Show I MINE MAN URGES I OF GOLD GOLDi i BILL 1 Unfavorable Prices Is Causing Disappearance I of U. U S. S Gold I Protection from industrial I tion of or the monetary cold gold r reserve o of the United States State is the am cf cC t In a bill bm Introduced In the house hous of representatives representative I b by n Louis T. T of t f Ien I vania according tp H. H X N. t vrle t I economist of or the Ameri American an ner congress in his talk tall it t the lunch I of the Utah Ulan chapter n of th can Mining congress hold held at nt Commercial club sl yesterday r av Tho The propos proposed d bill has been In Indorsed indorsed In in- h by th the American 1 Bankers Hankers association and is regarded as ne necessary no- no t to c correct the gold sItuation situation situa sItua- tion and nd Its Ita possible m to the lInan financial lal security of tho the nation according to Mr Ir Ma Machinery da- da chinery by which the Industrial consumers of gold ma may pay more mor nearly nearl the cost cORt of production for foe I their raw material without ut In any anyway anyway anyway way the tho r value Is cr created atc l hr he said It Jt is possible for the l ial consumers of or gold old to secure It at atthe atthe the tue prewar price 2057 57 an Mr SIr Lewis said Other commodities have Increased In cst cast approximately per ler cent As compared to 1914 the purchasing power of the dollar In terms term of ot all commodities com com- was Watt 47 cents The fhe gold Jold ounce In 1914 h had IU d a n. purchasing power of It 2067 2067 and In 1019 1119 only onty Jt sq 70 The gold cold producer Is II In the same earns position as the man than who re received re re- a 2000 Income In 1 1914 14 and andIn andIn andin In 1913 found It had shrunk In Itt purchasing purchasing pur pur- chasin chasing power to Drop Per Cent Since 1915 the gold production has dropped approximately 65 This vanishing production production tion threatens to RO go o a as B low as next nf whereas It was as In 1 1915 15 The Tho McFadden bill h proposes propose to correct this situation by ImposItion impost impost- Imposition tion of ot excise taxes on the sale of ot otI manufactured articles Since Ince the I tax IK ta impOsed a on the consumers of Industrial In gold g it does doe not fall tall I upon the tho public but largely 1 on the consumers of Jewelry The Jewelers Jewel jewel- ers era and other consumers of or Industrial industrIal industrial Indus indus- trial gold sold are artl being subsidised at present as the they secure their gold goldat old Rt at tho the prewar price P PIa y Producer The excise collected would be bo placed In a a. separate fund of oC the treasury treasur would be authorized to pay to the producer of or gold cold upon lt of ot the origin of production and that the whole amount was new gOld 1 an ounce In n addition to the 2057 fixed price of ot the mint The Income from Crom the excise would be In excess of oC the premium paid vald At the present rate of gold cold consumption con con- by the Industrial arts art ItIs it itIs itis Is estimated that eighty to ninety millions in tn gold grold bullion will be used In tn 1920 Had the McFadden bill become a n law In In 1919 It has been estimated that the tax would have been collected this year and andI I since tho the sold gold old production will wm probably not be more or than I and the Industrial consumption consumption consumption con con- a a. balance of ot In favor of ot the treasUry treasury treas treas- ury be created o No o loney lone Change of oC the bill Under the provisions there ther is no change In the number of grains of gold In the dollar and andI consequently no change chango In the I monetary unit I The gold mining Industry could not be re established on Its prewar pro pro- I war basis basla through p passage of the I bill In less than three years If It ItI I mines are to shut abut down I Ithe the burden of or reopening will bo be gr greater ater a n year hence than the they are aTe under present economic conditions It Is Important to k keep cp the gold- gold I mInInG Industry alive for fear tear that with greatly reduced production tion there will sIll be difficulty In maintaining the cold old standard during credit restriction conditions I land jand with declining prices ConI Constructive Con Con- I aid Is urs urgently needed I unless gold Jold production Is Is to be bo further curtailed b by shutting down of more mInt mines Continued dople- dople I tion of the gold stock by industrial use will seriously Imp impair lr the tho pub- pub lis confidence In the n nations nation's fi finance 11 1 nanco nance and currency JI Helps Help lp Deflation Healthy production of ot gold old will do much to offset the difficulties which might arise attendant upon unon a a deflation of prices It will further further fur fur- ther thor protect the confidence In the currency and Insure retention of I the gold old standard and tho the position of ot the tho country as a a. creditor na na- na tion At the American Bankers Dankers' as association association as- as convention October 2 1919 It was decided to take immediate immediate imme Imme- diate action to protect the reserve I from loss 1088 Last the federal legislative committee of oC the association asso asso- I. I elation reported Indorsing tho the McFadden Mc Mc- Fadden bill On of ot the pressing necessity it Is probable II that con congress act on the bill early In Its next session which begins begins be be- gins In December I |