COMMERCIAL CONTROL
The commercial control of the gold resources of the world is shown in [Table 68] and in [Figure 20]. In examining the table and the diagram the reader should remember that the figures and percentages are at best only estimates. Most gold mines are owned by companies whose shares are bearer’s shares; these are bought and sold in the stock markets of many financial centers. Today the control may be in the hands of one group, tomorrow in the hands of another. Because of this ever-changing ownership, it is difficult to determine the nationality of the commercial control, particularly when there is any attempt to conceal the nationality of the capital invested. Table and diagram, however, are believed to be approximately correct. The information upon which they are based was obtained from mining manuals, the reports of mining companies, the reports of consular agents in the various countries, and by personal interviews with mining engineers.
Fig. 20.—Political and commercial control of the gold production of the world.
[Table 68] may be summarized as follows:
Commercial Control of Gold Resources
| Country | Percentage of 1917 production |
|---|---|
| British Empire | 63.0 |
| United States | 23.0 |
| France | 5.6 |
| Russia | 2.1 |
| Japan | 1.7 |
| China | 0.84 |
| Belgium | 0.5 |
| Brazil | 0.07 |
| Germany | 0.81 |
| Mexico | 0.21 |
| Unclassified | 1.9 |
It is interesting to note that political control and commercial control are closely identical in the case of the British Empire and the United States. French control is much more important commercially than politically. In other countries, little domestic capital is available, and political control is much greater than commercial control.
Commercial control, if different from political control, joins in a test of strength with it in periods of emergency or unrest, with the result that the stronger subdues the weaker. As regards governments that are strong and stable enough, the recent war has demonstrated that the elimination of foreign capital invested in a country is easy. The United States and Great Britain, in particular, have taken over a great number of companies formerly owned by German interests. Where the government is not so strong, however, the commercial control, backed in many instances by the more vigorous home governments from which the invested capital comes, wins the day, and political events are thus determined, even to the extent of overturning the weaker government. Thus the overturning of the Boer government and the birth of British South Africa was the result of the clash between British commercial control and Boer political control.
The question of the control of gold stocks is discussed in the report of the gold committee of the Department of the Interior.[175] The control of stocks in 1916 is shown graphically in [Figure 21] and is discussed more in detail in the section following, “[Position of Leading Commercial Nations].”