The Washington herald., 1906-11-25
.AREUSING MOREGOLD
Consumption in the Arts
Takes $35,OO0,OOO Worth.
DEMAND FOR YELLOW METAL
Prosperity the Cause of an ExtraOr-
dinary Output of Gold JeweIFy-Ef-
NEUTRALITY-SUSPICIOUS. Bags Also De-
pIcted the supply of Gold.

Market-MOuchOiF Bags Also De-
pIcted the supply of Gold.
Few people realize that the Americans
are becoming a jewelry-loving people. yet
it is a fact that their bent for personal
ad0TRment is to-day so highly developed
that the enormous quantities of precious
metals required in the industrial arts and
the consequent proportionate withdrawal
OF the metals from the currency and from
deposit vaults. The Increasing use Of gold
especially is presenting problem that is
assuming not only interesting but serious
proportions. says the New York Evening
Sun.
The problem is not novel nor without its
economic basis and explanation, for it is
as old as barter itself, but perhaps never
before has currency been SD severely taxed
or the stock OF gold so threatened with
depletion.
The manufacture Of the basal metal into
non-cHrrency media in this country is to-
day going on at the rate OF about 5,oOo,-
00O a year The subtraction of this enor-
nous amount OF gold for manufacturing
purposes is bound. experts say. 10 have a
more or less adverse effect on circulation.
Not only that, but 10 also does away with
four times that amount Of credit. In
short, the actual gold going into the lux
uries OF the American people is withdraw
ing from financial operations at least
100000
The struggle 10 keep enough money in
circulation has been a constant one. Many
causes tend 10 bring about a strlngency
that has TO be arufcially relieved.
Whether the time will ever come IN this
country when banking officers will be
compelled 10 restrict the amount OF pre-
cious metals used in the arts no expert
would be willing 20 say The present
problem. they declare, although it has
grown formidable, will adjust itself along
natural lines unless some uut0Ward event
happens that Will make it necessary for
the government 20 put its hands on every
ounce Of gold or silver Tor imme-
date use.
Withdrawal OF Gold Serious.
The difficulty in showing the relation
between the consumption Of gold IN the
arts and the contraction of currency and
the raising Of rates is due 10 the fact
that all these phenomena are often coin
cident rather than casual or consequent
tial. Last year saw extremely high rates
and at the same time a recOrd-breaking
withdrawal OF gold for manufacturing
purposes Financial experts differ as to
the degree IN which one was interdepend-
ent on the other. Yet that they were
somewhat interdependeut few care TO
deny. And still fewer deny that should
the present subtraction Of the metal from
bullion and currency go on at the pres
ent rate, or any increased rate, the rela-
ton would not only become more ap-
parent. but also present a situation that
would call for some pretty stringent ac-
ton
The remarkable Increase In the use of
geld in the Industrial arts. however. in
dicatss the present prosperity Of the coun-
Try. Should that prosperity for any rea-
son cease OF diminish. the manufacture
of luXuries would taIl of TO a greater
or lesser degree. thus insuring aUtomati-
cally the operation Of the economic law
OF supply and demand and permit
greater surplus TO accumulate IN the va
riCus institutions OF deposit.
At present. however the demand for
gold for manufactures goes on merrily
and al a rate that vii mean the con-
sumption Of an amount approximating
S35, 900 at the end OF the calendar
gear. OF this great amount so large a
proportion is Isad ia or near New York
city that figures for the metropolis are
practically figures for the country. About
one-tenth OF the gold used in manufac-
lures is supplied by Philadelphia and
possibly half that quantity by Western
cities In other words, New York issues
fully s. per cent of the gold bars needed
In the arts.
Great Demand for JeweIry.
The great consumption Of gold in the
arts will keep up as leng as prosperity
continues, or until it Is no longer fashion
able or pleasant 10 wear jewelry. In
case Of panic, when luxuTies must wait.
there is an appreciable slump in the use
OF the precious metals in the arts. When
a long-coutinued public calamity. such
as war, drives prices up, there is a
backward movement and gold in all sorts
Of shapes is brought back TO the assay
Office to be converted into coin. This
occurred shortly after the civil war
In New York, and much rich jeweIry and
plate found its way to Wall street But
this return OF the gold would have little
effect in the money market. and cannot
be depended upon in times of emergencies. /
one of the causes Of the present remark
able use OF gold in the arts is the short
sleeve fashion for women. So popular
have bracelets of all shapes and descrip- /
tons become that jewelers. have a hard
time turning cut enough. Il is on fashion /
IN general that the manufacturers OF
jewelry depend. With increasing pros /
perity come numerous new forms and /
settings to tempt those who believe that /
they add materially to their property, /
and at the same time to their personal /
adornment by investing in jewelry.
Just at present il is highly fashionable I
to be decked out IN things Of gold and 1
women and men. A number /
Of the largest jewelry manufacturing con- |
cern in Newark, \. J., said that they /
were turning out mOuchoir bags and solid /
seal rings in enormous quantities. Busi- |
ness, said this representative, had never |
been so good 1t was fully double that /
Of 1903, and g per cent better than 1905, |
the banner year in the jewelry trade
People not only want lots of jewelry,
but they want the best in the market. The /
quantity sold is not so much an indiea- /
ton OF good times as the quality de- /
manded, say jewelers.. Large dealers in |
jewelry say they can tell the difference |
between Fasteners and NVesterners IN this /
country by the demand of the latter for /
show and of the former for quality,
The fashion to have no pockets in wom-
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