The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-05-29
THE ABSORPTION OF GOLD.

We have referred heretofore To The
enormous production of gold and TO the
apparent disappearance Of that gold
In the ten year period ending Will
1910 the world 5 total gold production
amounted 10 a little more than $3.50,
100000. What has become of it, There
does not seem to be any corresponding
increase Of gold in the banks. in the
Sub-treasurics, or in sight anywhere
than there was before. 1t is stated
that more than 6fty.one per cent of
the total production for the ten.ycar
period was secured by the great Euro.
pean central banks TO increase their
gold holdings, as well as by treasures.
| such as the treasury Of the United
| States, which acts in a capacity similar
TO q bank Of deposit. and in the gold
accumulations of Russia 1t is claimed
| that ffty.one per cent of the aggregate
| gold produced in the ten years has been
absorbed III that manner, the great cen
tral banks of Europe taking largely Of
II to reinforce their reserves. But even
so this would leave about S1.S00,000,
600 unaccounted for. The means of
tracing the gold after it is mined and
disposed OF in the markets of the world
are extremely irregular and vague. The
United States Government does more
by way of undertaking to trace the
gold than any other country. Special
pains arc taken by the Director of the
Mint in his report to account for the
total gold production and consumption.
The Chancellor Of the British Ex.
chequer has been urged by representa-
tive financial journals of London to
cause like inquiry and report to be
made by the British governments; but
nothing has come of it so far.
The curious thing about it is that
there is so little of the gold coined. II
is held largely in bars and is avail. |
able as such at the least cost for use
IN the arts and i'll mechanical appli~ |
ances. But just how the gold goes, |
where 1t goes, and how il can be
brought into channels of commerce
when needed, no one seems to know
or to understand. Personal hoardinps,
Of course, cannot be traced. The man
who boards gold does not say anything
about it, There must be immense val.
ues IN gold held in secret by misers
throughout the world. but no one knows
where or how. There is not even rec,
ord of the acquiring, the consumption
and the export of gold by any country.
except by the United States; otherwise
the whole question is al sea.
There is, however, a slight clue as
to the absorption of gold by India, We
had note the other day to the effect
that India had taken 100000 of re-
,ent shipment of gold from South AT
r'ca Wonder was expressed at the
lime as to what India would want of so
much gold. that item being only one
u the large number of purchases on
The same account for India, of South
african gold, 1t appears that upwards
II Sf3,oO0,OOO of gold was taken by
ndia last year. The chairman of the
lhartered Bank of India, Australia, and
NINA referred IN "A recent speech TO
he absorption of gold by India to the !
mount of f16,000,000 during the year
$40, But he does not think that this
hould cause any uneasiness, inasmuch
is the gold output Of the world is
steadily increasing The Pioneer Mail
II Allahabad, India. has these general
upon the production of gold
md the relation thereto OF the India
losrdngs:
In the decennial period 1S96-19O5 the
81 millions sterling The average would.
Z course have been higher but for the
1oer war the outturn OF South African
oid IN 1000 and 1901 being very small. 1
ccounl The Increase has been enormous !
or In the five years 1906-I0 the annual
Verage was nearly .eS5, 900 400. The
reilmlnary estimates for 1910 give the I
ear production as nearly s9l 600 600 AS
egards. the South African mines the
utput has risen from Ell O00 900 in 1904
rease of over 100 per cent The Econo-
mist, in dealing with these figures. notes
m nav me cyanide process of treating low
paa@ ores ores mas mas been not only primarily
outn Atrica: but has also had a very 1
onsiderable Influence in other countries c
ne ne worlds stock Of gold is now put AT I
ooo million sterling, and at the present O
lle OF production il will be doubled in 4
bout thirty years. The chairman of the
,hartered, bank Is. then probably quite s
,eht IN his pronouncement regarding the c
psorption of gold by India. AS regards | :
liver. the Bombay speculators must note 4
1th some uneasiness that tho prelirn I
laIy estimates put the production in r
3lo at 5,5o00 900 ounces more than tbe l.
otal outturn in 1909 Successful cor
erins' of the white metal seems abso h
ltely out Of the question. v
1t appears that whatever uneasiness $
here is in India on the question as be.
weeu gold and silver, that uneasiness a
as regards silver This uneasinessI I
ppears to attach to the point that the
liver output is increasing, and that a
therefore, the value of silver hoardings i
liable to decrease This, of course.
'onld make the boarding of silver a !;
osing proposition, and in India 's none
ary transition the people who hoard
aiues there have come to the conclu
ION that silver is not safe as a hoard.
1g propositions and that fbnv p,ucf ,,,o