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For Sure Results Try Our Want Ad. Column PRESCRIPTION DRUGGISTS 36 Third Avenue P}I St. ChHARL 4 Thursday, Nov. 22nd, 1928 A tall can of St. Charles (with an equal part of water) gives you four cups of pure, rich milk. SEE OUR COMPLETE STOCK BOOK. W,. K. Buckley, Limited, 142 Mutual St., Toronto 2 ut h s d fine texture, smooth, rich creamed dishesâ€"all made with Borden‘s St. Charles Milk. Velvety cream soups full of flavor, breads of extraâ€" 40¢c. and 75c. _ i Acts like a flashâ€" single sip proves it 517 Please send me this book BORDEN CO. LIMITED, MONTREAL iEconomist Does Not See Any _ Danger of a Gold Shortage # .0Q.“.“..000...6............“'....0.....0.. In this district there w1Â¥ always be more than passing interest in such questions as "Is There Danger of a Gold Shortage?" While the Porcupine looks forward to a continued and inâ€" Gold Production More Stabilized Than Ever Before. Secondary Uses of Gold in Industrial Processes Gives Leeway in Case of Unusual Conditions Arising from Future Apparent Shortages of the Precious Metal. aa a% a ## 4 4 6 60 440 6 6 4 a 8 # MlLK(uuswzsm«m) THE REXALL STORE Has a Complete Supply in Stock Next to P. O. Pine North Timmins "Gold is one of the most widespread of metals, although not one of the most abundant," Dr. Herman Lufft, of Berlin, states in an article "Is There Danger of a Gold Scarcity?" He discusses at length the rather pesâ€" simistic conclusion of J. Hayes Hamâ€" mond of the National City Bank of New Dork. The conclusion of Mr. Hammond is that general experience sroves that gold is most easily mined n large quantities in new districts, but that this phase of gold producâ€" tion is practically over. One district after another in the United States and Australia shows a rapidly declining production, and discoveries of new fields are becoming very rare. The gold of the world that could be proâ€" duced comparatively easily has already been produced, and the greater part of future gold production will be from low grade ore deposits or from comâ€" paratively great depths. This indiâ€" cates that gold in future will be won At the same time it is realized that if there is actual danger of a gold shortage, any increased production in the Porcupine will not materially afâ€" fect the situation for a time. Some suggest other monetary standards than gold as a remedy for the supposed condition. This would not be favourâ€" able to goldâ€"producing countries, so it is easy to see that the question of possible gold shortage is one that should hold especial interest here. Any able discussion of the question should be welcomed, irrespective of the source of the discussion. creased production of gold it is reâ€" cognized that the Porcupine produces only a comparatively small percenâ€" tage of the world‘s gold supply. While Canada is third in the world‘s output of gold, and while the Porcupine is responsible for the greater part of the gold produced in Canada, still the amount of gold output here is not large in proportion to the total for the world. In 1916, for instance the world‘s gold production was $388,500,â€" 000.00, while Porcupine‘s quota was $23,810,626.00, or a little more than oneâ€"sixteenth of the world‘s total. | Primary rocks are nearly always goldâ€"bearing; the seaâ€"water also carâ€" ries gold. The potential gold reserves ‘ are thus practically inexhaustible, even more so than many more abundant metals whose occurrences are much more ‘localized. The question of gold producâ€" tion is a question of the relation between production costs and the value of the gold recovered. Production costs comâ€" prise the local labour cost; the obâ€" ; taining of energy from waterâ€"power {or from coal or oil, the locil cost of | living, the necessary transport, the ‘obtaining of necessary capital, For Igreat industrial plant units which here only are considered, situate usuâ€" ,ally in sterile and mostly highâ€"lying | primary rock districts, the cost of inâ€". | tallation may mean many millions | dollars. ‘ Gold production is not an end in itself., but is intimately connected with the consumption of gold. In regard to the question of geld consumption, views as to the future prospects are divergent. Comsumption of gold falls into three principal categoriesâ€"the reâ€" quirements of gold for exchange purâ€" poses; the requirements of gold in inâ€" dustry; and finally, the requirements for gold for hoarding. Contrary to the opinions of many Americans and Europeans, the gold required for hoarding is still greater than for all other purposes. India alone takes each year about half the current gold production, and this gold disappears out of the world market. It does not find its way into the building up of central gold reâ€" serves, nor is it employed to support economic development or the needed credit. It was hoped, and optimists still hope, that with the aid of the new Indian exchange and bank laws the Indian population would gradually acâ€" quire a productive conception and would place their fallowâ€"lying gold stores at the disposal of the banks The question of the future producâ€" tion of gold in the world is relative and not absolute. It is a question of the functioning of many different economic factors. It is not a quesâ€"| tion of the substance, of the existence or nonâ€"existence of gold principally.} For this reason it serves no useful| purpose to go far beyond the immediâ€" | ate present to form conclusions, beâ€". cause the conditions are in a state of' continuous flux. For the immediate| present the difficulties in South Afriâ€"| ca in regard to native labour seems to be most likely cause of a gold scarcity.! The question of gold production unâ€" der modern conditions by great techniâ€" cal skill, extensively mechanized and rationalized operations is essentially a question of the labour cost and the reâ€" lations between demand and supply in the labour market. About 40 per cent. of the Rand mining labour comes from the Portuguese colony of Moâ€" zambique. Eventually a diminution in the black labour might be counterâ€" acted by extensive rationalization and mechanizing the operations, as it is probable that on the Rand, as elseâ€" where where labour is cheap, mechanâ€" ization has not been introduced to any great extent. Nevertheless the operaâ€" tions involving the breaking, moving, crushing, and treating as well as the final disposal of the treated material must always call for a large number of manual workers. It is interesting speculation as to what extent the world production of gold could be inâ€" creased yearly if Canada, Alaska, Caliâ€" fornia, British Columbia and Austraâ€" lia had black labour at their disposal on similar conditions to those in South Africa. with greater efforts and more slowly than in past. years. A sufficiency of gold in the future as a basis of interâ€" national exchange is therefore a matâ€" ter for serious regard. To this, Dr. Lufft advances the folowing arguâ€" ment: NO matter how far the mercury drops, you can still face the winter blizzards knowing that you are properly protected by Dods Underwear. The best in Canada for outdoor workers and their families. Dods=finit Orangeville DODS KNITTING COMPANY, LIMITED R. READE DAVIS, with offces at Manchester Bmldmg, 33 Melinda Street Toronto 2 Ontario M. L. C. Bldg., 455 Cnlg Street West Quebec Montreal Underwear Sole Selling Agent for Canada Taking a practical view of the conâ€" siderations affecting the question of gold scarcity, he argues, "Glance over the business results of the different nonâ€"ferrous metal producing comâ€" panies for the year 1927, according to information supplied in "Engineering and Mining Journal" for May 16, 1928, it is seen that gold producing comâ€" panies made a good average profit only excelled by the companies producing lead; the aveerage net earnings of the gold producing companies was 16.7 per cent. and, including the Hollinger company, 15.4 per cent. which is more than double the earnings of the copâ€" per companies of 7.7 per cent. Under present economic relations, therefore, an essential increase in gold producâ€" tion is not outside the range of presâ€" ent possibilities. Also, it will have been observed that the Soviet Governâ€" "The withdrawal of gold from the money circulation and its concentraâ€" tion in the vaults of the central note institutes has affected a great saving in the consumption through wear of coinage," he states regarding the sold requirements for exchange purposes. "Apart from loss by shipwreck of vesâ€" sels carrying gold bullion which is very seldom, there is practically no loss of gold substance. The employment of gold coinage for private hoarding has ceased. The lower purchasing value of money, to be sure, requires that a larger quantiâ€" ty of money be put in circulation and a corresponding increase in gold cover for such money, but this factor is more or less balanced by the withdrawal of the gold from currency circulation and through greater elasticity in regard to the proportion of the gold covering in relation to the circulating paper money. Discussing the making of high grade jewellery, he points out that this as a permanent form of property has beâ€" come more or less obsolete. "This kind of gold expenditure belongs not so much to gold hoarding as to indusâ€" trial work, but this industrial use of gold is probably quite considerable. According to the estimates prepared by the United States Mint Departâ€" ment, which for a long time past has been considered the most reliable sorce of information on gold consumpâ€" tion, the consumption of gold for inâ€" dustrial purposes in the five years 1922â€"26 amounted to 748.2 million dolâ€" lars. The question is what part of this use can be regarded as destruction of gold. A great part of this gold is apâ€" lied in the making of cheap soâ€"called gold wares, or for gilding, for the manufacture of gold leaf or for putrâ€" poses like the goldâ€"covered mouthâ€" pieces of cigarettes, in which the gold is used up and does not again appear as secondary gold. A part also, which is probably the largest industrial use, goes to make wedding, seal, and dress rings, and for dentures. There is no doubt that a considerable proportion of this potentially recoverable gold is irretrievably lost. and thus finally in the hands of the central bank. However, the peculiar Indian psychology and logic are still vaguely understood by the European. How far further India and China at present, or in future, will incline to a similar hoarding of gold is not known to the author, nor does he know of anyone at present who can form a definite judgement thereon. In China, silver has always been the exchange metal; the transition to gold has not yet entered into the psychology of the Chinese people. Ontario * /IIways the BeSt _ Never Equalled [or 50 Years Midland Free Press:â€"Whether the municipal election arena be large or small, the contests deserve the attenâ€" tion of all the voters Municipal counâ€" cils and school boards deal with quesâ€" tion that closely touch the daily lives of the people. The men elected to those councils formulate policies and authorize expenditures of public money the taxpayer must supply, and exactâ€" ing and thankless as the dutles are, some persons must assume them, Arkansas Gazette :â€" Philadelphia‘s main trouble seems to have been too much brotherly love between the bootâ€" leggers and cops. It can be concluded, therefore, that the fears that a gold scarcity would result in the shattering of the basis of the world economy in a few years are not justified. Certain relations exist which still prevent a permanent and certainly desirable stablizing of the situation, but no reason appears to exist why even important fluctuaâ€" tions of the world‘s gold production should be taken too seriouly if only financial circle, and particularly leadâ€" ing bankers, keep their heads cool and do not become hysterical. Likewise, if gold ‘production is not stabilized, it is more stable than in any previous time of the world‘s history, and the employâ€" ment of gold for exchange purposes is also more rational than ever before. Should, however, future disturbances in gold production, for any reason whatever, prove more serious than at present seems probable, it must be met by a suppression of the secondary uses of gold, such as industrial uses and the private hoarding of the metal. All other employment spheres for gold are relatively secondary. So far as the industrial employment of gold is concerned, the dentistry industry has in rustless steel a much cheaper and a much more suitable material than gold for its purposes, possessing less weight and much greater strength. For the remaining uses the proposal has been made that gold should be taxed. The carrying out of such a proposal should not occasion any great difficutly, as gold production and gold stocks are concentrated in few places. Taxation also might be limited to uses which are destructive of gold. The taxation of gold for priâ€" vate hoarding could only be carried out by international coâ€"operation. The balancing of the payment obliâ€" gations of the different countries through shipments from the central gold stocks con be adjusted through the _ central banks themselves. The increases in the quantities of gold conâ€" sidered necessary for this purpose will need only 2 relatively small proportion of the total yearly productions so long as the world generally does not follow an inflation policy, and will bring an increasing tendency to a return to the gold standard. Meanwhile the gravity point of the world‘s gold production lies in South Africa, the relations of which have a!â€" ready discussed. A suden decline of the South African gold production would make the task of replacing the deficiency by the remaining producâ€" tion spheres too great for a time, alâ€" though substantial increases on curâ€" rent production might be possible. It is always a danger when a large proâ€" portion of the total production is cenâ€" tralized, as in the case of the Rand gold production. The possibility of avoiding the serious consequences of such a shortage must be sought on the consumption side. By far the most important use of gold is for meetâ€" ing the requirements of the central note banks, but these requirements are not very great and likewise not acute. Even the extraordinarily great stabilizing requirements of 1927 reâ€" fuired no very large sum to be added to the central reserves. That the cenâ€" tral gold position will require periodiâ€" cal strengthening is naturally to be anticipated. The responsibility for this, however, lies in the hands of men who have A wide view over the uposiâ€" tion and who can take the necessary measures for security without great difficulty. ment, which for a number of years neglected the Russian gold industry,. have now taken it up very actively: the existing seven or nine trusts now conâ€" cerned with Russian gold mining will during this year be merged into one central trust, The gold production of the Lena region is to be greatly inâ€" tensified. p‘, fl's in dn cok Wrise hor VRAXATYVTS FAATVH WXKâ€"ZREKE Pratt Fo»t Company o Canada limited I2A Cartan Ave. Iuk Any Epg a Day Keeps the Hatchet Awan] Makes Hens Lay More E4ggs Or YYour Money Back â€" Guaranteed