Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1905-03-30
INCREASE IN GOLD SUPPLY
The Output in the Near Future May
Amount to Four Hundred
Millions a Year.


The statement published by our gov
eminent that English enthusiasts arr
looking for a future output of gold IL
the Transyaal of from 100000. 900 &c
Sl50,O0000 year is stimulating to The
Imagination, just 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. 900. This.
states the Wall Street Journal, is at the
rate OF S76,000.00O for the year. Last
years production amounted TO over SCI, =
OoO.o0 The largest production was in
1898, being s79.213. 600.
The prospect is. therefore. that the
production Of 1904 will nearly equal that
OF lSgS-in other words. will return TO
the normal yield of this region. Coolie
labor has just been introduced into the
Transyaal, and with this solution of the
labor problem there should be a contin-
ued increase in the output of the yellow
metal in the Transvaal. II the produce
tion should ever reach the enormous to-
tai OF $4,000 900 the effect on the BUSH
ness world can hardly be overestimate,i.
with Transvaal production last year
OF SCI 900 600 the worlds output of gold
amounted approximately to $780, 00.- |
600. An increase In the Transvaal pro-
duction in the near future TO s120. 000.- |
600 a year would lift the total annual |
product of gold in the world to the stu
pendous sum of 100000 900.
Even product of $500. 000. 900 a year
is an enormous addition 10 the worlds
supply of money Allowing about 25
per cent to meet the demands Of the arts
and sciences. that leaves 1925. 900. 900 to
enter into the various reservoirs OF
money. Inasmuch as the use OF gold in
The monetary systems OF the world is
low very largely as a reserve against
credit, II may be said that an addition Of
'225, 0e0, 600 to the worlds money sup
'ly means an added credit capacity Of
'ver 00,000,000. If. then. within two
IT three years by the promised increase
n the production of the Transvaal. the
worlds output Of gold is expanded TO
400 100000, it is easy 10 see how enor-
nous would be both the increase in the
upply of money and in the credit capae-
~ of the leading nations OF the globe.
Even admitting, as II is argued by
ome, that the increase In the gold sup
ly may ultimately work 10 the disad-
antage Of the business community
lther than to Its benefit; admitting that
le worlds stock Of money may be in
easing at too rapid rate and that the
scramble for immense
I'D reserves involves the danger of
elbow peril" akin to the silver peril
ON which the United States has only
Gently emerged; admitting that Il is
possible to determine definitely how
uch or how little may be the effect of
e imitation Of gold upon the prices of
mmodities, nevertheless. no one can
ubt for an instant that the enormous
tput Of gold which has been expert
eed in the last ten years and which
promised for years to come must have
odigious effect upon the business and
activities of the leading ma
ms of the globe.
As matter of fact. II may be doubted
lether even yet the markets have fully
Ilized the effect of the mony infia-
n which has already taken place. and
y certainly have not yet discounted
! effect of the money imitation which is
to take place.