The evening times., 1899-10-07
ENOUGH GOLD FOR TRADE
South Africa's Trouble Not Likely
to Cramp Business.
The Beers Certain to Take Good
Care of the Mines in the Event OF
War-Great Nations Have Enough
of the Precious Metal on Hand
10 Meet the Demands of Commerce.


partment that while war in the Trans
vaal may have tthe effect of raising the
rates of interest and depressing the prices
of stocks, the temporary stoppage of gold
mining in South Africa will probably not
lead to additional complications in the
money market. One reason for this belief
is that they do not think the war will last
longer than six months, and count on the
Beers taking good care of the mines while
in possession of them.
Should the mines be wrecked or dam
aged to 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 will 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 to Treasury official who dis
cussed this suiect today, the worlds pro-
ductlon OF gold increases in proportion to
the demands of commerce The production
it was about $165, ,000, 900, while last year it
reached the total of s2ss, ,OO0, 900. If it had
not been for the troubles in the Transvaal,
IT is believed the total product this year
would have reached 1920, ,000, ,000 and even
with this disturbance it will probably go
beyond $500, 900. Last year the Transvaal
produced $50, ,326, 900, an amount which was
equaled by the production OF the first eight
months of this calendar year.
Every old-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)
S64, ,463. 900; South Africa $50, ,326, 600; Rus
sia, SIS, 463, 600; Australasia, s63, ,976, 500;
Canada, $l7,000,000. One reason for the
steady increase in the gold production,
aside from the discovery of new fields. has
been the steady improvement in mining
machinery and mining methods, through
which it became possible to work low
grade ores at a 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
$l-5O ton fair margin for profit is left
If the demand for gold should increase
on account of the falling off in the pro-
duction 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 S, ,000, 900 900 in
vested in the Transvaal its stocks are liza
bic to shrink in the face of war London
jG
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 Will rise and money become tighter
This viii restrain speculation and prevent
any strong bull movement. although the
securities paying regular interest should
hold their own.
London will need gold in case of war
and will have to buy 1t in the market, jus,
as il would any other commodity. Consid-
cradle amounts will have to be shipped to
South Africa. The Bank of England nov
has $l,70O,OOO,00O 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 1t holds. having nearly $3.50, 900, ,00O
The Bank OF France has $3.50 600, 600 in
gold. The United States has the third OF
the long purses, having 1895, ,554. 799. OF
which s1Oo,O00.o00 is the gold reserve
Sl03, ,453,4i9 is for the redemption of gold
certificates and the remainder is free gold
Germany holds 5000, 600, 900 in gold. Aus
tria-Hungary has $50, 1000, 900 and the
Bank of Spain has s65, 600 900. Italy has
nearly $4,000, 900. The New York Asso-
ciated Banks held at the time these fig
ures were compiled about $l55, ,00O, 900 in
gold.
The total amount held by the banks and
countries enumerated above is nearly
81 600 ,000,0 900. 1t would, therefore, seem
that even if the output of gold from the
Transvaal should be stopped for a time.
the world could find enough cash to carry
on its commerce