The Colfax chronicle., 1904-11-12
INCREASE IN GOLD SUPPLY
The Output in the Near Future May
Amount to Four Hundred
Millions Year.

The statement published by our gov
ernment that English enthusiasts are
looking for a future output of gold ir
the Transvaal of from $120. 1000 900 tt
$150, 100000 year is stimulating to tht
imagination, just as the realization oi
this prediction would be stimulating tc
the speculation and business of the
world. In the first six months of this
year the output of gold in the Transvaal
amounted to about $3S.000.000. This
states the Wall Street Journal, is at the
rate of $76,000,000 for the year. Last
years production amounted to over$61, :
100000. The largest production was in
1898, being SIS, 9,213,00O.
The prospect is, therefore, that the
production of 1904 will nearly equal that
OF 1S9S-in other words, will return to
the normal yield of this region. Coolie
labor has just been introduced into the
Transvaal, and with this solution of the
labor problem there should be contin-
ued increase in the output of the yellow
metal in the Transvaal. II the produc-
ton should ever reach the enormous to-
tai of $120. 1000, 900 the effect on the busi-
ness world can hardly be overestimated.
With Transvaal production last year
OF $1,000, 900 the worlds output of gold
amounted approximately to $3.50, 0,000,-
900. An increase in the Transvaal pro-
duction in the near future to $120, ,O00,-
600 year would lift the total annual
product of gold in the world to the stu
pendous sum of $500, 100000
Even a product of $500, 600. 900 year
is an enormous addition to the worlds
supply of money. Allowing about 25
per cent to meet the demands of the arts
and sciences. that leaves $225, 900, 900 to
enter into the various reservoirs OF
money. Inasmuch as the use of gold in
the monetary systems Of the world Is
now very largely as reserve against
credit, it may be said that an addition of
$225, 100000 to the worlds money sup
ply means an added credit capacity of
over $1,000, ,000. .000 If, then, within two
or three years. by the promised increase
In the production of the Transyaal, the
worlds output of gold Is expanded to
$400, 100000, it is easy to see how enor-
nous would be both the increase in the
supply of money and in the credit capac-
ity of the leading nations of the globe.
Even admitting, as it is argued by
some, that the increase in the gold sup
ply may ultimately work to the disad-
vantage of the business community
rather than to its benefit; admitting that
the worlds stock of money may be in
at too rapid rate and that the
international scramble for immense
gold reserves involves the danger of
yellow periI' akin to the silver peril
rom which the United States has only
recently emerged; admitting that 1t is
impossible to determine definitely how
much or how little may be the effect of
the imitation of gold upon the prices of
nevertheless, no one can
1oubt for an instant that the enormous
output of gold which has been expert
snced in the last ten years and which
IS promised for years to come must have
'rodigious effect upon the business and
peculative activities Of the leading ma
ions of the globe
As matter Of fact, it may be doubted
whether evenyet the markets have fully
ealized the effect of the mony infla-
ion which has already taken place, and
hey certainly have not yet discounted
he effect of the money imitation which is
ret to take place.