Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-09-09
TRANSVAAL GOLD.
Vast Increase in the Worlds Fund Of
Yellow Metal.

From the Wall Street Journal.
The statement published by our govern
ment that English enthusiasts are looking
for a future output of gold in the Trans
vaaI of from S120, 600, 600 to $50 900, eco a
year. is stimulating to the imaginat ton,
lust as the realization of this prediction
would be stimulating to 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 s3S, 600
This is at the rate of $76OOOO0O for the
year. Last years production amounted to
over SCI 100000 The largest production
was in 1898, being SIS, 213, 600. 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 re-
gion. Coolie labor has just been introduced
into the Transvaal, and with this solution
of the labor problem there should be
continued Increase in the output of the yell
low metal In the Transvaal If the pro-
duction should ever reach the enormous to-
tai of $3.50, 1000, the effect on the bust
ness of the world can hardly be overesti-
mated With a Transvaal production last
year of $61 600, 900, tse worlds output of
gold amounted approximately to $3.50 Oo0,-
600. An increase in the Transvaal produc
ton in the near future to S120, 600 900
year would lift the total annual product of
gold in the world to the stupendous sum
of 500, 100000.
Even a product of $500, 600 a 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, 100000 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 a re-
serve against credit. 1t may be said that an
addition of 1925 90, 600 to the worlds money
supply means an added credit capacity of
over 81 ,OO0, 100000. If, then, within two or
three years, by the promised increase in
the production of the Transvaal, the
worlds output of gold is expanded to
500. 200, 600, it is easy to see how enormous
money and in the credit capacity of the
leading nations of the globe.
Even admitting, as 1t is argued by some
that the increase in the gold supply may
ultimately work to the disadvantage of the
business community rather than to its
money may be increasing at too rapid a
rate, and that the international scramble
for immense gold reserves involves the
danger of yellow peril akin to the sill
yer peril from which the United States has
only recently emerged; admitting that II is
impossible to determine definitely how
much or how little may be the effect of
the initiation of gold upon the prices of
commodities nevertheless, no one can
doubt for an instant that the enormous
output of gold which has been experienced
in the last ten years. and which is prom
fsed for years to come, must have pro-
digious effect upon the business and specu-
lative activities of the leading nations of
the globe. AS a matter of fact, 1t may be
doubted whether even yet the markets
have fully REALIZED the effect of the money
imitation which has already taken place.
and they certainly have not yet discounted
the effect Of the money imitation which is
yet TO take place.