GOLD PRODUCTION

Hokitika Guardian, 4 November 1930, Page 3

GOLD PRODUCTION

A SUGGESTED BONUS. A revival of gold mining, a statement issued recently in Austalia said, would assist in attaining decentalisation by giving thousands of workers permanent employment. It would also permit an increase in unassisted migration. If the bonus were paid it would be possible jto develop mines containing low grade \ores. A sum of £572,(X)0,0C0 was owed by the Commonwealth abroad. Of every £4 worth of gold produced os represented interest on Australian external indebtedness. Compounded interest on that liability amounted to £1 an ounce of gold produced every lour years and nine months. For every similar period that the gold was allowed to lie in the ground the Commonwealth paid £1 nn ounce, reckoned on the value of the gold production, to bond holders overseas instead of using the money to provide 'employment, and to create other advantages for Australia, “We claim that, if the bonus is granted, many millions ol pounds of new capital will be introduced into Australia. We could obtain at least £10,000,000 from Great Britain and other places for investment in gold mining.!’ A deputation waited on Air Scullin in July, and the Prime Minister stated that, while he was not unsympathetic towards the request, he was not convinced by the arguments advanced.

“We must tk> something to relieve the tragic weight of unemployment,” he said, “hut I am not sure that tine payment of a bonus on the production of gold will do that, although it is admitted that the revival of gold mining would be a boon to other industries. For the last twentyseven years gold production has decreased progressively, and that decline cannot be said to be due entirely to the increased cost of production since the war. In 1903 the value of Australia’s gold production was £16,309,000, and it dropped 'to £4,570,000 in 1919. From 1919 1922 production continued to decline, despite a premium averaging £1 foi those three years in the price ol gold. Therefore when gold was selling at a premium, which really had the same effect as the bonus you now ask for, there was not an increase, but a decrease in production. Surely under those conditions one would have thought in the light of your arguments, that the low-grade ore deposits would have been worked.” Mr Scullin challenged the statement that if the bonus were granted the Commonwealth would have to make no payment until the gold was won. On the present production alone, he said, the Government would have to pay £3,770,600 if not one extra ounce of gold were- produced, or one extra man employed, and apparently the bonus was to be paid on rich ore as well as on poor. Not one speaker had mentioned what liability the Commonwealth would assume if the bonus were granted. He had made a calculation, based on the statement that the production would increase ill ratio 'each year from 000,000 ■"z., and lie had found that in ten >cars the payment would probably amount to anything from £o,0(X),000 to £B,000,000, which was a “pretty stiff proposition.” Even if the bonus were granted, there was no assurance that there would he the wonderful revival pictured, or any increase whatever in gold production. Mr Hughes mentioned tlije assistance given to the sugar industry, and Air Scullin replied: ‘“Sugar production will go on so long as Australia goes on, hut gold mines will become only holes in the. ground.” One thing Mr Scullin was impressed by was the experiments being made by the Wiltina Company in the treatment of low-grade ore. It these experiments were successful, he said, the mining industry throughout Australia would benefit, and the Commonwealth Government was guaranteeing the advance of £300,000 made by the West Australian Government to the Wiluna Company for its experiments.

ATr Scullin promised to submit the deputations request to the 'Cabinet.