INTERNATIONAL FINANCE 



category as gold-mines, for the prices of diamonds, of silver, of copper and of other 

 metals have risen, whereas the price of gold is stationary; indeed, measured by other 

 commodities it has fallen heavily. In other words, gold has depreciated, while the 

 prices of all other commodities have appreciated; and whereas the profit from gold- 

 mining has declined and is declining, the profit from producing other commodities has 

 greatly risen and is still rising. The rise in silver and diamond-mining shares and 

 the decline in gold-mining shares will be apparent from Table X. The price of Rio 

 Tintos in December 1912, it may be noted, shows a decline brought about by recent 

 liquidation in Paris in consequence of the Austrian mobilisation. 



Table X. Prices of Mining Shares. 



The fall in high-class securities on the continent of Europe, and the appreciation 

 in industrial stocks and in banking shares, which on the continent so largely partici- 

 pate in the increased profits of industrial companies, are shown in Table XI. The great 

 decline in prices in consequence of the Balkan war will be evident. 

 Table XI. Prices of Securities in Europe. 



In the United States similar conditions have prevailed (see Table XII), and prices 

 of bonds and shares have generally fallen except where the profits are expanding and 

 the dividends are increasing. 



The immense production of gold has prevented any great rise in the rate of interest 

 for " banking money." Of course, " banking money " is an entirely different com- 

 modity to " investment money " or capital. Money that is placed per- 

 manently in securities is the savings of the public and is mainly under the 

 control of the general investor; whereas banking money consists for the 

 great part of the unused cash balances of companies, business houses, and individuals, 



Banking 

 money- 



