets The London market the market the only tree free market presently operating in the world world quotes quotes a current price for lor gold of ol approximately 30 per ounce Relief may be accorded the gold golc mining industry in another way however however however how how- ever If II gold concentrates namely concentrates namely unrefined metal still in some degree desree of ol rock formation are are permitted export export ex ex- ex port privileges The attorney general genera has been asked for lor an opinion as to whether this v would be legal under the gold embargo act An affirmative ruling say students of ol the question while not as beneficial beneficial beneficial bene bene- as a free market or the lifting mUng of the embargo would at least permit the American miners to get in contact contact contact con con- tact with the higher price market obtaining ob ob- ob taming abroad With gold at a fixed price maintains maintains main main- J J. J F. F secretary o othe of the American Mining congress and am with the anticipated wage wace level and operating cost increases the gold industry industry in in- will b be practically driven ou out ol of existence unless there is relief