European Stars And Stripes Newspaper Archives Mar 16 1968, Page 3

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European Stars And Stripes (Newspaper) - March 16, 1968, Darmstadt, HesseSaturday March 16, 1968 the stars and stripes Page 3 major answer it s not profitable Why does t . Simply mine More Gold Washington a amid so Lurk of european dangerous in Oas into the . Gold Supply he question is often asked Why does t the United states simply mine More Gold a major answer surprising to outsiders but a fact of life for nine owners is that digging for the precious Metal in t very profitable explains a . Bureau of mines spokesman. In 1934, when the Price of Gold was fixed at $35 an ounce a fundamental relationship which the government is today trying to . Mines were producing some 3 /2 million ounces of Gold a year. Production climbed to almost 5 million ounces in 1939, but with the Gold Stock High and healthy Gold mining was considered nonessential in world War ii. The War siphoned off the Industry s manpower and resources and production Plum meted to less than 1 million ounces by 1945, never fully to recover. Many of the mines which closed during the War stayed closed because it was too costly to reopen them. Production did Crank up again but stayed below 2y2 million ounces a year and dwindled by 1966 to 1.8 million ounces. Manhattan vault makes it. Knox poor Cousin new York a seventy five feet below the crowded streets of new York s financial District lies the largest single pile of Gold in the free world. The Gold rests on the Bedrock of Manhattan Island in an air tight vault with Walls eight and 10 feet thick. A 90-ton steel door set in a 140-ton Frame controls the Entrance. The heavily guarded Gold is stacked neatly in bars in the basement of the Federal re serve Bank of new York. Here 50 feet below sea level is 13.253 billion . Dollars in Gold about $6 billion More than the Goldstock in it. Knox by. The remainder of the $11.884 billion in . Gold Stock is in other mints and assay offices. Unlike the it. Knox Gold virtually All of the new York Gold belongs to foreign governments foreign Central Banks or International institutions. Individuals own none of it. . Citizens Are barred from owning Gold except by special licenses such As in dentistry or 1924, the new York fed eral Reserve Bank has acted As a Gold warehouse a Haven for foreign Gold away from War and. Shifting political fortunes. Part of the Gold came by ship on the eve of world War has been bought from the United states in transactions which move it from the treas Ury s assay office a few blocks away to the Federal Reserve Bank. While statesmen and financiers the world Over debate the role of Gold in International pay ments workmen called stack ers routinely weigh and shift the Gold in the new York Bank. Is it a temptation you d have to be nuts to try anything says con ado t. Sope of Bloom Field n.j., chief of the Bank s vault division. It does t impress me As much As it does someone from the outside says Joseph a. Baker who supervises the Gold movement. It s part of a Day s Gold bars cast or melted Down in this country Are roughly the shape of an Ordinary House Brick. Foreign cast or melted bars Are trapezoidal wider at the base and Angling in toward the top. Color tones vary from shiny Bright to bar weighs 27 to 28 pounds and is Worth about $14,000 at the .-guaranteed Price of $35 an the vault Are 121 separate 10 foot High floor to ceiling compartments of varying sizes resembling barred jail cells and holding the Gold of some 70 for eign compartment is numbered and contains the Gold of foreign nation or Bank. The Iden Tity is known Only to the Federal Reserve. The largest account to tals Over $1.5 billion and contains More than 100,000 Gold bars. Each compartment is secured with two dial locks each with different combination and a pad lock. It takes three Bank officials each of the two knowing Only one combination and the third carrying the key to open each compartment. The Federal Reserve acts Asi go Between for nations settling debts with each other in the universally accepted medium of is a Stacker Sli ills Gold bars in the Federal re serve Bank s Manhattan vault which contains More than to billion of the precious Metal All of it owned by foreign govern ments and institutions. United press International photo for instance a country with Jold in compartment 38 tells the Federal Reserve to pay 100 Mil lion . Dollars of its Gold to country with Gold in Compart ment 9. Federal Reserve work men under careful scrutiny Actu ally move s100 million in Gold bars from compartment 38 to compartment 9.if compartment 38 country wants some of its Gold shipped Back Home the Federal Reserve takes the Gold from the Compart ment packs it four bars at time in a commercially made nine Box nails it together and binds it with wire straps and ends the Bullion on its Way. The country withdrawing the old makes All the Security an shipping arrangements once the Gold leaves the Bank. The coun try pays All the handling charges but the Bank does t charge storage. Iii i ans think in terms of told Cash hold it Means preciously Little meanwhile the Cost of mining has risen drastically while the Legal Price of Gold remained fixed. An ounce of Gold sold tothe Only Legal customer the . Treasury brings $35 an ounce just As in 1934 but that$35 does not go As far in mining costs or anything else As it once did. Thousands of companies have gone out of Gold mining. Now Only a handful remain with two accounting for most of the production. Officials of the largest Home stake mining co. Of Lead s.d., testified before Congress last May that it already costs almost $35 just to produce an ounce of Gold from its underground mines. Their profit is about to disappear they said. New process the other major producer is a new mine making a profit on Ore deposits discovered by the . Geological Survey. Carlin mining co. Digs its Ore from the surface of the land in Nevada a much cheaper process Thanh mistake s underground Fin ing. The reopening of surface min ing was made possible by mod Jern prospecting techniques that detect Gold invisible to earlier1prospectors who scoured the i land. New techniques under de a elopement by the . Burea of mines May eventually make use of previously unusable ores in which the Gold is trapped in Carbon. But the Cost Price squeezes talks even these new develop ments in the Long run. The government could encourage More production by Raisin the Price of Gold. But that would play havoc with the world Mon-1 by system which is based on the 835-an-ounce Price the United states is determined to main Tain. Drop in bucket even if . Production were increased to the 1939 Peak level of almost 5 million ounces j valued at $175 million that would be Only a drop in the bucket compared with the total sold Stock plunge from some �24.5 billion in 1949. Its Peak j year to s12 billion in 1967. In fact Domestic Industry i alone already consumes some 14.8 million ounces of new Gold plus 2 million ounces recovered from scrap each year and this demand continues to grow. Present production would have to triple or quadruple just to meet these needs with Noth ing left Over. New York up Gold Ismore of an abstraction to John v 1 Uhlir than Money is particularly if to is under 55 and lakes Lull experience with it.1 1 at is Why he views the cur rent series of Gold rushes on in in Lional Money markets wit much detachment. It s inter Iii like Cricket but his games baseball. Riold is either something they"11 Teeth with or a topic barely mastered in economies ii and Wjk Kly forgotten. Money on the 0tlu r hand i s simpler to under stand Hen it is regarded us what one uses to pay later in is postwar credit Economy that As elbowed aside such economic be Simonu its As buying Power Ami Price Tineo the american consumer "i1-1" measures the. Adequacy of a Money income against its a to meet the monthly Bills for goods and services already purchased he tends to see Price in terms of so much a a sense he has abdicated his responsibilities in the Market place because he has grown less discerning about the real Price of what he buys. As a matter of fact he Seldom knows the cos of the Money he borrows and is less than enthusiastic about truth in lending and truth i packaging legislation being pushed into the Gap on his Little he May under stand Money the american con Sumer still trusts it. If Bis in come is inadequate he asks for More Money or works harder and longer for it. Gold is some thing this country went off Back in 19m when he did t have much in the Way of Money or Gold european experience on tiie other hand is quite the opposite. Money was not to be trusted but Gold and Silver or Platinum have been univer Sally acceptable for centuries however the political boundaries shift and governments Rise and the franc the Pound Sterling the Mark the lira Orthe Guilder look shaky the european dumps them and Stock sup on Gold coins Gold Bullion Platinum and whatever else can be disguised with Black paint against threat of the dust settles or devaluation is completed out comes the precious Metal sometimes exchangeable for currency at better terms sometimes Worth just As much As it was not Only have not been faced with this necessity they Are not allowed to hold Gold anyhow. They were moved How Ever reluctantly at times out of pragmatic Reliance on hard Money like Gold and Silver coins and into paper Money in the 19th Century Long before the United states went off the Gold stand control of Gold was easier in the United states for one thing because govern ment is stable Here. The last i time foreign armies were on . Territory was in 1812, and hard Money was the Rule then. There Are no Black and Grey markets in currency and Gold such As those which flourish All j Over Europe and though there is inflation it is less severe Thanet has been in Many nations abroad. Those of us who can rather than flee to Gold try to counter the effects of inflation with common stocks insurance policies Mutual funds and Simi Lar devices. circulation office phone numbers Germany Ivi in Civ 7. Oos bin Oahu Vii Civ Ivill. Mil Tutu , Civ u .10s--oi7, Mil 753 i is i in 5117, Mil to Evvi ii 705j a Liu i in Civ Soho. Mil Uhei i 01$ Munich. Civ , i pm n in. Civ 77wl7, Mil Gilo s, l in Al. I we Luumi Civ i1j77lmil g Reece Vallui i in Orn. Civ Iiah Spain , Civ 0, of Llull United kingdom London Civ i a Lii Ooi ext i i subscribe now government housing Only

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