New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-05-18
SELECTIONS FROM THE MAIL
THE WORLDS OUTPUT OF GOLD

THE WORLDS OUTPUT OF GOLD
no NEED FOR ALARM At THE SUPPLIES MOI
IN sIGHT-THE GOVERNMENT CREDIT.
To the Editor of The Tribune.
Sir: / was much interested In the contribution n
James b. Colgate relating to gold and silver produc.
ton, published in your issue Of the l4th In which
he estimates the worlds output Of gold for lW 4
S3Co, 0O000o and seems TO think at that rate then
will soon be overproduct!on Of the yellow metal eA
In his calculation 1t occurs to me that he fails y
provide for the worlds annual increase In popua.
tion safely estimated at 100000 or TO forty,
there being NOW about 16.Gooooo,eO souls. To pro-
vide gold currency for such increase on the basis Of
the leading nations of the world active In commerce
at this tlme-tireat Britain. per capita, HAl;
France. $50 Il; Germany. N2 H. and the United
States so OS; average N4 2swouId require E7l6Oc,-
Oec of which the woulds product, as stated Is only
about one-third of that amount. At all events, the
surplus in sight is not alarming. and therefore need
give no uneasness for some time TO come. Evil
IDENTIFY the purchasers named By Mr. Colgate look
at It In this light. But, admitting a possible or
probable decline In the value Of gold from dsuse or
oyerproductlon as stated, does this not show how
futile 1t is to try establish fixed ratio between
IL and silver neither being wanted as money In a
PROSPEROUS country like the United States other tnan
for a standard metre Of values? IL the standard
declines In value. properties otner than go'o lhcad
ing silver will advance; this Is a clear gain. II
either metal Is be standard. gold Is much 70 %
preferred as 1t Is not so bulky.
J. p Morgan e. Co., August Belmont Co., Nor
ton Bliss G. Co and other weil-known firms let.
tiers OF credit are worth the gold. less exchange on
presentation In most OF the civilized countries OF the
world because there is the equivalent intrinsic value
on deposit with them TO meet payment. Had the
United States Government only NC.onOOo OF legal
tenders outstanding redeemabe In gold with the
coin on deposit 10 meet payment JoVerhinen, ho,es
would be as current such letters OF crsdt ana
would circulate freely Worldwide az good as tne
gold they represent and would be greatly preie.led
Sor their convenience. The dticuty Is. we are Try
ING 10 make 500 ODGO Of gold the reserve serve .
redeem 81 co. 90 in paper represent neIeoi
or al the rate OF so 10 S. and there is no d.h'suc
10 show that IL can be done here II ""e's 'o''
The attempt TO make something out OF nothing. oI
To pass a known counterfeit for the genuine aI"eys
was and will continue 70 be a dead failure "nether
there is a country behind the scheme or d. 70.
pieihora OF money In Europe and the tnltsd stales
AZ the present time, and the low rates OF lnteress
maid are attributable to the enormous PRODUCTION ot
gold does not accord with the western lee-eo'lass
urging the free coinage OF silver Is because mere
moi enough circulating medium 10 go arouhi nass
the exchanges and handle the crops II ne saw y, ~
as does Mr. Colgate. he would pe len 20 am.
Lay on. Macdun, ana damned DC ~ VIM '"'' N''''
hold. enough - ,,.e .,..,,, ., n.
Mr Colgates Is complete 'giye-away OF tne
Westcrners position. do rot hesitate 20 say may
I disagree with both OF them n, nincury AZ, w
appear altogether there and here win hseai POI.
lev here that Inspires confidence ana sets he whess
h,;mmiay we shall then be able 20 employ tne
artre surplus to good advantage ana pay ior iS
use all that II u worth ,,,,rtr crrv
New-York May IA. 1895