, 1921-10-12
WHAT BECOMES OF GOLD.


One of the curiosities Of the golden food which has
poured in upon the people of the United States since
the beginning of the war is the addition of over $780,
worth of gold manufactures to their already
large stock of personal effects of this character.
The additions made to the already existing stocks
of material manufactured from the precious metal
have been exceptionally large during and since the
war. In pre-war years we were accustomed to util-
ie from 20 to 80 million dollars worth a year of
new gold" in manufactures and arts. The term
new gold' represents the sum actually added to TIE
existing stock of gold manufactures and is exclusive
of the large quantities of old material turned in at
the assay offices and there transformed into condi-
ton In which the metal could be r~e-utilzed for similar
lines of work.
Most of the gold used by the manufacturers of the
country is presumably purchased direct from the as
say offices and the mints, and the reports of the di-
rector of the mint show that these purchases prior to
the war averaged about S35, 900, 900 a year Of new
material" and $4,000, 600 a year of "old material"
In 1916, when our imports of gold jumped to practi-
cally $500, 900, 900 and the earnings of the people
were also greatly increased, the sales of NEW gold"
by the assay offices and minis jumped to Sal, 900, 900
and Of "old material" practically $4,000, ooo; in 1919
N6,000,000 Of the new material" and the told ma
terial" $20,000,000; and in 1920 the new gold" sold
exceeded s60,000,000 in value, while the total for
1921 will approximate SAC, 600, 900. The additions of
new gold" since the beginning of the war have ag-
gregated over $500, 000, 900 and brought the grand
total of governmental sales of ''new gold" for indus
trial purposes since 1880 up to approximately a bill
lion dollars. Most of this was transformed into man
ufactures for use of the people of the United States,
as the value of exports of gold manufactures is com
p~aratively small, seldom reaching a million dollars a
year.
In other parts of the world the normal consump-
ton of gold for Industrial purposes is also large.
Studies of this subject made by the United States
mint bureau in the years Immediately preceding the
war indicated that the worlds industrial CONSUMPTION
of gold had aggregated about two billion dollars in
the short period 1sse-191o, of which about 20 per
cent was used in the, United States. In the occidental
world alone the total consumed for manufacturing
purposes was about III billion dollars in the 2o-year
period and an estimate for the Orient, chiefly India,
brings the total world consumption in the 20-year pc
Rod up to fully 81, 900, 200, 900. While much of the
gold entering India disappears and is reported as
buried the Indian government states officially that
the uncoined gold imported into India may be consid.
cred as to be used for rnaments and manufactures,
and the Statesman's Yearbook of 1921 in recording
the heavy gold imports of India remarks that gold is
used chiefly in the form of ornaments" .
These figures, which indicate a world consumption
of fully $4,000, ocS. 1000 worth of gold for industrial
purposes. in the short period 1s90-1910-an average
of about 500, 900, 600 per annum-throw, adds the
banks statement, an interesting side light up that
much discussed question of 'what becomes of the
gold?" World statisticians estimate the total outturn
of gold in the world since the discovery Of America
at slightly more than $1s,000.0 00, 900, while the an
nual studies of the United States mint bureau regard.
ing gold monetary stocks in all the countries of the
world have never disclosed the existence Of more than
81s billion dollars as the grand total Of gold monetary
stock visible in all parts Of the world for which rec.
ords can be had. With a record Of over S18, 900, 0oo,-
900 of gold produced and less than $4,000. 0oo,o 900
known to exist in monetary form or as a basis for
currency, It Is quite apparent that the share Of world
gold utilized for other than monetary purposes is
larger than usually supposed. The known quantities
used for manufacturing in the 20-year period, 1890.
1910. were slightly more than $4,000, 100000 while
the world production In that 2o-year period was
slightly less than $4,000, ooo, 900. suggesting that per
haps as much as one-third of the worlds gold out
turn IS now being used for Industrial purposes.
Probably threc-fourths of tho gold used in the
United States for manufactures and arts" Ia utilized
for jewelry, watches, etc. Experts estimate that the
quantity supplied to the dental trade averages about
900, 900 q year, of which, however, a considerable
percentage Is returned by them In the form of gold
from "old work." while recently published
estimates Of the yellow metal used In the manufacture
Of gold leaf puts the average at about 81 900, 900 a
year. The mere remolting of old, unused and some
forgotten jewelry during the war added more
than 500, 600, 900 of gold to the worlds stock avail
lble fer monetary purposes.