The times., 1899-10-07

parJmeat that While war In the Trans
Nssl MaS haYe gshe effect OF raising the
Fates el Interest sna depressing the prices
- stesks, the temporary stonpsge OF gold
@ieiss sR $aash Africa viii probably not
ieat ge additional complications in the
HAesey sasgkeg. oae reason for tais belief
a saAg gheN 3e Ret think the war viii last
A2sgeF sAsR siN months, and count on the
ssssEs sSksns g0oa oare OF the mines while
" Possession og tAena,
Saesla tae mines be wrecked or dam
Ssea 10 such an extent that considerable
time would elapse after the restoration OF
peace before they could be worked again,
there would be marked shortage in the
worlds supply OF gold. Not only Is such
action by the Beers not expected, but the
belief is held that they viii work the
mines themselves and replenish their treas
ury at the expense of the English mine
owners. In this case the difficulty would
be in getting the gold on the market.
According 10 n Treasury official who dis
cussed this suiect today, the worlds pro-
duction of gold increases in proportion to
the demands OF commerce. The production
OF gold is increasing enormously. In 1893
il was about s165, ,000, 600. while last year it
reached the total of $2Ss, ,000, 900. If il had
not been for the troubles in the Transvaal,
it is believed the total product this year
would have reached 1920, ,000, 900, and even
with this disturbance it viii probably go
beyond $500. .000. 600. Last year the Transvaal
produced $S0. .S26, ,000, an amount which was
equaled by the production of the first eight
months OF this calendar year.
Every gold-producing country will send
out more gold this year than last. AS far
as the figures for 1898 have been received
they are: United States (including Alaska),
$64, 453. GOO; South Africa, $50, ,326, 600; Rus
sia, SIS, ,463. 600; Australasia, s63, ,976, coo;
Canada, s17000.000. One reason for the
steady increase in the gold production,
been the steady improvement in mining
machinery and mining methods, through
which it became possible to work low
grade ores at fair profit. In one mine in
South Dakota, and in the Douglas mine on
Treadwell Island. Alaska. the ore runs
only about So to the ton, but as it can be
mined and the gold extracted for less than
S1-50 a ton affair margin for profit is left.
If the demand for gold should increase
on account Of the falling off in the pro-
ouction in the Transvaal more stamp mills
would be erected and in such localities
more low grade ores treated. AS yet moth
ing has been attempted in the Klondike
but placer mining. but when the quartz
mills are erected and put in operation the
production of that region should be great
ly increased
AS England has about 81 600. 900 600 in
vested in the Transvaal its stocks are liza
bic to shrink in the face of war. London
is looking 10 New York for relief, and as
the rates Of interest advance in London il
is believed New York capital will flow
there With gold flowing to England and
interest rates there going up, rates in New
York viii rise and money become tighter
This Will restrain speculation and prevent
any strong bull movement, although the
securities paying regular interest should
hold their own.
London viii need gold in case of war,
and will have TO buy it in the market, just
as ii would any other commodity Consid-
cradle amounts Will have to be shipped to
South Africa The Bank of England nov
has s1,7oO, 100000 in gold in its vaults,
which is considerably less than the
amounts held by Russia, France, and Ger
many.
Russia leads the world in the amount OF
gold it holds. having nearly $3.50. 600. .0O0
The Bank OF France has $3.50 600, 900 in
gold The United States has the third oi
the long purses, having 1895, ,554, 799. OF
which sl00,000,600 is the gold reserve
sos, ,455,zl9 is for the redemption of gold
certificates and the remainder is free gold
Germany holds S200,0 600 in gold, Aus
tria- Hungary has s150,00O, coo and the
Bank of Spain has $65 600 Goo Italy has
nearly $50 00O, 900. The New York Asso-
ciated Banks held at the time these fig
ures we're compiled about s155, ,Oo0, 600 in
gold.
The total amount held by the banks and
countries enumerated above is nearly
81, COO, 600, 600. 1t would, therefore, seen
that even if the output OF gold from the
Transvaal should be stopped for time
the world could find enough cash to carr,
on its commerce.