Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-08-04
THE GOLD IN THE COUNTRY
AN EXPLANATION BY DIRECTOR OF
THE MINT.
How Present Estimates Have Been
Made-Possibility of Error-This
Country Has It's Share.

Mr. Roberts, the director Of the mint. in
speaking of the probable modification of the
present estimate of the stock of gold in the
| country, said:
Some modification of the present esti-
mate doubtless will be made the result
of an extended inquiry that is being made
by this bureau and by Mr.. Muhleman of
the New York subtreasury, but the reduc-
ton will be small as compared with the
stock. The original basis of the treasury
estimate is a computation made by DR.. Lin
derman, director of the mint, in 1873. Gold
was then at a premium and not in gen.
eral circulation. He took the amount in the
treasury and in national banks and added
$40, 900 600 for the circulation on the Pacific
coast and 100000 for the holdings of
other banks and boards. in all Sl35, 000.OOO.
ITO this has been added each year the
coinage and the imports of domestic coins,
and subtracted the recoinage. the exports
and an estimated sum for consumption in
the arts The result is the current estimate.
Gold That Can BE Counted.
THE gold in the treasury and in the
tional banks comprises the only part of the
stock that can be actually counted. At the
date of the last reported statement by the
national banks, April %. 1900, their holdings
were $195, 7S9, S72. The treasury holdings
May l, were s426 1884, 81 the two items ag-
sregating 1922, $50 243. The estimate for
May l was $l,135 25, III, which left s42O.-
So,eD to be accounted for as held by state
and private banks, trust companies and in
safes. tills, pockets and boards. This is the
UNI subject to modification.
No account has been taken in the past
of gold carried out of the country on the
persons of travellers, it being assumed that
there was little of it and that all but an
lnappreciable amount was returned by in
otoc f,~aH- lows tlo h,,-.
has made a systematic effort to learn what
this movement amounted to by inquiries ad-
dressed to the steamship lines, money
changers at the principal ports and our
consus abroad. The replies indicate thai
gold thus carried out finds its way through
bankers to the principal banks of issue in
the several countries. The tourist agency
II Cook & Sons receives from travellers
from 100000 to S1.D,o0D per year, and
turns it into the Bank of England. About
$4,000 per annum is melted at Geneva
and In all net loss of $4,000 to s>Ja,0oo
is Indicated At the latter rate in twenty
five years the total would be S20,0o0.e0o a
sum that should be taken account of.
Gold Used in Industrial Arts.
AN effort has been made to arrive at
the present consumption of coin by manu-
facturers jewellers, dentists and others in
the industrial arts. Inquiries have been
addressed to about $1,000 firms and indi-
viduals and replies have been received
from 10 per cent of them. The returns in
dictate a total consumption of about s. $780,
100 in coin per year. Prior to 1893 the
bureaus estimate was never less than this
amount. but from 1893 it has been placed
at 81, 100000. The reduction seems to have
been an error. An additional allowance
of s2G00,O0O per year for seven years would
require correction of s14.O00.0OO.
Mr.. Muhleman of the New York sub
treasury has been diligent student of this
subject for years,and is OF the opinion that,
owing chiefly to errors made prior to 1885.
the estimate has been too large by perhaps
500. 100000. He attacks DR.. Lindermans
original estimate and argues that it was
s29.0O0,000 too high, and he has recently
made exhaustive investigation of i'm
ports and exports of coin and bullion since
1873. BY checking these from other sources
of information he is led to believe that at
times bullion and foreign coin have been
reported as domestic coin, which would
carry error into the estimates of gold stock.
He thir.-ls these errors in reported exports
and imports may have increased the esti-
mates by much $io.00o,0oo. Mr..
Muhlemans tables are very elaborate and
will require considerable time for review.
Some of his corrections doubtless will be
accepted and the amount finally deducted
from the previous estimate as a result of
the revision probably will be between SJO,
0000e0 and S100O0O.VoO.
"In my opinion there should be a much
more extended inquiry before the figures
are finally fixed upon, as the result of this
investigation Will be the basis of calcula-
tons for a long time to come. These
changes spread over the estimates for
twenty-five years and chiefly prior to 1885,
signify nothing as to the available re-
sources of the country They alter the
calcula tons as to the hidden boards, but
not a part of the active stock and not
even available in time of need. but boards
increase instead of diminish at such a
time. The reductions do not alter the
figures for the great increase in our stock
in recent years. but rather emphasize it,
for these additions are made larger in pro-
portion of the total stock. The estimate
for the stock on August / was 81 ,0:53, u.s.
500, and if the entire 500 100000 was de-
Quoted the stock would remain 60 per cent
above what it was four years ago.
The Flow of Gold.
1.-The inquiry as to the exact stock Is
of value for statistical and comparative
purposes. not for the purpose of determin-
ing whether or not the country has gold
enough A country on the gold basis gets
the share of the worlds gold which its
proportion of the worlds business brings
to it. That share is controlled by the laws
of trade, not by governmental regulation.
AS inquiry into the share which each coun-
try holds is like an inquiry to how much
of mans blood is in his right arm 1t
may be depended upon that the amount is
what the requirements of that member
demand Our great gain in gold in recent
years has come because we could use and
position in the worlds trade has en-
abled US to command it"