It will be seen that the principal countries contributing to the grand total in both years were Africa, the United States of America, Australasia, Russia, Canada, Mexico, and India, the names being given in the order of the respective importance of these countries as gold producers in 1898.
It may surprise many readers to observe that India is placed at the foot of the list, for we are accustomed to associate India with gold, Mexico with silver, and Russia with platinum; and it may also prove a surprise to find that the contribution of the Klondike region, which has created such a great sensation, is so trifling as compared to the grand total. In 1897 the Klondike was credited with an output of less than $3,000,000, and in 1898 of a little over $10,000,000.
It will be observed in the estimates of the Government's agents (January 1, 1899) of the production of gold in the United States for 1898 (see the letter of the Director of the Mint, appended hereto) that the gold production of the State of Colorado was more than twice that of the Klondike region, and the production of California was nearly fifty per cent greater than that of the Klondike.
Other surprising facts crop out in studying in detail the increasing production of gold, more especially in the United States. For example, California has always been regarded as pre-eminently the gold-giving State, and until 1897 she led all the other States in the value of gold annually produced. Colorado, on the other hand, was equally famous as a silver-producing State, and while still holding this leading position she has actually passed California in the production of gold. Colorado has thus taken the lead over all the States in the production of gold and silver.
The output of gold in the United States in 1898 was more than twice that of 1890; and the production of gold in the world in 1898, at the lowest estimate, was much more than twice the estimated production in 1890. In the decade just prior to the California gold discoveries, in 1849, the average annual production in the world is estimated to have been less than $13,500,000. In the previous decade it was less than $10,000,000. Assuming these figures of Dr. Adolph Soetbeer (which are accepted by the nations of the world, and incorporated in many official documents) to be approximately correct, it appears that the estimated production of gold in the world in the first third of the present century was but little more than the production in the single year 1898!
It is, indeed, difficult to comprehend the full significance of these figures at a glance: the production of gold in the past five years has amounted to more than $1,100,000,000; and if production should increase during the next five years in anything like the ratio of the past five years, it may be that a new economic problem, the very antithesis of that alluded to in the commencement of this paper, may present itself for solution. At all events, the cry of the Populists and others that increasing scarcity of gold is the cause of much of the poverty and of other ills of mankind, must surely be drowned in the golden stream now flowing from all quarters of the globe, almost threatening to become a rushing torrent, dangerous to the stable foundations of the world's commerce. That this, however, fortunately is an imaginary danger will appear from the following arguments:
Modern gold-getting by scientific methods compels the permanent investment of an enormous amount of capital, and a moderate return only in dividend is looked for as a rule; thus the balance between acquisition and disbursement is likely to be maintained in the future.
One of the chief causes of the extraordinary increase of production in very recent years is to be found in the application of the "cyanide process" to the recovery of gold from "tailings." This process is also largely applied to obtaining gold from very low-grade ores, that, in some cases, contain an average of less than one quarter of an ounce of gold distributed throughout a ton of ore! At the present time there are about twenty-five cyanide plants in this country, and over forty in the Transvaal, where the process has received its greatest development.
Although the fact that cyanide of potassium would dissolve gold quite readily was known long ago, having been employed by Faraday in his experiments with thin films of transparent gold, and used very extensively in the making of solutions of gold for electroplating baths during fifty years past, the practical application of the solvent to obtaining gold from low-grade ores is less than ten years old.
In Utah there is a dry bed of an ancient lake, the floor of which may be said to be carpeted with gold; according to a recent report this bed of limestone, eight miles by ten, varying from twenty to forty feet in thickness, and containing gold in proportion running from six to twenty dollars per ton, is an "ideal ore" for treatment by the cyanide process. A number of cyanide mills are now working the deposit, all paying dividends, and it is said that the only limit to output is the capacity of the mills. It is estimated that there are "5,000,000,000 tons of ore in the district, containing $50,000,000,000 worth of gold!" Although this statement is startling, the estimate is not a wild guess, for the blanket of ore has been cut in many places; hundreds of samples have been taken from different depths, and in all cases the finely distributed gold has been found, apparently having been deposited from solution in a mineral water which formed the lake in prehistoric times.