The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-05-27
COLD INNINGS
NEW PROCESS
is MINIMIzED
Economists Assert Coast
System Can Have No
Large Results.

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WASHINGTON. May 27.-Cai-
ifornia's new process tor extracting
gold from low grade ores can have
no political and economic conse-
quences comparable to those which
followed discovery Of the cyanide
process Of extraction As years ago,
in the opinion Of government econo-
mists.
In the first place. the greatest
possible WELD Of new gold from
such a process will be only a small
proportion of the world present
gold supply. they believe. Between
1890 and 1893 the annual production
o. gold doubled
A second factor is the changed
status OF the United States.
Morgan Helped Out
When William Jennings Bryan
was making gold and silver the
foremost issue in the country the
government was dangerously short
Of the precious metal The Sher-
man silver act of 1890 had resulted
IN private boarding of gold. In eff
forts to replenish the Treasurys
supply. President Cleveland Offered
800 100000 worth of bonds for sale
for gold. but the buyers of the bonds
presented greenbacks at the Treas
ury for redemption to get the gold
to pay for the bonds
Finally Cleveland made a personal
appeal for help to j. Pierpont Nor
gan and induced him to turn over TO
the Treasury SOS, 900 900 in gold in
return for 4 per cent bonds.
Circulation Now Illegal
Today the Government possesses
some $4,000 100000 worth of gold in
its vaults. 1t is in no need of fur
ther supplies. And since private
circulation of gold is illegal. there
is no way in which new supplies
could increase the amount of cur
rency in circulation.
The increase in world gold produc-
ton which stole Bryan'S issue from
him began the year he was first
elected to Congress. Its economic
effects were not apparent until
some years later. They reached the
United States in time to rob Bryan's
1900 campaign issues of much of
their appeal
Gold production declined each
year from 1866 to 1890 In that
last year 1t took a sharp trend up
ward. New mines were in opera
ton in the Rand, Australia. and
the Klondike. but most important of
all was perfection of the cyanide
process for extraction of gold from
!ow-grade ores. 1t had been pos
Sible to get only so per cent of the
gold in any ledge by ordinary min
ing methods. The cyanide process
Of j. S. Macarthur and r. w. and
w. Forrest made possible extraction
of SO per cent of the gold.
Gold Famine Ends
BY 1898. 1886 ,879, 700 worth of gold
was being produced annually. In
1890 the total had been only S118,-
848 700. Gold circulated more freely
IN this country. boarding stopped.
and the Treasury gold famine came
TO an end. In 1900 gold was made
the single standard for currency in
the United States. Public attention
turned to other issues.
The cyanide process was used to
some extent on the Mother Lode. i'll
the Western United States, but was
always relatively expensive in that
territory. A. E. Vandercook's dis
cOvery of a cheap method for han
ding low grade ores, now being
tested in Coloma. Cal. may there
fore prove of economic Importance
to the West. even if it does not yield
a significant amount of gold in pro-
portion TO world stocks.