The Washington times., 1915-04-01
Strain on Gold Supply
Worries Finance World
Germany Practically Abandons Metal Basis and Pa
per Money Is in Universal Use Throughout the
Kingdom-Data on Production.
BY JUDsoN C. WELLIvER.

amalgams of metals. This year they
are putting less gold into their mouths
than fer a long time past.
Likewise they are buying less gold
for engagement rings. wedding rings,
picture frames. and the multifarious
other things that use IL. The luxuries
get Topped off early when times are
bad; and gold Is a luxury-gold in
the arts. Jewelry is not being pur-
chased very extensively by nations
that are worrying about getting
bread. And most OF the world had n
bread distrust on its mind Just now.
Just about one-fourth of the prod
uct OF new gold has been going, year
Wedding rings and picture frames and
the like. In 1912 the amount thus
used was estimated, for the world at
S124,0o0.C00. A small part Of that, be-
ing saved from the teeth and the
third fingers of the left hands, would
make up for the reduction in produce
ton. Vt has been saved in fact, sew
eral times over. according to the best
calculations that can be had.
Then Comes Redemption.
After this comes the redemption Of
gold. II 1t may be called that. The
most familiar development of this
phase Is the donation Of gold orna>-
ments Of all kinds by the German and
pSoPlc lO tHtlT governments.
Even in the United States a not unim :
portant amount Of gold has been
turned In to the communal supply,
available for money use, by people
whose patriotic instincts have made
them proud to take an iron ring in
In place Of a highly wrought and val
liable gold one. In Germany this sort
OF patriotic exchange. has accounted
Tor considerable share OF the in
crease in the visible supply of gold.
or curse. every ounce Of gold thus
rescued for the mintine OF money is
set at work Sor the first time. A
bracelet doesn't move much COM
merce; sovereign may move a good
deal OF 1t even in single day, In a
But more important by far than the
saving of gold from the arts, or its
redemption from them, Is the fact that
india's Unsuitable appetite for gold has
been satisfied with about one-third the
amount that country has been demand
ing in recent wears.
India Keeps Gold.
Where does the gold go, after II
gets into India. There have been
learned Inquiries to answer that oues-
ton. and the answer has never been
satisfactory. In the fiscal years 1s1l-
1912 India took more than S133. 900. 600 Of
Soiu liOII lHt rest OF tne world. and
for large part it might about as well
have been sunk with the Titanic. 1t dis
appeared from the banks and the circu-
lation. apparently being buried by peo-
pie who wanted to hoard it. or turned
into ornaments. A year later the dis
appearance into India was about the
same: The only thing that is very
certain about this steady flow of gold
to the East Is that II Is pretty defi-
nitely lost to the financial system of the
world.
Now 1t develops. since the war has
broken out. India has not had the ca
pscity to command and secrete so much
gold: nothing like 1t. India took, in
the last calendar year, only about s35,.
100000 of gold; not much more than a
quarter as much as the preceding year
That means that something like 800
100000 OF gold that ordinarily would
have been taken away from the chan
nels of Occidental trade has been left
for the warning world to use in main.
tanning Its money standard.
In view Of these calculations. It 4.
not so difficult to understand how tn,
various great government banks ar,
able to report bigger supplies of golt
than they commonly carry. They ar,
| taking In gold and paying out as nttl,
OF IT as possible. They are hoardins
II against the day of real stress, anc
the nation that first comes to tn,
point where its gold stock will not NEE
It's approximate needs for keeping III
the parity will be the first one to fee
the great, economic stress of the war.