Evening star., 1901-11-23
What Becomes of the Worlds Sup
ply of the Shiny Metal.
RUSSIA HAS ENORMOUS STORE OF IT
Five Billion Dollars Worth Hidden
Away in War Golfers.
SHE WANTS MORE, TOO

Nrltteh Tor Ihe Evening Star.
Whenever an attempt is made TO foot up
the known production OF gold from what
records are available, it is found that. after
counting all coin and bullion and including
estimates Of gold used in various Inanufac-
lures, there is stu missing some five ba-
lions OF dollars worth OF the yellow metal.
an amount equal TO the present worlds
supply of coin and bullion. Now II has been
estimated that, owing to the laws of differ
ent countries which put a tax on the pro-
duct Of gold mining and the consequent
failure OF mine owners to report their fun
product, together with other causes, fully
as much more gold is in the world as that
missing from the reports OF gold production.
The first five billions mentioned is generally
charged up to loss by accident or abra-
sion, but where is the second five billions OF
the worlds gold which has been produced
but not reported on?
o; According TO a weli-known Russian OFF,
cial, with whom the writer has acted in a
confidential capacity. the world missing
gold is hidden away in the Golfers OF Rus
sia's war fund, and her purpose in secret
ing this wealth is not that she may be pre-
pared for war. but that. when she has con-
troll of the worlds money she may dictate
terms to all nations OF the earth.
When the time is ripe" said he. there
Will some day come a financial earthquake
llldl VIII SHdht 10 littlI lOulluallbllS az
superstructures. and all nations. industry
and commences and all that have been built
upon credit and every country lacking IN
natural foundations of the strongest VIII
go to the wall, L know but two countries
strong enough i'm resources TO stand under
it-Russia and the United States. Russia
Will be ready for It, because she has bill
lions of gold stored away, and the United
States is too young and vigorous TO go
down even under the system of credit cs-
tablished for purposes Of development"
His Grandfather's Idea.
There are many who Will doubtless ridt-
cuIe this statement. or at least many VIII
doubt that Russia has such a large secret
war fund. but the official quoted has stood
for many years in a position which would
inform him of all finance plans Of his gov
ernment. Indeed. he is himself the grand
son of one Of Alexander the Ffrsts minis
ters and he claims that ii was this grand
father who formulated the plan which Rus
sia has been working on secretly for more
than three-quarters OF century.
1t may seem strange that an American
should learn of these things, but the
writer enjoyed the confidence Of the Of
fetal to the fullest extent, The acquaint-
ance began some thirty years ago. when
a Russian fleet brought the Grand Duke
Alexis and many distinguished officials on
a visit to this country, and in recent years
it has been strengthened by long period
of residence In Russia. For years this gen.
closely and had watched everything bearing
on the finances and commerce OF the
world. On his first visit to this country he
became particularly interested in the land
grant system, which was then so rapidly
gridironing the west with railways and
filing the country with homesteaders. He
often discussed the problem in relation TO
Russia's great wealth of lands and the pos
sibilities of developing these under similar
laws and conditions. From time to time
tried to learn his views Of Russian credit.
and whether he thought that Russia could
secure from Germany, England and France
such loans as were then obtaining for
our development. To All this he had one
answer-that the United States and most
of the countries of Europe were building
up an enormous superstructure of industry
and commerce on a foundation Of credit
as treacherous auicksand. He felt that
the system of credit was certain to- result
in the wrecking Of all the countries OF west
ern Europe. because they had no adequate
and real foundation under it, but that the
United States might pull through by rea-
son of great resources OF undeVeloped
wealth. At the best, however, he thought
that our present system would cause such
a concentration of wealth In the hands Of
a very few that our form of government
would undoubtedly be subverted. You are
paying too dear for your whistle" he often
quoted.
On Safer Lines.
Russia however, is proceeding on much
safer lines. Her progress may seem slow,
other country. 1t is like the movement OF
a glacier. which. for many years, moves
by inches, until suddenly it sweeps every
thing before it. She is fortunate in hav-
ing government which cannot be hurried
or called to account year by year. Russia
has been governed along these strict lines
since the days of Peter the Great, and her
war fund policy, adopted at the close of
the Napoleonic wars, has never been varied
to this day. She is advancing toward q
financial, industrial, commercial and mill
tary supremacy"
One night we fell to talking about the
days of his grandfather, and We spoke OF
his ministry to Alexander l. Thus the
story of the war fund plan came out:
My grandfather lived through the wars
of Napoleon which devastated Russia, while
her share In them assisted in his downfall.
The tremendous events of those days made
ii plain in my grandfathers mind that, in
the near future, Russia's real power and
stability must depend. not on her wealth
or the extent of her industries or commerce,
but on the actual money she could control.
He decided that gold alone would become
the only recognized redemption medium.
and recent history has proved the wisdom
of that thought. England alone, Of all
countries, was wise enough to profit from
the possession of gold at the close of the
Napoleonic wars, and she secured her in
dustrial and commercial lead because she
had money, while the continental powers
lacked it. Then 1t was that this shrewd
minister of AleXanders formulated the
present financial policy of Russia.
Her Present Policy.
First. she was to take one-half the prod
uct of Russian mines in gold, silver and
platinum and convert 1t into gold and store
1t away. This half has never been en-
braced in Russian mint or other reports Of
production. As Russia was for many years
the great gold-producing power Of the world
it is easy to see what effect this policy
would have and what its results
Second, she was to lay away one-half OF
all the church revenues after converting
them into gold. The Greek Church, OF
which the car is the head he is Of the
state is the custodian of this fund. Not a
rouble OF this money has ever been appro-
priated for any purpose, no matter what
demands there might be. II has steadily
accumulated for over eighty years
Cold gold and nothing but gold, is what
Russia wants. and what she is getting.
This secret wealth is, OF course. drawing
no interest The time is near when the
world must realize what Russia has been
doing. and when it does Russias power
will be made manifest and her supremacy
80 r. ~