Panic Is Ended By Gold Output
a _ B _ « _u-rt 0 -■—— bs- « - a ^ -■-■-■- a o -■-■-■-a
History Repeats As F lood Of New Wealth Eases Economic Stress
Publication Of World Figures
Reveals Astounding Fact That
1932 Gold Output Sets Record
Depression Broken By 1,500,000 Gold Miners
^ . J J „ !>!«,_ A
W ho Ha\e Provided New Blood
The big hews of this summer is the end
of the panic—an end caused by greatly in -
creased gold production throughout the
world. The story is told, in language for,'
the layman in the following article, written
hy the managing editor of Mining Truth for
the Scripps-Canfield newspapers and widely
publish«! throughout the West this week:
(Editor Mining Truth, Spoke;».e)
The panic ig ever. The depres
sion is brakes. Unemployment
has passed Its peek
The coming winter wilt see le«
All danger ed aa immediate
No credit whatever sheuld go
to the administration at Wash
ington, to the Mg bankers in
New York, or te the, numerous
addiepated **fta , who have
been preaching that "
needed waa opsfidence."
President Hwver didn't do H.
Wall Street didn't help. The
Reconstruct lea Finance Corpo
ration and similar bodies merely
provided emergency funds; they
made no basic corrections
The depressisa kas been brok
by shout 1% million gold
Same were wage-paid
miners. Some were professional
rank amateure, who took
to the hills or the deserts to es
cape starvation in the cities.
For themselves they made a
bare living .or tees,
world they broke the most acuta
gold shortage that civilised man
has ever known,
they provided new blood,
organised governments they stop
ped the spread of bolshevism.
Figures trickling lu piecemeal
from all over the world show
that gold producton this year will
exceed that of 1915, the peak
year of gold-mining history.
To set a new high mark, gold
production in 1982 must Increase
7% over that of 1921. (The nor
mal increase necessary for ex
panding business is 2 per year.)
South Africa Up 11.14%.
South Africa produces more
than half the gol. Official figur
es just at hand from Johannes
burg show that the 33 large
mines of the Wltwatersrand in
From the Records
' ASSIGN BUNTS OF BOYALTY
H. 8. Johnston k Q. W. Myers to
JFacob Weyer 1-8 of 1% on 8|NB1.
l# 34-1 West. *t. ,
Karl k Vivian McClurr to B. J.
l West. »L
UlBADfil OF 1.EABBB
Franklin OU k 0*8 Co. to Oscille
Krutsfeld, Lot L 81NB1, NkSBi.
84-35 4 West. 91.
Texas Co. to Alonso J. Clark
X Ki h
N»N®| 84NB1. SBI8K1.8WJ,
% West. 91.
Oil. AND OA8 MARK
Geo. X. Wilhelm et al to U. A.
Johnson 8W| 8, RK l, 8*4 1 Wea. »1.
assignment or lkahe
F rank 1. Miller to Franklin Oil
A Gas Co Lot 1. 81NB4, NJ8EI, 8W»
SKI, 1. WJNBI 12S3-ÎW. »1.
KKI.KARK OP UBN
Black Gold Petroleum Co. to C.
McCntcbeon 8W|NB*SE|, 20-36
2 «St 9916.1.5
MB«m*KT OF PRODUCTION
un» Badngan DU C<vto Guy K»»k
< "rod notion from NWJ8W1. 1-87-4
W rat. »1.
Gypsy Oil Company to State of
Montana. WISE*, BttfiWJ, 85 83 2
BNLBA8N OP LBASN
F O. BOY 4M
their production by
of $117,000,000 In U. S. money,
South Africa at this rate would
wltbln 1V4% of setting
put into circulation the equivalent
11.14% in the first half of 1932
over the same period of 1931.
This means that the Transvaal
In the first half of this year has
new record for world production,
even if the rest of the world made
no increase whatever in output.
But the rest of the world is in
creasing its gold output. In
many cases the percentage of in
crease puts Transvaal's in tho
Colorado's Big Increase.
Colorado produced 94,790,600
in gold In 1991. Unofficial fig
ures indicate that the amount this
year will aproximate 97,126,000—
an increase of nearly 50%. This
is doubtless the greatest propor
tionate Increase anywhere on
earth. It ia due to the several
thousands of men, some tender
feet, who have gone into the Colo
rado mountains to win gold from
placer streams, abandoned work
ing*, and old mine dumps.
British Columbia in 1931 pro
duced 93,272,000 in gold. In the
first half of 1922 the amount waa
If the same rate
91 , 881 , 000 .
Is kept up the Increase in British
Columbia for the year will be
about 12%—hut the chances are
that now mines brought into pro
duction this summer will bring
the actual Increase to a much
higher amount. It may roach
26% when the returns are in.
Here, aa in Colorado, thousands
of amateure are in the field.
Ontario is the main Canadian
gold province. Its seven great
gold mines are unlikely to in
crease production to a large ex
tent this year; they will turn out
about 943,000,000. But there are
small mines now (being equipped
far larger production, that will
alignments or rotaltt
F. R. Getty. Trustee te Loral*«
Haineth 1-2 ol t% m WHSK* 7
Frank Sherburne 1% In
WfcSEi, 7-84-u. $L
William B. Hoerr to C. Jensen
1-8 of i % in 8W|, 1S-34-S. 81.
4 H of | T % r "» nt Nw""iaVo « mport
Cherry Douglas Cline et rlr to
Irvin potter 1-4 of 1% In 8| 17
36-12: $ 1 .
Blkkfl et M tO «lohB HtrllD
MO Of 1% In sw* 18-34-6. rro.oo.
H. C. Tarrant to Carrie B. Cruse.
release. or ^ attachmbmt
j. w. Stewart to John T. Finn
(G. G. AsWn -vs- John T. Flonj
oil derrick, lumber A oil tool ms
ted*Xs «''SfSwi'rlSt sïcî a
By ObMdsr Ossaty Abshrast Cm.
CVT BANK, MONTANA
By PhilUps County Abstract Co.
DEEDS TO AN UNDIVIDED I NTER
0, minr»al 8 ,D oth **
to Ctrl C. ssemidt
! . 2 ® L f l% h *•
K|NK, BE wr. 2*terR _
Eric Immen to Edwin B. Whig
»1 ovt TJndlv .1- 10 of 1% same land,
Sheriff to First T. k 8. »aok
•UUi K»SW SE 84. W*«W 35-88-80.!
RELINQUISHMENT OF OIL AN»
V. M Bell to Hen
8W WiHK. E)8B.
«W 27 32 33
-nry H. Hedge*
8WNW 88. Wi
swell the total for both Ob tars <
Alaska Does its Hhare.
Fragmentary reports from Alas
ka, Montana, California and Ida
ho Indicate large proportional* in
creases In gold productlosL In
all cases they will be higher than
the 7% required to set a new
Other states probably will not
| mmke proportionate increases
I There are large gold projects uu
) der Oregon but they can
hardly be placed in production be
o» 1 "
gol< j jg a by-product of copper
or silver mines; not for trw© or
th ^" c , 11 lhe ^
a jbie increase in gow from Rus
sla, which produce« about 920,
000,000 a year.
The result of increased gold
production Is to Increase the
amount of money in drcnlaUea;
which in turn means better busi
ness snd advancing prices for
commodities now or recently sel!
ng below the cost of production.
The Increase Is Temporary
Four question* will occur to
the thoughtful reader. This is
an attempt to state these qttee
a'tlons and answer them.
FIRST—Is the increased gold
production temporary or per
Most of the evidence indi
cates it is temporary. Much of
the increased production comes
from marginal gold deposits,
which would not pay to operate
2n normal times. Experienced
miners who lost their regular
jobs in copper, lead, sine and
silver mines are producing gold
and making a few dollars a day
—sometimes lees. When commoid
ty prices recover these men will
return to their regular Jobs.
That will reduce production.
Mining engineer* agree that
the mines of the Transvaal are
nearing exhaustion. Hie time
is approaching when South
Africa will be filled with ghoat
camps, like those of Nevada.
Colltonrta, Colorado and other
portions of the West. There
have been no great new gold
discoveries since those of South
Africa, Alaska and the Klondike.
New gold soars« are being
opened in Canada, possibly In
Russia. But there Is no assur
ance of finding mines in Canada
that will take up the slack when
the Transvaal mines begin to
eld^e. Nothing Ibut a world
wide depression is responsible for
the present Increase in produc
tion. Men will not mine gold
for a few dollars a day when
they can find easier jobs at
Bimetal 1 st« Necessary
SECOND—Will the renewed de
maud tor Mmetalism cease?
Not unless another Klondike
is discovered, which is unlikely.
Even gold producers now admit
that silver must be restored to
monetary systems if the finan
cial world ie to remain on an
outspoken advocates of restor
ing silver are the gold miners
of South Africa. The two larg
est producers of gold in the
United States are insisting on
retnrn of bimeUllBm .
Bryan was right In 1896, so
f » r *8 men COuld 86€ ahead '
The gold rnah to the Klondike
j and the Tranevall intervened,
*nd by 1900 there waa enough
n(/w gold in circulation to make
J it appear that sllTer wm an un
— — nennnf nHIlUlftt
The World War brought paper
inflation. The decade after me
war brought stock-and-hond lu
don« o* «*way *»T«ted capl
Among the most
dation —flotations In which every
tal was represented by 94 or 95
In watered and manipulated
These things concealed the
lack of gold until the Inevitable
flop pnt the skids under proe
lf they are permitted to
-happen again they will merely
bring on another panic. Silver
must be and will be remone
Stocks to Seek 8% Ixmeto
will be the
Ike general stock
Stocks UNdonbtedly have reach
ed their bottom aa of this de
pression. As business recovers,
fears will vanish, and the sharee
of solvent and well-managed
com panlee will seek levels on
which they can return dividends
of around 8%. When common
stocks sell above an 8% level,
they pass oat of the investment
and into the speculative class
The insanity of hnying stocks
on a 2% Income basis, or lees.
Is not likely to return in the
Furthermore, the Senate'# in
vestigation la likely to bring
legislation that will prevent the
wholesale thievery in which some
of the snppoeedly "respectable"
financial houses engaged in 1928
Gold Stocka aa Investment
FOURTH — Are
stocks "safe investments
The time to buy gold-mining
stocks was 1929 and the first
half of 1930. Those who bought
dividend-paying gold stocks at
that time have Increased their
capital and in many cases have
increased their Income,
tendency will not continue.
Dividend-paying gold stocks al
ways stand up or grow In value
when a panic hits the general
Since 1929. the market de
preciation In dividend-paying In
dustrial and transportation stocks
has been about 88%. The in
come from them has decreased
Gold stocks, on the other band,
are selling at approximately the
same prices now and the in
come in the form of dividends!
has increased about 40%. But
the time to buy gold stocks for
Investment has passed.
Back New Gold Ventures
However, those who can afford
to rick capital in new gold-mln
Ing ventures will stand a much
better chance of making money ;
than will those who try to out
guess the stock market
that can't be done.
Many new gold mines will be
developed aa a result of this
year's prospecting rush,
is always a risk in mine develop
ment, hut there Is nothing that
gives greeter rewards to those
who know the risk and accept it. ;
The one important warning 10
those who wish to profit by the |
new gold movement la to buy
treasury shares, placing their
money directly into the company.
There are many fraudulent
atodt (by witch ao- ;
called mining stocks bought for
a few cents are passed on to
the pwhile (or « many dimes or
frown on such activities,
man who pays a pirate |1 a share
lor stock that the company sold
for 19c. do« not s«lst in the
effort to produce gold, and has
right to blame "mining" if he
Legitimate mining men :
A man ie but a worm of
the dust—he come* along.
wiggles about a while and
finally some chicken
8 0 0 0
Guide: This wonderful Grand
Canyon has been in the making,
for millions of years.
Tourist; My goodness! I didn't
know this was a government job. j|
BBniB are hated tome of the b«t bargain* to be found today in Montana'• Oil Field*
md 9fj«4« g District*. In this column are found the items that e*oape the carnal read
er— royalties, leases and equipment, mining claim* and dlFwnified investment op
portunities Advertising rate* 26c per insertion per hne, counting six words to the
gno. Four insertions for tho prioc of tfareo. Payment strictly in advance.
PONTOUB mspe of Whltlsth. Bear*
tlvo Flat Coulee. Plnhorn, Beoarve.
Utopia and Omndvtew, 10c a conr
Annul-. Department, Montana OU
Joints I Orest Falls. Montana
Totjama K MILLER CO., «71 Third
J «meet Tulsa. Okla.. wUl cooperate
with rea possible parti*-* »ee kina aid
fluanrlo* project, of «■>
WANTED- 1500 feet 10". « and 6"
la Northern Monuna Bo*
«g, Montana OU JsorntdL^^^t-lÄ-a
Tribune Says Homestake
Stock Is 'Spec ulation
Eastern Newspaper Which Boosted Notorious
Stock Manipulations Hits Mine Which
Has Paul $250,000,000
Western mining publications are engag
ing in caustic comments this week following
publication of an article in the allegedly great
Chicago "Tribune", in which readers are
warned solemly not to invest in mining stocks
and in which stock in the Homestake mine,
with a dividend record of more than $250,000,
000, is referred to as a "speculation.
Among other comment*, tbatO--
of the Denver "Mining Record"
is of interest.
Says the Record :
"This same newspaper has in
the past two years recommended
Kreuger A Toll, Insult Utilities
and Continental Shares as safe
'Tf all the money lost in these
three companies was invested in
gold mining stocks there wouldn't
be so many former investors
starving to death at the present
While Montana mining men
are agreed that there is a studied
effort on the part of eastern
western speculative enterprise,
either aa regards oil or min
ing they ore likewise agreed
that little can be done about it.
They are of the opinion that
solution, if any, must come
from general public realisation
that real profita can come only
from the ground—not from
gambling In stocks whose prices
are manipulated at will, first
How and where to get it
The Montana Oil & Mining Journal offers a re-||
SMALL-SCALE PLACER MINING METHODS
by Charles P. Jackson and John B, Knaebel, informa
tion circular published by the Ü. S. Bureau of Mines. E
Tells hew to find placer gold and how to save it.
Profusely illustrated, with two maps showing placer
gold areas in Montana and Idaho.
Offered FREE with each yearly subscription. USB ÏH
Montana Oil A Mining Journal,
Great Falla, Montana:
Enclosed find 93 tor which please send Montana Oll Sä
A Mining Journal for one year, with "SMALL-SCALE PLAC-*
ER MINING METHODS", offered aa special premium
9 Name .
Street or Box ..
' V b.' 1 ' . . -,
BUECTK1C LIGHT AND POWBH
GASOLINE. OtBSBL AND
a. ». . moan.
Great Fall*, Montana
WILL 8BLL small portion my royalty
on wellsite «0 Ftet Coatee oU
field. Write Owner, Cant «««tans
OU Journal. 7-ie-b
LANDOW NJffiS royalty on HUkJSIw
«mil Est keif mUe from Futto«
well no* drlHlnx at WOO tmmt. Due
lu wttblP 560 fee*- Write Bo*. 4».
Montana OU Journal,
to encourage the small investor
to bny, later to freese hlm oat
at a loss.
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