SHORTAGE OF GOLD.

Taihape Daily Times, Volume XI, Issue 3364, 17 December 1919, Page 5

SHORTAGE OF GOLD.

JEWELLERY TRADE SUFFIJRS.' THE DEMAND IN ‘EASTERN COUNTRIES. ~ _ While the sovereign has almost entirely disappeared. as a medium of everyday exchange, there is a marked shortage of gold for industrial and commercial purposes, and some interesting remarks on -the subject were made at a recent meeting of the Wellington Industrial Association by Mr L. S. Partridge. . At a previous nieefring of the Assocition, Mr Partridge informed those present that it Was becoming a. ‘difficult matter to obtain sufficient supplies of ‘gold for the jewellery ‘trade, and in dealing with the subject Mr Partridge said: “The position is, here we are a mining country, producing more gold than was required in this’ country, and we cannot get any for commercial purposes.” He aljirx-i.buted this to the fact that the mining countries were getting more for their gold outside New Zealand, and if the jewellers required it they would have to pay the prices demanded. Coll‘tinu‘mg, the speaker pointed out tlrat _the Chinese were‘ paying a. premium for sovereigns, and he illustrated the action of Australia in prohibiting their export for this reason. He had it on good au.’thority that in India they were paying as high as 31/ for La, sovereign. He had .h’eai'd of -an engineer on a steamer who was buying sovereigns for 23/ each at‘Port Said and taking them to India, where he sold them for 31/ each. India had been for years a great ‘sink for gold. No one knew where it went to, but it”was”undersiood that it was buried by the naltives in accord with some religious belief. The Indians would always exchange a rupee for gold. An enormous amount of gold went into India, but never eame out again. To further illustrate the trafficing in. gold, the speaker mentioned {that a. bank teller -had informed him that if he had been able to gather up the sovereigns available at his bank and ‘taken them to Infliva. he could have paid all his expenses for the trip and «niadea hands-onie profit as well. ' V g .

' The War, ‘continued the speaker, had brought ahou‘.’r“conditions which we're influencing :t_lle"’exch'a.ngc market and h? prophesised that the conn=tries of the World would be -taking ‘steps to increase the standard value of gold. During the war the mining companies were compelled to iiiérease wages-, and generally the cost of pro-due.iion increased. Without any increased return being provided for. Thepresult was that the companies were exporting the gold, and were obtaining a higher price than its face value. They were getting more than the Mint would give. The Mint nrade nothing out of the sovereigns manufactured, and the deficiency in this. direction was made out of the profit derived from the manufacture of solver coins. Now, however, silver had greatly increased inprice, and consequently the position had changed for the reason that the silver coin was worth. more .than its face value.

The speaker, in co~l.lchlsion, stated tlmt it was intended to approach the Govermnent after the elecltions, with a \‘iGW to sec.ul'ing an adequate gold. supp?y for commercial‘ purposes.