CHAPTER XXIX_Political and commercial geology and the world's mineral resources

GOLD

BY JOHN E. ORCHARD

USES OF GOLD

The physical properties of gold and the difficulties connected

with obtaining it have made gold through all the ages one of the

most precious of the metals. Because of its luster, its color, and

its indestructibility, it was shaped by primitive man into rings,

bracelets, and other ornaments. These same properties, together with

its divisibility, early led to the use of gold as a trading counter,

and in all but the most primitive societies it has been regarded as a

measure of value and a medium of exchange. The earliest known reference

to gold is a reference to its use in trade, and is contained in an

edict of Menes of Egypt (perhaps 3800 B. C.) fixing the ratio of the

value of gold to silver at 2¹⁄₂ to 1.

As a medium of exchange gold is used in a variety of forms. The

primitive trader accepted and gave ornaments of gold in exchange

for commodities. In mining camps, gold dust and nuggets have been

the circulating medium. In a settled community under a government

possessing the confidence of the governed, gold coined into counters of

convenient denominations by the government is accepted without question

in all transactions. For the settlement of balances in international

trade, gold bullion is used, its value being determined by weight.

Today practically all nations are on a gold standard, and even those on

a silver standard in domestic trade have adopted the gold standard for

foreign trade.

But gold, though it has many excellent qualities, is one of the

heaviest of metals, and carrying it on the person is inconvenient,

especially in amounts sufficient for large transactions. Also, through

constant handling, gold wears away and coins deteriorate in value.

Accordingly a large part of the coins or the gold bullion is kept in

the national treasury or in the vaults of a bank, and some form of

paper currency is used as the circulating medium. Upon this reserve of

gold, seen only by a few employees of the government or bank, who have

no ownership in it, is built an intricate system of credits and trade.

It is true that little gold is in actual circulation and that for

domestic trade mediums of exchange secured only in part by gold are

being used in increasing amounts. Even international exchange is

no longer on the gold standard, but this situation is undoubtedly

temporary and with the improvement in financial conditions in Europe

gold will be restored to its position as foundation of trade and

finance, national and international. The circulating medium, whatever

its nature, must be freely convertible, and credit, to remain sound,

must be founded upon an adequate gold reserve.

It has been officially estimated that between the years 1492 and 1894

the world’s production of gold equaled about $8,000,000,000. Of this

amount a little less than $4,000,000,000 was held as gold reserve in

1894, the remainder having been lost or absorbed in the arts or in

the manufacture of jewelry. Since 1894 the consumption of gold in

the arts has been between $50,000,000 and $100,000,000 annually, or

for the 27 years about $2,100,000,000 out of a total production of

$9,000,000,000--almost 25 per cent.[158]

[158] JENNINGS, HENNEN: “The Gold Industry and Gold Standard,” 1919.

GEOLOGICAL OCCURRENCE

Gold is widely distributed, both geographically and geologically. It

is found in about 60 countries in all parts of the world and occurs in

rocks of all ages, from Archean to Quaternary, often in association

with other metals, as silver, copper, tellurium, lead, and iron.

Gold deposits may be broadly classified as lodes and placers. Lode

deposits are also known as vein or quartz deposits; and in them the

gold is found with silica or quartz in irregular masses, strings,

scales, plates, and crystals, or more often in microscopic particles in

the sulphide minerals or the gangue. Much the same methods are used for

extracting the ore as are used in mining silver, lead, or zinc.

Placer or alluvial deposits are sedimentary beds of gravel or sand in

which the particles of gold, washed from the mother lode, have been

concentrated by the action of water. Most of the placer deposits lie in

the open, along the bed of a river, but some are covered by a sheet of

lava or other non-productive rock. The gold occurs as scales, grains,

slugs or nuggets. A number of large nuggets have been found, the

largest being the Australian “Welcome Stranger,” weighing 2,520 ounces

and valued at about $42,000. Usually, however, the particles of gold

are minute.

Placer deposits are worked by one of the following methods, depending

on the nature and richness of the alluvium: sluice mining, hydraulic

mining, dredging, or drift mining.

During the early years of what has been called the modern era of gold

mining, beginning with the discovery of gold in California in 1848,

most of the world’s annual production came from placer deposits.

De Launay estimates that from 1848 to 1875 placers contributed 87

per cent. In more recent years, with the exhaustion of the easily

discovered and the easily worked placer mines, the proportion has

decreased and at present it is probably not more than 10 per cent.

Today the great gold mines of the world are lode mines. The world’s

deepest gold mine has attained a vertical depth of 5,900 feet.

After making all allowances for further discoveries, students of the

subject are of the opinion that the world’s gold production has already

reached its zenith and that a decline may be expected.[159]

[159] The above discussion of the geological occurrence of gold is

based mainly on “The Gold Industry and Gold Standard” and other

articles by HENNEN JENNINGS, consulting engineer, U. S. Bureau of

Mines.

GEOGRAPHICAL DISTRIBUTION

Commercially important mines are found in every continent, and there

are few regions on the earth’s surface that do not contain deposits

profitably worked now or formerly. The distribution of gold has played

an important part in the settlement of new lands, notably California,

western Canada, Alaska, Mexico, Australia, and South Africa, and will

undoubtedly greatly influence the future movements of peoples. Yet

although gold is distributed thus widely, $323,950,000, or over 75 per

cent. of the total amount of gold produced in 1917, came from four

countries, Transvaal, United States, Australia and Russia.

The outputs of the chief producing countries are given in Table 67 and

Figure 19.

NORTH AMERICA

=United States.=--Although at present surpassed by the Transvaal,

the United States formerly led the world as a producer of gold. It

is estimated that this country since 1792 has contributed about

$3,913,000,000 to the gold supply of the world, a little less than 25

per cent. of the total produced, and an output greater than that of any

other nation.[160] The United States first became an important producer

in 1850, following the discovery of gold in California. Previous to

that time some gold was mined in the Appalachian states, the total

probably reaching $50,000,000.

[160] Report of the committee appointed by the Secretary of the

Interior to study the gold situation.

In 1915 the output of the United States was $101,035,000, the highest

mark so far reached. Since that year there has been an annual drop of

about $8,000,000 in output. The yield in 1918 was $68,646,700 and in

1919, $58,488,800.

During the past four years, eight states, California, Colorado, Alaska,

South Dakota, Nevada, Arizona, Montana, and Utah, have produced more

than 90 per cent. of the gold mined in the United States.

TABLE 67.--GOLD PRODUCTION OF THE PRINCIPAL PRODUCING COUNTRIES,

1880-1917[161]

----+------------+-----------+-----------+----------------+----------+

----+------------+-----------+-----------+----------------+----------+

1880|$36,000,000 |$28,765,000| $1,993,800|$28,551,028 | ...|

1881| 34,700,000 | 30,690,000| 1,993,800| 24,371,343 | ...|

1882| 32,500,000 | 31,955,017| 1,993,800| 23,867,935 | ...|

1883| 30,000,000 | 27,150,000| 717,000| 20,119,000 | ...|

1884| 30,800,000 | 28,284,000| 830,000| 21,874,000 | ...|

1885| 31,801,000 | 27,439,000| 1,384,000| 25.338,000 | ...|

1886| 34,869,000 | 26,425,000| 1,438,000| 20,518,000 | ...|

1887| 33,136,000 | 27,327,600| 1,919,600| 20,092,000 | ...|

1888| 33,167,000 | 28,560,660| 4,500,000| 21,302,000 | ...|

1889| 32,967,000 | 33,086,700| 7,788,372| 23,905,600 | ...|

1890| 32,845,000 | 29,808,000| 10,438,356| 25,484,000 | ...|

1891| 33,175,000 | 31,399,000| 14,885,639| 24,162,500 | ...|

1892| 33,015,000 | 34,159,000| 23,220,108| 24,806,200 | ...|

1893| 35,955,000 | 35,688,600| 28,293,831| 27,808,200 | ...|

1894| 39,500,000 | 41,760,800| 39,696,330| 24,133,400 | ...|

1895| 46,610,000 | 44,798,300| 43,893,300| 28,894,400 | ...|

1896| 53,088,000 | 45,181,900| 43,779,669| 21,535,800 | ...|

1897| 57,363,000 | 52,665,700| 57,633,861| 23,245,700 | ...|

1898| 64,463,000 | 64,860,800| 79,213,953| 25,463,400 | 444,617|

1899| 71,053,400 | 79,321,600| 71,384,561| 22,167,100 | 1,129,773|

1900| 79,171,000 | 73,498,900| 6,124,226| 20,145,500 | 1,158,815|

1901| 78,666,700 | 76,880,200| 5,333,994| 22,850,900 | 2,974,943|

1902| 80,000,000 | 81,578,800| 34,901,140| 22,533,400 | 3,366,561|

1903| 73,591,700 | 89,210,100| 61,454,439| 24,632,200 | 4,065,489|

1904| 80,464,700 | 87,767,300| 78,004,559| 24,803,200 | 4,794,208|

1905| 88,180,700 | 85,926,500|101,489,199| 22,291,600 | 7,337,211|

1906| 94,373,800 | 82,391,400|119,618,507| 19,496,500 |10,082,747|

1907| 90,435,700 | 75,677,700|133,361,943| 26,684,300 |11,199,181|

1908| 94,560,000 | 73,327,300|145,862,971| 28,052,200 |13,022,460|

1909| 99,673,400 | 71,007,900|150,799,880| 32,381,300 |13,223,955|

1910| 96,269,100 | 65,470,600|155,597,202| 35,579,600 |13,590,658|

1911| 96,890,000 | 60,184,200|170,566,159| 32,151,600 |13,823,733|

1912| 93,451,500 | 54,509,400|188,293,100| 22,199,000 |14,226,900|

1913| 88,884,400 | 53,113,200|181,885,300| 26,508,700 |14,274,700|

1914| 94,531,800 | 47,569,023|173,559,940| 28,586,392 |17 663,686|

1915|101,035,700 | 49,397,797|188,033,156| 26,322,745 |18,915,324|

1916| 92,315,363 | 38,213,328|192,182,900| 22,300,000 |19,232,200|

1917| 84,456,600 | 35,275,000|186,254,256| 18,000,000[164]|14,988,600|

----+------------+-----------+-----------+----------------+----------+

----+---------------+----------+----------+------------

| | | British |

Year| Mexico | Canada | India | World[163]

----+---------------+----------+----------+------------

1880| $989,160 | $815,089| ...|$106,436,800

1881| 858,909 | 1,094,926| ...| 103,023,100

1882| 936,223 | 1,094,926| ...| 101,996,600

1883| 951,000 | 954,000| ...| 95,392,000

1884| 1,183,000 | 954,000| ...| 101,729,000

1885| 867,000 | 1,116,000| $135,000| 108 435,000

1886| 614,000 | 1,330,442| 421,600| 106,163,000

1887| 824,000 | 1,178,637| 320,000| 105,774,900

1888| 974,000 | 1,111,959| 685,720| 110,196,000

1889| 700,000 | 1,295,000| 1,502,600| 123,489,200

1890| 767,000 | 1,666,000| 2,000,000| 118,848,700

1891| 1,000,000 | 930,666| 2,495,000| 130,650,000

1892| 1,129,200 | 907,600| 3,318,300| 146,651,500

1893| 1,305,300 | 927,200| 3,813,600| 157,494,800

1894| 4,500,000[164]| 1,042,100| 3,882,900| 181,175,600

1895| 6,000,000[164]| 1,910,900| 4,656,200| 198,763,600

1896| 8,331,700[164]| 2,810,200| 6,130,500| 202,251,600

1897| 7,500,000[164]| 6,089,500| 7,247,200| 236,083,700

1898| 8,500,000[164]|13,838,700| 7,781,500| 286,879,700

1899| 8,500,000[164]|21,324,300| 8,658,800| 306,724,100

1900| 9,000,000[164]|27,880,500| 9,435,500| 254,576,300

1901|10,284,800 |24,128,500| 9,395,900| 260,992,900

1902|10,153,100 |21,336,700| 9,588,100| 296,737,600

1903|10,677,500 |18,834,500|11,428,900| 327,702,700

1904|12,605,300 |16,462,500|11,722,900| 347,377,200

1905|16,107,100 |14,610,400|11,950,200| 380,288,700

1906|18,534,700 |12,023,900|12,087,700| 402,503,000

1907|18,681,100 | 8,382,800|10,383,600| 412,966,600

1908|22,371,200 | 9,842,100|10,598,500| 442,476,900

1909|23,842,900 | 9,382,200|10,358,600| 454,059,100

1910|24,910,600 |10,205,800|10,718,400| 455,239,100

1911|24,880,100 | 9,762,100|11,054,100| 461,939,700

1912|24,500,000 |12,648,800|11,055,700| 466,136,100

1913|19,308,800 |16,598,900|12,178,000| 459,941,100

1914| 4,788,175 |15,983,004|11,378,400| 439,078,260

1915| 6,559,275 |18,977,901|11,522,457| 468,724,918

1916| 7,690,700 |19,235,000|11,206,500| 454,176,500

1917| 9,000,000[164]|15,449,426|10,756,800| 423,590,200

----+---------------+---------------------+------------

[161] Compiled from reports of the Director of the Mint, 1880-1917.

[162] Previous to 1898 production of Rhodesia and Mozambique included

in Transvaal returns.

[163] Total production of world, 1492-1917, $16,916,735,394.

[164] Estimated.

[Illustration: FIG 19.--Production of gold in chief producing

countries, 1880-1917, based on reports of the Director of the Mint.]

With the discovery of gold in a mill race at Coloma, Eldorado County,

_California_, by J. A. Marshall in 1848, the history of modern gold

production began. The great rush to California followed and the state

became the leading gold-producing region of the world. The output for

1860 amounted to $45,320,000, as compared with a total output of only

$1,000,000 for the remaining states. For many years the gold production

of California has been declining, the total yield in 1917 amounting to

only $20,000,000, a decrease of almost $2,000,000 from the output of

1916. About three-fifths of the output comes from lode mines and the

remainder from placers.

For a number of years _Colorado_ was the leading gold-producing state,

principally because of the output from Cripple Creek, Teller County,

which was from 1893 to 1908 the leading gold camp in the United States.

Recently the output has fallen below that of California. Over half of

the yield of the state in 1916 came from Teller County.

The earliest discovery of gold in _Alaska_ was probably about 1849

along the shores of Cook Inlet. In 1879 the gold-quartz veins near

Sitka were discovered, and a year later the placers of Juneau. The

discovery of the gold placers in the valley of the Yukon was made in

1886 and of those in the Klondike in 1896. Most of the Alaskan output

is obtained from placer deposits, the richest being in the Seward

Peninsula near Nome and in the Yukon basin. The largest producing lode

mines have been those near Juneau; of these the Treadwell was for long

the greatest gold mine in the world, but it is now inactive. During the

past few years the working of large low-grade disseminated deposits of

the Treadwell type near Juneau has been undertaken on a scale hitherto

undreamed of, but thus far these ventures (Alaska Gold and Alaska

Juneau mines) have not been financially successful.

The gold-producing area of _South Dakota_ is confined to an area of

less than 100 square miles, lying in the Black Hills. The gravels of

Whitewood and Deadwood gulches were first washed in 1875, and in 1876

the famous Homestake lodes were discovered. At present about 94 per

cent. of the total output of the state is controlled by one company,

the Homestake Mining Co., the largest producing company in the United

States.

Following the exhaustion of the famous Comstock lode, demarcated in

1851, _Nevada_ was of little importance as a gold-producing state until

the discovery of the rich deposits of Tonopah in 1900. At present

practically all the gold obtained in the state comes from the vein

deposits of Tonopah and Goldfield. Divide is a newly developed camp

between these two.

There are three main auriferous areas in _Arizona_: the vicinity of

Bisbee and Tombstone, Cochise County; the Oatman district, Mohave

County; and the Verde district, Yavapai County. Arizona was one of the

few states to show a larger output in 1917 than in 1916. The United

Eastern mine, a new property opened in 1913 in the Oatman district of

Mohave County, produced heavily and was responsible for the increase.

The gold output of Cochise and Yavapai counties is obtained largely

from copper ore.

During the sixties and seventies, _Montana_ was second only to

California in its yield of placer gold. The most famous placers were

those of Bannack and Alder Gulch and later Helena. Much of the present

output is obtained as a by-product from copper ores.

Few mines in _Utah_ are worked exclusively for their gold content, the

greater part of the yield of the state being derived from copper and

lead ores.

Gold is also mined in _Idaho_, _New Mexico_, _Oregon_, and

_Washington_. Small amounts were produced in 1917 in a number of

the Appalachian states. Before the discovery of gold in California,

practically all of the gold coined in the United States mint came

from the mines of _Virginia_, _Maryland_, _Alabama_, _Georgia_, and

the _Carolinas_, but since the Civil War their output has not been

important. The gold production of the _Philippine Islands_ in 1917

amounted to $1,404,000.

=Canada.=--The total gold yield of Canada in 1900 amounted to

$28,000,000, but with the exhaustion of the placer deposits it

declined to $8,382,000 in 1907. With the development of vein deposits,

production increased steadily from this low point, and reached

$19,235,000 in 1916, and $15,272,992 in 1917, placing Canada sixth in

the list of gold producers. Three provinces, Ontario, British Columbia,

and the Yukon Territory, yield most of the gold, the remaining

provinces producing less than 1 per cent. of the total.

More than one-half of the Canadian production comes from the Porcupine

district in Temiskaming, _Ontario_, developed in 1912. Other producing

districts, though of minor importance, are Kirkland Lake and Munro

Township, also in Temiskaming, and Long Lake, near Naughton, Sudbury

district.[165]

[165] “Production of Copper, Gold, Lead, Nickel, Silver, Zinc, and

Other Metals in Canada, 1916.” Canadian Department of Mines, Mines

Branch, 1917.

At one time most of the gold output of _British Columbia_ was derived

from placers, chiefly from those in the Atlin and Cariboo districts,

but less than 5 per cent. came from that source in 1917. The main lode

mining districts are West Kootenay and Yale, in the southern part of

the province.[166] Gold production in 1917 amounted to about half of

the total for 1916.

[166] “Production of Copper, Gold, Lead, Nickel, Silver, Zinc, and

Other Metals in Canada, 1917.” Canadian Department of Mines, Mines

Branch, 1919.

Gold has been known in the _Yukon Territory_ since 1869 and the

deposits have been actively worked since 1881. The greater part of the

placers of Forty-mile River and all of Sixty-mile River are within

Canadian jurisdiction. In 1897 came the discovery of the Klondike. Gold

production reached its height in Yukon Territory in 1900, when the

output was 1,077,649 fine ounces, valued at $22,000,000. Practically

all of the 1917 production was derived from placer deposits.

Gold was mined in _Quebec_ as early as 1823, but Canada was of little

importance as a gold-producing region prior to the discovery of the

British Columbia placers in 1857. Gold deposits of little economic

value are still worked in _Quebec_, _New Brunswick_, _Nova Scotia_,

and _Newfoundland_. Prospecting and development work in _Manitoba_,

_Saskatchewan_, and _Alberta_ indicate that these provinces may become

important producers of gold.

=Mexico.=--For many years Mexico ranked fourth among the gold-producing

countries of the world, being surpassed only by the Transvaal, the

United States, and Australasia. Revolutions and bandit warfare have

seriously interfered with mining operations since 1911, and the output

of gold in 1917 was little more than one-third of the normal annual

yield. With the establishment of a stable government, able to protect

foreign investments, Mexico will no doubt regain its former position.

A large part of the gold output of Mexico is obtained as a by-product

from lead, silver, zinc, and copper ores. The only true gold-mining

district is the El Oro district of the states of _Mexico_ and

_Michoacan_. The chief producing mines are the Esperanza, El Oro,

Mexico Mines of El Oro, and Dos Estrellas. In 1906 the Esperanza was

considered, in respect to both actual output and profits earned,

the most productive gold mine in the world. Since then it has been

surpassed by mines of the United States and the Transvaal. Another

famous gold mine of Mexico, the Dolores, situated in western

_Chihuahua_, yields ore whose silver content is almost equal in value

to the gold. _Lower California_, _Sonora_, _Durango_, _Hidalgo_, _San

Luis Potosi_, _Guanajuato_, and _Chiapas_ are all gold-producing states.

=Central America.=--At the time of the discovery of America, the

Spanish were attracted to the region now included in the states of

Central America by reports of fabulously rich mines and of the wealth

of the Indians. A number of expeditions were sent out in search of the

gold and some rich mines were discovered and worked. Gold is still

produced in Central America, but the total amount is small, being

less than 1 per cent. of the world total in 1913. _Honduras_ is the

richest of the states in production and _Nicaragua_ ranks second, the

principal centers of the gold-mining industry being in the Departments

of Matagalpa and Chontales, and in the district of Cabo Gracias and

Prinzapolka.[167]

[167] U. S. Commerce Reports, Supplement 34_a_, 1915, p. 4.

SOUTH AMERICA

South America was also an important source of gold during the years

following the discovery of America. The early conquerors obtained

gold by plundering the temples, churches, and even the graves of the

natives. Following the conquest, the Spaniards by means of their slaves

systematically searched much of the continent for gold deposits. About

15 per cent. ($2,266,000,000) of all the gold produced between 1492 and

1917 came from South America.

Today South America is of little importance as a gold producer, the

combined yield of all the countries for 1913 being about 2.5 per cent.

of the world total. The great bulk of the South American production

has so far been alluvial gold. With the establishment of more stable

governments and the improvement of transportation facilities it is

likely that the production of South America will increase.

According to Maclaren[168] the gold fields of South America are

disposed in three somewhat sharply separated areas. The chief area is

that extending the length of the Andes from the Isthmus of Panama to

central _Chile_ and including the deposits of Colombia. The second area

is contained in a well-marked petrographic and metallographic province

extending across the rearland of the Guianas and including also the

mines of _Venezuela_ and northern _Brazil_. The third area is contained

in the province of Minas Geraes, Brazil. Some gold is obtained from

_Chile_, _Argentina_, _Bolivia_, _Peru_, _Ecuador_, and _Uruguay_.

The chief gold-bearing areas of _Colombia_ are Choco, the Department

of Antioquia, and the district lying between the Cauca and Magdalena

rivers. Fairly rich deposits have also been found in Colombia near the

Ecuadorian border.[169]

[168] MACLAREN, J. MALCOLM: “Gold: Its Geological Occurrence and

Geographical Distribution, 1908,” p. 619.

[169] U. S. Commerce Reports, Supplement 42_b_, 1915, p. 12.

The principal mines of _Brazil_ are the St. John del Rey mine, and the

mines owned by the Ouro Preto Gold Mines of Brazil, Ltd., both in the

State of Minas Geraes. The former mine is said to be the deepest in the

world.

EUROPE

Although Europe in the past has played an important part in the

production of gold, very little is mined at the present time. Previous

to the discovery of America, much of the gold in use came from the Alps

and from _Hungary_. Deposits were also worked in _England_, _Ireland_,

_Wales_, _Spain_, and _Germany_.

The only gold mines in Europe of any present economic importance are

in the former empire of _Austria-Hungary_, _France_, and the Urals

of _Russia_. In the south of France gold has been produced along the

streams flowing from the Pyrenees, and also in the eastern provinces.

At present only three mines are in operation, which in 1911 produced

2,554 kilograms of gold. The Hungarian deposits are very old, as they

were worked by the Romans 2,000 years ago. Most of the producing mines

of today are in Transylvania. Russia is credited with producing 5.8

per cent. of the world total in 1913. A small part of this production

came from the Urals of European Russia, chiefly as a by-product from

other ores, but the greater part was obtained in Siberia. The Siberian

deposits are discussed below, under Asia.

ASIA

Since the decline in the Mexican production, Russia ranks fourth among

the gold-producing countries. Most of the output comes from _Siberia_,

which has long been a source of gold, the mines of the Altai Mountains

being considered among the oldest in the world. The production of gold

in Siberia from 1830 to date has been estimated by Russian authorities

at approximately $1,000,000,000.

Maclaren[170] has divided the auriferous areas of the country into

two distinct regions, the eastern and western. About four-fifths of

the country’s production is derived from the former region, which

extends in one fairly narrow auriferous belt from Lake Baikal to the

southwestern shores of the Sea of Okhotsk.

[170] MACLAREN, J. MALCOLM: “Gold: Its Geological Occurrence and

Geographical Distribution,” p. 210.

A number of dredges have been operated in the Ural district. The most

promising property is the Riderlinsky, east of Omsk. In the southern

Urals, most of the mines produce copper, pyrite, or zinc, the gold

by-product making the profits. The Ridder mine, in the Altai Mountains,

is the best-known lode mine in Siberia.

Placers are located along the Manchurian frontier on the Onon and Amur

rivers. They are among the most important in Siberia and have produced

over $100,000,000 in gold. The deposits of Irkutsk along the Lena River

are the most important deposits so far exploited in Siberia and are

probably the richest placers ever discovered. The district produces

about one-third of the Siberian output. The placers are at present

about worked out as drift mines, but will continue to produce with the

installation of dredges.

Many engineers believe that Siberia is the richest remaining potential

source of gold in the world. It has been estimated that the country

will produce in the future, say in the next 30 or 40 years, about

$6,000,000,000. The unsettled political conditions have greatly

interfered with mining. Many of the mines were taken over by the

Bolshevists, and although it is unlikely that any attempt at systematic

mining will be made, they will probably be robbed of the richer exposed

ore before they can be recovered by the owners.

_India_ has long been regarded as a land of riches. Philologists have

proved, to their own satisfaction, that Ophir, the source of the stores

of gold of Solomon, was located there. In the deserts of northern

India lived the gold-digging ants, described by the Greek historians

and later writers and as yet unexplained. Present facts do not bear out

legend and tradition. In 1913 India contributed only 2.6 per cent. of

the world’s total production of gold, an amount hardly proportionate

to the extent of the country. The land offers to the prospector an

extremely uninviting field. It has been carefully prospected and

its deposits have been worked assiduously for at least twenty-five

centuries by a people possessing great patience and considerable mining

skill.[171] The principal modern producing gold mines of India are in

the Kolar field, where the main reef carries five large mines along its

strike.

[171] MACLAREN, J. MALCOLM: “Gold: Its Geological Occurrence and

Geographical Distribution,” p. 238-240.

_Japan_ was one of the chief contributors to the stream of gold that

poured into Europe during the sixteenth century. Portuguese and Dutch

traders came to the islands to exchange European products for the gold

mined by thousands of natives. The Japanese finally revolted against

this domination of their trade and expelled the last of the Portuguese

in 1624. A few Dutch were permitted to remain and to trade through

certain ports, but under most humiliating conditions. Between the years

1601 and 1764, it is estimated that about 3,763,572 ounces of gold

was exported from Japan. At the present the annual gold production of

Japan, including Formosa, is about $6,000,000.

Most of the gold-quartz veins of Japan have been worked for many

generations and only the poorer sulphide zones remain.

The Island of Formosa, which was acquired by Japan in 1895, had been

represented by early European travelers as a storehouse of untold

riches. Not until 1890 were the sites of the old workings rediscovered,

the discovery of flakes of gold during the construction of a railway

precipitating a rush of Chinese miners to the island.[172]

[172] “Mining in Japan, Past and Present,” the Bureau of Mines,

Department of Agriculture and Commerce, Japan, 1909, pp. 17 and 64.

The total output of gold in _Chosen_ (_Korea_) in 1914 approximated

$5,000,000, but at present the output is declining because of the

abnormal rise in the price of chemicals and materials necessary for

mining. The yield for 1918 will probably not exceed $3,500,000, 60 per

cent. of which will be obtained from three mines operated by foreign

capital. The chief gold-quartz mines of Chosen are included in the

American concession at Unsan in North Pyong-an Province, northwestern

Korea. From these mines is derived about half of the annual gold

production of Chosen. Korea also contains a large number of placer

deposits, mostly small, that have been extensively mined by Koreans.

The placer deposits of the Unsan district have not yet been worked, but

those of the Chiksan district are being exploited by the Japanese.[173]

[173] U. S. Commerce Reports, February 26, 1914.

The small, scattered gold deposits of _China_, both vein and placer,

are worked almost exclusively by the Chinese, as none has been

discovered of sufficient richness to attract foreign capital. On the

Island of Hainan, southeast of the mainland, the Chinese government is

operating mines.

Exploration work carried on in China up to the present does not

indicate that the country will ever become an important producer

of gold. Even in the provinces contributing most of the present

output--Manchuria, Yunnan, and Szechuen--the gold industry gives little

promise of growth. During the years 1911, 1912, and 1913, 700 streams

were examined in the last two provinces and gold was found in 430, but

in no case in sufficient quantity to pay for working.

There have been many rumors concerning the gold deposits of the vast

and unexplored territory of Tibet since the very earliest expeditions

to that country but the field is still closed to modern enterprise

and even to careful scientific examination. Despite previous reports,

it has been stated by the geologist accompanying a British expedition

about 10 years ago that the mineral value of Tibet was not easily

apparent. Near the frontier of the State of Bhutan there are many

colonies of gold washers. The Tibetan gold is found in nuggets as

well as in spangles and dust, but the Tibetans are said to be careful

to leave the nuggets intact, or to replace them if disturbed, under

the belief that they are living and are the parents of the spangles

and dust, or the roots from which new gold grows, which latter would

disappear were the lumps removed.[174]

[174] U. S. Commerce Reports, February 26, 1914.

_Siam_, _Burma_, _Indo-China_, and the _Federated Malay States_ at

present contribute only a small part of the gold production of Asia.

Exploration and prospecting are proceeding actively and the results

to date are favorable. Future developments may substantiate the

statements of the ancient writers and cartographers that there was

much gold in this region. Gold and other minerals are known to exist

in _Afghanistan_, but with the exception of a gold mine near Kandahar,

in charge of a European, the mineral resources are almost entirely

undeveloped.

AFRICA

Since 1905 _South Africa_, including Transvaal, Cape Colony, and Natal,

has been the leading gold producer of the world, a position that

would have been attained several years earlier had not the Boer War

interfered. In 1917, gold valued at $186,255,000, or nearly half of the

world’s output, was produced, the greater part being derived from the

Witwatersrand, or Rand, near Johannesburg, Transvaal. Production in

1918 fell to $174,068,000.

Gold was first discovered in the _Transvaal_ in 1870, but production

was not important previous to the discovery of gold on the farm

Langlaagte, Witwatersrand, in 1885. The mines are spread along a belt

extending some 62 miles from Randfontein on the west to Holfontein

on the east. This belt contains the largest deposit of gold that has

ever been found in one place, and its gold content probably equals

that of all the other known gold fields of the world combined. The ore

is not exceptionally high grade, but can be economically treated in

large quantities. The deposit, it has been estimated, may represent

$3,000,000,000 to $4,000,000,000 from about 40 square miles, of which

about half had been extracted by 1916.

Gold occurs both in vein and placer deposits in _Natal_ and _Cape

Colony_, but the output is small.

_Rhodesia_, in seventh place in 1913, has developed rapidly in recent

years as a producer of gold and now outranks Mexico. According to

Portuguese records, gold was mined in Rhodesia as early as 1788.

The discovery in 1866 of ancient ruins and of ancient gold mines at

Zimbabwe gave rise to the hypothesis that Rhodesia was the Ophir of

the Scriptures. Although numerous attempts were made to open the gold

fields, no measure of success was obtained until 1891, and only during

the present century has the true character of the Rhodesian gold-quartz

veins been recognized. The settlement of the country and the

development of the mines is the result of the efforts of Cecil Rhodes

and the Charter Company.

The gold is widely distributed and most of the mines are small. The

future of the country as a gold producer would seem to depend upon the

operation of the lower-grade ore bodies by large companies. The Shamva

mine is a conspicuous example.

_West Africa_, especially the Gold Coast, is the only region of Africa,

other than the Transvaal and Rhodesia, producing gold in important

quantities. The output of the British West Africa colonies in 1917

amounted to about $7,500,000. The unhealthful climate of the region

will probably prevent for some years any extensive mining operations by

white men.

Gold mines are also worked in _Abyssinia_, _Belgian Congo_, _Egypt_,

_French East Africa_, the former _German East Africa_, _Madagascar_,

and the _Sudan_, but the total annual production from all these

countries is little more than $2,000,000. The rock carvings and the

hieroglyphics of ancient Egypt indicate that northern Africa and the

region along the Nile River were important sources of the gold of the

ancient world.

AUSTRALASIA

For many years Australasia was a close rival of the United States as

a gold producer, frequently outranking this country. Since 1903 there

has been a rapid decline, and Australasian production in 1917 was less

than one-half the production of the United States. However, Australasia

still ranks third and produced 11.3 per cent. of the world’s output in

1913 and about 8.3 per cent. in 1917.

=Australia.=--Gold was discovered in Australia in 1839 and perhaps

even as early as 1823. Fearing the unsettling effect of gold-seeking

on the progress of the colony, the government authorities kept these

early discoveries a secret for a number of years. In 1851, however, a

miner recently returned from California, discovered gold near Bathurst,

in New South Wales, and a rush similar to the Californian rush

began. Discoveries in other parts of the country followed. The vein

deposits of Australia occur in two distinct areas, well separated both

geographically and geologically. The first includes the gold fields

of the west and northwest and the other lies along the great Eastern

Cordillera of Australia and stretches northward from Tasmania through

Victoria, New South Wales, and Queensland.

For many years _Victoria_, the smallest of the states, was the largest

producer of gold, and up to 1908 had produced about half of the total

output of the commonwealth. Among the earlier returns were some of the

largest nuggets known. With the discovery in 1892 of the sensational

field of Coolgardie, in Western Australia, a state previously believed

to be without mineral wealth, Victoria dropped to second place.

Kalgoorlie is the chief town and center of the gold-mining area in

Western Australia.

_Queensland_ ranks next to Victoria. A disastrous rush occurred in

1858, and 15,000 to 20,000 men were left starving on the banks of the

Fitzroy River. The men were rescued by steamers sent by the governments

of New South Wales and Victoria. A few years later alluvial gold was

found near Peak Down, Clermont, to the present day the principal placer

region of Queensland. Charters Towers, the present leading field of the

state, was discovered in 1872. The Mount Morgan mine is an isolated

mine lying not far from the scene of the ill-fated rush of 1858. It is

by far the most productive mine of Queensland, both in gold and copper.

_New South Wales_, although the first Australian state to yield gold

in any important quantity, now ranks fourth. _Tasmania_ and _South

Australia_ produce only a small amount of gold.

=New Zealand.=--In 1852, the year following the rich discoveries in

Australia, gold dust and gold enclosed in quartz were found in New

Zealand, about 40 miles from Auckland, but this discovery proved to be

of little importance. Ten years later the rich placers of Gabriel’s

Gully were discovered, a discovery which attracted a rush from the

Australian fields. The gold fields of New Zealand may be divided

into three well-defined and well-separated areas: the Huaraki gold

field, which contains valuable vein deposits but no placers; the West

Coast area, in which the vein and alluvial occurrences are of equal

importance; and the Otago area, in which the auriferous alluvial

gravels are important and the few known quartz veins have little

economic value.

Some gold is produced in other parts of Australasia, notably in the

_British_ and _Dutch East Indies_, and in _British New Guinea_.

Deposits of little importance are reported in _New Caledonia_, the

_Fiji Islands_, and in the former _German New Guinea_.

PROBABLE CHANGES IN KNOWN GEOGRAPHICAL DISTRIBUTION IN THE NEAR FUTURE

Specific predictions regarding changes in the geographical distribution

of the sources of the world’s gold seem valueless. During the last

few years the gold production of the principal fields has decreased.

Aside from any decline due to the war and the attending scarcity of

labor and high mining costs, it seems probable that the gold output

of the world has reached its zenith and that further decline is to be

expected unless new ore bodies are added to known reserves or unless

some revolutionary method of extracting gold from the low-grade ores is

discovered.

Although the leading fields, South Africa, the United States,

and Australia, seem to have reached or passed their period of

greatest output, there are a number of fields in unsettled and

unexplored regions of the world which may be expected to show

increased production. The possibilities of Siberia have already been

mentioned, and it is the opinion of many engineers that this region

will eventually rival South Africa. South America has produced an

enormous quantity of gold, chiefly alluvial, and is expected to yield

an increased output in the future. The future of South Africa is

problematical.

During the last half century the greatly increased gold production has

been due largely to the exploitation of the low-grade properties, this

being made possible by improvements in mining and metallurgy. It seems,

however, that this development has reached a point where excessive

labor costs prevent the use of ores of a still lower grade.

In general, therefore, the gold output of the world may be expected

to remain static or to decline, at least until the level of prices is

so changed that it is considered profitable to expend capital in the

prospecting and developing of regions hitherto unexplored.

POLITICAL CONTROL

The political control may be summarized as follows:

Percentage of

Country 1913 production

British Empire 62.9

United States 19.3

Russia and Siberia 5.8

Japan 1.8

France 1.4

Belgium 0.2

Central Power 0.55

Mexico 4.2

Other Countries 3.7

_Great Britain_ controlled politically 62.9 per cent. of the 1913

production, through state sovereignty over the Transvaal, Australia,

Rhodesia, Canada, and India. Other British possessions contributing

small amounts to the world output are British Honduras, British Guiana,

British West Africa, British New Guinea, New Zealand, British East

Indies, Egypt, and the British Isles. All gold produced in the British

Empire must be sent to England.

The _United States_ controlled politically 19.3 per cent. of the 1913

output, practically all of which came from continental United States.

The Philippine Islands and Porto Rico produced small amounts.

_Russia_ is one of the principal contributors to the world’s gold

supply, producing 5.8 per cent. of the 1913 output. Most of this 5.8

per cent. came from the mines of Siberia, and the political control

of that region is still unsettled. _Mexico_, with an output equal

to 4.2 per cent. of the world total, was the largest producer among

the neutral powers during the war. _France_ controlled 1.4 per cent.

of the world total, a third coming from the mines in France and the

remainder from the French colonies in South America and Africa. _Japan_

controlled 1.8 per cent., 1 per cent. coming from the Japanese islands

and Formosa, and the remainder from Korea. The rest of the 1913

production, amounting to about 4 per cent., was widely scattered, and

was controlled by a number of nations of South America, Europe and Asia.

It should be pointed out that although Great Britain and the United

States control politically the important producing fields of the

present, all of which seem to have reached their maximum output, the

control of the fields expected to be important producers in the future

is in different hands.

During the war, particularly during its later months, most of the

belligerent nations and some of the neutrals placed restrictions on

the exportation of gold, either as bullion or in manufactured form. In

normal times gold is allowed to flow freely between nations, as needed

to settle international trade balances.

COMMERCIAL CONTROL

The commercial control of the gold resources of the world is shown in

Table 68 and in Figure 20. In examining the table and the diagram the

reader should remember that the figures and percentages are at best

only estimates. Most gold mines are owned by companies whose shares

are bearer’s shares; these are bought and sold in the stock markets of

many financial centers. Today the control may be in the hands of one

group, tomorrow in the hands of another. Because of this ever-changing

ownership, it is difficult to determine the nationality of the

commercial control, particularly when there is any attempt to conceal

the nationality of the capital invested. Table and diagram, however,

are believed to be approximately correct. The information upon which

they are based was obtained from mining manuals, the reports of mining

companies, the reports of consular agents in the various countries, and

by personal interviews with mining engineers.

[Illustration: FIG. 20.--Political and commercial control of the gold

production of the world.]

Table 68 may be summarized as follows:

COMMERCIAL CONTROL OF GOLD RESOURCES

Percentage of

Country 1917 production

British Empire 63.0

United States 23.0

France 5.6

Russia 2.1

Japan 1.7

China 0.84

Belgium 0.5

Brazil 0.07

Germany 0.81

Mexico 0.21

Unclassified 1.9

It is interesting to note that political control and commercial control

are closely identical in the case of the British Empire and the United

States. French control is much more important commercially than

politically. In other countries, little domestic capital is available,

and political control is much greater than commercial control.

Commercial control, if different from political control, joins in a

test of strength with it in periods of emergency or unrest, with the

result that the stronger subdues the weaker. As regards governments

that are strong and stable enough, the recent war has demonstrated

that the elimination of foreign capital invested in a country is easy.

The United States and Great Britain, in particular, have taken over a

great number of companies formerly owned by German interests. Where the

government is not so strong, however, the commercial control, backed

in many instances by the more vigorous home governments from which the

invested capital comes, wins the day, and political events are thus

determined, even to the extent of overturning the weaker government.

Thus the overturning of the Boer government and the birth of British

South Africa was the result of the clash between British commercial

control and Boer political control.

The question of the control of gold stocks is discussed in the report

of the gold committee of the Department of the Interior.[175] The

control of stocks in 1916 is shown graphically in Figure 21 and is

discussed more in detail in the section following, “Position of Leading

Commercial Nations.”

[175] Report of the committee appointed by the Secretary of the

Interior to study the gold situation.

The gold mines of the _United States_ are controlled mainly by American

capital. A few of the mines are predominantly British, and shares in

other mining companies are undoubtedly held in London, but the total

production controlled by Great Britain is small. It has been estimated

that in recent years 95 per cent. of the annual output was controlled

by Americans and the remainder by British.

Over half of the gold mined in _Canada_ comes from the Province of

Ontario, chiefly from the Porcupine district. In 1917 and 1918, the

Hollinger mine, owned by the Hollinger Gold Mines, Ltd., was the main

producer. It is one of the greatest gold mines in the world, having

paid over $9,000,000 in dividends up to the end of 1918. The control of

the company is held in the United States. Another mine of importance in

the Porcupine district is the McIntyre, owned by the McIntyre Porcupine

Mines, Ltd., also American. In the Province of British Columbia, the

greatest producing camp is Rossland, operated by the Consolidated

Mining & Smelting Co., controlled by United States and Canadian

capital. It has been estimated that about two-thirds of the gold mines

of Canada are controlled by United States capital and the remaining

one-third by British capital, including Canadian.

TABLE 68.--FINANCIAL CONTROL OF THE GOLD PRODUCTION OF THE WORLD, 1917

(Percentages are only approximate)

-----------+------------+-------------------------------------

| | 1917 Production controlled

| | financially by...

| Production +-----------+------------+-----------+

-----------+------------+-----------+------------+-----------+

States | $83,750,700|$79,563,165| $4,187,535| ...|

Canada | 15,200,000| 10,000,000| 5,200,000| ...|

| | | | |

Mexico | 9,000,000| 2,700,000| 3,600,000| $900,000|

| | | | |

America | 3,122,000| 750,000| 750,000| ...|

| | | | |

Argentina| 4,600| ...| ...| ...|

Bolivia | 115,000| ...| ...| ...|

Chile | 200,000| 200,000| ...| ...|

Brazil | 2,958,000| ...| 2,662,200| ...|

Colombia | 6,200,000| 620,000| 3,000,000| 900,000|

| | | | |

British| 600,000| ...| 600,000| ...|

Dutch | 400,000| ...| 125,000| 125,000|

French | 1,500,000| ...| ...| 1,500,000|

Peru | 1,300,000| 1,300,000| ...| ...|

America | 1,357,000| ...| ...| ...|

| | | | |

Austria- | 2,179,000| | | |

Hungary | [176]| ...| ...| ...|

France | 700,000| ...| ...| 700,000|

Germany | 135,600| ...| ...| ...|

| [176]| | | |

Britain | 5,000| ...| 5,000| ...|

Italy | 2,000| ...| ...| ...|

and | | | | |

Siberia | 18,000,000| ...| 9,000,000| ...|

| | | | |

Serbia | 328,000| ...| ...| ...|

| [176]| | | |

Sweden | 10,000| ...| ...| ...|

Turkey | [176]500| ...| ...| ...|

| | | | |

China | $3,600,000| ...| ...| ...|

| | | | |

(Korea) | 4,444,000| $2,500,000| ...| ...|

Indies | 2,818,000| ...| $2,100,000| ...|

States | 342,300| ...| 342,300| ...|

China | 50,000| ...| ...| $50,000|

Formosa | 5,595,200| ...| ...| ...|

Indies | 10,756,800| ...| 10,756,800| ...|

sia | 35,945,500| ...| 35,945,500| ...|

| | | | |

Congo | 2,000,000| 500,000| ...| ...|

Sudan | 150,000| ...| 150,000| ...|

East | 253,200| | | |

Africa | [176]| ...| ...| ...|

car | 1,000,000| ...| ...| 1,000,000|

Rhodesia | 14,988,600| ...| 14,988,600| ...|

Transvaal| 186,254,256| ...| 167,629,256| 18,625,000|

| | | | |

(British)| 7,435,488| ...| 7,435,488| ...|

| | | | |

tributed | 2,785,656| ...| ...| ...|

-----------+------------+-----------+------------+-----------+

(1917) |$422,590,100|$98,133,165|$268,477,679|$23,800,000|

1913 | | | | |

figures) |$425,486,400| | | |

-----------+------------+-----------+------------+-----------+

production | 100 | 23 | 63 | 5.6 |

-----------+------------+-----------+------------+-----------+

----------------------------------------------------------------

1917 Production controlled

financially by...

+----------+----------+----------+----------+--------+

| | | | | |

-----------+----------+----------+----------+----------+--------+

States | ...| ...| ...| ...| ...|

Canada | ...| ...| ...| ...| ...|

| | | | | |

Mexico | ...| ...| ...| ...| ...|

| | | | | |

America | ...| ...| ...| ...| ...|

| | | | | |

Argentina| ...| ...| ...| ...| ...|

Bolivia | ...| ...| ...| ...| ...|

Chile | ...| ...| ...| ...| ...|

Brazil | ...| ...| ...| ...|$295,800|

Colombia | $620,000| ...| ...| ...| ...|

| | | | | |

British| ...| ...| ...| ...| ...|

Dutch | ...| ...| ...| ...| ...|

French | ...| ...| ...| ...| ...|

Peru | ...| ...| ...| ...| ...|

America | ...| ...| ...| ...| ...|

| | | | | |

Hungary | ...| ...| ...| ...| ...|

France | ...| ...| ...| ...| ...|

Germany | ...| ...| ...| ...| ...|

| | | | | |

Britain | ...| ...| ...| ...| ...|

Italy | ...| ...| ...| ...| ...|

and | | | | | |

Siberia | ...| ...| ...|$9,000,000| ...|

| | | | | |

Serbia | ...| ...| ...| ...| ...|

| | | | | |

Sweden | ...| ...| ...| ...| ...|

Turkey | ...| ...| ...| ...| ...|

| | | | | |

China | ...| ...|$3,600,000| ...| ...|

| | | | | |

(Korea) | ...|$1,944,000| ...| ...| ...|

Indies | ...| ...| ...| ...| ...|

States | ...| ...| ...| ...| ...|

China | ...| ...| ...| ...| ...|

Formosa | ...| 5,595,200| ...| ...| ...|

Indies | ...| ...| ...| ...| ...|

sia | ...| ...| ...| ...| ...|

| | | | | |

Congo | 1,500,000| ...| ...| ...| ...|

Sudan | ...| ...| ...| ...| ...|

Africa | ...| ...| ...| ...| ...|

car | ...| ...| ...| ...| ...|

Rhodesia | ...| ...| ...| ...| ...|

Transvaal| ...| ...| ...| ...| ...|

| | | | |

(British)| ...| ...| ...| ...| ...|

| | | | | |

tributed | ...| ...| ...| ...| ...|

-----------+----------+----------+----------+----------+--------+

(1917) |$2,120,000|$7,539,200|$3,600,000|$9,000,000|$295,800|

1913 | | | | | |

-----------+----------+----------+----------+----------+--------+

production | 0.5 | 1.7 | 0.84 | 2.1 | 0.07 |

-----------+----------+----------+----------+----------+--------+

-------------------------------------------------------+

1917 Production controlled |

financially by... |

+------------+----------+---------+---------+

| | | | Un- |

-----------+------------+----------+--------+----------+

States | $83,750,700| ...| ...| ...|

Canada | 15,200,000| ...| ...| ...|

| | | | |

Mexico | 7,200,000| $900,000|$900,000| ...|

| | | | |

America | 1,500,000| ...| ...|$1,622,000|

| | | | |

Argentina| ...| ...| ...| 4,600|

Bolivia | ...| ...| ...| 115,000|

Chile | 200,000| ...| ...| ...|

Brazil | 2,958,000| ...| ...| ...|

Colombia | 5,140,000| ...| ...| 1,060,000|

| | | | |

British| 600,000| ...| ...| ...|

Dutch | 250,000| ...| ...| 150,000|

French | 1,500,000| ...| ...| ...|

Peru | 1,300,000| ...| ...| ...|

America | ...| ...| ...| 1,357,000|

| | | | |

Austria- | | 2,179,000| | |

Hungary | ...| [176]| ...| ...|

France | 700,000| ...| ...| ...|

Germany | ...| 135,600| ...| ...|

| | [176]| | |

Britain | 5,000| ...| ...| ...|

Italy | ...| ...| ...| 2,000|

and | | | | |

Siberia | 18,000,000| ...| ...| ...|

| | | | |

Serbia | ...| ...| ...| 328,000|

| | | | [176]|

Sweden | ...| ...| ...| 10,000|

Turkey | ...| ...| ...| [176]500|

| | | | |

China | $3,600,000| ...| ...| ...|

| | | | |

(Korea) | 4,444,000| ...| ...| ...|

Indies | 2,100,000| ...| ...| $718,000|

States | 342,300| ...| ...| ...|

China | 50,000| ...| ...| ...|

Formosa | 5,595,200| ...| ...| ...|

Indies | 10,756,800| ...| ...| ...|

sia | 35,945,500| ...| ...| ...|

| | | | |

Congo | 2,000,000| ...| ...| ...|

Sudan | 150,000| ...| ...| ...|

East | | 253,200| | |

Africa | | [176]| ...| ...|

car | 1,000,000| ...| ...| ...|

Rhodesia | 14,988,600| ...| ...| ...|

Transvaal| 186,254,256| ...| ...| ...|

| | | | |

(British)| 7,435,488| ...| ...| ...|

| | | | |

tributed | ...| ...| ...| 2,785,656|

-----------+------------+----------+--------+----------+

(1917) |$412,965,844|$3,467,800|$900,000|$8,152,756|

1913 | | | | |

-----------+------------+----------+--------+----------+

production | 96.81 | 0.81 | 0.21 | 1.9 |

-----------+------------+----------+--------+----------+

-----------+----------------------------------------------------------

Country |Remarks

-----------+----------------------------------------------------------

North |

America: |

United |95 per cent. by United States capital; 5 per cent. by

States |British.

Canada |66 per cent. by United States capital; 33 per cent. by

|British.

Mexico |Capital control: British 40 per cent.; United States 30

|per cent.; French 10 per cent.; German 10 per cent. and

|Mexican 10 per cent.

Central |50 per cent. by natives; 25 per cent. each by United

America |States and Great Britain.

South |

America: |

Argentina|

Bolivia |

Chile |

Brazil |90 per cent. by British capital.

Colombia |Capital control: 50 per cent. British; 15 per cent.

|French; 10 per cent. Belgian; 10 per cent. United States;

|and 15 per cent. local.

Guiana: |

British|

Dutch |

French |

Peru |

Other S. |

America |

Europe: |

Austria- |

Hungary |

France |

Germany |

Great |

Britain |

Italy |

Russia |

and |Large part of Russian production probably controlled by

Siberia |German capital. Situation uncertain.

Serbia |

Sweden |

Turkey |

Asia: |

China |Probably controlled largely by Japanese and other foreign

|capital.

Chosen |Part of production credited to Japan controlled by

(Korea) |British.

Dutch |

East |

Indies |

Federated|

Malay |

States |

French |

Indo- |

China |

Japan and|

Formosa |

India and|

British |

Indies |

Australa-|Before war considerable capital controlled by Germans.

sia |Small blocks now owned by Dutch and Belgians.

Africa: |

Belgian |

Congo |25 per cent. by American capital.

Egypt and|

Sudan |

German |

East |

Africa |

Madagas- |

car |

Rhodesia |

Transvaal|Before war controlled in large part by German interests.

|At present: British, 90 per cent.; French, 10 per cent.

West |

Africa |

(British)|Probably all controlled by British capital.

Undis- |

tributed |

-----------+----------------------------------------------------------

Total |

(1917) |

Total (in- |

cluding |

1913 |

figures) |

-----------+----------------------------------------------------------

Per cent. |

of world |

production |

-----------+----------------------------------------------------------

[176] Production in 1913. Later figures not available.

The gold mines of _Mexico_ are owned by British, American and French

capital in the order named. The principal mining companies of the El

Oro district, the leading gold district of the republic, are El Oro

Mining & Railway Co., Ltd., Esperanza, Ltd., and the Dos Estrellas

Mining Co. British capital controls El Oro Mining & Railway Co., Ltd.,

and 51 per cent. of the shares of Esperanza, Ltd., the remaining 49 per

cent. being controlled by Americans. The French have been acquiring

control of mining properties in El Oro district in recent years. They

now own Dos Estrellas Mining Co., and the Mexico Mines of El Oro, Ltd.

Both companies were previously controlled in London. The Dolores mine,

in the western part of the State of Chihuahua, one of the famous gold

mines of Mexico, is owned by the Mines Company of America, an American

corporation.

[Illustration: FIG. 21.--Stocks of gold in banks, public treasuries and

in circulation in principal countries of the world in 1916.]

In the State of Durango, the gold mines, most of which also produce

silver, are owned by the American Smelting & Refining Co. (American),

the Bacis Gold & Silver Mines Co. (British), and the Inde Gold

Mining Co. (American). Most of the gold-silver mines of the State

of Guanajuato have been developed by American capital. The State of

Sinaloa is becoming a gold-producing region; the Palmarito mines of

the Mocorito district and the Minas de Tajo at Rosario are owned by

American interests. Gold is found in the copper ores of Sonora. Most

of the mines of the district are controlled by Americans.

The mines of Chihuahua, Hidalgo, and Zacatecas are primarily silver

mines but their ores carry some gold. In Chihuahua, American capital is

probably predominant, with British ranking second. During recent years,

German interests, through the American Metal Co. and its subsidiaries,

have been acquiring control of properties in Chihuahua and in other

parts of Mexico. German capital is also invested in Zacatecas, the main

company being controlled by A. Goerz & Co., Ltd. The mines of the State

of Hidalgo, the leading silver-producing district of Mexico, are owned

by American, British and Mexican capital.

The gold mines of _Central America_[177] are of some importance at

present, and production may increase somewhat in the future. The mines

are owned for the most part by American and British capital, in the

order named. Subsidiaries of the United Fruit Co., and the Tonopah

Mining Co., both American, operate properties in Costa Rica and

Nicaragua.

[177] “Investments in Latin America and the British West Indies,”

Special Agent Series No. 169, Bureau of Foreign and Domestic

Commerce, U. S. Department of Commerce, 1918.

In _Colombia_, the leading gold-producing country of South America,

most of the large companies are British, the most important being the

Pato Mines, the Nechi Mines, and the Frontino and Bolivia Mines. A

Belgian company, the Platinum & Gold Concessions of Colombia, Ltd., and

a French company, the San Antonio Gold Mines Co., Ltd., have recently

acquired gold-mining concessions. American capital is also invested in

the industry.

The two most important mining companies of _Brazil_, the St. John del

Rey Mining Co., Ltd., and the Ouro Preto Gold Mines of Brazil, Ltd.,

are under British management. Some French capital is interested in the

latter property. Most of the mines of _French Guiana_ are controlled by

French companies. In the remaining South American countries gold mining

is of comparatively little importance. Production is controlled largely

by British and American capital.

The foreign capital invested in the mines of _Siberia_ and _Russia_ is

mainly British, though Germany is known to have been much interested

in the industry. Some Russian capital, especially that furnished by

the large Russian banks, was invested in Siberian mining properties.

The mining laws of the old Russian Empire provided that mineral

properties could be held both by foreign and Russian companies under

concessions or leases granted by the crown or under leases from Russian

estates. In many cases foreign capitalists formed holding companies to

acquire a controlling interest in a Russian company in whose name the

property was held and operated. Most of these holding companies had

their main offices in London and most of the directors were British

citizens. Control was apparently British. The shares of the companies

were bearers’ shares, however, and were traded in extensively on the

Petrograd exchange.

The most important gold-mining district of Siberia is in the Province

of Irkutsk, on the Lena River. A Russian company, the Lenskoie Gold

Industrial Co., has been operating the principal properties of this

district since 1863. The directors of the company are Russian Jews.

A British company, the Lena Goldfields, Ltd., held 70 per cent. of

the shares of the Lenskoie Co., but in 1917 completed the sale of

51,000 shares of stock to a Petrograd group including the Imperial

Foreign Corporation, Ltd., and the Russian and English Bank. The Lena

Goldfields, Ltd., now owns less than 10 per cent. of the Lenskoie stock.

A pyrite-copper mine yielding enough gold as a by-product to make the

profit is located in the government of Perm, southern district of the

Ural Mountains, and is owned by the Kyshtim Mining Works, a Russian

company controlled by the Kyshtim Corporation, Ltd., of London. The

company holds a large concession, including forests, farms, and mineral

land. The control of the Kyshtim Corporation is apparently British.

The Tanalyk Corporation is controlled by practically the same interests

as those controlling the Kyshtim Corporation and was organized to

acquire entire control of the South Urals Mining & Smelting Co. The

property of the company, situated in the County of Orsk, Orenburg

government, southern Urals, is only a prospect and has not been fully

developed. It includes a total area of 28,350 acres of timber and

mineral land. The ore contains copper, gold, and silver, the copper

content being the most valuable. During 1917, the shares held in

the Kyshtim Mining Works and the South Urals Mining & Smelting Co.

were vested in the Canadian Development Corporation, Ltd., a company

registered in Canada, probably for the purpose of escaping the high

British income taxes. The transfer involved no change of control, as

the two British holding companies, the Kyshtim Corporation and the

Tanalyk Corporation, Ltd., control the Canadian company.

The Kolchan placer property, in the Okhotsk mining province of Eastern

Siberia, has been leased, for a royalty based on the gross output

of gold, by the Orsk Goldfields, Ltd., a British company, from the

Russo-Asiatic Bank. The Orsk Goldfields, Ltd., originally controlled a

gold-mining property in the Province of Orenburg, southern Urals, but

abandoned the lease and option.

A great deal of gold is produced in Siberia as a by-product of copper,

lead, and zinc mines. The control of these mines is much the same

as the control of the above-mentioned gold properties--British with

Russian shareholders, chiefly representative of Russian banks.

Japanese control is being expanded, especially in eastern Siberia.

It was reported in the Japanese press, in November, 1918, that the

Japanese special financial mission was planning the establishment of

a Japan-Russian partnership enterprise similar to the Japan-China

Industrial Association for the purpose of obtaining from the Russian

authorities rights in the Siberian mining and forest areas and of

exploiting the natural resources of Siberia. It was proposed that

among the investors in the partnership should be included Russian

capitalists, the South Manchurian Railway, the East Asia Development

Co., the Japan-China Mercantile Association, and capitalists of the

Entente countries.

Practically all of the output of _India_ comes from the mines of the

Kolar reef of Mysore. There are six large producing companies, as

follows: Champion Reefs Mining Co., of India, Ltd.; Gold Fields of

Mysore and General Exploration, Ltd.; Mysore Gold Mining Co., Ltd.;

Nundydroog Co., Ltd.; Balaghat Gold Mining Co., Ltd.; and Ooregum Gold

Mining Co. of India, Ltd. The companies are all British and are owned

by closely connected interests. Other operating companies in India are

the Hutti (Nizam’s) Gold Mines, Ltd., of Hyderabad, southern India; and

the Northern Anantapur Gold Mines, Ltd., and Jibutil (Anantapur) Gold

Mines, Ltd., Madras Presidency, all being British companies.

In _Japan_ the state reserves to itself the right of original

ownership in all ores, and grants to individuals or companies the

right to work the deposits. Under the law of 1890, a foreigner was

disqualified from working a mine and was not permitted to become a

member of a mining establishment, so that the right of working mines

was exclusively reserved for Japanese subjects. By an amendment of

the mining regulations in 1900, business establishments organized by

Japanese or foreigners or by both are now permitted to work mines,

provided such establishments are placed under Japanese laws. A bill was

recently introduced into the Japanese Parliament proposing to grant the

privilege of mining and property rights to foreigners. Japanese capital

has almost complete control of the gold mines of the empire.

The principal gold mines are owned by the following companies:

Tanak Chobei (Formosa), Mitsubishi & Co. (Sado), Shimadzu Tadashige

(Satsuma), Fujita & Co. (Rikuchu and Formosa), Kimura Kintaro

(Formosa), and Ushio Gold Mine Co. (Satsuma).

The most valuable of the mineral concessions of _Chosen_ (Korea),

including gold, are in the hands of foreign companies, the majority

of which are American. The Oriental Consolidated Mining Co., an

American company, controls the Unsan mines in North Pyong-an Province,

northwestern Korea, the most important gold-producing property of the

country. The concession includes 600 square miles on the Anju River and

has about 21 years to run, with the option of renewal for 15 years.

The operating company pays $15,000 annually to the Korean government.

Ore reserves were estimated on July 1, 1916, at 852,000 tons, valued at

$4,823,000.

The Chiksan mines, in South Choonchong Province, are also managed by

American capital. The Suan mines, in Whanghai Province, were originally

controlled by a British company but have been leased to an American

company. An Italian company owns mines in North Pyong-an Province, and

a British company is operating in North Choonchong Province. A German

company owned mines, not in full working order, in North Pyong-an

Province, but the properties have doubtless been seized by the Japanese

government. Japanese and Korean miners own and operate the smaller

mines of the country, the output of which has decreased greatly during

recent years.

Although the gold output of _China_ in 1917 amounted to $3,600,000,

the deposits are small and widely scattered and are owned and operated

almost exclusively by the native miners. Some of the larger mines have

been financed by the governments of the provinces. In some provinces

the owners of mining property are not permitted to seek investments

of foreign capital unless they are unable to finance the property

within the province. Prospecting has been carried on in many parts

of the country in recent years, but no deposits have been discovered

sufficiently promising to attract foreign investors. In view of their

activity in developing the other natural resources of China, it is

probable that the Japanese will attempt to control the industry should

any important deposits be discovered.

In the _Transvaal_ all minerals belong to the government and not to the

owners of the surface of the land. When gold, or any other mineral, is

discovered, a part of the territory (less than half) is reserved for

the owner of the land, another part for the discoverer of the mineral,

and the remainder is open to location. At present the ownership of

mineral lands is being retained by the government. The right to exploit

the mineral wealth is granted on a lease to the highest bidder, the

bids being based upon a percentage of profits, graded according to

working costs and grade of ore. A tax of 10 per cent. on profits,

allowing for amortization of capital, is levied on all gold-mining

properties.

Before the war, practically all the gold mines of the Witwatersrand

were controlled by British and German capital. The first American

company entered the field in 1917 and some French capital has also

been invested. The German position was strong, as the German companies

controlled half, and perhaps more, of the capital invested in gold

mines. The report of the South African Custodian of Enemy Property

issued early in 1918 showed that no less than 26,000 enemy shareholders

in gold, coal, and other mining concerns in the Union owned stock to

the aggregate nominal value of $37,500,000. As gold is by far the most

important mineral of the Transvaal, it is probable that the greater

part of this German capital was invested in gold mines. The enemy firms

were wound up or went into voluntary liquidation, and enemy shares in

mining corporations to the face value of $24,000,000 were taken charge

of by the Custodian of Enemy Property.[178]

[178] “Engineering and Mining Journal,” May 11, 1918, p. 888.

The control of the gold mines of the Transvaal is centered in the

following six companies: Central Mining & Investment Corporation,

the Consolidated Mines Selection Co., Johannesburg Consolidated

Investment Co., the Consolidated Goldfields of South Africa, the Union

Corporation (formerly Ed Goerz & Co.), and the General Mining & Finance

Corporation. The last two companies were absolutely German before the

war. The Central Mining & Investment Corporation controls probably 50

per cent. of the output of the district. American capital is interested

in the Consolidated Mines Selection Co. Another American company, the

Anglo-American Corporation of South Africa, Ltd., was registered at

Pretoria on September 25, 1917, with an issued capital of £1,000,000.

The immediate object of the corporation is to participate in tendering

for leases of certain Far East Rand gold-mining areas.[179]

[179] U. S. Commerce Reports, December 15, 1917, p. 1033.

It has been reported that French capital controls about 10 per cent. of

the annual output. For many years the majority of the mining engineers

in the Transvaal were Americans.

The Germans had not only acquired a considerable control through the

investment of capital in mining properties, but they also exercised

control through their trade in mine supplies. Orenstein-Arthur

Koppel Co. had established an important trade in rails, mine trucks,

and similar supplies, and continued to do business even after the

beginning of the war. Soon after the sinking of the Lusitania, a mob

destroyed the offices of the company in Johannesburg and burned a stock

of much-needed supplies. At the outbreak of the war it was feared

that there might be serious obstacles in the way of the gold-mining

industry continuing a normal course, because of the possible difficulty

in obtaining enough of the cyanide, mercury, and zinc used in gold

extraction, much of which had been previously supplied by Germany. The

necessary materials were obtained from other sources, however.

_Rhodesia_ is controlled by the British South African Co., organized

by Cecil John Rhodes, for whom the colony was named. The company is

entirely British; it is the government, levies the taxes, administers

the laws, and controls the mining industry. Companies and individuals

are permitted to locate mining claims much the same as they are in

California. The Goldfields Rhodesian Development Co., which has

large Rhodesian mining interests, is an offshoot of the Consolidated

Goldfields of South Africa. It is safe to say that the gold mines

of Rhodesia are owned and worked entirely by British capital. A

percentage tax is levied on the output of the gold mines.

In _Australia_, before the war, much the same conditions existed as in

South Africa. The large gold-mining companies were seemingly British;

their headquarters were either in Australia or in London and their

directors and managers were British. It is certain, however, that a

considerable amount of German capital was invested in the companies.

Among the important producing companies are the Associated Gold Mines

of Western Australia, Great Boulder Proprietary Mines, Ltd., Golden

Horseshoe Estates Co., Ltd., Ivanhoe Gold Corporation, Ltd., all of

Western Australia; the Mount Morgan Gold Mining Co., of Queensland; the

Mount Boppy Gold Mining Co., and the Mount Lyell Mining & Railway Co.,

Ltd., of Tasmania.

Through the vigorous action of the Australian prime minister, William

M. Hughes, German capital was expelled early in the war from all

the industries of the commonwealth, including gold, lead, and zinc

mines, smelters and refineries, and buying organizations. In January,

1916, to safeguard the financial position of the commonwealth, the

prime minister issued decrees providing that no new flotations of

companies or increases in the capital of existing companies would be

allowed without the consent of the treasurer of the commonwealth;

that companies incorporated in Australia would have three months to

discontinue the holding of their shares by persons of enemy nationality

or origin, whether naturalized or not; and that in the future no

transfers of shares to persons of enemy nationality or origin would be

permitted.[180]

[180] U. S. Commerce Reports, February 21, 1916, p. 733.

The remaining countries of the world are of little importance as gold

producers; hence a discussion of the commercial control of their

mines would be of little value. In most of them the mining properties

are owned and operated by domestic capital, the former Empire of

Austria-Hungary being one exception to this general statement. Prior to

the war, British capital controlled gold mines in Transylvania.

The ownership of smelters and reduction plants has little influence

upon the commercial control of the gold industry. Most of the large

gold-mining companies have their own refineries at the mines, and

smelter control is therefore identical with mine control. Some gold is

produced as a by-product in the smelting of lead, silver, and copper,

particularly in the United States, where the smelters are controlled

almost entirely by American capital. Further discussion of the

commercial control of smelters and refineries will be found in Chapters

XIV, XV, and XXX.

The control of secret processes and patents is of less importance in

the commercial control of the gold-mining industry than that of any

other mineral. The industry is peculiar in that the price of gold is

always fixed and there is no competition for a market. Control of

an improved method of extracting or refining gold might enable one

company to reduce mining and refining costs and thus insure a larger

profit, but giving the improved process to a second company would not

necessarily reduce the profits of the company that had discovered it.

POSITION OF LEADING COMMERCIAL NATIONS

The _United States_ controlled politically through state sovereignty

19.3 per cent. of the gold production in 1913, ranking next to Great

Britain. Commercial control was somewhat greater, amounting to

approximately 23 per cent. of the 1917 production. The mines of the

United States are owned almost exclusively by Americans, and American

capital is invested in many foreign fields. Over half, perhaps as

much as two-thirds, of the mines of Canada are owned by United States

corporations. The largest of the Korean companies are owned or managed

by American capital. Two American companies were established recently

in the Transvaal. Probably 30 to 40 per cent. of the gold produced in

Mexico in normal times comes from the United States owned mines. The

production of Central and South America, although at present relatively

unimportant, is largely controlled by Americans.

Although outranked in production by Great Britain, the United States

controls by far the largest stocks of gold coin and bullion of any

nation. In 1916 there was in the banks, the national treasuries, and in

circulation in the United States $2,299,454,000, or almost twice the

amount possessed by any other nation. In 1918 this amount had increased

to $3,050,000,000. The monetary reserve probably exceeds the total

gold output of the United States since the recording of statistics of

production began.

In view of the fact that the national debt of the United States is

low as compared with the debts of the other principal nations, the

financial system of this country is on a relatively sound basis. When

the time comes to redeem the outstanding bonds and other forms of

indebtedness that have accrued during the war, the United States will

undoubtedly be in a more favorable position than any of the other

belligerents.

The stocks of gold in the chief gold-producing countries in 1916 are

shown diagrammatically in Figure 21.

_Great Britain_ is the leading gold-producing nation of the world.

The British Empire controlled politically 62.9 per cent. of the 1913

production, and British commercial control approximated 63 per cent.

An insignificant amount of gold is produced in the British Isles, but

the empire includes such important gold producers as South Africa,

Australia, Rhodesia, India, and Canada. British capital also controls

gold mines in Siberia, in Mexico, in South America, and in the United

States.

Despite the large political and commercial control exercised by the

British, the gold stocks of the British Empire have been much smaller

than those of the United States and in 1916 were surpassed by those of

France.

The lands under French control produce little gold, the output in 1913

being only 1.4 per cent. of the world’s total production. Less than

0.5 per cent. came from _France_ itself and the remainder was obtained

from French Guiana and Madagascar. French capital has not stopped at

national boundaries, however, and has been invested in many of the

principal fields, as is shown by the fact that commercial control

amounted to 5.6 per cent. of the 1917 production. In Mexico at least

10 per cent. of the capital controlling gold mines is French, and

the amount is steadily increasing. In South America--particularly in

Colombia, and Dutch and French Guiana--some of the large companies are

French, but most of the gold controlled commercially by the French

comes from the Transvaal. It has been estimated that French interests

control about 10 per cent. of the production of South Africa since

German control has been eliminated. The gold reserve of France was

large before the war and ranked second to that of the United States in

1916. It is now (1920) reduced to very small proportions.

Although _Russia_, with Siberia, is one of the most promising potential

sources of the future gold supply and produced 5.8 per cent. of the

total in 1913, Russian capital seemingly controls only a small part

of the gold production of the world. The British are most active in

Siberia, and French interests are known to have acquired property

there. So far as is known, Russian capitalists control no gold deposits

in foreign countries. In 1916 the gold reserve in Russian banks,

treasuries, and in circulation amounted to $1,058,000,000, but it is

not known what has become of this stock since the Bolshevists have been

in control. At present the total is probably much smaller.

_Japan_ controls only a small part of the gold output of the world,

either politically or commercially. Some gold is obtained from Japan

and Formosa, all of which is probably under Japanese financial control.

The output of Korea, claimed by the Japanese as a part of their empire

since 1910 and at present attempting to secure its independence, is

controlled by Americans and other nationalities. The smaller mines

are owned by Japanese, but the larger concessions were granted to

foreigners by the old Korean government prior to 1910. Gold stocks of

Japan were estimated at $143,128,000 in 1916. By December 26, 1918,

they had increased to $225,820,000. In addition Japanese had on deposit

in London, New York, and Paris a total of about $550,000,000.

The gold production controlled, either politically or commercially, by

_Germany_ and the countries of the former empire of _Austria-Hungary_

is relatively insignificant, amounting in both cases to less than 1 per

cent. Germany has produced annually in its European territory a little

over $100,000, and its only colony yielding an appreciable amount was

German East Africa, lost during the war. The mines of Austria-Hungary

have been important in the past, but they are now very old and in 1913

produced only 0.5 per cent. of the world’s total production. It is

understood that one of the largest operating companies in Transylvania

before the war was British.

SUMMARY

The principal and most essential uses of gold are as a measure of value

and a medium of exchange. Gold is also used in dentistry, and in the

arts for jewelry, gilding, and other forms of ornamentation. In an

emergency other materials can be substituted for the latter uses, but

any considerable substitution for the principal uses would involve

radical changes in our monetary and financial system.

Gold is found in rocks of all geological ages from Archean to

Quaternary, and also in minute quantities in ocean water. Only the more

concentrated deposits can be worked profitably. It is believed that

the production from the present main deposits has reached its zenith,

but further important discoveries will probably be made in the Arctic

regions, in the tropics, or in other regions hitherto unexplored by

man. Siberia, South America, and perhaps China are the most promising

regions, as the more settled lands have been already thoroughly

prospected.

Gold is widely distributed geographically. It is found in all parts

of the world and commercially important mines are worked in every

continent. Over 75 per cent. of the total annual output of the world

comes from four countries, the Transvaal, the United States, Australia,

and Russia. Other important producers are Rhodesia, Mexico, Canada,

India, West Africa, and New Zealand. Little gold is produced in Europe

or in South America. The deposits of the former continent, at one

time important, are becoming exhausted. With improved transportation

facilities and with further exploration work, the production of South

America is expected to increase materially.

Great Britain controls politically over 60 per cent. of the annual gold

production of the world, through state sovereignty over South Africa,

Australasia, Rhodesia, Canada, and India. The United States ranks

second, controlling about 20 per cent. Russia controls about 6 per

cent. and Mexico 4 per cent. The remaining 10 per cent. is controlled

by many countries, among them being Japan, France, Belgium, and the

Central Powers.

The extent of British political and commercial control is almost

identical, British interests controlling over 60 per cent. of the

production and owning in addition to the mines in the empire, property

in Siberia, South and Central America, Mexico, and the United States.

United States interests control financially about 23 per cent. of the

world’s production. The Korean deposits are predominantly American

owned. United States capital is also invested in Canada, Mexico,

Central and South America, and recently in the Transvaal. Although the

gold controlled politically by France is of little importance, French

interests control commercially about 5.6 per cent. of the total annual

production, owning mines in the Transvaal, in Mexico, and in Central

and South America.

Before the war, German interests had extensive holdings in South Africa

and Australia.

Political and commercial geology and the world's mineral resources · 第 29 / 32 章