San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1894-07-18
The Glut of Gold.
ON the Manufacturers Record

the total amount of gold now in
the Bank OF England being nearly
$200,0U0,000, sum unprecedented
in the history of that institution.
Referring to this fact this writer
states that, as after 1857 and 1866,
the Bank of England lis once
more watching for the time when
the mighty torrent OF gold will
again burst the dam and cause a
general and rapid improvement
in the value OF securities" People,
says he, must have something for
their money, and the question
soon must be, who is going to set
the example for going In for the
purchase of second, third and
fourth-rate investments? ''In times
gone by the same process has
always been gone through, and it
must inevitably be gone through
again. At the present time there
are some thousand millions ster-
ling of money, or S5,OOO,OOO,I On,
lying on deposit with the London
banks, and hardly any Of the de-
positors dares to move his portion
nto securities that are not gilt
edged" Discussing the matter
further he says.
"But without it being necessary
to enlarge further on the forces
that are making for compulsory
breaking up of the great gold dam
which is daily being added to,
like the pile Of felled trees in the
Norwegian rivers, those who take
the trouble must be able TO see
that we are rapidly approaching
the time when the great tide must
begin to ebb. Then will loom on
the financial horizon the welcome
signs of returning prOtitmaklng TO
those who have been able 10 watch
patiently through the dark and
dreary days which have been such
a sore trial to the industrious and
enterprising business men Of the
most renowned and powerful
financial centre the world has ever
seem"
Bearing on the same subject is
an article in the London Statist
pointing out the heavy movement
of gold from India to England.
Gold has been boarded in India for
many years, and there is COW a
tendency to get rid of it by snip
ping it to England.
The Statist says: "If gold is ex-
ported in large quantities from
India, the grounds upon which
the closing of the minis was de-
termined are completely cut away.
1t is proved conclusiveIy that
neither a gold standard nor gold
currency in India is possible. = =
AS Europe prefers gold to silver,
to gold" 1t is true that the Indian
government and the. Herschel
commission looked forward to the
establishment Of a gold currency
in India as the only way Of avoid
ing continued fluctuations be-
tween the currencies OF England
and India. But the end may be
accomplished, though the means
be not the ones expected. II we
are warranted in coniecturing that
the closing of the minis has fixed a
limit to the possible decline Of
rupees, and that this has disposed
the people of India to part with
their gold, then the end aimed at
by the India government may be
accomplished by better means than
were contemplated. Instead of
dispensing with rupees, their
value and that Of sOVereigns may
be brought closer together. at is
obvious" says the Statist, ito
everyone who thinks for moment
that the first influence Of large
gold shipments from India would
be to make money more plentiful
and cheaper than it is now, and
that the ultimate effect would be
to raise the level of prices in
Europe" India holds so much
gold that if it could be induced to
part with any considerable portion
of it, it would tend strongly to
restore the balance between gold
and silver.
There are many people who look
upon the increasing production OF
gold throughout the world and OF
| this enormous accumulation in
London as a forerunner OF what
might be called gold boom, such
as the world had after the great
discoveries in California. Should
this prove to be true its effect
upon the business interests Of the
world could hardly be Overesti-
mated.
HELLO THERE