The Washington times., 1915-04-01

The world needs gold, right now.
In greater quantities than 1t ever
needed 1t before. But 1t Is producing
less than for several years.
The world war Is imposing upon
the gold standard the greatest stress
that the financial arrangement has
felt since It became practically uni
versal. Will the gold standard prove
equal to the strain?
Germany has practically abandoned
the gold basis. German paper money
Is In practically universal use
throughout the empire. while the gold
stock is being boarded for future
uses.
The fact remains, however, that
there Is a much greater visible store
Of gold in the German empire than
before the war began. 1t is well
known that for a long time in advance
strained every point in their adjust
ments OF credits and exchange In or
der to Increase their supply of gold
Broadly speaking, II must be assumed
that so long as they are able to keep
on piling up increasing amounts sof
not at the point of economic exhaus-
tion.
Data Not Satisfactory.
bdtd tnS pTOuuCtlOn OF BOlQ SlnCe
the beginning Of the war has been un-
satisfactory. The United States Mint
Bureau has been for long time reoog-
nized as the worlds best authority of
gold output Under an excellent system
devised by George e. Roberts when he
was director of the mint, the consular
officers of this country have gathefed
the statistics from all parts of the world
on which the accepted .calculations Of
GrflH tnNt Tl,.N
since the war began II has been almost
impossible to learn what has been turn
ed out in Russia. Mexico has been in
such q state of turmoil that no better
data could be obtained. Even in South
Africa and Australia the figures have
been delayed and unsatisfactory.
But despite these difficulties, It Is now
reasonably assured that the world will
turn out less new gold during the war
than In normal times; yet, paradoxical
Will have a larger stock of new gold to
use for monetary purposes.
1t would be of the greatest Importance
to know just what the net Increase
pected to be. For a complexity of rea-
sons. the Information is not to be had
To begin at the beginning, with the
gold actually dug out OF the ground, the
world has been producing about $3.50, ,0O0,-
600 OF new gold a year recently. This is
al ubbCiitNapic lHCTtdSe over
the output say. OF 1895 and 1895, when
the money question was at the front in
the United States. The increase has
been. until now. persistent and regular;
every year saw more gold turned out
that the year before.
Drop of $445,0OO, 900.
But the war has interfered. and the
current year is likely to produce about
SIS 900 less than the preceding one
that Is. there will be a drop to $40, 900 900
or s445, 0oo. .oO0 This might seems a seri-
GUS affair. In view of the fact that the
world s monetary systems have been
organized on the expectation of a pretty
steady increase In the supply.
But. as a matter of fact, the increase
In the gold supply will 20 right on de-
spite the war and the reduced produc-
ton. That Is because OF the smaller
consumption in the arts and Industries.
Also, because a great quantity of gold
| has been melted down and turned into
| money metal Finally, because India.
the worlds mystery in connection with
isappearance of gold, has been taking
| much less of the metal than in former
years
Consider. first, the consumption in the
| arts and Industries. Gold Ia a luxury
| an ornament. 1t is consumed mainly as
such. People have their teeth filled with
1t when they feel prosperous; when
they don't they put In baser metals or