The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-03-17
GOLD EXPORTS AND PRODUCT

out from this country since the first OF
the year. The financial journals in
New York say that these gold exports
from the United States will probably
continue, owing to unusual money con-
ditions in Germany and the attitude OF
the Bank Of France "in it's tenacious
grip upon its gold reserves. There is
the keenest competition for every new
shipment Of gold from South Africa
Germany being constant bidder as
against France, with India bidding
against both and generally getting the
new gold,
1t has been represented by the great
est financicrs of Europe that there is
greater need of gold to replenish the
the system of credits having over
passed by all measure the gold supply.
France is urgently striving to add to
its gold boards, and reports are that
the French people are boarding now as
never before. The war scare has taken
effect upon them, and gold is lost in
way that makes financial men foresee
crisis, since gold is disappearing
in sufficient quantities TO cause
general anxiety 1t has been the
rule for good many years past
that when Germany faced the need for
gold, she could always get that gold
from France; but now that the French
pcasantry are boarding their gold, the
Bank Of France is not able to meet
the German demand, and Germany is
In the Now York market bidding for
gold, as well as in the London market
bidding for the product of the Rand,
Tho high discount in London prevents
the possibility of Germany getting gold
from the Bank of England, and so the
United States is turned to for the sup.
ply. 1t may be added that the politi.
cal animosities and rivalries as between
Germany and Franco on the one hand
and between Germany and Great Brit
ain on the other hand, help to accentu-
ate the gold crisis.
Recently 100000 in gold was pur-
chased in New York for Berlin ac.
count, direct, and 100000 billed to
Paris, but supposed also to be for Ber-
lin, and good many other pur-
chases for the same account are OK.
pected. The fact is that so far from
gold being overabundant in Europe,
there is an actual shrinking in the gold
in sight in Europe, and the expansion
OF European note issues and the strain
upon the commercial and banking credit
is approaching the limit. with but little
margin remaining.
All this shows in vivid form the alb
surdity of the plea of those, who, like
Professor Fisher, undertake to account
FOR the increase in the necessities OF
hTe through the overabundance Of gold:
for, first of all, that does not explain
the increased price of living, while
other explanations that are ample and
easy to discover do explain it. But
above all, the main fact of the over
abundance of gold is the very matter in
dispute, and the immense preponder.
ance Of financial opinion, especially of
practical financial men, goes to the
point that there is, in fact, a scarcity
of gold rather than too much Of it,
In the meantime, the gold production
Of the Rand is steadily increasing. It's
January output the present year
amounted to 7S9,390 fine ounces, com,
pared with 1877 900 fine ounces in Jan.
uary of 1912. The February output this
year was 1874, fine ounces, compared
with 703,S66 fine ounces in February
of 1912, For the two months the
Rand's product of gold the present
year amounted to 1,523,512 fine ounces,
compared with 1,440,926 fine ounces in
the same two months of 1912, This is
a gain Of S2,5S6 fine ounces for the
two months, and indicates a product
that will closely approach 100000. 900
for the year.
In view Of the urgent demand for
gold in the business world Of Europe.
and also of this country, it is interest
ing to inquire what the prospects are
for an increase in supply. The Rand
product from South Africa is respond
ing splendidly, although an eminent
Austrian geologist made the announce.
ment, which he claimed TO be a demon
stration, Just before the discovery of
the Rand gold reef, that there could
never be another great gold find in
the world, for all the surface of the
earth had been prospected for gold, and
it was practically impossible that there
could be much Of deposit hidden.
Then in spite of the Austrian's 5 expert
opinion, the tremendous Rand reef was
found, next the Yukon deposits were
discovered, and the product in South
America. in West Africa, and-new de.
posits in America kept the gold supply
up at practically quadruplc the yearly
output that it was at the time the Aus |
trian geologist demonstrated that there
was no hope of any furhcr great gold !
find in the world. Further, in tho same |
line, we note a report from India of a |