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Rh annual output would be smaller. On account of this fear the "Kaffirs" (South African gold-raining stocks) suffered a decline in the London stock market some months ago, but the statistics showed that the output during the first half of 1898 was larger than in the previous half year, and in the latter months of the year the increase was even more pronounced.

In an address given before the Mining and Metallurgical Section of the Franklin Institute on Mining and Minting of Gold and Silver in November last, the writer said that the production of gold in South Africa in 1898 would not fall far short of $70,000,000, and would probably be nearer $80,000,000. The estimate of the Director of the Mint fixes the amount almost at the latter figure. The United States, in spite of the considerable increase over 1897, takes second place as a world's producer of gold, Africa having contributed in 1898 an amount*equal to that of the United States and Canada (including the Klondike) combined.

The startling announcements of discoveries of virgin gold in the Klondike and of rich placer gold deposits in other localities have had little to do with the enormous increase in production of gold in the world in recent years, though formerly such discoveries constituted the main source of supply of the precious metal. Digging for nuggets is a lottery pure and simple, in which a few prizes are obtained and many losses are suffered. It is said that for every dollar in gold taken out of the Klondike to date, two dollars have been carried in, and this is perhaps a conservative estimate. In fact, it is easy to prove by figures, if the value of labor be counted even at the lowest wage rate, say one dollar per diem, that far more money has been lost by the many goldseekers than has been gained by the few fortunate ones in this twentieth-century search for the golden fleece.

The business of extracting gold from low-grade ores by scientific methods on a large scale, where the precious metal is evenly distributed throughout the matrix or gangue, is a legitimate field for the investment of capital, because the element of chance is reduced to a minimum, and even may be eliminated altogether. The margin of profit per ton of ore is not large as a rule in these operations, and thus the stability of value of the product is assured, whatever the output may be.

"Alexander E. Outerbridge, Jr., Philadelphia, Pennsylvania.

In answer to the inquiries in your letter of January 31st, I take pleasure in sending you such information on the production of gold in the principal gold-producing countries in 1898 as is at this