POSITION OF LEADING COMMERCIAL NATIONS
The United States controlled politically through state sovereignty 19.3 per cent. of the gold production in 1913, ranking next to Great Britain. Commercial control was somewhat greater, amounting to approximately 23 per cent. of the 1917 production. The mines of the United States are owned almost exclusively by Americans, and American capital is invested in many foreign fields. Over half, perhaps as much as two-thirds, of the mines of Canada are owned by United States corporations. The largest of the Korean companies are owned or managed by American capital. Two American companies were established recently in the Transvaal. Probably 30 to 40 per cent. of the gold produced in Mexico in normal times comes from the United States owned mines. The production of Central and South America, although at present relatively unimportant, is largely controlled by Americans.
Although outranked in production by Great Britain, the United States controls by far the largest stocks of gold coin and bullion of any nation. In 1916 there was in the banks, the national treasuries, and in circulation in the United States $2,299,454,000, or almost twice the amount possessed by any other nation. In 1918 this amount had increased to $3,050,000,000. The monetary reserve probably exceeds the total gold output of the United States since the recording of statistics of production began.
In view of the fact that the national debt of the United States is low as compared with the debts of the other principal nations, the financial system of this country is on a relatively sound basis. When the time comes to redeem the outstanding bonds and other forms of indebtedness that have accrued during the war, the United States will undoubtedly be in a more favorable position than any of the other belligerents.
The stocks of gold in the chief gold-producing countries in 1916 are shown diagrammatically in [Figure 21].
Great Britain is the leading gold-producing nation of the world. The British Empire controlled politically 62.9 per cent. of the 1913 production, and British commercial control approximated 63 per cent. An insignificant amount of gold is produced in the British Isles, but the empire includes such important gold producers as South Africa, Australia, Rhodesia, India, and Canada. British capital also controls gold mines in Siberia, in Mexico, in South America, and in the United States.
Despite the large political and commercial control exercised by the British, the gold stocks of the British Empire have been much smaller than those of the United States and in 1916 were surpassed by those of France.
The lands under French control produce little gold, the output in 1913 being only 1.4 per cent. of the world’s total production. Less than 0.5 per cent. came from France itself and the remainder was obtained from French Guiana and Madagascar. French capital has not stopped at national boundaries, however, and has been invested in many of the principal fields, as is shown by the fact that commercial control amounted to 5.6 per cent. of the 1917 production. In Mexico at least 10 per cent. of the capital controlling gold mines is French, and the amount is steadily increasing. In South America—particularly in Colombia, and Dutch and French Guiana—some of the large companies are French, but most of the gold controlled commercially by the French comes from the Transvaal. It has been estimated that French interests control about 10 per cent. of the production of South Africa since German control has been eliminated. The gold reserve of France was large before the war and ranked second to that of the United States in 1916. It is now (1920) reduced to very small proportions.
Although Russia, with Siberia, is one of the most promising potential sources of the future gold supply and produced 5.8 per cent. of the total in 1913, Russian capital seemingly controls only a small part of the gold production of the world. The British are most active in Siberia, and French interests are known to have acquired property there. So far as is known, Russian capitalists control no gold deposits in foreign countries. In 1916 the gold reserve in Russian banks, treasuries, and in circulation amounted to $1,058,000,000, but it is not known what has become of this stock since the Bolshevists have been in control. At present the total is probably much smaller.
Japan controls only a small part of the gold output of the world, either politically or commercially. Some gold is obtained from Japan and Formosa, all of which is probably under Japanese financial control. The output of Korea, claimed by the Japanese as a part of their empire since 1910 and at present attempting to secure its independence, is controlled by Americans and other nationalities. The smaller mines are owned by Japanese, but the larger concessions were granted to foreigners by the old Korean government prior to 1910. Gold stocks of Japan were estimated at $143,128,000 in 1916. By December 26, 1918, they had increased to $225,820,000. In addition Japanese had on deposit in London, New York, and Paris a total of about $550,000,000.
The gold production controlled, either politically or commercially, by Germany and the countries of the former empire of Austria-Hungary is relatively insignificant, amounting in both cases to less than 1 per cent. Germany has produced annually in its European territory a little over $100,000, and its only colony yielding an appreciable amount was German East Africa, lost during the war. The mines of Austria-Hungary have been important in the past, but they are now very old and in 1913 produced only 0.5 per cent. of the world’s total production. It is understood that one of the largest operating companies in Transylvania before the war was British.