PRICE OF GOLD

Gisborne Herald, Volume LXVI, Issue 20024, 24 August 1939, Page 15

PRICE OF GOLD

GUARANTEE URGED £lO/4/4 A FINE OUNCE INCREASING EMPLOYMENT (Pur Press Association.) DUNEDIN, last night. A move is on foot among producers in Otago to obtain a guaranteed price for gold, and the signatures of those interested directly or indirectly in gold mining are being obtained in order that a petition may be presented to Parliament for the granting of the request. Its sponsors claim that it would create a feeling of stability not only in the industry, but also in finance generally ,and would increase employment in mining operations, and the heavy industries and transport operations related to them, “We pray,” the petition states, “that the guaranteed price per ounce of fine gold be not less than the equivalent of what the free consignment of gold (ignoring shipping and export charges) would command in New Zealand currency. This price we now consider should be £lO 4s 4d, as shown below: London price per ounce fine gold. ; £7 8s 7d; add statutory exchange, 25 per cent, £1 17s 2d; add extra ex- j change as shown by the price of representative stocks, 10 per cent. 18s 7d; actual value of the gold in New Zealand currency to-day, £lO 4s 4d. “As New Zealand has a Reserve Bank of its own, the mining industry should not be charged with the cost j of shipping gold to London, but such charges should fall on the Reserve Bank if and when it exports the gold it buys. “We further contend that this exporting industry is harshly singled out for an export tax which undoubt- ] edly falls heavily on marginal claims and prevents many new enterprises being undertaken.” The Central Shotover Gold Mining Company, Limited, at its annual meeting last night, decided to give its sup- j port to the petition.