Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1916-10-26
UNCLE SAN HOLDS
NEARLY THIRD Of
ALL WORLD COLD
Exactly 50 Per Cent OF Total
Supply Now Held BY This
Countryside 600, 00O.-
600 In Treasury.
DISPOSITION is PROBLEM
Government Officials and FL
nanciers Wonder What viii
Be Influence On Future
and Business.
DISPOSITION is PROBLEM

Washington. Oct. 23.-t!ncle 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 it,
and what will become of tbs enormous
gold supply after tho war"
These are questions ever which
treasury official. bankers. business men
and students of finance of every sort
are pon3ering. They are worrying aver
The spectacle of the streams OF yellow
metal pouring into the United States
md over The possibilities of the unset
Ting of conditions when The War ends
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 per cent OF the
stock of gold of the world Is held in
this country. This is more thar is be-
ing held by n other nation. Gold has
been coming into this country on the
average at the rate of about $4,000 900
a day above ordinary importations.
for the last two years. Not long ago
1t was entering this country at the rate
Of s25,000,00 a week.
The treasury statement shows that
in gold coin and bullion the treasury
holds approximately 50, 200, 600, 600. This
does not include huge sums held in
other hands in this country.
De ~letina Europe.
Europe is making enormous war sup
ply purchases here and this is one
reason gold is pouring in. Enormous
volumes of new gold arc 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
its way here. That the presence of 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 situation and
e 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 war
and the financial conditions which will
obtain after the war, there are so many
angles that, as one treasury expert re-
marked today: You see a new phase
of it every time you look"
Depends Upon ReIFiuerents.
In the first place, no n 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 a
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 that it is a question
whether these burdens can be met.
Hence it is a fair "interrogatory whether
there will be reputation of the debts
OF some of the European governments
when the wal ends. Any such thing. OF
course, would nave far reaching finan-
cial effects.
Will Affect Trade.
Bearing on the departure of gold
high treasury official today said
England, Germany and other great
European nations would be organized
industrially as never before when the
war closed n it might be expected
they would purchase as little from us
cereals, foodstuffs n raw Materials
colonies would be given preference.
The European countries would sell us
as much as possible. The tendency
would be to draw gold from the coun-
try. Perhaps loans would be made to
money was spent here, outward move
ment of gold would be caused. This
official pointed out that II the United
States secured a heavy trade with
South America it 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
about in a fashion which would enable
this country to hold its own after the
European struggle.
Handy But Didn't Need II.
AS this official looks at 1t, Il would
be highly desirable if the United States
had much less gold but to have it de-
part would be a hardship for a time. He
declared If the huge gold stock re-
manned here four or five years, 1t would
have a d~emoralizihg effect on The pop
ulation and then n loss Of Il would
be accompanied by all the more diff
Guilty In the readjustment and reergan-
ization.
MEXICAN Ex-PRES,DENT