GOLD EMBARGO

Hokitika Guardian, 25 February 1921, Page 1

GOLD EMBARGO

ALLUVIAL MINERS’ REQUEST. (Christchurch Press). A curious and interesting state of affairs was disclosed by the deputation ol alluvial gold-miners which waited on Air Massey at Hokitika last week. The deputation asked that the alluvial goldminers should he recompensed in respect of the difference paid them for their gold during the war period, when there was an embargo on the export of gold, and the amount received by the purchasers when they were in a position to sell it outside the Dominion.

It was suggested that each sale of alluvial gold could and should he traced, nnd the purchasers called upon to pay to the miners the difference between the purchase price and the price at which they sold the gold. It was stated that, apparently. New Zealand was differently treated from Australia, where, during the war period

there was' no embargo on the export of gold, for which L‘(i las an ounce was obtained. This statement was queried by Mr Massey, who expressed the opinion that the New South AY ales Gold Producers’ 'Association never received more than Lo an ounce. Since the embargo was raised, some alluvial gold «as shipped from the West Coast to San Francisco, the miners getting Co 9s 3d an ounce and the purchasers . in San Francisco getting L'(! 7s (kl an ounce on the English market. During the period the embargo was on in New Zealand the price received bv the miners was Li an ounce; a strong point was made by members of the deputation that miners’ supplies had gone up in price tremendously since the beginning of the war. Mr Massey referred to the difficulties he saw in tracing the- gold, and the greater difficulties in getting from the purchasers the difference in "ju ice, and remarked that the deputation’s request could lie met, probably, only by making grants from the Consolidated Fund,

and he estimated that if a grant of 5s an ounce were made it would involve a payment of L 1,000,000. This estimate was based on the quantity of all gold produced in the Dominion during the period the embargo was on. for Mr .Massey expressed the opinion that a grant, if made, would have to apply all round. He pointed out that in the state of the Dominion’s finances he hardly thought Parliament would agree to voting such a large sum. He also stated that gold and silver, being: Royal metals, the Crown reserved the right to sav what should he done with them. The embargo had been imposed, ho understood, not so much with the object of supporting the currency or for finan■ial reasons, but to prevent the gold 'ailing into the enemy’s hands. One member of the deputation remarked that “tile man who placed the embargo on the gold is the man we think we have the right to look for justice” ; and the Hon IT. L. Michel

s;iii 1 that, “if the gold-miners had Squealed’ more they would have got more satisfaction.” Mr R. Wild said that is was recognised by the Westland Progress League that it would he unjust and unfair to ask the Government to recoup the miners £1 Is fid an ounce (Die estimated difference between purchase and sale prices),, but it was thought that a grant of 10s an ounce might lie made from the Consoli-

dated Fund. He suggested that this grant should be made only to alluvial miners; hut Mr Massey remarked that any grant made would have to he made till round. hi the course of the discussion, refeience was made to the “subsidies” paid to farmers during the war period and afterwards in respect of their produce. “The farmers received no subsidies,” Mr Massey said. What- happens is this: In order to keep down the cost of living—and if this is done it is a benefit to all classes—wc say that the Government is prepared To pay part of the market value to the producer in order '.' at the product may he sold at a lower price to the consumer.” Mr Massey gave a sympathetic reply to the deputation, hut pointed out that a gran of £1,000,000 to the gold-miners could he .only provided by increasing taxation—“and .the country cannot stand any more taxation at the present time; it was staggering tinder the load of taxation.” As already reported, Mr

Massey undertook to have the whole matter investigated by a Parliamentary special committee, which would have the assistance of hankers and other experts.