Chapter 258: Gold
What allowed Edel to rest his work was due to an accident at the gold mine.
Near Portia, a small town in Volcea in western Romania, a gold mining company has burst its embankment due to recent heavy rains, causing a flood of wastewater to flood the river. As a result, the Oort River, a tributary of the Danube, was polluted, killing a large number of fish and making the water undrinkable for humans and animals. More than 50,000 people along the river suffered from water shortages, with direct economic losses of 1.5 million lei and indirect losses of 5.4 million lei.
Eder was also very annoyed by the fact that such a gold mine contamination case had emerged, and he watched as the guards broke in with the news. "Let the prime minister handle this matter, no matter who is involved, let the prime minister handle it, I have no opinion."
"Yes, Your Majesty."
After Edel watched the guards go out, it was up to the Prime Minister to deal with this headache.
After the establishment of the Kingdom of Romania, most of the country's gold mines were owned by the government, and only a small part was left behind for various reasons. However, the gold produced by these private gold mines must also be purchased by the state-designated reserve bank. These private gold mines are inferior to state-owned gold mines in every way in order to make a profit, as was the case with this accident.
At present, most of the gold mines in Romania are rock gold, so it is necessary to dig mines and other things
Gold mines were so important to Romania that they even contributed to the use of Latin in the Balkans. In the 2nd and 3rd centuries B.C., the Dacians (the ancestors of the Romanians) who lived in Romania made fine gold ornaments, which were exported to the Black Sea and the Mediterranean.
At the beginning of the 2nd century AD, the Roman Empire defeated the local Dacian kingdom and organized the region as a province of the Roman Empire. The vast majority of the Roman Empire was south of the Danube, and almost no provinces were north of the Danube, with Romania probably the only one. Because of the gold mines, this province was very important to the finances of the Roman Empire.
The gold mines attracted a large number of Romans to pan for gold, and these people brought with them the Latin language of Rome, which washed away the language of the natives, so that the land on the north bank of the Danube was rapidly Romanized, and a large number of local people also used Latin. Even after the withdrawal of the Roman Empire, the local Dacians continued to speak Latin, which was a difference between the Romanians and the surrounding Slavs.
Romania remains the second largest producer of gold in Europe, with 28 tonnes produced in 1913, making it the second largest producer in Europe. During the initial industrialization process, Eder forgot to mechanize the gold mining industry in Romania only after being reminded by Viscount Aedri. Huge sums of money are then invested in the industry to boost its production, but for the gold mining industry, the discovery of new mines is the best way to expand capacity.
The largest gold mine in Romania today is the Smitok gold mine, which has a total reserve of 178 tonnes and provides five or six tonnes of gold per year. This gold mine is not very large in Europe, but thanks to the large number of gold mines in the Carpathians, Romania's production is considerable, but it is still far from the current world gold production.
With the discovery of gold deposits on the eastern slopes of the Ural Mountains in Russia in the mid-18th century, by 1840 Russia had produced 43.5 tons of gold annually, and by 1847 Russia accounted for 60% of the world's total annual gold production. But these achievements of the Russians are somewhat dwarfed by the gains made later in California and Australia.
In 1848, gold was discovered in California, USA, and soon thousands of people gathered here in search of gold mines, producing $250,000 in the first year, a 40-fold increase in the second year, and then increasing gold production year by year, reaching 77 tons in 1852 and 93 tons in 1853.
In 1851, three years after the discovery of gold in the United States, gold was also discovered in Australia, and Australian gold production began to increase rapidly, producing 26.4 tons of gold in 1852 and 70 tons in 1853.
This was followed by the discovery of gold in South Africa in 1886, which produced only 1.2 tonnes in 1887, which increased 25 times to 30 tonnes five years later and 120 tonnes in 1898, ranking first in the world. Until now, South Africa is the world's largest producer of gold and diamonds, and South Africa's proven gold reserves reach 40% of the world's total reserves. Britain spent hundreds of millions of pounds to win these gold mines, and it didn't lose anything at all.
It was Canada that caught up with the last train of the 19th-century gold productivity boom. In 1896, two gold prospectors, Henderson and Carmack, discovered gold in Klondike while fishing for salmon, and a new city, Dawson, was born.
Therefore, Romania's output is also ranked first in Europe, where gold mines are poor, and it is still far from enough in the world. Although Romania's gold production is not high, Romania's gold reserves are not bad. Romania's gold reserves now reach 1,216 tons, which is already an all-time high.
Romania's gold reserves grew thanks to the help of the war, and if it weren't for the war, where would Romania have been able to get so many gold reserves? It is important to remember that at the end of 1913, Romania had only 450 tons of gold in reserve, and this was due to the results of industrialization. Otherwise, Romania has even less gold reserves, which shows how much gold Romania harvested from the camp of the Central Powers.
With this gold, Romania can use it to issue more currency and prosper its economy. After major European countries banned gold exchange, the Romanian currency, the leu, which still adheres to the gold standard, can be said to be one of the few currencies in Europe that is still strong. A large amount of capital poured into Romania in search of value preservation and profit, but this collected a small part of the capital that fled from Europe, and most of it was absorbed by the United States on the other side of the ocean. That's why the United States made most of its profits in World War I.
Even with a small influx of capital, it still gave a lot of help to the Romanian economy. Now the Romanian currency is not only used in the country, but also in the Balkans, as well as Austria-Hungary and Russia. This is mainly because Romania still uses the gold standard.
A certain amount of gold is used as the monetary unit to mint gold coins as the standard currency; Gold coins can be freely minted and melted freely, with unlimited legal solvency, while limiting the minting and solvency of other coins; Coins and bank notes can be freely exchanged for gold coins or the equivalent amount of gold; Gold is the only reserve. This is the gold standard.
Moreover, under such a system, the disadvantages of price confusion and unstable currency circulation under the double standard system can be eliminated. It ensures that the currency in circulation does not depreciate against the standard currency metal gold, and ensures the unity of the world market and the relative stability of the foreign exchange market, which is a relatively stable monetary system.
That's why Eder paid so much attention to gold, and he knew that this gold standard would continue until the end of World War II.