The San Francisco call., 1899-12-11
there has been an increase in the general

there has been an increase in the general
amount OF gold In the country"
The reduction shown in the stock Of the I'M
perial Bank has been brought about by the
monetary reform. The enormous stock, in the
bank at the close OF 1897 was provided for
the purpose OF bringing the paper currency OF
the country TO par with gold and establishing
its interchangabiity. During the past year
the bank has been paying out gold freely and
gold coin. long absent from the circulation OF
the empire. has again entered into Common use.
The Bank OF England and Imperial Bank OF
Germany both show loss OF gold during the
year. but the record OF the exports and I'M
ports Of Great Britain and Germany show that
each OF these countries received about 10000
600 more gold than II parted with. Trade was
very active in both countries and apparently
drew on the reserve stocks OF tne Two , tenain;
banking institutions. The money STOCK OF
those countries was in a larger degree than
the year previous. In movement among people
and in the local banks. II Is OF special inter
est that the stock OF uncovered bank notes
in Germany S24, ,000 0oo greater on Decem-
ber 81 1885, than on December 81, 1881, and was
sSs 900 600 greater in France. That illustrates
the elasticity which enables the monetary sys-
toms Of those countries to ease OH sucn an
extraordinary demand for gol1 as the United
States made on the world last year. The Aus
tro-Hunrarian Bank had sl7.OOo,OO0 more OF uh-
covered paper out at the end OF tne year sd on,
about SIS co., 600 more of uncovered bank notes
than the year before. a fact which Doubtless
contributes much to ease the nnanclal sl.ua.
tion. The ability TO thus enlarge the stock OF
paper currency is valuable to a country in the
event OF any sudden call upon II for heavy pay
ments in gold The issue acts as buHer De-
tween such demand and the commercial inter-
ests OF the country. protecting the latter from
sudden and sharp pressure. IL is iesitfnate n
use OF credit by the country. through the agency
OF banks OF issue. TO meet a passing demand
The most notable change in gold stocks during
the year was in the United States. The stock
OF coin in the country. including bullion IN the
mints January !. 1898. was estimated AT
s7i5 PAS 953. and January ]. 1899 at ss4o. .se.
7Os. a gain OF s2OO. .OO2 s35. The gain appears
in the following items:
Stock January l. 1898. s745. 245 s53: net imports
of United States coin ss3 0s2 us; coinage during
the year. s77. .9S5. 75S; gain in bullion In mints
ss4. 77O.43O; total. 1851. Os4,S5s. ..o
74l taken by paymasters TO Cuba, Porto RICO
and Philippines 81. 455 $3.50; used in manufac-
lures. ST. 800 0co: total. sS2Sso7l. Stock January
on the Increased stocks shown by the above
statement Sl6s, 6S2 $40 appears In the reports OF
national banks and the Government treasury
The holdings OF the former must be taken for
December Is, 1897 and December |, 1898. their
nearest statements to January being on those
dates. They show holdings as below:
Treasury. January l. 1898. sl97,le7 l42: national
banks. December Is. 1897, Ss1 6Os,sa4; total.
Treasury January /. 1898. s2s1, ,11s ssl: national
banks, December ], 1898. s26S,sss.. .4S; total;
banks Si59, ,632, $40.
The difference between this and the aggregate
gain estimated for the country. s4osls.ssb. is
considered TO have gone into State and private
banks and general circulation.
The production of gold In all OF the important
gold fields OF the world is increasing rapidly.
and with prospects of continued gains for years
to come. The yield in the world In the calendar
year 1eas S2s7 600 eeo. against $33s. 600 600 In
1887 The production in Australia to date In
1899 has shown gain OF 25 per cent over the
corresponding months of 1885, which indicates
probable gain for the full year OF $4,000. 900.
The United States. Canada and Mexico will
doubtless increase their production $4,000 600:
In South Africa the production In the frst half
OF the year was 35 per cent above the yield OF
the same months in 1898. and II the industry had
been undisturbed the gain for the year would
probably have been above 500. 600 600 AS all these
principal districts are now In condition to pro-
duce at higher rate than at the opening OF
the present year, and all are preparing for
larger yields. II Is not improbable that when
operations are fully resumed in South Africa,
the worlds output will quickly pass s400 900. 900
per annum. The worlds stock of coin is now
being increased more rapidly and by higher
annual percentage 20 the existing stock than
during the period from 1850 TO 1860 when the
great output OF gold from California and Aus
tralia startled the economists of all countries
and gave the world depreciating standard of
value. The effect OF this new flood OF standard
money upon the markets. the industries. the
earnings OF those who work for wages. and all
or the various relations OF the people in our
present highly organized society. will be a
most interesting study. It will inevitably be a
potent factor in affairs.