GOLD NINES
TO RECEIVE
NO SUBSIDY
Expectations of residents qf Wash
ington, Alaska, Oregon and other gold
mining states, that the next congress
is going to pass a bill authorizing the
payment of a subsidy for the produc
tion of gold seem to be doomed to dis
appointment.
The above is the opinion of J. J.
Underwood, special correspondent of
the Seattle Times in a press dispatch
to his paper from Washington, U. C.,
under date of April 19.
Many big mining plants that are
no longer able to produce gold at a
profit because of the increased cost
of labor and material will doubtless
be converted to other uses or junked.
The crushing plants that are in close
proximity to spruce forests may be
converted into pulp mills, and it is
morally certain that unless there is a
heavy drop in the price of labor and
material there will be in the next
few years, a decreased production of
gold on the Pacific coast and a vastly
increased production of paper pulp.
A bill providing for the payment
of a gold-production subsidy was in
troduced at the last session, but it
never got past the committee room.
Arrangements have been made to have
the measure reintroduced at the com
ing session and there was some hope
that it would pass.
Arguments for Bill
The arguments for the bill are that
American gold is worth more abroad
than at home; other countries are
pacing a picimuui lkji tnut tut wot,
of everything used in the production
of the metal—dynamite, acids, tools,
food, labor, drill steel and other com
modities—have all geratly advanced
in cost, while gold remains at the
same standard price—roughly $20 an
ounce.
As a result of these conditions
many low-grade propositions situated
in the western states have been com
pelled to close down. They could no
longer produce gold at a profit. A sub
sidy of 40 per cent was asked in order
to prevent many quartz mills from
going to the junk piles. This, it was
contended, was not equivalent to the
increase in the cost of production, but
it was sufficient to enable a number
of big projects, in which millions of
dollars are invested in machinery de
velopment and equipment, to keep
running at a small margin of profit.
England faces the same situation.
Hundreds of mines in Australia and
South Africa, which next to America,
are the two greatest gold-producing
countries on earth, were closed down,
and a government committee was
appointed to investigate with a view
to arriving at a conclusion on the
advisability, of paying a subsidy.
After several months of study the
committee has advised against it, ac
cording to advices just received at the
department of commerce.
Decides Against Subsidy
The committee agree that the pay
ment of the subsidy would help the
mining companies, and perhaps would
keep a great number of men employ
ed, but it would be fundamentally an
economic blunder for England to pay
- . ■■■
say, $25 for an ounce of gold that it
had to sell, when used in foreign ex
change, for $20 worth of foreign goods.
In this report lies the crux of the
situation. If it would be poor business
for Great Britain to pay $25 for $20
worth of foreign goods, it would be a
greater blunder for the United States
government to pay forty per cent more
for gold than the metal could be sold
for in a foreign country. In other
words $100 of American gold would
buy only $60 worth of foreign goods.
This argument, together with the
exhaustive report made by the British
committee of experts, doubtless will
be used by congressmen and senators
in whose states there are no gold min
ing industries, and who are in a big
majority in congress.
Prejudice Against Subsidies
Besides that, the prejudice against
the payment of subsidies to different
industries is becoming more and more
pronounced. For instance, a commit
mittee from a Farmers’ grange the
other day told the members of the
shipping board that the farming in
terests of the country would protest
vigorously against the sale of any
government ships. They also protested
against certain plans the railroad ad
ministration had in mind.
The delegates were reminded in
very emphatic language that farmers
represented only a little more than
twenty-five per cent of the population
of the United States, and yet there
recently had passed congress an ap
propriation of $1,250,000,000 to guar
antee a market price for their wheat
which is away beyond its value in
foreign countries, and that this sub
sidy involved the possibility of a tax
of $12.50 on every man, woman and
child in the country.
There has been considerable con
gressional grumbling about the pas
sage of that wheat subsidy appropria
1 tion, and appeals for an appropria
tion to subsidize the gold mining in
dustry are likely to fall on deaf ears.
Mining Men's Hopes Blasted
The hopes of the western mining
men were based on expectation that
the British committee would find in
favor of the payment of a subsidy. If
Great Britain had agreed to it, there
was some probability that the United
States would do likewise. Conditions
would then be on somewhat of a
parity in nearly all gold producing
countries. But those hopes are blasted
in the report just received. The report
says in part:
“Subsidy for the production of gold
appears to the committee to be fun
damentally unsound. Gold has been
adopted as the standard of value be
cause by reason of the operation of
natural causes it is available in quan
tities and at such cost of production
in terms of other commodities is di
rectly influenced by the laws of sup
ply and demand. Periods of increased
gold production, following on the dis
covery of further deposits of gold
capable of extraction at a low cost
have been marked by an increase in
the price of commodities.
Would Lose Purchasing Power
“The intention of the subsidy sug
gested by the gold producers is to en
able gold to be produced that would
otherwise not—conformably with the
economic law of supply and demand—
be produced at all. Other things being
equal, the result would be that the
purchasing power of the whole would
be diminished. The value terms of
gold of the commodities for which it
change it at a lower price.
“It is undoubtedly desirable that
considerable gold reserves Hhoihd^be
held in this country, but in our view,
the most important function of the
gold reserve Is that It should be avail
able for export at the standard price
when required to meet foreign in
debtedness. We think it essential to
preserve a free market in gold, but
clearly it would not be a business pro
position to do so if we had to buy
gold at a high price in order to ex
chang it at a lowr price.
Prices Expect to Fall
"The London Chamber of Commerce
apprehends that prices may fall rapid
ly at peace, with disastrous results to
Industry, and contend that It might be
In the public interest to take steps to
prevent the rapid fall in the prices of
commodities by stimulating the pro
duction of gold at the expense of the
taxpayers. We neither share their ap
prehension nor accept their conten
tion. We have no reason to believe
that there will be forthcoming from
the British Empire on a parity basis
as much gold as we shall need for the
purpose of strengthening our re
serves, but in* any case the additional
amount of gold that we can hope to
secure by subsidy would, in the opin
ion of our witnesses, be no advantage
to this country for building up re
serves unless we can afford to keep
it.”
With this report staring them in the
face, and the further fact that the
United States already has a large
gold reserve in the treasury- -more
actual gold than any other country in
the world—the best that the western
gold mining men can expect is a long
investigation dealing with the whole
subject in its relation to other coun
tries. This would drag on for at least
a year.
In addition there is the congress
ional prejudice agunrt the subsidy
plans of any kind. Efforts have been
made for more than twenty years past
to get through a ship subsidy Dill, but
congress has always voted It down.
Under the circumstances it would ap
pear that there is little promise ol a
boom in gold mining for many year’s.
There is hope, however, that in
many cases, the cost of equipment on
low grade gold properties will not be
an entire loss. Those that have de
veloped sufficient cheap electric power
and are within reach of spruce for
ests, can be converted at slight ex
pense Into pulp mills ttfat will yield
just as much profit as did the gold.
"MRS. BALFAmF’uTa
SPLENDID ATTRACTION
To no other production of recent
months can we point with as much as
surance with regards to general excel
lence as to the adaptation of the Ger-.
trude A. Atherton novel, "Mrs. Bal
fame,” In which Nance O’Neil plays
the role of the unhappy wife. The
picture, which contains some 6,000 feet
of material, was made by the Frank
Powell Producting Corporation with a
competent cast consisting of Frank
Belcher, Robert Elliott, Agnes Eyre,
Annie Raines, Alfred Hickman, Grace
Gordon, Aubrey Beattie and Elsie
Earle.
There is not a wasted moment in
the picture. It affords fine entertain
ment, stimulates thought on the sub
ject that it proposes to discuss, and
has fine dramatic points. At the Em
press tonight and tomorrow.
You want to follow the H/earstf
Pathe News very closely, as they are
getting better every issue. One to
nighty and a pippin.
Just arrived, a fresh stock of Hot
Shot Batteries at the Northwestern
Hardware Co. 14-tf
Your eyes fitted. Compound- and
stigmatic lenses replaced. See Os
borne.
NOTICE
Subscribers discontinuing the paper
will be charged for the current month
unless this office is notified. Do not
notify nor \mr the carrier.
K. G. ROBINSON,
City Circulator.
Home portraits of quality. Agency
Cordova drug store. Scarborough, pho
tographer. 14-tf
The Fairbanks tennis court is now
being operated.
Leather Is coming down, so is shoe
repairing with up-to-date machines at
Steve Oros. 14-6t
Advertise in the Dally Times.
CLASSIFIED ADVERTISING
FOR SALE—Gas launch, 37 feet long,
equipped with 16 horsepower Fris
bee engine. Inquire on boat at the
ocean float. 17-4t
WANTED—Woman wants position as
cook for small crew, in or out of
town. Apply Times office. 17-3t
L08T—Ladles' broach with Alaskan
design of pick, shovel and pan.
Finder return to Times office.
FOR RENT—Rooms over Bank of
Alaska, formerly occupied by North
land Club. Will be altered to suit
satisfactory tenants. Apply Bank of
Alaska. 3-tf
WANTED — Woman baker. Apply
Northland Bakery. 29-tf
FOR 8ALE—McCarthy Greenhouse.
Everything modem and up-to-date;
doing fine business; will sell cheap
if sold right away. Owner must
leave for states. Wire or write Mr.
Norman A. Erickson, Box 383, Mc
Carthy, Alaska.
FOUND—A bunch of keys. Owner
can secure same at First Bank of
Cordova. 16-tf
DIMON NICKOLOFF
8HOE REPAIRING
Red Cabin (Ocean Dock)
Men’s Shoes half-soled and
heels sewed and nailed.|2.75
Rubber heels and soles. 2.76
Ladles’ Shoes half-soled. 2.00
Heels, rubber and leather.75
Men’s haf-soles . 2.26
Children’s Shoes, heels and
soles . z.60
Harness Repairing; Automobile
Tires Vulcanized
Rubber Boot* Repaired
Hand and Machine Work
YOUR FURB MADE TO ORDER
Beet work guaranteed. Low
est prices. Over 2,000 Alaska
customers.
R. W. Drew
Tacoma’s Expert Furrelr
11th and B'dw’y, Tacoma, Wash.
New York Cafe
First Avenue, two doors below
Modem Laundry.
DINNER A SPECIALTY
STRICTLY HOME COOKING
E. SPARROW
I JEWELRY
We Have the Most Complete Stock in
Cordova
If You Want the Correct Time, Call 43
Snow Glasses of All Kinds.
PAUL BLOEDHORN
Watchmaker and Jeweler
% SEE OUR LARGE ASSORTMENT
Traveling Bags |
§i and §;
I1
Cases
This luggage, just received, is of better quality and has S
greater value than any we have seen
MODERATELY PRICED
;| Suit Cases, $6.00 to $40.00
Traveling Bags, $12.00 to $17.50
1 Wil l. I I AYSt IN i!
..mu.. .
1 CANNERY SUPPLIES MARINE HARDWARE I
| Miller and New Pacific Fishermen’s Engines, Medium and Heavy Duty, Four-Cycle Extended Bases f
MINING MACHINERY
Steel Shafting, American Steel Split P ulleys, Shafting, Hangers, Bearings. All sizes Malleable Pipe Fittings. Vic- I
tor Batata and Leather Belting I
MACHINE WORK
NOTICE.—We will be located in our new building at the Ocean Dock in August 1
machinery company, inc.I
CORDOVA. ALASKA I