THE PRICE OF GOLD

Hokitika Guardian, 4 February 1922, Page 1

THE PRICE OF GOLD

MINERS GRIEVANCE

BANKS HAKE BIG PROFIT

WELLINGTON, Feb. 1. Soon after the outbreak of war in

1914, the export of gold from New Zealand was prohibited. The miners and mining companies had to sell the gold they were producing to the banks, which held it pending the removal of the embargo. Export was not resumed until 1919. The price of gold in tjie meantime had increased substantially in the open market, hut the New Zealand banks continued to nay the »old price. When the time came to resume the export of gold, the banks were holding large quantities purchased at under £4 an ounce, and they were able to sell at over £5 an ounce. They made a profit of between £1,000,000 and £1,500,000 on the transaction, according to a statement made in the House of Representatives yesterday by -Ur ,1. Horn (Wakatipu). The House had before it a report from the Mines Committee, recommending for the favourable consideration of the Government some petitions from gold miners asking for compensation in consideration of the loss that had been imposed upon them by the war-time prohibition. Mr Horn supported the recommendation warmly. He was backed by the chairman of the committee (Mr Rhodes), and other members of the House.

Mr Statham (Dunedin Central) sngr gested that in this case the Government had played into the hands of the hanks. Several Opposition members took the opportunity to suggest that the Government had blundered hadlv, and Ministers hastened to point out that the embargo had been imposed originally by the National Government, in which Liberal Ministers held the portfolios of Finance and Mines. The Minister of Mines (Mr Anderson) said that he sympathised with the miners, who had been badly treated ; but he was unable to suggest any practical method of adjusting the matter in the interests of the miners. The embargo had boon imposed as a war measure, at the request of the Imperial Government, and the banks had bought the gold in good faith at the regular price. The Imperial Government bail been asked to pay compensation to the miners and it had disclaimed any responsibility. He was prepared to examine the matter during the recess. but he could not think of any iiienns of providing the money that the miners were claiming.

The Priine Minister,, who was not present when tlie House discussed the gold producers’ petition for compensation for losses due to the low price paid for gold during the period of controlled export, mentioned in the House to-day that wlien ho wps in England he raised the question with the Chancellor of the Exchequer, who was unable to make any further payment. M.r Massey added that liq was sorry that his representations had produced no result, ns lie would he glad to have secured something more satisfactory for the gold producers.