SEARCH FOR GOLD.

Press, Volume LXVIII, Issue 20491, 9 March 1932, Page 15

SEARCH FOR GOLD.

FINDS BY PROSPECTORS. STATE PURCHASE ADVOCATED. [From Our Parliamentary Reporter.] WELLINGTON, March 8. Because the banks in buying gold from small prospecjors are making profits by retaining tho value of tho exchange, Mr W. A. Bodkin (C., Central Otago) urged in the House of Representatives to-day, that the State should purchase all the gold won by prospectors who were engaged in only a small way. The encouragement of gold prospecting, Mr Bodkin said, was the most encouraging thing the Government had yet undertaken in its effort to turn men into tho country's natural industries. Mr Bodkin deprecated the fact that Labour members, while criticising the low pay granted to relief workers, did not encourage single men to go in for gold prospecting in which they could get 15s per week. Mr H. E. Holland: Will you guarantee they will.get that sum! Mr Bodkin: That is the position today. The single men's camps are tho most soul-destroying form of work that can be found, but there are men going out to work on the goldfields who are working entirely for themselves and regaining the manhood they were losing while-working one and two days a week on works near the cities. Fields Not Worked Out. Mr Bodkin added that many of the goldfields had been abandoned years ago, not because they were worked out, but because other occupations offered greater remuneration. There was plenty of gold to be secured in this country to-day, and with the increased price of gold now mining propositions which 15 years ago returned £3 per week were to-day returning £4 and £5 per week. He was confident that if the policy of the Government were pursued the time was not far distant when between 5000 and 10,000 men would be absorbed in this industry. There was no industry which would distribute money moro froely through every class of the community than goldmining. Small Producers. Turning to the sale of gold, Mr Bodkin pointed out that the small producer of gold was not getting the benefit of the exchange rate. If he produced but an ounce or two a week, he had no alternative than to sell to the bank and take the ruling price. When one realised that at the present rate of exchange this meant about 12s per ounce, it could be seen that the small prospector lost a considerable amount and the banks gained considerably. Keplying to an interjection, Mr Bodkin said the large producer of gold was &ble to make arrangements for its sale in Australia and London, and he therefore derived the benefit of the- exchange. Mr J. Linklater (C., Manawatu): What does he get for it? Mr Bodkinr Bound about £6 por ounce. The banks make an advance of £3 .17s 6d on the value on the 'date of

delivery. Later, when the gold is purified, the remainder of the price is given by the banks. Benefit of Exchange, Seeing that there had been pools established for wheat, dairy produce, and meat, Mr Bodkin said he thought it was fitting that the gold industry should be encouraged further by the State agreeing to purchase all gold won by small prospectors, so that they might receive the benefit of the exchange rate. If the exchange were later set free and it rose to 20 per cent, or 25 per cent., it would, on the present basis, be possible for the banks to buy gold at £5 or £6, and sell it for £8 per ounce.