The Washington times., 1905-04-09
GOLD IN PLENTY
FOR UNCLE SAM
This Years Product Expect
ed to Break Record.
FEAR VALUE MAY DECREASE
Treasury Official Shows That More
Coins Mean Greater Circula-
tion of Money.
FEAR VALUE MAY DECREASE

According to experts there will be a
greater production of gold in the United
States this year than ever before in the
history of the country. Reports from Ne
vada tell of rich veins heretofore undis-
covered, and indicate enormous outputs.
Nevada threatens to outstrip all other
States in the production of gold, and
there is 4 general Increase in the amount
mined in. every mineral district in the
country where the yellow metal u
found.
! This outlook hts caused {. great deal OF
comment in certain financial circles as
to the effect the Increase will have upon
the value of gold, and whether the
standard will be lowered. Experts pre-
dict a production anywhere from $780,
| 10000 to $50. 600 worth. of gold this
year and next, and q great many peo-
pie. with these figures in mind. feel that
The result will be a depreciation in the
value of gold.
Fear Not Well Founded.
This fear IS not well grounded, accord
ing to Treasury officials. There can
hardly be any direct decrease in the
value OF gold. they say, end hence the
standard cannot be lowered
Nevertheless. 1T is true that any large
Increase in the production of the yellow
treasure will affect the value of gold to
the extent Of raising the prices of COM
modities. and thereby necessitating the
use OF more money to purchase things
which now come at low prices
Director Roberts. OF the Mint Bureau
said yesterday this was the only way
an over reproduction of gold could effect
its present value.
"A great increase in the output Of
gold, said Mr.. Roberts. means the
coming of n proportionate number OF
coins. There is no limit set by law upon
the amount Of gold which may be put
in circulation. In the years when gold
was plentiful there has been greater
coinage than In the years when gold
was not SO plentiful. Therefore, If
there is any unusual output this year or.
in the future, the number OF gold pieces
VIII be increased proportionately.
No amount Of gold production could
lower the value of q money so long as
the law says that gold piece shall con-
s1st OF so many grains.
Increase of Circulation.
1T being true that an unexpected out
put of gold will result in thescoinage of
more gold, II necessarily follows that
there will be more money in circulation
The banks will have more money to
loan, and currency will be more easily
secured. The consequence of this would
be that prices will increase, and it
would take more gold to purchase a
commodity than before the money was
SO plentiful.
There is no immediate danger of such
thing happening, and it may not oc-
cur at all The entire matter hinges
upon the amount OF gold produced A
small increase would make no differ
ence, but an unusual over production
would have the effect referred to.
In 1902 the production or gold III the
United States amounted to $50 600 000
while in 1903 the output was valued at
S13 sol, 700. The figures for 1904 are not
yet available, but they will show large
increase. possibly greater than in 1902.
which was a very prosperous year IN
mineral districts.