Gold Hunt

There are more ways than one of hunting gold. Last week the U. S. Government, already holding $4,300,000,000 worth of gold, was trying to get more by ferreting out private gold hoards.* So that private holders could not profitably dispose of their gold elsewhere the Government was still paying only 20.67 (now depreciated) dollars for an ounce of gold. Hence U. S. gold miners have ceased bringing their output to the mints, but the Government still has to release some gold for industrial use (gold teeth, gold leaf, etc.). Net result of the U. S. Government's gold hunt was therefore--as shown in last week's Federal Reserve report--a decrease of $1,000,000 in the U. S. stock of monetary gold.

Another kind of gold hunt goes on in Canada, where, since sterling went off gold, the Government has paid a premium for gold to make up for the depreciation of the Canadian dollar. Canadian producers getting 37.78% more than the pre-Depression price per ounce ir making exciting profits. Mines are stepping up production, prospectors scouring Northern Canada in hope of new discoveries. With the U. S. gold hunt so unprofitable, U. S. businessmen have been rushing to join the Canadian hunt. Last week two U. S. expeditions, each including a famed U. S. ex-athlete, were flying into Canada's gold country:

Tunney. Seven U. S. millionaires composed party number one, headed by Wall Street's bear speculator Bernard E. ("Ben") Smith. They included Bernard F. Gimbel, head of Manhattan's Gimbel's; Donald M. Smith, broker (no relation) ; F. S. Argnimbau; Edward J. Flynn, Democratic boss of The Bronx and backer of Franklin Roosevelt; Eddie Dowling, comedian; James Joseph Tunney, financier-sportsman.

After breakfasting sumptuously at the home (just outside Toronto) of John Paris Bickell, "richest bachelor in Canada," the party set out in two General Airways' planes flying due north over Ontario's lake country to Porcupine gold camp. Their first goal was famed Mclntyre-Porcupine mine, Mr. Bickell's prize performer (which produced $5,425,000 of gold last year). There they met Sandy Mclntyre, onetime glass-molder, later foreman of a railroad construction gang, who discovered the mine and now lives on a pension (doled out in small amounts so that he will not disappear for too long at a time). There they went down into the bowels (4,134 ft.) of the earth to see the quartz gold vein being hacked. From Porcupine they planned to go to Kirkland Lake and Noranda mines and fly back to Toronto and New York prepared to buy Canadian gold shares with new avidity.

Hubbard. While the New Yorkers were hopping to northern Ontario, another plane took off from Boston bound for Labrador bearing Charles J. Hubbard (Harvard football captain, 1923) and three companions. Already Hubbard has a gold claim staked in the interior of Labrador.

*What use more gold would be to the Government economists could not figure out. The Federal Reserve has already $1,565,000,000 more gold than is needed for the 40% reserve against its note issue.

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