3q8 ELLIS H. ROBERTS 



prosperous commonwealth, are a part of the harvest planted 

 by that $20 of the miners. 



A writer in the Nineteenth Century alleges that in 

 Australia the balance in gold mining has been adverse, and 

 in the same review we read that on the whole gold discoveries 

 have not been of use. For all fields response may be given 

 on the same lines as for California. Is not California now, is 

 not Australia, worth all they cost? But we are not studying 

 whether gold prospecting or gold mining as an industry is 

 profitable or the reverse. Loss may befall the miners in 

 direct results, and yet by extending population, opening up 

 new districts, creating new centers of production, they may 

 add largely to the welfare of mankind. 



Quite another question is whether the supply of yellow 

 metal in this country and in the world is in excess. That 

 problem is important and far reaching. We are to note that 

 gold here is in the ratio of 44.9 to the total currency, while in 

 Great Britain it is 70; in France, 62.12; in Germany, 66.10; 

 in Russia, 87.71, and in Austria-Hungary, 68.90. In all these 

 countries combined, gold is 69.6 to the total circulation. If 

 the world's experience is to be accepted our gold is not in 

 excess, although our whole volume of money may be too 

 great. Gold, whether in coin or certificates, becomes elastic 

 as currency just to the extent that it comes to the treasury 

 and goes out from the vaults. This counterflow has no limit 

 save the operations of trade. No payments or deposits in 

 this form will be rejected, and the treasure will be held intact 

 until the public use draws it out. Coin and certificates are 

 interchangeable, and elasticity may assert itself to any de- 

 gree. Our total circulation per capita at $31.06, exceeds 

 that of every other nation save France, where it is $39.22. 

 But our industry and enterprise and local traffic also lead in 

 the comparison. The question is grave whether our cur- 

 rency is not in excess of our needs. 



American finance connects itself with world movements. 

 While we cannot follow the debate relative to the profit of 

 gold mining, we must recognize the fact that among the great 

 commercial nations the yellow metal is the only instrument 

 for the final adjustment of trade differences. The experience 



