The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1916-10-26
Uncle SAM HOLDS
NEARLY THIRD OF
ALL WORLDS GOLD
Exactly 81 Per Cent of Total
Supply Now Held BY This
C~ountry-$2,O00 c, O0O,-
600 In Treasury.
DISPOSITION is PROBLEM
Government Officials and Ri
nanciers Wonder What VIA
Be Influence on Future
and Business.
DISPOSITION is PROBLEM

Washington. Oct. 23.-Uneie Sam
now has a third OF the worlds stock
Of gold and more is coming into the
country daily.
What is going to be done with II,
and what will become of the enormous
gold supply after the WARP?
These are questions over which
treasury official, bankers. business men
and students of finance of every sort
are pondering. They are worrying "
The spectacle of the streams of yellow
metal pouring into the United States
and over the possibilities Of the unset
ting of conditions when the war ends
and. as many suppose, the huge gold
sur"ly will proceed to leave the coun-
try.
Hold 80 Per Gent.
Director of the Mint Won Eqgleken
has had figures prepared which show
in exact terms that 80 per m Of, the
stock Of gold OF the world Is Held In
this country. This is more. than IS be-
ing held by any other nation. Geld has
been coming into this country on the
a day above ordinary im~portatfons,
for h last two ear Not lqpg age
1t was entering this country at the rate
Of $25, 00o,0 00 a week..
The treasury statement shuYs that
in gold coin and bullion the Hsasury
holds approximately $4,000. ooo. oog This
does not include huge sums Held In
other hands in this country.
De-Ieting Europe.
Europe is making enormous war sup
ply purchases here and this is one
reason gold vs. pouring in. ENORMOUS
volumes-of new gold are being added
to the worlds supply. Moreover Say
experts OF the treasury, great SUMS IN
gold are being taken out of the socks
and various hiding places OF the people
Of Europe. Much of this Is finding
it's way here. That the presenc6of the
extraordinary volume Of gold In this
country tends to initiation is GENERALLY
admitted. "..~,
Some of the government experts on
finance see danger in the ~situatt6n aAd
fear that once the war Is owe and gold
begins to move out there will be hard
times.
I" To this matter OF the movement Of
the worlds gold supply after the war
and the financial conditions which will
obtain after the war, there are & Iaany
angles that, as n treasury expert re
marked today: You see a new phase
of it every time you look"
Depends Upon BeIIiaerents.
In the first place, no one knows what
will be the financial situation of the
~belligerent nations after the war. They
are piling up staggering debts. Some
OF them are already issuing paper
money, not backed by gold, but by q
simple government promise TO pay.
They are like the "~greenbackss Of This
country. The interest burdens Qf.sonas
Of the nations, Germany, for instance,
will be such that IL Is q Question
whether these burdens can be met.
Hence 1t is a fair ~interrogatory whether
there will be reputation OF the debts
Of some of the European governments
course. would ave far reaching ffhan-
cial effects.
Viii Affect Trade.
Bearing on the departure OF gold
from this country after the war, a
high treasury official today said
England, Germany and other great
European nations would be organized
industrially as never before when the
war closed IND it might be expected
they would purchase as little from us
as practicable. In the purchase of
cereals, foodstuffs and raw materials,
colonies would be given preference.
The European countries would Sell us
a. much as possible. The tendency
would be to draw gold from the coun-
try. Perhaps loans would be made to
foreign countries, and, unless the
money was spent here, outward mnye-
ment Of gold would be caused. This
official pointed out, that IL the United
States secured a heavy trade. with
South America 1t would help thfS coun-
try materially after the war. ,le
But he added that he saw little sign
that trade expansion in South America
and Latin America was being brpught
about in a fashion which would Enable
this country to hold It's own after the
European struggle.
Handy But Didn't Need u.
AS this official looks at II, n. would
be highly desirable IL the United States
had much less gold but to have IL de-
part would be a hardship for a time. He
declared IL the huge gold stock re-
NAMED here four or five years. il Mould
have q demoralizing effect on the bon
ulation Ind then any loss Of n would
be accompanied by all the more diff
Guilty in the read5ustment and reDrgan-
iZation.
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