New-York tribune., 1886-08-16
GOLD IN THE COUNTRY,
AN APPEAL TO DIRECTOR KIMBALL.
MINT RECORDS AND ESTIMATES COMPARED

correct the statistics of gold supply merits hearty
praise. He has done something but not enough. he
has corrected mistakes, by which the figures OF
his predecessor vitiated, but has made others
Unhappily he bas gone Just far enough TO encourage
dstrus of Mint statistics in regard to the supply OF
gold but not far enough to satisfy competent critics
that his figures can be accepted final. Unless his
next annual report modifes greatly the estimates
hitherto published, it will come to pass that the
attacks which have for some time been made upon
the Mint statistics by The Financial Chronicle and
other reputable journals. will not only be accepted
by the public as just but will have an influence by no
means designed by those who make them, in under
mining confidence in oil records of the production and
movement of the precious metals 1t is therefore to
be hoped that Mr.. Kmbal will observe that:
~ The Mint reports, as they now stand, do not
agree with themselves They make the entire con-
sumption of gold in the arts from July l, 1873 to
Jan. 1, 1886 about sl16,336 572 according to Mr..
Burchard, and $40 600 600 more accordingto Mr..
Kimball as follows; S2G,74S, ,623 bullion and
Si2 600 600 coin, July 1873 10 July l, 1879 and
80 900 600 in all the fiscal year 1850 according to
Mr.. Burchard, while Mr. Kimball estimates
$50 900 900 coin instead Of Mr.. Burchads
S14 OOO, 900 for those years; 1000 900 in
the fiscal year 1881 $1,000, 900 in 1882. and the
same IN 1888; S1i,5O0O 900 in the fiscal year 1854,
calendar year. and $40 837 9f4 for the calendar year
1885. Now the Mint reports Of production for the
same period aggregate 1856 74l 532, allowing half
the yield of the calendar year 1882 for the last half of
that wear. viz SIG, go 900 The net imports Of
gold of all kinds for the same period were
SlOS .i23 $50. and Mr. Burchard and Mr.. KimbaI
agree in estimating that he'goid coin and bullion in
the country, July l. 1878. was Sl3J, J,OOOOOO. The
account would therefore stand thus:
stock. july !, 1878
Net imports. loS'423o@o
,r,s@ TcSl SIMPLY B S;i At iS5s555 5s559s
Remaining the country s2799o
According to Mr. Kimbalrs ignres the amount
remaining would be $4,000, 900 less or
$567 ,s27 900. But this includes bullion. of which
the Treasury alone held, Jan. 1856, ~, 057 429.
Deducting this there would be left OF gold coin,
according to Mr. Burchards figures carried forward,
s511 270, ,56l; and according to Mr. kimballs esti-
mate OF consumption only Sl9o o,21o,o6l. Aud yet
Mr.. Kmball makes the gold coin in the country JAN
!. 1886, 1898. .4SJ, ,4J3. and Mr.. Burcharls figures
carried forward would make it $5o3,slO, las.
Hence it is certain that the Mint statements of pro-
ducti0n are too small the Mint statements OF
sumption too large, by n ranging from
s22 900, 900 to ssS 6000 600 or else the estimates
of coin in the country are in error
Y, The Mint statements do not agree with the most
reliable unofficial records, those published regularly
by Mr.. Valentine. OF Wells Fargo \ Co. He makes
the yield for thirteen years, 1s73-oo inclusive,
Sl4G072 997, or. deducting nalf the yield III IL ~
about Si2G 400, rs for the twelve and one-hsli
years. Adding net imports and stock, the total
supply would be 1868. .S92 74s, and deductng the
Mint estimates OF consumption the stock JAM i,
1856. would be 1858 5J6,l76 on Mr. Burchards
estimates. and S537 7.556, l16 on Mr. kmb9lls. rs
before the bullion in the Treasury must be deducted.
aud there would remain for coin IN the country, Jan
l. only about S465.O0O 900 on Mr.. klmbails
estimates Of consumption or S6S. .OOO,UOO less than
he reports, and only sos 900 600 on Mr Burchards
estimates 1t is 10 be said however. that Mr.. 4
Valentine does not report the production OF gold east
Of the Mississippi River about 7ooo'VQo yeariy,
which would increase the supply on TINS estimate
about $3.50. 900 Again either the production Ia
larger the consumption smaller thantAe reports or
else the report Of coin i exaggerated.
80 The we ght of evidence is decidedly in favor OF
reports of production even larger than those OF the
Mint The o hcia record of the actual deposits OF
gold of domestic production from July l.
1875, to july |, 1850 show that S391, ,9lf-
1I3 in gold thus went into the Mint, but Mr..
aen's d & S96o gePCrIS G for n perDi and TIC mint
reports would aggregate about 7lO7 800 600. Con
and refined by private enterprise 1t must De- concluded
that the yield Was at least rs large as the Mint reports
would make it. ~
~ All reports of production are necessarily liable
to The sid" Of Incompetcn 'ss. All reports OF
consumption in tho arts are also necessarily liable 10
err bv lplicaton becluse the old gold in the ntry
i3 rcqdily oheugod by Or y1te rcincres into bars |
which the If icturcrs cannot distinguish from new
gold end Dcclusc industrial Establishments az" prone
to represent their operations as larger ihan they |
actually are Every estimate based upon reports OF |
the Weld Of mines, and the consumption OF all gold,
bullion ircluied is therefore exposed 10 two impor
OF error which the calc'aiiol based upon
lJl Mr. Kmballs estimate tina $50, 100000 in gold |
coin mot bullion was consumed III the arts III the
seven wears ls74-lSSO inclusive. seems 10 have no
sufficient support. Those were an except the last,
yeaIs Of industrial depression. With census reports
to guide ard aid Mr.. Burchard conld hnd no
evidence that more than 81 4OS 76S in gold coin hal
been consumed in the arts i'll the last and most
prosperous OF these years Business was certainly
larger aud more prosperous in 1859 than in either OF
llto - 1
Director Kmball is able To ind evidence OF con
OF gold coin not exceeding 81, sOO,OOO with
a. many reports from actual manufacturers as Mr..
I3urchard at any time peceved. ~. Burchards only
larger report for les3-1SS4 was for wear OF large
business. in which gold coin was more abundant than
before since. All the evidence seems 10 me to
prove that the actual consumption OF coin in the arts
in ls74-SO less than So 800 900 yearly, and that
ANY larger and later reports We're vltaied by dupca
ton. But allowing that amount until loSO ana the
amounts actually allowed by Mint reports eince.
namely. $4,000 900 in 1880. So 70O,O 900 in 1ssl,
s.. 100000 in 1884. and s.. 800, 600 in 1855. or
$40 775.0 900 in all. the comuutaion on the coinage
basis would cone out Just 400 900 larger than
Mr.. kimball's estimate.
The confusion in changing from fiscal to calendar
years Mint reports withou; dscoyerable reason
and helps to belog the whole business. 1t is Tar
simpler TO make the reckoning for complete fiscal
years from Mr.. Burchards starting point July /,
1878, when Mr.. Kmball shows that $l5,669.9SI
gold bullion was held by the Treasury and has been
included as coin, ana when the stock O coin In the
country is placed at S1l9.33OO19. With a single
small item which Mr. Kin ball conld easily have
supp ned. the record can be made perfect to July l.
1856. If the deposits for re-coinage, winch were
1923 30 in the iscal year 1850. the same last
year. then it is definitely known that the coinage les
coinage of gold. trou July, 1873, to July. 1855
amounted to Sj77.97e, Cos. IL is also definitely
Known from Official reports that the Of exports
over imports of American gold coin during the same
thirteen years was s96032,47s. Thus we have
olid basis Tor re lonng that. had gold coin been
lsed in the arts, los, destroyed the stock in the
country July l. 1885, should have been
s6Ol 276 1i9 But the Mint allowances since 1ssO
md the allowance Of 81 500 900 tor each of the seven
ar er years. in all SIO.775 0OO leave $500 jDl, l49
,old coin the probable supply July |. Mr..
mbas reckoning wouli make the amount about
500 100000 on that date, but submit, the allow
nce which he makes for consumption in lS74-SO
inclusive is unreaSonably large tnat il subjects
lis entire computation to dstrust which it does not
Ii other respects deserve. ". VI. G