MARVELOUS INCREASE IN PRODUCTION OF GOLD.

By ALEXANDER E. OUTERBRIDGE, Jr.

The increasing annual production of gold in the world is a matter of such far-reaching economic importance, not only in the financial affairs of nations, but also in their industrial progress and in their civilization, that a vast amount of patient study has been given by eminent statisticians to the subject, and much time expended in compiling, from various historical records and other sources of information, statistical data which can be confidently accepted as approximately correct, showing the annual production of the precious metal from the time of the discovery of America down to the present day.

A publication of the United States Treasury Department, issued in 1897, containing information respecting the production of precious metals, etc., gives statistical tables showing the annual production of gold in the world, commencing with the year 1493. The earlier records are taken from a table of averages for certain periods compiled by Dr. Adolph Soetbeer, and the later figures (from 1885 to 1896) are the annual estimates of the Bureau of the Mint. Other tables show the annual production of gold from the mines of the United States alone from 1845 to 1896, and it is from these official sources mainly that the information has been gathered for this article, supplemented, however, by a full and very interesting communication to the author from the Director of the Mint, giving the latest figures, not yet published, and containing the estimates and deductions of the director respecting the production of gold in the world in 1898. This information is so timely and valuable that the author is of the opinion that the courteous letter of the Director of the Mint in response to his inquiries, if appended to this article, may prove to be—like the postscript of a lady's correspondence—its most important feature.

Students of political economy are well aware of the fact that some theorists have maintained that the annual production of gold in the world (apart from the phenomenal discoveries in California about the middle of the century, which were of an ephemeral character) does not keep pace with the natural increase in trade requirements, if gold is to maintain its position as the standard measure of value and the universal medium of exchange. This theory, after having passed through the various stages of pro and con argument in academic theses, became the "war cry" of a political party in this country composed of heterogeneous elements in the community, all inspired with one common idea that the balance of power in commercial transactions had been destroyed by the overwhelming force of concentration of capital and the "cornering" of the visible supply of gold in the world by a few enormously wealthy bankers. It was shown that, while the average annual production of gold in the world in five years from 1855 to 1860 exceeded $134,000,000, there was a constant decline thereafter, so that the annual average during five years from 1881 to 1885 barely exceeded $99,000,000, according to official estimates; also that the annual gold product of the mines of the United States declined from a value of $65,000,000 in 1853 to $33,000,000 in 1892. Furthermore, although a rising tendency was observed in each subsequent year, the production from the mines of this country in 1894 was still under $40,000,000, as was shown by the statistics of the United States Treasury Department.

While admitting the general accuracy of these statements of fact, it is the purpose of this paper to endeavor to show that the conclusions drawn therefrom were entirely fallacious, because due cognizance was not taken of the wonderful progress that has been made in recent years in mining and metallurgical arts whereby countless millions of tons of ore containing gold in such a finely divided state, or in such a refractory condition, that it was formerly worthless (costing more to recover the gold than the value of the precious metal contained in the ore), have now rendered these low-grade ores the most stable sources of supply of gold. Metallurgists, having knowledge of these facts, have at various times during the past ten years predicted that a golden stream would soon begin to flow from these practically new and apparently inexhaustible sources; but the people at large were wholly incredulous, and they are now astounded at the magnitude of the production of gold in the world in the past two years; and more especially, perhaps, are they amazed at the increase of production in the United States, as shown by the official reports of the Director of the Mint.

The gold production of the world in 1897 amounted in value, according to the most reliable estimates, to more than $237,000,000, and in 1898 to more than $280,000,000; and it is the opinion of the Director of the Mint that the final compilation of figures will show that the production was "somewhere between $290,000,000 and $300,000,000!"

Gold Production of the World.

Countries1897.1898.
Fine ounces.Kilogrammes.Value.Fine ounces.Kilogrammes.Value.
North America.
United States2,774,93584,870.5$59,210,7953,110,78895,200.7$64,300,000
Canada299,4679,164.06,190,000686,50222,071.114,190,000
Newfoundland3,00093.362,0103,00093.362,010
Mexico344,49810,715.07,121,189365,03211,354.07,668,866
Central America25,399789.9525,00025,399789.9525,000
South America.
Argentina15,235473.8314,90715,235473.8314,907
Bolivia3,14498.065,0003,14498.065,000
Brazil70,7322,200.01,462,12084,6332,591.01,750,000
Chile68,0962,118.01,407,54468,0962,118.01,407,544
Colombia188,6795,868.73,900,000188,6795,868.73,900,000
Ecuador6,430199.9132,9006,430199.9132,900
Guiana (British)101,5053,156.92,098,09888,6172,756.01,861,393
Guiana (Dutch)32,9831,025.8681,74828,273865.3584,421
Guiana (French)59,8591,861.71,237,31066,5932,038.01,376,477
Peru5,787180.0119,6285,787180.0119,628
Uruguay6,880214.0114,6006,880214.0114,600
Venezuela39,3841,224.9814,06739,3841,224.9814,067
Europe.
Austria-Hungary105,3973,278.22,178,556105,3973,278.22,178,556
France10,513327.0217,30410,513327.0217,304
Germany90,9212,780.91,879,35790,9212,780.91,879,357
Italy10,325316.0213,43110,325316.0213,431
Norway65020.013,50865320.013,508
Russia1,046,96532,408.221,538,4901,216,10037,217.025,136,994
Sweden3,702133.376,5243,702133.376,524
Turkey38712.08,00038712.08,105
United Kingdom2,03262.542,0012,03262.542,001
Asia.
China321,2969,992.86,641,190321,2969,992.86,641,190
India (British)353,14710,983.47,299,554369,01811,479.37,753,150
Japan34,5091,073.3713,30034,5091,073.3713,300
Korea34,9181,086.0721,76534,9181,086.0721,765
Malay Peninsula25,000777.6516,75025,000777.6516,750
Borneo4,837150.6100,0004,837150.6100,000
Africa.
Witwatersrand2,511,54478,112.651,913,6073,554,746108,790.073,476,600
Other districts, S. A. R.232,4667,230.04,805,072229,5287,024.34,744,350
West Coast24,276755.0501,79324,276742.9501,793
Rhodesia.........10,000306.3206,700
Madagascar19,351601.8400,00019,351601.8400,000
Australasia, 7 colonies2,520,33377,130.652,095,3382,945,42691,024.761,480,763
Totals11,399,475351,486.2$237,332,45613,805,407425,333.1$286,218,954

The above table, showing the estimated production of gold from all parts of the world in 1897 and 1898, is abstracted from the Annual Statistical Number of the Engineering and Mining Journal (January 1, 1899), and, although these figures may differ somewhat from those of the Director of the Mint, and from the final compilations, they are believed to be not very far from truth.