The Washington times., 1916-11-02
Experts Are Slow to Prophesy
What viii Become Of It
After War.
INFLUX CAUSES ! INITIATION
Yellow Stream Is Coming In At
Rate OF 100000 Worth
Every Day.

Uncle 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 1t
and what Will become of the enor-
nous gold supply after the war?
These are questions over which
Treasury officials. bankers. business
men. and students of finance of every
sort are pondering. They are worry
ing over the spectacle of the streams
Of yellow metal pouring into the
United States and over the possible
tiles of the unsettling OF conditions
when the war ends adm as many sup
pose. the huge gold supply will pro-
coed to leave the country.
Mint Bureau Has Figures.
Director of the Mint Won Bngleken
has had figures prepared which show
in exact terms-that 80 per cent of the
stock of gold OF the world Is held in
this country. This is more than is
held by any other nation. Gold has
been coming into this country on the
average at the rate of about $4,000, 900
day above ordinary imports for the
entering this country at the rate of
$25,000.000 week.
The Treasury sta tement shows that
in gold coin and bullion the Treasury
holds approximately $4,000. 900, 900.
This does not include huge sums held
in other hands In this country.
Europe Is making enormous war
supply purchases here and this Is one
reason gold is pouring in. Enormous
volumes of new gold are being added
to the worlds supply.
Europe Is Emptying Socks.
Moreover, say experts of the Treas
ury. 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 presence of the extraordi-
nary volume of gold In this country
tends to Initiation Is generally ad-
Some Government experts on finance
see danger In the situation and fear
mat once the war Is over and gold
begins to move out there will be hard
times.
To this matter of the movement of
the worlds gold supply after the war
and the financial conditions which
VIII obtain after the war. there are so
many angles that. as one Treasury ex-
pert remarked today. you see a new
phase OF 1t every time you look"
AfteI War Situation a Problem.
In the first place. no one knows what
Will be the financial situation Of the
belligerent nations after the war. They
them are already issuing paper money, not
backed by gold, but by simple govern
ment promise to pay. They are like
the "greenbacks" of this country.
Inc interest burdens OF some of the
nations Germany, for instance. will be
such that 1t Is a question whether these
burdens can be met. Hence II IL a fair
hterrogatory whether there will be
population of the debts OF some of the
European governments when the war
ENDS. Any such thing. of course, would
have far-reaching financial effects.
Bearing on the departure of gold from
this country, after the war, high
Treasury official today said England,
Germany. and other great European ma
tons would be organized industrially
AS never before when the war closed,
and 1t might be expected they would
purchase as little from us as practicable.
In the purchase of cereals, foodstuffs,
ana raw materials. colonies would be
given preference, The European coun-
tries would sell US as much as possible.
May Draw Gold Away.
The tendency would be to draw gold
from the country. Perhaps loans would
be made to foreign countries apd, UNI
less the money was spent here out
ward movement OF gold would be
caused.
This official pointed out that IL the
United States secured a heavy trade
with South America It would help this
country materially after the war. But
ne added that he saw little sign that
trade expansion in South America and
Latin America was being brought about
in fashion which would enable this
country to hold it's own after the Eu-
ropean struggle.
As this official looks at II. 1t would
be highly desirable IL the United States
had much less gold. but to have It de.
part would be hardship for a time
He declared IL the huge gold stock re,
would have demoralizing effect or
the population, and then any loss OF
II would be accompanied by all the
more difficulty In the readjustment an6
reorganization