The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-05-14
INDIA ABSORBING GOLD.


appearance Of the new gold Of the
world by some figures that have been
supplied by Sir Morcton Freweu in re-
ply TO some Of his American critics
Early in the year Mr.. Frewen pointed
ont the steady drain of gold 10 india.
and declared that IT threatened serious
consequences TO tho leading European
nations and to the United States Some
self assumed financial authorities in
New York made light Of Mr. Frewen :
statements and conclusions, Just as they
have been making light of his argu.
meuts on the silver question for
good mauv years Bui he knocks the
undcrplnning from their fooiishness by
a reply, in which he gives as exact
figures as are possible of the India
imports Of gold, and doubtless his ap.
proSimations are fairly exact.
He gives a general idea Of the rea
son for India's recent extraordinary
increase in imports Of gold. and draws
his conclusions on the effect OF that
Importation upon the world s money
exchanges, A few years ago. as we
see in condensed statement in Finau-
cial America of Mr.. Frewcu s position,
the importations of gold and silver 10
India were in the proportion Of one
part gold 10 four parts silver. The
ratio today is nearly five parts gold 10
one part silver. He Saws that from
January ]st TO March 18th of the pres.
ent year, India gold imports were
900 against f6.SO4, 900 for the
corresponding period in 1911. Quoting
an authority, cited in the London
Economist of March %. Mr.. Proven
says, that during the calendar year
1911, India s imported gold totalcd
323, $4,000, against SIS 100000 in 1910
and s10O6s. 900 in 1909.
At the same ratio Of Importation Of
gold TO India for the first three months
of The present year as compared with
the first three months of last year.
the imports of gold to India for 1912
Will amount to upwards of SIS 900. 600,
approximately about 100000 600, or,
speaking in general terms and eliminat
ing the gold used in the mechanic arts.
India took one.fourth Of the world 6
gold production last wear, and will
take this year more than one third Of
the new gold which will be produced dur
ing the calendar year. Our New York
contemporary makes the reckoning
that India will probably take this wear
one half of the world S new gold when
allowance is made for the consump.
tion Of the arts and sciences. If that
estimate is anything like correct, we
have here solution unsupported here
tofore, of where the new gold goes TO,
This has been a great puzzle of the
world, No one seemed TO know. and
the reserves in the banks of Europe
gave no real indication in the compari-
son of their holdings of gold one year
as compared with the year before, of
what becomes of this new gold Mr..
Freweu, however, appears to have
solved the mystery, He thus shows
himself shrewder than any of the other
financial writers of the time.
The gold sent to India is probab bly,
boarded, Just as silver has been boarded
that went to India in the past. But,
what has made this great change in
the comparative demand for gold as
compared with silver in the past few
years in India7 Mr.. Frcwen suggests
that the growing demand for gold is
due TO a great commercial expansion.
| ho Il -.
opinion, as he usually has for the FL
nancial and economic opinions which
he expresses. But what the world is
interested in considering is the extent
to which this absorption of gold by
India will 90. If it continues unahated
for the remainder of the present wear.
and for other years in succession. and
if the demand shows growth
TO the growth in the past
two years, then India VIII be the rich.
est country on earth IN gold, except
the United States Our own country.
of course, is the great gold holder of
the world The L. s Treasury holds
the greatest gold hoard ever collected
in any one place, at any time. upwards
of $3.50, 100000 We produce approx.
imately $s,ooo.OoO in gold per month.
and the probability is that we shall
draw the present year a good deal of
gold from Europe because Of the great
balance of trade in our favor so that
we shall be comparatively free from
the troubles which the drawing of gold |
TO India will cause 10 the commercial
world of Europe, But upon that world |
the effect of India 5 gold absorption 1
must be very great, and the struggle I
TO get gold which has been 30 keen
aud so inexplicabie as between France. /
Germany, and Russia, viii become even
fiercer, and viii cause an artificial |
gold shortage in Europe which may. III .
the end, cause us some inconvenience I
if we allow the gold tap 70 remain open
for anyOne's drawing i'm the future. a.