Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-10-04
U. s. HAS CORNER
ON WORLDS GOLD
But Financiers Are Watching
Anxiously for New Develop
ments of Situation =
By WILLIAM ATHERToN pu puY
WASHINGTON. Oct 2.

AMbHICA has corner on the gold OF
- the world. She has Ave times as much
| OF II as any nation In the world ever had
since time began She has drained the
surplus gold from all the earth since the
war broke out and now sits in an embar-
rhssment or wealth and wonders what she
Is to do with Il.
1t is a problem whether the United States
should let this golden hoard flow away
| or hold to It, There have been Of late GER
tain tendencies for gold TO 20 to Japan and
to Spain. Uncle Sam has watched these
nations reach into his storehouse and take
out little packages OF ten or twenty mill
ilons at time, golden loads for half a
oohen automobile trucks, and walk away
with them. To be sure there is the ex-
planation that the balance OF trade is in
tavor OF these nations and that the gold is
taken to adjust those balances. But Uncle
sam has the gold and he ia chary Of let
ting II go merely for the sake OF re-
adjustment that might be made in some
other way
so on September Z the President issued
proclamation, which stated that gold
might In future be exported only under
certain conditions. 1t was put under an
embargo as have been some other COM
modities. II the Federal Reserve Board
passed the shipment and its action was ap-
proved by the Secretary of the Treasury
the gold might be shipped. Otherwise it
must remain where 1t is
Gold Supply Has Doubled
In the world today there is $4,000, 900, 900
worth OF gold. There is $4,000, ,0OO, 900 tied
up In jewels, ornaments, industries and
private boards. There Is another $1,000
100000 in the treasures OF nations exclu-
sive of the United States. There is $4,000
100000 in the treasures Of the United
States.
OF the gold of the world that is used
as money and held as basis for the cir
culation Of paper money and other credits
that Is, Of the gold that is publicly owned
the United States possesses one-half The
United States Government has as much
gold as have the Governments Of all Of
Europe and Asia and the rest Of the Amer
icas and an Incidental Africa and Oceania
combined On September 1 IT possessed
$306o,991.9 500 worth Of It.
rms Is virtually twice much gold as
we had when the great war broke out. At
that time the United States had S1300,-
100000
Then. when the war broke for six months
Europe made great demands upon our gold
This was because Europe was selling to us
more than we were selling to her and the
balance had 10 he paid in gold. What
Europe was selling was American securities
In which she had invested. For six months
every ship that left this country for Europe
Slf5,OOO,OOO out OF this country in the first
six months OF war. This was a little mat
ter OF SS6 tons Of gold-as much OF II as
might be hauled on 200 big drays
American financiers were becoming much
alarmed about this outflow of gold when
tho tide turned Europe had llqudated
as far as she could and was forced to be-
gin heavy buying over here. Soon Europe
was buying more from us than she was
selling TO us, and so the gold started back
In paying her balances.
This process has been going on steadily
for two years and a half. Every day Of
that period has witnessed the landing of
an average Of 5000 pounds Of pure gold on
the docks Of America. Now the hoard has
reached $4,000, ,00o, 900. It has stoned
since this country has extended vast credits
to its allies abroad. We are now allowing
them TO pay their balances in these credits
instead Of in gold. So the gold is no longer
coming, II is even showing a tendency to
steal away.
Two Hundred Millions Here
Most of this gold is In the subtreasuries |
Before the war came the mint at Denver
had the greatest store Of gold In America, |
There was half billion stored there. In
those days only hundred million or so was
kept In New York and Philadelphia. But
gold has flowed into New York so fast that
there has been difficulty in hauling II away |
SO great sums have accumulated there To-
day there Is some 800 o0O, 900 in the New
York Subtreasury, which Is the largest sum
or gold at any one place In all the world |
Denver still has its $500, 900 900, San Fran
cisco its S3O0, 900, 900, PHILADELPHIA It's 5000
100000 and other points lesser amounts,
The possession OF this vast hoard Of gold
raises many questions that are In the realm
OF political economy Gold is the basis Of
the currency of the world and therefore Of
the monetary systems Of nations upon which
Is founded their credit. The United States
possessing this gold. possesses boundless
credit and power of commercial expansion,
But the United States does not need credit
Instead of getting credit her province now
Is to extend 1t. It Is the nations abroad
that need the credit and will need It after
the war. Those nations have become poor
In gold, the basis for credit. Is IL, there
fore. in the interest Of the United States n
retain all this gold or should It allow it 10
flow back to the nations that need 10
borrow?
This is question that is Just now being
given very intensive study by the Federal
Reserve Board and the Secretary ~ tba
Treasury. The proclamation of the Presi-
dent does not necessarily stop the flow NJ
gold to other countries. II places the cop-
troll of that flow in the hands Of tho rraas.
ury Department. Thus would IL seem that
the United States occupied a position where
II could allow those nations whom II choan
TO recoup their gold supply and prevent
those 1t chose from doing So In other
words this Government would seem 10 ne
in control Of the gold situation OF the
world.
Golden Flood From Africa
England is in a position of greater free-
| dom from a gold standpoint from the in
| huence of the United States than is any
| other nation. Great Britain produces mora
| gold than does any other nation not ex
cepting the United States. South Africa
is now pouring out a golden food that sur
| passes the production OF any other region
| The world now produces about s4T0. .ooO
| 900 In gold annually. For a decade The
| production has approximated that hgura,
! For twenty-five years the gold production
has been very rapidly on the increase, Tbs
outpouring Of gold began with the deyelonS
ment OF the cyanide method Of refinement
| In the early nineties.
Under It's influence annual production
| quickly became ten times what II had hesn
| before, hundred times the value ~ ths
output Of nifty years earlier. The tire lsurIes
| ~ the world all WI m ha Al -