The San Francisco call., 1908-09-27
GEORGE E. ROoERES PRESIDENT CONNER GAL
RA1TS & Cl1cAco FORMER DIRECTOR OF Tl11
Hr1rq. AND ONE Tl1J, TOREMCST AUTHORITIEJ
ON GOLD PRODvcTIGS13S;s GS13Ss, ia rx,,ss,v,,. o

It is one of the strange things about
gold that Il does not remain IN the re-
gfons whore it Is produced Europe
produces very little OF the gold stock.
yet It controls most OF 1t. Not only IS
the great bulk OF gold held IN Europe.
as the basis OF the financial systems Of
the great wealthy nations. but the capt.
talists Of that little continent control
most OF the producing sources
Go to Colorado or to the Klondike. 10
Africa or 10 Australia, to Korea or TO
Dakota, and 1t will be found that the
European capitals OF finance, which al
ways include New York IN such rela-
tionship. control the stock OF the great
mines. The gold flows 10 these centers
because these are the places where
business IS done. and gold is the yard
stick ana the balance which business
employs in its computations
n OLD has in the last 25 years really
had double burden to bear. Il
has crowded out silver. and new
supplies OF gold have been required to
take the place OF the vast quantities
of the white metal which once served
as basic money. Within very brief
period the world has gone from the
silver to the double and from the dou-
bic to the gold standard Today II IS
on the gold standard Silver has been
elbowed off the counting table.
Il might have been expected that the
century which saw gold assuming this
immense burden would witness an ap-
probation in COLDS value; that it did
not Is due to the better adjustments OF
money systems. the expansion OF credit
and the increase in gold production.
But this transition period Is passed.
The world is on the gold basis and the
food of gold goes on as never before.
The output OF the future will pile on
the present stocks. for practically no
gold IS lost The future must, then,
see continuous and perhaps an in
creasingly rapid depreciation in the
value of gold.
Producing gold Is no longer a mat
ter OF adventure and OF chance. It Is
an affair not OF the frontiersman and
the argonaut. but of the scientist and
the engineer. The chemist and the
geologist will determine at what rate
the widespread stocks which nature
still holds shall be yielded up TO the
needs OF man In the past, according
10 the best calculations that can be
made, the average cost OF an ounce
Of gold IN human labor and energy and
blood and exposure has been greater
than the value OF that ounce OF gilt
terins temptation. But in future this
will not be so. Gold production has
become factory affair; a great mins
Is an Industrial establishment
Low grade ores which three decades
ago would have been worthless are re-
duced by modern processes and the
trace Of gold they contain is extracted
at safe profit OF four or six or eight
per cent. OF rocks which may thus
be made profitable there are linitless
deposits. according 10 the geologists.
Ground which was once gone over and
worked OUT is being worked q Sec
ond time by the new processes with
vastly greater returns than before.
Placers are being worked out. indeed:
in California they are about exhausted.
and Alaska must take to quarts min
ing. and Is doing SO IN order to pre-
serve its rank. But the placers, after
all. are only symptoms; the rocks are
the ultimate source OF supplies
OF the grand divisions OF the earth
| Africa Is now nrst IN production Of
gold. and II increasing its output
faster than any other. Estimates OF
its production for the drat half OF the
calendar year 1908 assure that this year
will make a new record for that con-
tinent.
In 1907 Africa produced about s145.-
100000 of gold. This year II IS likely
to turn out $3.50. .ooo. 900; IN 1905 It added
s15S. 100000 to the worlds supply. The
African mines are likely TO 20 on pro-
ducing at rapidly increased rate for
many years. The labor troubles In
recent years, and the Boer war before
that. have given the African mines a
b record: yet despite these drawbacks
the production last year was greater
than ever before, and this year VIII
show another great increase Plainly
the time is not far away when Africa
will produce per annum more gold than
al the world did quarter q century
ago.
Australia, on the other hand. IS
showing q slow but steady decrease
from year to year. Oflcial figures on
its 1907 valuation are not vet pub
lished. but they will run close around
sS0.0oo.o0o. against $4,000. 900 In 1905.
SS5.ooo.0oo IN 1905 and sss,000,ooo IN
1904 The explanation-is that the bulk
OF the Australian gold now comes
from comparatively small number
of big mines, and In some OF these the
veins are showing decreasing richness
as they are worked out On the other