GOLD ENQUIRY.

Hokitika Guardian, 6 October 1922, Page 1

GOLD ENQUIRY.

EVIDENT*: BEFORE PARLIAMENT

Tlic. following evidence was tendered to tlio special Parliamentary Committee which sat on Wednesday at Wellington to hear evidence in connection with the appeal by millers for compensation in connection with the embargo on the export of gold durjn<> the war, this being submitted by the West Coast representatives. In 1914, shortly after the start of the Great War, an embargo was placed on the export of gold from New Zealand, and a 3 a result, we, ns representatives of the Alluvial .Miners of Westland, claim that serious loss and injury was thereby caused, and we claim that we are justly entitled to a fair amount (A compensation at the hands ol the Government. Tt has been stated that the appreciation in gold values was not felt until after tho embargo was lifted in 1919. This contention is quite contrnrv to fact. Wo know for certain that jewellers and others paid a premium on sovereigns, as soon as gold began to git scarce in 1914 We also have the word of many soldiers that they bad sold sovereigns in the Hast, early in 1915 for twenty-five shillings apii'ce. hater again we have the published statement in Australian papers that the Australian Gold Producers’ Association received as much as £6 15s lOd per ounce for their gold. Me would like to point here to the anomally of Australia a sister Dominion to New Zealand, being allowed to export her gold, while the export from New Zealand was prohibited. ft has also been stated that it was after the armistice that the decline in the value of British, currency !m America (where most of the gold pu>dueeil in 'Now Zealand since 1920 has been siihl) began. There can be no reasonable doubt that the decline in value dated form the time when Britain became unable to pay her American debts in gold. The fact is outstanding that our gold helped to stabilise the exchange rate between Britain and America until 1919-1920, and though our total output was comparatively small it is still very important. Did the New Zealand Government help tho Mother Country at th« expense of the Gold producers of this Dominion ?

The first public demand for compensation. as far as we are aware was made at a Mining Conference held in Hokitika in 1918 to the late Hon \\ . D .8. McDonald, who attended as Minister for Mines. Wo were given to understand then that the matter was one for the* Imperial authorities. Our claim then was that compensation at the rate of 10s per ounce on

all gold produced aTITI sold to tho Banks at pre-war rates, should, on production of proof of such sale., he paid. The Bight Hon Mr Massey has asked us how are we to trace the gold. We wish to point out that every gi Id dealer is licensed and must keep a set of Imoks. Kntries must lie made therein of name of selling party or Cornpuny. number of- claim where the gold was produced, weight and value ot same, tiigeth.r with tln* signature of tho seller. The seller gets his slip with weight and value of gold, which he .an fib-. Oil top of this cadi in dividual miner, party, or Companr is* compelled each year to make a doclaratiini, for the information of tho Government, of the amount of gold produced by them, and the books ol the gold dealers and tile Bonks arc open to the Inspector of .Mines lor veriffration of such returns, so there should lie no difficulty in interested parties being able to trace their gold, until it reached the Banks. We wish now to deal with the case as far as it affects the Banks trading in New Zealand. What became ol the gold after it reached the Banks. Was it held in New Zealand, or was it forwarded to some other country '? Did it provide the hacking for tho unprecedentedly large Note Issue the Banks were allowed to put into cireulation, and from which they derived large profits, and from which the Government derived also profits by wav of tax on mite- issue? Or was the gold sent to Britain and did the Imperial Government receive the major portion of the benefit. If the forintr we contend tliaL a scheme should be devised by which the Banks in conjunction with the Government should he joined to provide the compensation prayed for. If the latter, or in either case, wr still contend that the New Zealand Government is liable through Inning the embargo on us, and not providing at the same time an equitable arrange ment that was over due.

We also wish to point out that it was nearly twelve months after the embargo was removed that the general body of gold miners had any intimation' that the Banks were prepimd to handle gold on commission for the product rs. Through the omission o f the Government to give that information prompt publicity, we were caused further serious loss, and it opened the door for the Banks and private speculators in the know, to reap the benefit of our labours

Further we also wish to impress upon you this fact: —That many claims and mining ventures that were pros pected and proved payable under existing conditions before the war, were forced under conditions existing later in the war to close down. 'lbis w.n directly due to tho action of the Government placing the embargo on the export of gold, thus closing the world’s markets to the producer. We were forced to take, roughly, four £1 notes for our ounce of gild, ulicit four notes were equivalent in purcha - ing power to only £2 10s in 1914. Ow ing to this, many claims had simply to close down, and their owners compelled to sacrifice years of patient work, and seek other avenues of employment. Lastly we would like to point out that the alluvial miners wore patriotic almost to a man. Large numbers volunteered at the first call. Their companions were advised by the Government to produce more gold and help tho community. Tliey did as they were bid, and did not seek to embarrass Government when the country was in a time of stress. Consider the different treatment conceded to every other class of worker or producer throughout the country. The coal miner found his rise in wages, and likewise the coal mine owners. The farmers organised more closely and forced better prices for thomselvty;. Even members of Parliament and Cabinet increased their own salaries, yet the producers of the metal which forms the foundation of it all. were left to be ruined or to struggle as best they might. We respectfully ask, therefore, that you give your earnest consideration to those fasts, and that at hist tardv justice will he meted out to tho Gold Producers of the Dominion.