Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-04-22
U. S. LARGE FACTOR
Leads in Absorption of Gold
and Expansion Of Credit.
INDIA'S SHOWING NOTABLE
Argentina and Brazil Enter Circle Of
Gold-Using Nations.
ENGLAND AND GERMANY LAG
Annual Report Of Director Ct the
Mint Roberts Gives Figures for
Twenty-Five Years.
lNDIA's SHOWING NOTABLE
ENGLAND AND GERMANY LAG

From $118, GOT. 900 in 1890 to $454, 600 600
in 1910 is the increase marked in gold
production. according to the annual re-
port Of George ID. Roberts. director Of the
mint. which has just been made public.
Inis period OF twenty-one years covers
what has been called the new golden
era, explains the director, beginning
with the discovery Of the Transvaal gold
Held and OF the cyanide. and his review
OF the production and distribution Of gold
during the twenty-one years undertakes
to trace the new supplies Of gold into
use, showing the estimated consumption
IN the industrial arts, the absorption of
Asia, the amounts taken by new and
developing countries and finally the
amounts that have entered into the bank
reserves OF the important commercial
countries.
midas Showing Remarkable.
The most striking feature Of the review.
1t Is declared, is the showing Of increased
absorption Of gold by India, whose trade
balance has heretofore been settled prin-
cipally with silver. For the ten years
from 1890 to 1880 the net imports Of gold
into India plus that country's own pro-
auction amounted to $136sOO, 600. and for
Guiding 1910 it amounted to $4a8. 600 900.
For the British fiscal year ending March
81, 1911, It amounted to $50. 4S7 600, or
about one-quarter Of the worlds produc-
ton after the industrial consumption was
The review shows that important
amounts OF gold have been taken during
tho tWenty-one years by countries outside
Of the old circle Of gold-using nations.
last decade have established their cur
rencies upon gold basis and acquired
$544, 100000 Of that metal. Japan, Mexico
ana other countries adopted the same
policy, each with a moderate accumula-
Moreover, 1t appears that of the gold
acquired by European countries the larger
part has been used for the reorganization
OF monetary systems and to strengthen
ana fortify certain great institutions,
partly for financial and no doubt partly
Tor political reasons. Thus Of the amount
taken by European banks during the first
period. which was $3.50. OO0, 600. the sum of
$5SSOO0.OOO went into the vaults Of the
state banks OF Russia, Austria Hungary
and France.
The first two were adopting the gold
standard and providing adequate reserves
Tor their paper currencies. Previous to
that time silver had pfedominated in the
reserves OF the Bank Of France, and that
institution was systematically building up
Its stock Of gold.
United States Largest Factor.
During the second period $3.50, 200, 600 was
acquired by all European banks Of issue,
but Of this the state banks Of France,
Russia, Austria Hungary. Italy and the
Balkan countries took SIZE, 56s coo ana all
of the other banks OF issue in Europe, In
GLIDING Germany and the United King
dom, gained only $133. OOO, 600. The Bank
Of France increased It's gold reserve dur
ing the second period by SIT, O0O, 600, or
about IS per cent, while its loans and dis
counts increased by only about per cent.
1t appears, therefore, that aside from the
gains of the United States the new gold
supplies have not gone where they might
be expected to have the greatest effect
upon prices.
The country which appears as the
largest factor in the absorption of gold
and in the expansion of credit during
this period is the United States. The
banks and government Treasury increased
their gold holdings by soc, 027, 044, the ma
tional banks increased their note circula-
ton $557. 800 600. and the national and
state banks together increased their loans
and discounts from $5,167. 88661O to $12,-
856, 56, 1a(. The gain In gold was 1O6 per
cent and in bank loans lis per cent