THE GOLD SUPPLY

Dominion, Volume 12, Issue 87, 7 January 1919, Page 7

THE GOLD SUPPLY

QUESTION OF BULLION VALUES. (Rec. January 6, 7.45 p.m.) London, January 4. ,The letter of the Gold Producers' Com'-' rnittee. to ffie "Journal of the Gold Mining Industry/' apropos of Lord Inchcape's Committee's- report, says that the real point at issue between them and Lord Inchcape is the latter's statement that no more can be properly paid for gold than its value in currency. "The question is: "What is the value of bullion in our present currency?' .When the Government issues large quantities of paper currency not backed by gold then the value of gold in relation to commodities must fill." The producers suggest that part of the largo profits the Gov-, ernment made from notes might temporarily he allocated to relieve the precarious ;position of.many, of the -uviu.es and possibly increase the present output of gold. ' They think that Lord Inehcape's Committee underrates the extent that the output of the British Empire is likely to decline, and the speed at which the surviving mines will become exhausted, ; owing to the high cost of production, necessitating the working of only the better class of ore.—Aus.-N.Z. Cable Assn.