The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-01-03
THE GOLD pRoDrCr.

The gold moEometallist papers are
congratula ting themselves on the fact
that the report of the director of the
mint shows an increase of the worlds
production of gold over last year The
mint estimate for 1892 was $3.50. 900.
For 1898 it is s142.Ooo.OOo, and this in
crease Of about $11.2OOO0O is taken to
indicate that there will be an abundance
of gold in the future for the basis of the
worlds business. It is difficult to see
on what ground they place their faith
The worlds stock of gold is supposed
to be between four and FIVE billions Of
dollars. probably more. An increase of
SAP, OoO,OOO annually would therefore not
exceed per cent. and the commerce of
the world is increasing at much
greater rate than that. It is stated by
MulhaH that commerce has increased
forty-fold since the beginning of the
century This would be ar increase Of
about 10 per cent per annum. but if the
increase were only one-fourth of that
it would still be more than three times
as great an increase as the increase of
gold.
AS a matter of fact the production IF
gold has been slowly increasing for a
number of years. In 1873 it. is estimated
by the mint to have been SIP. $50. 900.
and since that time there has been
trend of increase. although the produc-
ton of many years has been less. In
1873 it reached s119O92,O 600 In 1888 it
dropped to $95. 1872, 900, which was the
smallest annual product Of the
period During the twenty years from
1873 to 1898 the gold product has
amounted, according to the mint esti-
mate, to S2.21O,961 600, or an average of
$11O.54S,OOO per year Nevertheless dur
ing that period there have been shown
numerous evidences that the increase
was not sufficient for the needs of the
world. Prices have fallen about 80 per
cent, owing to the appreciation of value
of gold, and there have been more
panics and monetary stringencies than
were ever known in any fifty years of
preceding history. Not only this, but
these business depressions have been
longer continued and more disastrous
than any previously known. So closely
are cause and effect connected that
every civilized nation is now using its
ingenuity to prevent the expectation of
gold. In this country there are a thou
sand business men who watch the quo
tations of sterling exchange where there
was one in 1873, and on all sides we
hear the statement that our business
depressions are due to lack of conf
dence." Confidence in what? Conf
dence in the money they are using.
Confidence that their governments will
be able to get gold enough to maintain
the paper money and silver token-money
they are floating on a gold basis. They
realize instinctively that there is not
enough gold for the business of the
world and they fear the effects of any
pressure on the supply.
Before the era of demonetization of
silver, the product of gold and silver
combined was reasonably proportionate
to the increase of the worlds business.
In the last twenty years we have de-
monetized more silver than we have pro-
duced gold. and have also cut off the
annual relief of increased silver produc-
ton. It is practically certain that there
is less irredeemabIe money. less money
of ultimate payment, In the world to-
day than there was in 1873. In other
words the worlds stock of gold today is
less than its joint stock of gold and sill
yer was In 1873. This is the prime cause