The herald., 1896-07-27

then independent of the rate of produc-
tion. 1t Is q fixed factor to be deducted
from the total supply.
The amount used in the arts at the
present time is roughly estimated at
| something like 40 or so millions a year.
Now. If so million dollars are used
annually in the arts and the total gold
| production Is only about 100 millions, a
simple sum in substraction will show
that not more than SO millions will be
left for coinage into money.
But If the supply be doubled, the de-
mand for commercial purposes remain
ing unchanged. similar sum in sub
traction will show that the amount avail
able for coinage; will be tripled While
| again. II you increase your supply to
| abovef30o millions it will follow that the
proportion remaining for coinage will be
nve times as great as in the first case.
In other words. there will be 25O millions
left for coinage, instead of so millions.
This is exactly what seems likely to
take place In the next FIVE years. or. for
that matter. 1t is exactly what is taking
place now. But this is not all. In one
way or another there is every year an
immense amount of money DESTROYED or
taken from the general stock. 1t goes
nobody knows quite where. into old
stockings. is burned up, lost at sea. bur-
led And this amount of shrinkage Is
likewise not dependent on the amount
or production, but. like the amount used
IN the arts, Is more or less Of a fixed
factor
1t is an important factor. too. for the
worlds stock of gold money has not
increased in anything like the propor-
tiohs winch might be expected from the
increased production of this century.
Nevertheless. the increase of the
world stock OF gold in this century has
peen astonishing-so great that no other
century can compare with it. AS you
look pack to the first decades of this era
ana note the amount Of gold then nos
SesseC oy the different nations, IL seems
naroiy more than mite compared with
the present enormous hoard.
mus, IN 1916, when. after the long
IT'S currency on a single gold basis. II is
estlhlated that to put the new system
INTO effect about S125, 900, 900 were re-
CURED That is but little more than
secretary Carlisle asked for in his recent
pond issue. and yet so scarce was the
SeiiuW metal then that the drain caused
py England's demand was so great that
gold absolutely disappeared from circ,.
latlon In the United States. and the same |
was comparatively true OF continental |
Europe.
me worlds production of gold for that |
year 1916, was only about s., ,O00. .OO0 and |
propaoly the total stock of gold money -!
possessed by the chief commercial ma
tlons was not then more than 5000 0nO
Doo. Now the United States alone has
something like s661. 900 900, the United
lN1nsdom Of Great Britain some $40 0OO.-
DUo Germany $6lS, 900 600, Russia s422
10000 and France $500, 900. 600.
An IN an the present stock of gold is
,ohlputed to be very near $1,000. COO coo.
IL the assumption of a 10 per cent in
'rease IN the annual gold production is
'orrect, the year OF 1900. with produce
ion Oh more than $500. .000, 900, will leave
or coinage into money more than five
lines as much gold as was used five
ears ago; while the general stock over
Ind above the annual shrinkage will he
'roportionately enlarged.
When these facts are known (and be-
ause they are facts they ought to be
noWnl two things are likely to han
eh: The free silver agitator will be out
job and the timd doctor of finance
'lil nave another bad dream-a night
lare OF too much gold.--New York
World.