The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-05-28
LET THE DELUGE COME.

| Expert authorities are discussing
the deluge of gold in America and
wondering what will be it's effect. If
the increase of gold continues there
can be but one result: widespread and
general prosperity. Most of the panics
| i'm the world have been due to the
falling volume of metallic money.
Most Of the periods of great prospect
| ty have been largely due to the in
crease in the production of primary
money. 1.-THE miraculous worldwide
uplift which followed the discovery
of gold in California in 1S4S," was
due to the great additions TO the
money of the world Writing of the
coming "deluge of gold,' the Manu-
facturers' Record says:
| For the 10 years ending with 1850
| the average production of gold Tor the
world was $36,000.0 900; for the hVe
wears from 1851 to 1855 the average
was $132,000,000, and the output con-
tinued at about this rate until 1917
when there was a gradual decline to
I1S9O. Between 1891 and 1895 the
average rose to $203, 1000 against
an average of $1O5,000,000 for the
nreoeding 10 years. After 1895 there
was a gradual increase, with but slight
fluctuations, until the worlds produc-
ton of gold is now about $35O,OOO,OOV,
promising during 1906 to reach posi-
bIv $500, 600, 900, and with indications
that point within a few years TO
steady output of upwards of $780,
100000 a year.
'"The total production of gold for
the entire world from 1893 to 1904,
inclusive, was about $11, 100000,
of which 80 per cent, or $3,3OO,OOO,-
600. was the product Of the last Ia
wears since 1891. In that 14-year
neriod the world produced one-third
as much as it had done in the -FOUR
preceding centuries. This rapidly
swelling output, however, is fast gain
ing over the average of the last IA
years That average was about $50
600. 600 whereas we are now running
at the rate of $3.50, 900, 900, and posi-
blv this year $500, 100000, and likely,
as stated. to be 100000 within
the next few years.
Taking the wonderful story of gold
production as his text, Mr.. Henry =.
Nicholas i'm Public Opinion points out
| that during the first half of the nine
| teenth century the total production OF
gold was $787,000,000, while during
| the second half it amounted to So
| 900 600 600. In 1896, for the first
time in the history of the world, the
production Of gold exceeded $500, 000,-
| 600. while in 1908 the output was
about $3.50. 600 600, and it is estimated
| that 1905 will probably show $40O,-
| O0O. 900. with rapid increase prom
! Used for the coming years MI
| Nicholas says:
""The full significance of such
a huge increase in the world
supply of money, following the
| enormous production of the last
10 wears. is difficult to gauge. Dur
ing the first four years of the
present century the total has
reached the stupendous aggregate
of 2OO,O0O,O00 and by the end
of this year will be about 81 800,
10000. compared with $520,0OO,-
600 as the total output for the
sixteenth century, $62S, 100000,
for the seventeenth and $1,3OS,-
600 600 for the eighteenth CEN
tury. To say that the production
of gold since the opening of the
twentieth century has been UNI
| precedented is putting it mildly.
The output for many years to
come promises to be at rate
! greater even than during the last
four.
If the Democratic party made any
mistake in 1896 it was geographical
one. It did not foresee the marvel
Gus "deluge of gold" that has come to
! give a stimulus to industry and bust
ness But it wisely declared that gen
eral prosperity could not Sbe expected
until there was an increase of primary
money. 1t saw plenty of unused silver
and as the only method in sight for
| increasing the use of primary money
! it favored the free coinage of silver
at the ratio that had always prevailed
| in the United States 1t did not favor
the free coinage of silver because it
cared to "do something for silver" as
the protectionists would have favored
| it, but because it saw that there would
probably be no return to general pros
perity until there was an influx of
money in circulation. Every one of
| it's contentious was established as to
the necessity of more money and the
| cumulative theory of money. The dull
times continued with increased severi-
| ty under Mckinley as under Cleveland
until the gold began to pour in from
Alaska and South Africa.