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By Peter M. Anderson

IN recent years many prophets have arisen who hold that gold has outlived its days and that its monetary use is now an anachronism. These prophets include well-known politicians, economists and businessmen. Some of them have called it a joke that metal should be dug up at heavy cost in Africa and elsewhere and shipped to the United States of America only to go underground again at Fort Knox. Others have claimed that all the gold in the world could be sunk in the ocean without anyone being the poorer. The fact that you have invited me to address you on the future of gold may perhaps reflect the fears caused by these various predictions. At present the prophets' taunts show no sign of coming true. The demand for gold is greater than ever before, although stocks held are the largest in history. Nearly all governments have gone to great lengths to suppress any demand that might be made by the public; they have reserved to themselves the right to hold gold and have lost no opportunity of satisfying their own demands. Where the public has been allowed to buy gold, the demand has proved impressively strong. In India the price of gold equals about $82 per fine ounce, having been $90 earlier in the year; in Egypt $65 to $70, after having been $87, and elsewhere it is even higher. In Palestine, for instance, the golden sovereign is traded at about £5, equivalent to $86 per fine ounce, having been nearly £6, equivalent to some $100 per fine ounce, earlier in

Jan 1, 1947

By Don Blackmar

THE production of non-ferrous secondary metals has become a large and important industry in the United States, and deals with practically every type of manufacturing concern.. Its business is unique in that it generally buys from its customers as well as sells to them, whether they are individuals, cities, corporations, or the United States government. Its operations are of vital importance to the success and prosperity of many of the nation's most important manufacturers; yet there are few industries about which less is generally known by those outside it, whether concerning the magnitude of its operations or the details of its actual technique. The industry itself is to blame for this meager publicity, because its technical men have made few attempts to openly exchange ideas, in spite of the excellent examples set by the iron and-steel or the copper and brass industries. Whether this is due to the ancient shroud of secrecy generally supposed to cover smelting operations, or because its technical men actually felt that the industry was too puny to be interesting, is hard to say. This paper will consider its subject in a 'general way, attempting to show something of the size and importance of the industry, as well as its fitness to do its work well. Attention will be called to the sound economic reasons for the handling of non-ferrous wastes by specialists, and to the often unseen losses of metals and labor which occur when manufacturers reclaim' their own metallic wastes.

Jan 1, 1928

By Don Blackmar

THE production of non-ferrous secondary metals has become a large and important industry in the United States, and deals with practically every type of manufacturing concern. Its business is unique in that it generally buys from its customers as well as sells to them, whether they are individuals, cities, corporations, or the United States government. Its operations are of vital importance to the success and prosperity of many of the nation's most important manufacturers; yet there are few industries about which less is generally known by those outside it, whether concerning the magnitude of its operations or the details of its actual technique. The industry itself is to blame for this meager publicity, because its technical men have made few attempts to openly exchange ideas, in spite of the excellent examples set by the iron and steel or the copper and brass industries. Whether this is due to the ancient shroud of secrecy generally supposed to cover smelting operations, or because its technical men actually felt that the industry was too puny to be interesting, is hard to say. This paper will consider its subject in a general way, attempting to show something of the size and importance of the industry, as well as its fitness to do its work well. Attention will be called to the sound economic reasons for the handling of non-ferrous wastes by specialists, and to the often unseen losses of metals and labor which occur when manufacturers reclaim their own metallic wastes.

Jan 1, 1928

By Michael C. Newbury

For thousands of years gold has been not only a commodity, valued for its comparative scarceness, immutability and homogeneity but also a medium of exchange which has no nationality. Approximately 90% of the gold produced is still accessible in the world, although some of it in museums, galleries, jewellery and dental work is not immediately available for circulation. The majority is held as bars by central banks for their reserves; the balance circulates as coinage or bullion held for investment. The value is further enhanced by the political aspect that gold cannot be debased as paper currency can and, therefore, it always becomes an investment refuge. It has always been possible to buy and sell gold at a price which is readily established by reference to bullion's weight and purity; and it is this fact which makes a loan denominated in gold, rather than one in currency, a viable alternative means of finance. The purpose of this paper is to discuss some general aspects of what is considered to be one of the more effective and presently popular methods of financing the development of a gold mine - the gold loan. This is not intended to discuss all the minute details which must be uniquely designed to fit each individual situation, but rather to provide general guidelines. You will all be aware of the traditional sequence whereby companies primarily finance exploration work by the raising of equity through the sale of shares to the public or by that unique Canadian form.

Jan 1, 1987

"Option pricing is used in finance for valuing options to buy (or sell) shares at some future date because it provides a convenient framework for quantifying values subject to uncertainty. As one of the main sources of uncertainty in mining is the price (sales) of the metal, this approach can also be used for valuing mining projects.The first part of this paper reviews options and option pricing; the second part presents the approach developed by Brennan and Schwartz (1985) for using option pricing to value natural resources. Several applications of this methodology have been published; these are described. From a mining point of view, the assumptions made by Brennan and Schwartz are too simplistic. The weaknesses are discussed with a view to improving an apparently promising new way of assessing the value of projects. IntroductionThe collapse of the British merchant banking group, Barings, has highlighted the risks that can be incurred by speculators and arbitragers in the futures and options markets. But this negative attention on futures and options should not make us forget their positive aspects. They can provide producers and consumers of metals with more predictable sales prices. The introduction of the new traded average price options, TAPOS, by the London Metal Exchange in January 1997 is a response to this need. Equally important, the theory that the finance industry has developed for valuing options provides an interesting framework for valuing mineral projects as well. While this paper was being revised, the South African gold mining house, JCI, announced that it was using a methodology based on option pricing for valuing the mineral rights to deeplevel gold resources (see Box 1)."

Jan 1, 1997

This growing dependence of Canada upon foreign mineral commodities, just referred to, applies particularly in the direction of the United States. There is, in fact, no more significant feature of Canada's mineral trade than the manner in which it affects the Dominion's commercial standing with that country. Our heavy adverse balance of trade with the United States is perhaps not a matter of such wide concern or frequent comment as was the case two or three years ago. It is, of course, a well-known fact that the Dominion each year buys from the States a volume of goods to a value enormously in excess of our sales to that country. And it has come to be accepted as a ?normal, though not altogether satisfactory, feature of our international commerce that a huge portion of the bill incurred by our American purchases must be met, not by our American sales, but by the proceeds of our sales to other countries, not-ably Great Britain. It is a three-cornered situation in which our trading deficit with the United States is covered largely by our trading surplus with the United Kingdom. In this situation the mineral trade plays a remarkable part. If one delves into the details of our transactions with the United States it will be found that, in one sense, the mineral trade is entirely responsible for the huge annual balance against the Dominion. In fact, Canada gets decidedly better than an even break on Canadian American trade, if one leaves out of account the three mineral groups, "iron and steel", "non- metallic minerals", and "non-ferrous metals".

Jan 1, 1924

By Dodd SF

Valuation of mining companies and their underlying assets prepared by brokers' analysts are, by necessity, approximations. The reliability of the valuations is entirely proportional to the quality of available data, the reliability of forecasts and the nature of underlying commodity price assumptions. The latter is perhaps the greatest single cause of gross variations in company and asset earnings estimates and- valuations. Assumptions are often necessary regarding commodity price achievement based on commodity hedge positions. Public disclosure from listed companies provides a sound base from which to project earnings, cashflows and balance sheets. The uncommon disclosure of projected production and cost schedules often reduces the reliability of future estimates. The application of reserve and resource estimates is contentious with practitioners applying differing weightings to importance of resources in estimating mine lives (and therefore cashflow streams). Valuation methods applied in equity markets usually focus on relative value and the identification of pricing anomalies. The commonest ""rules of thumb"" applied in the valuation of mining companies (and therefore their underlying assets) is with the use of year specific price/earnings (P/E) and price/cashflow (P/CF) ratios, with low multiples suggesting undervalued assets, high multiples overvalued situations (but these rules can often be clouded by market expectations of underlying commodity price movements). Another simply applied valuation tool is to examine the examine the value placed on reserves and resources by the market. Inexpensive gold in the ground (expressed as $ of market capitalisation per ounce of reserves or resources) might indicate a buying opportunity, but the market does discount the value of gold in the ground prior to mine development and where development risk is perceived.

Jan 1, 1994

By James Douglas

For the past several years, inflation has placed increasing pressure on our economic system. The total effect of inflation is complex when combined with other factors which affect the economics of equipment. A mathematical model is described herein which can be programmed on a computer to determine the effect of inflation on economic life and profits after taxes. The computer output results in graphic plots which clearly show the relation of various percentages of inflation to life and profits. Inflation has become a common topic of conversation in the recent past. What is it and how can it be measured? What effect does increased inflation have on equipment policy? Research now in progress at the Construction Institute at Stanford University is beginning to unravel some of the mystery of inflation. As a start, let us answer the first question by defining the word inflation. The dictionary says that inflation is "an increase in the volume of money and credit relative to available goods resulting in a substantial and continuing rise in the general price level. It appears, in fact, that we are in an inflationary spiral which is "a continuous rise in prices that is sustained by the tendency of wage increases and cost increases to act on each other." 3 Inflation behaves just like compound interest. It takes more dollars of future years to buy an equal amount of a given commodity, be it a material or a service. Let us assume an annual inflation rate of 5 percent. Assume that 1Associate Professor of Civil Engineering, Stanford University, Stanford, California. 2Webster's Seventh New Collegiate Dictionary, Springfield, Mass., G. and C. Merriam Co., 1969. 3Ibid.

Jan 1, 1972

By Martial P. Corriveau

The preparation of coal is essentially the same for export as it is for the domestic market. The big difference, I would say, is that, while coal for certain domestic uses (utilities, for instance) need not always be of the highest quality, as long as it is uniform, the buyer of coal for export invariably demands a well-prepared, top-quality product. And he is willing to pay for it, as long as he knows what he is buying. This is where quality control enters the picture. The day is long past since the export market was the dumping ground for coals which could not be sold on the domestic market. Today, the export buyer wants American coals not so much for a price but for the necessity of blending the American coals with foreign coals to achieve the desired chemical and/or physical characteristics, To blend intelligently, he must know in detail what are the qualities of the coals to be blended. Sampling and chemical analysis facilities at the piers provide the information on the coals exported, These facilities are maintained for the export buyer by independent laboratories; however, in one instance, the buyer operates his own laboratory. With very few exceptions, and Clinchfield?s Moss No. 3 mid-volatile coal is one, cargoes shipped overseas are loaded as blends of two or more coals. Up to now, foreign requirements have not been too clearly defined; therefore, shippers must be prepared to blend mixtures of the desired combination. Successful blending requires an accurate knowledge of the coals shipped. And this makes it necessary for the coal producer to maintain his own control laboratory.

Jan 1, 1959

By AIME AIME

DURING my senior year at college a professor said to his class that a student who failed to obtain a passing grade in that certain subject could not graduate with his class and that his diploma would be withheld until the failure had been removed. In that way for four years a diploma had been made to appear to us as the objective in attending college. We grew up to think that a diploma was the means of providing employment; consequently, a diploma could not be jeopardized and, heeding the professor's remarks, we resolved to put forth special efforts and make good. During one of our class periods this same professor digressed briefly from his prepared lecture in metallurgy and advised the boys to join a national technical society. He spoke with earnestness and sincerity. After class we students discussed those remarks. We concluded that the professor had not convinced us. We were already members of technical societies at school and saw no need of joining another. In fact, even up to that moment a society had never indicated to any of us that joining it had any relation to landing a job, and we were fully aware that joining another society meant paying out more money, for fees and dues, which money we then needed to buy food, clothes, and perhaps a new slide rule. Furthermore, we knew that joining a society was not part of the curriculum and, therefore, the diploma could not be withheld if we did not follow the advice. Our conclusion was that we would not join but would concentrate on our work that assured getting our diplomas.

Jan 1, 1936

By S. Jeon, N. Hiroyoshi, N. Kitajima, S. Tanaka, M. Ito, R. Pongsumrankul, C. B. Tabelin

"Gold (Au) extraction is inefficient when crushed waste mobile phones (WMPs) are directly leached by ammonium thiosulfate likely because of the cementation/precipitation of dissolved Au in the presence of base metals like copper (Cu), iron (Fe) and/or aluminum (Al). This study applied physical separation techniques to remove base metals as well as plastics and concentrate the Au containing fractions from WMPs prior to leaching. Coarse fraction of crushed WMP (+2-5.6 mm) was pretreated by jig and magnetic separation to remove plastics and base metals like Fe, Cu, and Al, while the fine fraction (-2 mm) was pretreated by flotation, and float and sink separation. The leaching results showed that Au extraction increased in both of the size fractions. In the coarse fraction, Au extraction increased by as much as 2-fold after pretreated (from 4 to 7%). Improvement of Au extraction in the fine fractions after pretreatments were even more dramatic. Au extraction increased from 4 to 61%. These results indicate that physical pretreatment to remove co-existing common metals and plastics is effective to improve Au extraction from WMPs. INTRODUCTION Global sales of mobile phones are expected to increase steadily in the foreseeable future because a lot of people buy newer phones with upgraded and more advanced functions almost every two years, which leads to the higher generation of waste mobile phones (WMPs). WMPs contain a wide variety of materials including plastics, glasses, base metals and precious metals such as gold (Au). Among all the valuable materials in WMPs, Au accounts for over 80% of its total metal price (Park et al., 2017), so recovery of Au from WMPs is needed."

Jan 1, 2018

By F. A. Renninger

The mineral aggregate industry is the world's largest mining and processing endeavor, yet it is graced with little of the romance or public awareness that accompanies mention of gold, silver, iron, copper, uranium, or aluminum mining efforts. Much of this reaction is undoubtedly due to the fact that the uses to which crushed stone and sand and gravel are normally put are not fully recognized or appreciated by the general public. Few individuals ever have occasion to purchase mineral aggregates for anything other than use for decorative shrubbery beds or walkways. They may, however, buy ready-mix concrete for a new patio, bituminous concrete for a new driveway, concrete blocks, or other building materials for a new room and never realize that the primary ingredients of their purchases are either direct or indirect products of the mineral aggregate industry. The average person driving past an operating crushed stone quarry or an active sand and gravel pit rarely realizes the economic impact the industry, represented by that operation, exercises on the general economy. He is not aware, nor does he really care, that elements of the modern comfortable environment to which he has grown accustomed rely to a great extent on the products of the crushed stone and sand and gravel industries Iron and steel, glass, cement, agriculture, and highway and building construction are but a few of the major industries to whom the products of the mineral aggregate industry are basic. Without these industries or without the stone, sand, and gravel basic to them, most of the major elements of our modern day civilization would be non-existent.

Jan 1, 1968

By Charles Bruce

Although much has been said about the high cost of exploration, both at home and overseas, little of a specific nature has been published on actual finding costs, if indeed such data has been developed. This contrasts sharply with our sister industry, petroleum, where finding costs for oil and gas are available for virtually any country In the world. The reason is largely attributable to the genetic complexity of the hard minerals, as opposed to petroleum, and the increasing difficulties we are facing in the search for new orebodies. We have available to us data on the annual exploration budgets of most of the major mining companies which show them to run into the tens of millions of dollars. My co-panelist, Dr. Walthier, Director - Corporation Exploration, St. Joe Minerals Corporation, New York, NY, summed up the feelings of many explorationists in a recent keynote address when he stated, "I would not recommend a mineral exploration program of a general nature in North America budgeted at less than three to four million dollars annually, spread over four to five years -- or smaller amounts for more years". We have the fact that many of the major companies now prefer to "buy into" a new mineral discovery, particularly overseas, because of the high-risk and high-cost of exploration. Is there, then, a place for the small investor, let us say with a budget of under $200,000 per year and, if so, where and how? This paper is directed toward the above question and is based on experience gained while managing a limited international exploration program, on a shoestring, over the past three years.

Jan 1, 1976

By R. E. J. Putman

The, principle purpose of applying control to any process is to improve -its profitability. Even when considering the impact of a plant on its surrounding ecology this is still, true, since the sanctions felt most immediately from violations of the regulations are the economic penalties or fines which result. 'Economic performance can be improved within a plant in several ways. Steps can be taken to cut the cost or quantity of resources (power, water, steam, reagents) consumed per ton of throughput. Alternatively the operation of the plant can be changed so as to increase product yield per ton of throughput. Or the cost of labor and plant overhead per ton of product can be reduced by raising the total 'throughput, assuming-that the increased amount of product can be sold for the same unit price. In designing a program to improve plant performance, all three routes should be borne in mind. To maximize the return on investment over a longer period, it is also desirable to set up a comprehensive plan of improvement, equipment being specified at each step in the implementation so as to ensure that it fits in with later requirements later implementation being either by means of modular additions or by having the necessary interfaces built into the original equipment. It is much cheaper in the long run to buy features which have been factory-installed, than to have to make provision for their later addition in the field. This paper examines some ways of improving plant performance by the application of various process control techniques using both analog and digital con¬trol equipment. A general philosophy of application is suggested and specific examples described.

Jan 1, 1972

By A Stasi, B Brice

Water is a limited and precious resource in Australia. Because of the increasing demand for water from all sectors of the economy and the variability in supply, efficient management of water resources is of vital importance. The national water reform agenda has provided a strong impetus to all states and territories to progressively move towards more efficient and sustainable water management. The Queensland Water Act 2000 is the legislative framework for providing water for the environment and for planning for the security of supply to water users. The comprehensive water planning process prescribed in the Act results in new tradeable water allocations that are separate from land. These water allocations are well specified and can be traded on a permanent or temporary basis. Trading of water allows it to move to its highest value use, thereby encouraging the most efficient distribution of this limited resource. In addition to transferring ownership of water allocations, it is also possible to change the attributes of the allocation, such as the location from which water may be taken. Changes to water allocations are subject to approval from the resource manager. Pre-testing allows for certain changes to be approved very quickly, making the trading process more streamlined and cost effective. Temporary trades, or seasonal water assignments, currently account for the majority of water trades in Queensland. However, permanent trading activity is expanding steadily as old water entitlements are converted to tradeable water allocations and as the market matures. The permanent trading market provides significant opportunities to the mining sector. It allows mining companies to buy water allocations at market prices without compromising environmental outcomes or causing third party impacts.

Jan 1, 2006

By Dr. O’Neil Thomas J., Donald W. Gentry

It was a western truism that more money was made from selling mines than from buying them, just as it was accepted that many a good mine had been spoiled by working it. from R. E. White, "The Mining Town," Alta California August 18,1873 INTRODUCTION One of the most important aspects of mineral enterprises of US corporations is the influence of the depletion allowance on cash flow. This allowance permits mineral producers to claim sizable federal income tax deductions not available to other industries, and these deductions significantly increase cash flows in mining. In the past several years the minerals depletion allowance has come under increasingly heavy fire from many sectors as a tax loophole that deprives the federal government of large amounts of revenue. One estimate of the loss of tax dollars in 1968 was $2.25 billion due to depletion deductions and intangible expenses in the oil industry. Largely on the basis of such arguments, the Tax Reform Act of 1969 reduced percentage depletion rates for a number of minerals, and the Tax Reduction Act of 1975 totally eliminated statutory depletion for most oil and gas. In regard to percentage depletion for hard minerals, the federal government has estimated its resulting loss of revenue at $1.75 billion for 1980. The TEFRA legislation of 1982 further reduced the statutory depletion allowance available to iron ore, coal, and lignite beginning in 1984. Thus, it is clear that minerals engineers and managers should have a thorough knowledge of the origin, evolution, justification, and computational procedures relating to the depletion allowance. ORIGIN AND EVOLUTION OF THE DEPLETION ALLOWANCE

Jan 1, 1984

By Weyer J

Many existing computer planning programs for the mining industry focus either on big mining enterprises with a high production rate or on smaller operations for high value minerals. Big mining enterprises, like the hardcoal company `Ruhrkohle AG' in Germany have their own R&D departments which develop powerful computer programs for planning purposes, partly in co-operation with mining universities. However, there is a remarkable number of small- scale mining operations which are either not able to buy expensive hard- and software or don't have the skills for the operation of extensive software programs. Partly there is also a trend in using rule of thumb calculations rather than computer programs which need a lot of - partly unavailable - data. For this reason a computer program was developed which does not need expensive hardware and software and which can help the planning engineer in the selection of a limited number of possibilities. Until this time the planning engineer established two or three different cases and calculated the results with a pocket calculator. This could last some hours or even some days. Now he or she can use the computer program with a normal PC to compare the cases. All activities are menu-driven. The basis for all, calculations are fixed and variable costs as well as average performance for special activities. The paper gives an example for a possible planning situation in fluorspar mining (originally this program was developed for the fluorspar enterprise Lengenfeld in Germany). It shows the initial situation, the main structure of the program, the input logic and the results. Benefits, limits and possible extensions of the program are discussed.

Jan 1, 1995

By Francis Crockard

DURING the past five years we have probably witnessed greater technological advances than in any similar period. Industry and science have steadily marched ahead. The makers of iron and steel products have watched with great interest the development of stream-lined trains, faster and safer airplanes, the entirely new science of air-conditioning and the widespread use of stainless steels. Since 1930, we have witnessed the erection of the world's largest suspension bridge, the largest and fastest ocean liner and the spectacular Boulder Dam, while even greater things are planned in these particular fields. Other indus-tries, too, have been moving ahead rapidly. This advance in a few years has been caused primarily by the fierce competition of the depression. Now, more than ever, is the emphasis placed upon quality and service. Makers of southern merchant pig iron have been no exception and have been confronted with increasingly strict chemical specifications and with much greater stress on physical characteristics than ever before. For example, sulfur in the iron must be held very low, competition demanding that it be in the 0.020's and low 0.030's; silicon content must be held within a very narrow range, and definite requirements of phos-phorus and manganese are an essential part of the specifications. Physical characteristics are becoming of increasingly greater impor-tance. The introduction of triple-skimmed, slow-cooled iron several years ago was the first step in this direction. Now there are a few customers who buy iron by chemical analysis and physical appear-ance, having found that the analysis alone is an insufficient guide to their requirements.

Jan 1, 1935

By Charles A. Ashburner

The manufacturing and domestic consumers of anthracite are beginning to realize the fact more fully, that the coal purchased for any one year does not seem to burn so freely, does not fire with so little trouble, and does not last so long as that purchased during other years, or vice versa. Where coals of different sizes, or from different districts, are offered to the trade by the same or competing salesmen, the question suggests itself, which shall we buy ? Among housekeepers, who are the most numerous class of consumers, though on the smallest scale, distinction is seldom recognized among these anthracites. By other consumers the coals are grouped into those which, when burned, will produce either a white or a red ash, special qualities being arbitrarily attached to each. Others, again, know only of three varieties : (1) Those from the WYoming and LacKawanna fields, or the coals shipped from the northernmost basins over the railroads running through northeastern Pennsylvania direct to New York—notably, the Delaware. Lackawanna and Western, Delaware and Hudson, and Erie railways; (2) those shipped by the Lehigh Valley Railroad and the Lehigh and Susqaehanna division of the Philadelphia and Reading Railroad down the Lehigh Valley ; and (3) those shipped over the main line of the Philadelphia and Reading Railroad down the Schuylkill Valley. In special localities, where a favorite coal is largely used, the consumer will speak of one class, composed of his favorite coal, which possibly comes from two or three collieries, with a total aggregate annual production of less than a million tons; and of a second class, composed of the coals from all the other collieries in the anthracite

Jan 1, 1886

By Walter A. English

CONTENTS PAGE Introduction. By WALTER A. ENGLISH 1 Theory of Seismic Reflection Prospecting. By WILLARD H. TRACY 2 Instruments for Reflection Seismograph Prospecting. By ARTHUR NOMANN 9 Seismograph Field Operations. By FRANK ITTNER 15 Determining Geologic Structure from Seismograph Records. By P. C. KELLY 22 INTRODUCTION BY WALTER A. ENGLISH,* MEMBER A.I.M.E. THE four papers making up this symposum have been prepared espe-cially for those who have no knowledge of seismograph prospecting. To many people mathematics is a formidable subject, and many are discouraged from studying seismograph prospecting under the mistaken assumption that the mathematical requirements are severe. In the papers presented here there is not a single mathematical equation. We believe that considerable competence in dealing with some of the most important problems of this work can be attained without any mathe-matical training whatever. At the present time, there is a real need for interpretation of results by persons thoroughly competent to bring geologic experience and imagination to bear on data that are subject to multiple interpretation from a strictly physical viewpoint. Likewise, those charged with the responsibility of planning seismo-graph exploration campaigns would do well to become familiar with as . much as possible of the technical aspects of the work. They would then be in better position to judge of its success in individual cases. It has often been said that the seismograph is a new structure-finding tool for the geologists to use. Using a tool and using its product are two different things. One does not use an automatic screw-threading machine when he buys a box of screws at the hardware store. Neither does the geologist

Jan 1, 1939