Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-06
Washington Ticker
BY the Associated Press.

BY the Associated Press
World decline in gold production
with consequent shrinkage Of the none
tary metal base is one cause having an
unnoticed effect on current credit
stringcncy in the opinion of Senator
Oddie. Republican. Nevada. AS head of
a special inquiry commission he finished
few months ago study of the subject
in which leading economists and inter-
national bankers contributed material
help.
"Of course, with the complications of
credit and currency. there are many
things to be considered in the situa-
ton" Senator Oddle declared, but I
am inclined to think that the persist
ence of 10 per cent and IL per cent
rates for collateral loan money in New
York is one of the StrawS that shows
how the wind is blowing.
I'm the last 10 or II years the do
mestic production of gold has dropped
from above SlOO.0OO,000 annually to
less than $50 1000 900. A somewhat SINH
lar decline has been taking place in the
rest of the world. The principal gold
source is now the Rand mines in South
Africa, and the continuation OF their
output for long cannot be expected.
More gold is being consumed in the
arts in jewelry, dentistry and the like
in the United States than is being pro-
duced, and the fact is that world re-
serves of the metal are being reduced.
This is one of the great facts that
are bound to react on credit. However,
the real seriousness of the matter will
length of time"
Actual gold production in the world
for 1928 is now a subject Of inquiry,
it Is added by H. N. Lawrie, managing
director of the American Gold and Sill
yer Institute, but it probably was in
the neighborhood of $400o00,000. The
United States is credited with an out
put Of $45, $4,000 in the same year,
a slight decline from 1927.
In the latest year for which statls-
tics are available, the gold consumed
in industries and art in the United
States was valued at S59.3l800O," Mr..
Lawrie said, "or considerably more than
domestic production. But manufactur-
ers reported that but $32 100000 Of this
was new gold, the balance being re-
covered from former uses. The gold
OUTPUT of the United States is now
largely a by-product of copper, silver
and other metal mining
A sidelight on the prevailing but
furnished by Ellison Durant Smith,
Senator from South Carolina, and &C
knowledge authority on cotton market
ing in all its phrases.
"There's a more curious situation IN
cotton now than has been encountered
In many years" he declared. Figures
coming to me indicate that the COTTON
textile industry in the first quarter OF
this year has increased output per
cent over last year. and has unfllled
orders on hand 70 per cent in excess
of last year. Further. there's never
been a worse Spring for the new crop
production, and in South Carolina and
Georgia, where I know conditions best,
a quarter of the acreage hasn't gone
into crop, while lot of the planted
ground hasn't been properly fertlllzed.
In spite of these two important facts,
cotton is down SIS bale from prices
set few weeks ago
Nov, I wonder If 1t isn't the fact
that a lot of people who used to Specu-
late in cotton have been drawn away
from that market in recent months by
the stock activity. 1t looks to me as
though they had just stayed out OF the
market, because the action was all in
stocks. and that has let the cotton price
drop because it lacked customary sup
port of legitimate speculative interest"
In railroad circles and around the
Interstate Commerce Commission Gen.
Atterbury, president of the Pennsyl-
vania Railroad, is being suspected OF
testing little lately at newspaper ex-
pense. He gave out an interview in
Washington over the week end, the
general purport of which was to say
that the Pennsylvania system is not
opposing consolidation plans Of other
trunk line groups. notably the schemes
advanced by the Baltimore & Ohio and
the Chesapeake 81 Ohio-Nickel Plate.
In view of the fact that half-doZen
court and commission proceedings have
now exhibited opposition to the merger
proceedings named. coming from rail-
road quarters where the Pennsylvania
influence is known to be important or
paramount, the generals statement
caused considerable eye-blinking. The
Wabash, partly Pennsylvania-owned is
resisting the Baltimore g. Ohio attempt
to control the Western Maryland; the
Nickel Plates advance to control of the
Wheeling & Lake Erie is under fire
from Pittsburgh & West Virginia, and
that company is known TO be friendly
to the Pennsylvania.