Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-12-23
INCREASE IN GOLD SUPPLY
Four Hundred Millions a Year Nav o.
the Output Ere Lono.

me statement published by our govern.
Hleht that English enthusiasts are Ioosi1,
ioi d iH'u re output of gold in the franz
vaal OF from $40, 100000 to sISo coles
year is stimulating to the imaeinsti,a
Just as the realization of this predc;,,s
WOULD be stimulating to the sp.cIlatior
ana business of the world In the .irs,
SIN months of this year the output of soS
~ n me lransvaal amounted 10 about a.
VOWO This is at the rate OF 81 es'sa
Tor the year. Last years producton
amounted TO oyCl S6l 900 0Ju. The Isr,.SS,
production was in 1885, being SO 2l3eo
me prospect is, therefore, that the pro.
auction of 1904 will nearly equal Thai d
Ioso-ln other words. will return to the
normal yield of this region. CooIie lahor
mas Just been introduced into the Trans
vaal, and with this solution of the IalOr
problem there should be a continued IN.
crease In the output of the yellow metal
IN the Transvaal. If the productOp
should ever reach the enormous total 3.
Sl2o,O0VWO the effect on the business word
can hardly be overestimated With
Iransvaaf Production last Year Of sslN.
wv the worlds output of gold amounted
approximately to $3.50. 100000. An increase
IN the lransvaal production in the near
future to $40, 100000 a year would lift ths
total annual product of gold in the world
TO the stupendous sum of 800. 0O.dV0
Even product of $3OO0O0,O0O a year
an enormous addition to the worlds SUP.
ply of money. Allowing about % per cent
10 meet the demands of the arts and
sciences. that leaves sos 900, 600 10 enter
into the various reservoirs of money Ia
asmuch as the use of gold in the mon
etarE. systems of the world is now very
largely as a reserve against credit. il
may be said that an addition of ae355,onHa
TO the worlds money supply means an
added credit capacity OF over 81 .Gel.elel
III. then. within two or three wears. by the
promised Pr, increase in the production &
fh.ar ~
Is expanded to 500. Goo. 0J0 il is easy TO
see how enormous would be both the in
crease in the supply Of money and in the
credit capacity of the leading nations Of
the globe
Even admitting. as it is argued BY
some. that the increase in the a9ld sup
ply may ultimately work 10 TIM disad.
vantage OF the business community raih-
er tran to its benefit: admitting that the
world s stock of money may be in
ccreasing at too rapid a rate, and that me
international scramble for immense gold
reserves involves the danger of ''yel-
low peril akin to the silver peril from
which the United States has only r.
Gently emerged, admitting that 1t is nd
possible to determine definitely how much
or how little may be the effect OF the
imitation of gold upon the prices Of com !
moditieS. nevertheless, no one can doum
for an instant that the enormous ou'pM
Of gold which has been experienced Y
the last ten years. and which is promisee
for years to come must have prOdlglor
effect upon the business and specuarN
activities of the leading nations of "
globe.
AS a matter of fact. it may be dounh
whether even yet the markets have fu2
realized the effect of the money infiatie
which has already taken place. and tne
certainly have not Yet discounted the e..
feet of the money imitation which is ye
to take place.