The Portland daily press., 1900-11-03
tbs GRAyEYARDs OF GOLD.
vast Quantities That Disappear In In
dia and China,
New York SUM-

New YORK SUM-
Gold for various reasons disappears
rapidly in all countries, but nowhere else
does it pass out OF sight so rapidly as In
India and China. SO rapidly does the
precious metal vanish in these two orien-
tai lands that they have come Ito be
known as gold graveyards. speaking OF
this curious characteristic, Thomas Jeffer-
son Hurry of the American Institute oil
Mining Engineers. In his recent pamphlet
on the gold production OF the world,
says;
"a yellow stream flows into both OF
these countries year by year. There Is
no end to this stream; IL is always How
ing. The money does not resppear In
the Indian banks. The soil Of India alb
serbs the golden flood just as the sands
of the desert swallow the overflow OF the
great rivers. When 10 Is remembered that
this work OF absorption has been going
OIL with little interruption for tan GEN.
turtles, and still continues under our eyes,
1t is easy to form an idea OF the immense
treasures that are hidden In that country.
"An this gold remains sterile, and
consequently Is lost. 1t is absurd to say
that it Is brought into monetary oircula-
ton or that 1t passes through the hands
Of the native goldsm iths. 1t Is disssmi-
mated In innumerable places, from which
it never energies.
'It is estimated that in the regency OF
Bombay alone there ara 12,0O0,0OO gold
soyereigns boarded Hundreds upon hum
dreds OF millions of dollars lie In the
hiding places of the famine-stricken land.
All classes are afflicted with the incura-
BILE habit of boarding gold The splendid
Maharajaks have become shrewd enough
to use banks of deposit, but there is still
barbaric display of jewelled idols In the
strong rooms and OF golden vessels In the
Princes apartments. "'Eysn che gods
of India remarked a writer in the
Courier des Etats Unis, ARE very fond of
gold. They whistle for 1t through the
Inns OF their priests. Obedient to the
divine call, 1t comes rippling from all
points, until It reaches the sacred parnis.
mIt aCcuulates In the subterranean pas
sages of the temples, to which the priests
alone have access, Thence it overtiows
and takes it's place like proud conquer
or upon the affairs, where 1t shares with
the men 1t has bewitched.'
ut seems curious that while half the
world is engaged in an eager search for
gold the tseming populations OF India
and China devote most OF their energies
to keeping IL out of uEe and circulation =
But India and China are not the only
countries which absorb gold without ever
giviag 1t back again. As matter or TACT,
in all countries there is tendency on the
part of coined gold to get out Oh sight
and stay hidden. This is subject
which has occupied the students Of
finance in all lands, and there have been
many analyses Of the different causes for
the disappearance of gold, Yet, with the
most ingenious explanations, the prob
lem always has remained very interest,"
ing one. Our own treasury officials have
given 1t a good zeal of study.
OF the vast amount OF gold that is an
nuallJ mined and pnt into circulation,
there always remains heavy balance
unaocounted for, even after all allow
ance has been made Tor use in the arts,
for loss by friction and for what would
seem fair amount to charge to loss by
fire, by being sunk in deep waters and
by boarding.
Our treasury officials. according to Mr..
Hurley, estimats that there is used In the
arts annually, In gliding, In electropla t.
ing and similar operations which wit h.
draw gold from possibility Of other use,
of gold.
q Then there is the use of solid gold in
jewelry and plate. This In reality IL
not an actual withdrawal Of gold, for Is
can be remelted and coined. Still, the
handling OF the metal in the process Of
manufacturing these articles and the
handling of them after they are made is
a source of very considerable loss from
friction. under which gold, because or its
softn sss, loses weight sometimes with
startling rapidity. 1t Is estimated that
gold for. thess purposes is used every year
to tho amount of fully $50, DOC, 900. This,
with the amount, $4,000: 600, used in the
arts, makes an annual total of $60, 000, 600
in these two directions alone. Then
there is to be adued the uncertain and
smaller, yet by no means inoonsiderAble
amount OF gold lost very year by lire,
shipwreok and carelessness.
'Since the resumption of specie pay
ments In 1879, says MIR. Hurley, treas
ury officials estimate that $500, 000, 900 in
gold has disappeared from circulation.
The Bank of England Is said to be poorer
by, 500, 900, 0)0 in gold than 1t was In 1897.
France reports an immense decrease In
gold coined and in reserve, and other
countries have similar stories to tell. An
inquiry recently set aroot by our Treas
ury Department showed that the hold
ings in gold OF the national banks on
April 20 were $l95. 769, S72. Inc treasury
nOlOlDRs on may Wbfo S4Ios5oosofAf kuS
two items aggregating S622. 1929 The
estimate for May was 8, 043, 625, lit,
which left $50, 000, 600 to be accounted for
as held by state and private banks, trust
companies, and In safes. tills, pockets
and boards.
"a large amount of gold is taken out
of the country by travellers. One tour
list agency receives from travellers from
500, 900 to $3.50, COO per year and turns it
into the Bank OF England. About $40, 600
per year is melted at Geneva, and in all
a net loss OF from $500, 900 to $500, 600 is
indicated, At the latter figure the total
In twenty five years would be $50, 600. 900.
Inquiries made of 5000 firms and indi-
viduals indicate total consumption of
coin by manufacturers, jewe Hers, dent
lists, etc of s., SOC, 900 per year. The off
ciaI estimate of the entire stock of gold
in the country was 1908, 51S, Ss2 at the
beginning or August last.
MIR. Hurley says that all the in dioations
are that tha worlds output Of gold viii
continue to increase for many years to
come, even over the vast amounts that
are being turned out at the present day.
Not only, he says, are new processes
hpf 81