During the last half century the greatly increased gold production has been due largely to the exploitation of the low-grade properties, this being made possible by improvements in mining and metallurgy. It seems, however, that this development has reached a point where excessive labor costs prevent the use of ores of a still lower grade.
In general, therefore, the gold output of the world may be expected to remain static or to decline, at least until the level of prices is so changed that it is considered profitable to expend capital in the prospecting and developing of regions hitherto unexplored.
POLITICAL CONTROL
The political control may be summarized as follows:
| Country | Percentage of 1913 production |
|---|---|
| British Empire | 62.9 |
| United States | 19.3 |
| Russia and Siberia | 5.8 |
| Japan | 1.8 |
| France | 1.4 |
| Belgium | 0.2 |
| Central Power | 0.55 |
| Mexico | 4.2 |
| Other Countries | 3.7 |
Great Britain controlled politically 62.9 per cent. of the 1913 production, through state sovereignty over the Transvaal, Australia, Rhodesia, Canada, and India. Other British possessions contributing small amounts to the world output are British Honduras, British Guiana, British West Africa, British New Guinea, New Zealand, British East Indies, Egypt, and the British Isles. All gold produced in the British Empire must be sent to England.
The United States controlled politically 19.3 per cent. of the 1913 output, practically all of which came from continental United States. The Philippine Islands and Porto Rico produced small amounts.
Russia is one of the principal contributors to the world’s gold supply, producing 5.8 per cent. of the 1913 output. Most of this 5.8 per cent. came from the mines of Siberia, and the political control of that region is still unsettled. Mexico, with an output equal to 4.2 per cent. of the world total, was the largest producer among the neutral powers during the war. France controlled 1.4 per cent. of the world total, a third coming from the mines in France and the remainder from the French colonies in South America and Africa. Japan controlled 1.8 per cent., 1 per cent. coming from the Japanese islands and Formosa, and the remainder from Korea. The rest of the 1913 production, amounting to about 4 per cent., was widely scattered, and was controlled by a number of nations of South America, Europe and Asia.
It should be pointed out that although Great Britain and the United States control politically the important producing fields of the present, all of which seem to have reached their maximum output, the control of the fields expected to be important producers in the future is in different hands.
During the war, particularly during its later months, most of the belligerent nations and some of the neutrals placed restrictions on the exportation of gold, either as bullion or in manufactured form. In normal times gold is allowed to flow freely between nations, as needed to settle international trade balances.