Evening Republican, Volume 21, Number 152, Rensselaer, Jasper County, 14 July 1917 — Increased Production of Gold to Make America Real Banker of World [ARTICLE]

Increased Production of Gold to Make America Real Banker of World

By W. C. RALSTON.

' Formerly Assittont U. S. Treasurer at San Francisco

Those who have given thought to the financial situation know’ that immediately after peace is declared a heavy outflow of gold will begin. We shall be called upon to return all that has come in here and more besides. The question naturally suggests itself, Where is this more to come from? _ The United States and its territories produced in gold in 1916 slOl,000,000 and in 1916 $95,000,000, which shows that our gold production is falling off, l)ut the stock of gold in this country has increased from $1,887,000,000 at the outbreak of the war to about $3,089,000,000 today. Our government, unlike any other government in the world, does not interest itself very much in the production of gold. Once in a while you hear someone make the statement that there is plenty of gold in this country, and it leaves you with the idea that gold does not cut very much of a figure in the finances of a nation. The true answer to that point qf view is found in asking the question, What gives England her supremacy in the financial world ? Not her navy, not her manufacturers nor her products, but the fact that she controls the gold, product of the world, and for that reason is able to establish, under ordinary conditions, the rates of exchange and to make the English pound the basis thereof. We are told that we have been getting much profitable knowledge from the visits of the foreign commissioners to this country regarding war conditions and how we can meet them. Let us go one step further and add financial preparedness to our present work, and adopt Britain’s method, “dig more gold.” We have a wonderfully rich domain in the territory west of the Bocky mountains and in Alaska. It is only awaiting development, and when properly developed will increase the production of gold to such an extent that we can become the bankers of the world in fact—not tn name only, as we are today. A man would be foolhardy who would attempt to foretell what will happen in this country when the war ceases, when this immense amount of gold has gone back into its natural channels, and we are called upon to furnish more gold to help resuscitate and rebuild the countries now at war. I myself would not even hazard a guess. But one thing is certain: an increased production of gold will go further toward helping any condition that may arise than any other one thine.