President Roosevelt aids gold mining here

Title

Creator

W. R.

Language

English

Year

1933

Rights

In Copyright - Educational Use Permitted

Fulltext

THE AMERICAN CHAMBER OF COMMERCE JOURNAL November, 1933 President Roosevelt Aids Gold Mining Here Philippine Gold Stocks October 30, 1933 The most significant factor affecting gold mining in the Philippines, that developed during October, was President Roosevelt s order of October 31 for the United States to buy new gold at the current market price throughout the world, or even somewhat above that price. This affected shipments of new gold from the Benguet Consolidated and Balatoc mines, controlled by Judge John W. Haussermann as president and general manager, that had accumulated in San Francisco since April. This gold was therefore sold at 832.12 an ounce, instead of the old treasurj' price of $20.67 an ounce, and the two companies that sold it gained about $1,000,000 by Roosevelt's decision to let the treasury price follow the market. r It is expected that this will show up in future dividends of the Haussermann mines; at the least it is a stimulus to gold mining in the islands generally, as it obviates the advisability of slowing mining down and invites the highest possible production. The Philippines will materially increase their gold shipments to America within a twelvemonth. The major portion of what they get for this gold will promptly come back to the islands through commercial and banking channels, be distributed here in taxes, dividends, payments to labor, and in reserves held in banks. Taxes will benefit in several ways: incomes from mining will be more, from the same output, by about 50%, and again more because of increased output ; the excise tax, based on the money value of the gross output of mines, will be more by about 50% on the same output as last year’s, and more because of increased output; and where a mine's output at $20.67 an ounce would have kept its. excise taxes at one of the lower rates (these rates ranging from 1-1/2% to 5% according to output), the new price may put it at one of the higher rates. Effects on business will be beneficial, and the monetary circulation of the islands ought to increase with buoyant effects on wages and ultimately on commodity prices. All summer long, machinery benefited by the mining activities at Baguio and elsewhere and still benefits from them. Such bene fits distribute themselves rapidly. Having the price of some 100,000 ounces of gold at stake, Judge Haussermann was so sure that Washington had made a mere oversight when, in going off gold, the treasury price for new gold was held at $20.67 an ounce that he conducted a lone fight for the world . price. He approved Roosevelt’s financial policy, he believed con trolled inflation justifi able if arrangements were made at the same time to keep America’s gold reserve and add to it by paying the world price for new gold, whether imported or produced in the coun try and its possessions. LIST OF PHILIPPINE MINING COMPANIES, TREASURY BUREAU The following companies, which have been licensed to sell their stocks to the public, are already operating, producing gold, and paying dividends to stockholders. Authorized Par No. of Shares Value of Name of Company Capital Value Permitted to claims autliorbe sold ized by Ins. Trcas. &N&cc°o................... rffl2o°S T I S? Psniquc Mines* 250,000 POO 250,000 4^000 ■■■■■■ us ’S “W i.S <£S Buyers Sellers Sales 0.08 0.12 0.12 0.58 0.62 0.60 0 17 0.175 0.175 0.38 0.41 0.40 21.50 22.50 21.50 Ambassador Mg. Co. Antamok................... Atok........................... Baguio Gold............. Balatoc.................................................... Benguet Consolidated 29.00 30.00 30.00 Benguet Exploration. Benguet Goldfields. . . Big Wedge................. I Equitable Explora tion............................. Fortuna..................... I Gold Creek.................... Gold Wave............... I Gold River................ i Gold Coin..................... Golden Eagle................ 1 togon....................... Ipo............................. Mindoro..................... I National Gold Mg. Co.............................. Placer............................. Salacot........................... Shevlin....................... ■ Southern Cross............. Suyoc Mg...................... Zamboanga................... l’adcal.’......................... Bontoc Exploration..................................... Suyoc Consolidated . 1.00 1.35 1 25 Madaymon Mg. Explo’n Co................. Mabuhay Mg. Co... . Universal Explo’n & Mg.......................... States Group Mg. Co........................... .28 0.2* 0.13 5 60 0 13 0 33 4.75 0.31 ........ 0.16 ........ 0.24 0.25 0.15 0.14 11.00 ........ 24.00 23.00 5.00 4.75 0.90........ 1.40 ........ 0.13 ........ 0.20 0.15 0.14 These figures are of October 30, from the board of the Baguio Stock Exchange, Chamber of Commerce Bldg., the final column representing actual sales of Oc last pr< The discussion, by cable, was a long one; but when at last an authoritative committee was appointed to study the question and decide it, victory for the gold producers was quick and decisive. Domestic producers had meantime abandoned the case, but now they may revive their claims. The more the Philippines lick in now and turn out gold, the more strength they will lend to Roosevelt in stabilizing exchanges throughout the world and restoring rational international commerce. The world price America decided to pay for new gold had no remarkable effect on the local market for local gold stocks in the new mines of which a list appears on this page. The dementia over these stocks had subsided before Roosevelt’s purchasing policy was announced. While there was a heavy volume of trading during October, it was quiet and unaccompanied by spectacular flurries. On the whole, it was investment; the public is apparently settling sensibly down to waiting for the new mines to produce gold and earn dividends fixing true values for their shares. This is as it should be. It is aside, however, from the genuine interest still manifest in prospecting ventures, discovery and development of gold deposits. Prospecting and staking new properties is at its height. Assay demands on the division of mines at the science bureau are very heavy, and Manila perhaps needs a commercial assay enterprise to meet the situation. For this, in the writer’s opinion, is just the thing to do—get into the mineral zone and turn up the gold that is unquestionably there. Next month this review will list the mines that are now in or about to enter the productive stage. —W. R.

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