GOLD PRODUCTION.

Press, Volume LV, Issue 16414, 7 January 1919, Page 7

GOLD PRODUCTION.

REFUSAL OF BOUNTY

(By Cable.—Press Association.—Copyright.)

(Australian and K.Z. Cab:© Association.) (Received January 6th. 7.45 p.m.)

LONDON, January 4

The Gold Producors' Committee, in a letter to the "Journal of tho Gold Mining Industry," apropoc the report of Lord Inchcape's Committee, says the real point at issue between them and Lord Inclicape is tho latter's statoment that no more can be properly paid for gold than its value in currency. The question is what is tho value of bullion in our present currency? When the Government issues largo quantities of paper currency not backed by gold, then tho value of gold in relation to commodities must fall. The producers suggest that part of the large profits of the Governmont made from notes might temporarily be allocated to relieve the precarious position of many mines, and possibly increase the present output of gold. They think Lord Inch, cape's Committeo underrates tho extent that tho output of the British Empire is likely to decline, and the speed at which the surviving mines will be exhausted, owing to the high cost of production necessitating tho working of only tlie better class ore.