THE YELLOW METAL.

Hokitika Guardian, 23 May 1922, Page 3

THE YELLOW METAL.

(From Mercantile Gazette.) Gold stands at a premium to-day, and, while it has been sold at as high as £0 7s 4d per •ounce,. -the price to-day is about £4 12s. instead of the normal price of C 3 L7s l()d-for- standaid gold. The price of gold-has closely approximated to the fluctuations of the New York exchange, for the dollar is convertible into gold and the British paper pound is not. The highest and lowest quotations lor gold last year were libs lid, and 97s 7d per fine ounce. The highest price, recorded was on February b, 11)20. when the price was £(> 7s Id. The stocks of gold have undergone violent changes, and it is the t'nited states that now owns the bulk ot the world’s supply of the yellow metal. '1 ne gold holdings of the various State banks at the end of last year, expressed in sovereigns were approximately a s follows £ Fnited States •373,920,000 Great llritain 128,434,000 France 220.977.000 Belgium 13,110,000 Germany 49.085,000 Holland .30,477,000 Denmark 12,700,000 Norwav 8,190.000 Sweden 15,266,-000 Finland --2,131,000 Rumania 20,000,000 Italy 56,147,000 Czeeho-Slovakia 53,585,000 Yugo-slavia 3,000,000 Poland 1,125,000 Spain 100,514,000 Switzerland 21.980,000 Japan 126,117,000

The United States holds over 10 per cent, of tlio supply and is bound to accumulate more, because of the enormous debt owing to her by the nations of Isurope. There is naturally a good demand for gold, for every country is endeavouring to add to its supply, and the export of gold except under license is prohibited everywhere. When the sterling exchange on New York fell to 3. G0 dollars and less some economist* suggested the altering of the gold standard. These people wanted to know what harm would result—how could Britain be prejudiced if instead of the ratio of I:>.'l grains of gold or 4.8(3 American dollars to the pound the latter was reduced to 02} grains geld and the American exchange to a new parity of 3.(15 dollars to the pound. This devaluation of the pound sterling has been very strongly opposed by bankers, and now that the exchange rate lias improved not much is likely to be heard of tnis devaluation scheme. The demand for gold continues strung, but the production unfortunately tends to decrease. Tin- output of the yellow metal year by year from LIMA onwards was as under: - Year Value £ 1013 !* 1.700.000 ioi i ...... ini.ido.ooii 10 id 00.100,000 1010 0i1..->OO.OOO 1017 80.000, COO 1918 79,000,000

- i 1919 75,200,000 •: 1920 ‘09,500,000 ‘ i 1021 1 00,000,000 Tn the war years there was naturally 1 a reduction in the world's output, and ; now costs of production have become I so heavy that many of the low-grade 1 mines have had t<> close down. The ' i efforts made in the Transvaal to have ; labour costs in the mining area reduced 1 led to a revolution, which was prompti l.v suppressed, and efforts are being 1 made in Australia to bring about reductions. but so far without much success. In the meanwhile the Australian output is contracting, the yield for the first ; four months of the year being 100,092 line ounces against 183.111 line ounces in the corresponding period of last year and 199,012 line ounces in the first four months of 1920. It is obvious j Unit something must iie done in eveiy ; country' where it may be suj p .sed gold ; exists to prospect for the metal. The i g.coUgist and the prospector should be I set to work in New Zealand for it is ; hardly likely that we have exhausted ; our resources. Our own output of the ' metal is dwindling and the mining indtis- ! try is languishing. The gold is needed for stnhilisliing the currencies of the world, and more of the metal must be discovered. The gold problem is going to be a very serious one if the United 1 States insists upon payment of the j huge amount owing to her and at the ; same time by a high tariff shuts out

! imports of merchandise and with sub- . sidies prevents other countries serving. . If the debts cannot he paid in goods j iin,| services they must he paid in gold 1 J and the results must be serious. j (For continuation of news see fourth page?.)