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.
SUMMARY
The principal and most essential uses of gold are as a measure of value and a medium of exchange. Gold is also used in dentistry, and in the arts for jewelry, gilding, and other forms of ornamentation. In an emergency other materials can be substituted for the latter uses, but any considerable substitution for the principal uses would involve radical changes in our monetary and financial system.
Gold is found in rocks of all geological ages from Archean to Quaternary, and also in minute quantities in ocean water. Only the more concentrated deposits can be worked profitably. It is believed that the production from the present main deposits has reached its zenith, but further important discoveries will probably be made in the Arctic regions, in the tropics, or in other regions hitherto unexplored by man. Siberia, South America, and perhaps China are the most promising regions, as the more settled lands have been already thoroughly prospected.
Gold is widely distributed geographically. It is found in all parts of the world and commercially important mines are worked in every continent. Over 75 per cent. of the total annual output of the world comes from four countries, the Transvaal, the United States, Australia, and Russia. Other important producers are Rhodesia, Mexico, Canada, India, West Africa, and New Zealand. Little gold is produced in Europe or in South America. The deposits of the former continent, at one time important, are becoming exhausted. With improved transportation facilities and with further exploration work, the production of South America is expected to increase materially.
Great Britain controls politically over 60 per cent. of the annual gold production of the world, through state sovereignty over South Africa, Australasia, Rhodesia, Canada, and India. The United States ranks second, controlling about 20 per cent. Russia controls about 6 per cent. and Mexico 4 per cent. The remaining 10 per cent. is controlled by many countries, among them being Japan, France, Belgium, and the Central Powers.
The extent of British political and commercial control is almost identical, British interests controlling over 60 per cent. of the production and owning in addition to the mines in the empire, property in Siberia, South and Central America, Mexico, and the United States. United States interests control financially about 23 per cent. of the world’s production. The Korean deposits are predominantly American owned. United States capital is also invested in Canada, Mexico, Central and South America, and recently in the Transvaal. Although the gold controlled politically by France is of little importance, French interests control commercially about 5.6 per cent. of the total annual production, owning mines in the Transvaal, in Mexico, and in Central and South America.