The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1904-08-03
Where Has the Sold Gone?

Who're Has The Gold Gone?
TIE Wall Street Journal recently
declared snat the increase IN the
production of gold has been nothing
less than marvellous, In 1873 the
worlds stocg Of gold was estimated
as 81, 2o9, 500, 900. On January /, 1903,
the worlds stock Of gold was estimat-
Sod at s., 3S2, 900, ,000. Here is gain of
~ 000, 900, coo in thirty years. The
Wall Street Journal few days ago
published statistics showing that the
! gold production since the year 1900
had amounted to SIS, 900, 400, 900. In
I ali Che preceding years since the dis
coTery of America by Columbus the
total production was 2,A5o, S00,o0o.
Moge gold has been produced since
1891 than In the three centuries preced.
ing 1900. OF the total production OF gold
since the discovery of America, nearly
one-haE OF it has been mined IN the
LAST thissy years, and OF this amount
80 per cent. was produced by the Uni
ted States.
But. while the enormous produc-
sion Of gold may we'll amaze Us, the
nroblem OF It's distribution puzzles as.
Where has all the gold gone to that
mas been produced since the Lydians
began to coin money? The worlds
production of gold since 1873 accounts
for ail except about 800, 600, 900 of the
present stock of gold in the world,
and the production from 1850 to 1919
was more than double SSOO, OOUsooO..
Where, than, has all the gold gone TO
that vas mined before 1880? Apparent
there isno trace OF it anywhere,
unless il be found in the art objects IN
which gold is used.
sThe amount of gold that goes
into the arts and sciences varies each
wear, and It's amount is by no means
aasy 60 determine. The Director or
She Mint estimates that In 1902 the
industrial consumption Of gold amount
ed 10 S75, 764. 400. The total produc-
sion OF gold in that year was about
S2o5. 000, 900, so that the use Of gold
the arts and industries amounted
so little over % per cent. Of the
AMOUNT mined. Accepting this per
eentage as a basis for calculation, 1t
would appear that of the total produc-
ton Of gold from 1892 to 1908, amounts
ing to SO, ,985. 181, 900. the proportion
that went into the arts and industries
was %, TAG, 295, go. This leaves bal.
ance Of SS, 23S,885, 100, which should
appear, it would seem, In the records
sof the worlds stock Of gold. But, as
matter Of fact, the total stock of
gold in the world on the first Eof jan
nary. 1908, was, as has been stated,
So. SS2, 500, coo. This leaves 50, S56. 2S5. :
750 Of which there appears to be NO
trace.
Has this vast wealth been lost in
the past four centuries, or is any large
proportion Of it still in. existence, a
ridden reserve upon which drains
may be raade in times of special de-
nand2 Various answers, it IS evident,
might be made to such an inquiry.
Professor j. Laurence Laughhn, OF
Chicago. last year hazarded a guess as
sa the disappearance OF this large sum
Of gold, which he estimated IN 1901
as amounting TO 81, 500, 000, ,00o, but
which, on the basis OF the estimate
which We have made for 1908. should
aoe more than 81, 800, 600, 900. Professor
Zanghlin suggests that this immense
sum is largely held in reserve by
great financial houses in Europe, and
soy many other private bankers, the
character Of whose business does not
require them to make public reports
of their specie holdings.
If Professor Laushlin's guess is
correct, this is fact of enormous I'M
portance One thing is certain, that
the amount of gold in the world must
be very much larger than the esti-
mates made by the Director of the
Mint STOW. In view of the immense
needs OF the various governments OF
the earth during the next few years,
and OF the efforts that are being put
forth to put China and Mexico on the
gold basis, the probability that there
IS more gold in reserve than appears
In the records should inspire increased
confidence. !"