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
