Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1916-10-25
Exactly 80 Per Cent of Total
Supply Now Held BY This
Country-$2, 100000
600 In Treasury.
DISPOSITION is PROBLEM
Government Officials aud Fl.
nanciers Wonder What Will
Be Influence on Future
and Business.

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 It.
and what will become of the
gold supply after the war?
These are questions yer which
treasury official. bankers, business men
and students of finance Of every sort
are pondering. They are worrying over
the spectacle of the streams of yellow
metal pouring into the United States
and. over the possibilities Of the unset
and. as many suppose. the huge gold
surnly will proceed to leave the coun-
try.
Hold 80 Per Cent.
Director OF the Mint Won Engleken
has had figures prepared which show
IN exact terms that 80 PEI cent Of the
stock OF gold OF the world is held In
this country. This Is more than Is be-
ing held by II other nation. Gold has
been coming into this country on the
average at the rate OF about 81. 200. 900
for the last two years. Not long ago
1t was entering this country at the rate
Of $25, O0o.O 900 a week.
The treasury statement shows that
in gold coin and bullion h treasury
does not include huge sums held in
other hands in this country.
0e~leting Europe.
Europe Is making wal sup
ply purchases here and this Is one
reason gold is 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
n various hiding places of the people
Of Europe. Much OF this is finding
its way here. That h presence of the
A~t rn ~r1l n pry -1 -OA H. H.
country tends to initiation is generally
admitted.
Some of the government experts on
1nance see danger in the situation and
fear that 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 wal
n the financial conditions which will
obtain after the war. there are SO many
angles that, as n treasury expert re-
marked today: You sec a new phase
OF ii every time you look"
Depends Upon 1elIiqerents.
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 "greenbacks" of this
country. The interest burdens Of some
OF the nations, Germany. for instance.
will be such hat 1t is a 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
when the wal end Any such thing, of
course. would have far reaching finan-
cial effects.
Will Affect Trade.
Bearing on the departure Of gold
from this country after he war. q
England. Germany and other great
European nations would be organized
industrially as never before when the
war closed n 1t 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.
h European countries would sell US
es much as possible. The tendency
would be to draw gold from the coun-
foreign countries, and. unless the
money was spent here. outward move
ment of gold would b. caused. This
official pointed ont that il the United
States secured q heavy trade with
South America 1t would help this coun-
try materially after the war.
But he added that he saw little sign
that trade expansion In South America
and Latin America was being brought
o in a fashion which would enable
this country to hold its W after the
European struggle.
Handy But Didn't Need Il.
AS this official looks at 1t. 1t would
be highly desirable II the United States
had much less gold but to nave 1t de-
part would be a hardship for a time. He
declared II the huge gold stock re-
manned here four or five years, it would
have a demoralizing effect on the pop
ulation and then IN loss Of 1t would
be accompanied by all the more diff
Guilty In the ~readjustment n reorgan-
iZation.
RELEASE THREE PITCHERS.
Philadelphia. Oct. 21.-George Chal-