New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-08-16
THE A B c OF FINANCE.

GOLD GOES WHERE IT rs WANTED.
In this country we have currency that Is good
as gold because redeemed demand in gold
Hence 1t is alike good in all places aud at all times
Yet men ask. with great anxiety, If we have enough
Of it. To meet that doubt we have first 10 that
gold always goes where Il is needed
No farmer is afraid that there may not be
axes or ploughs enough. No Joiner lies awake
nights lest there should be too few planes chisels
Gold only another tool 1t is the tool for buying
Ii perishes 1t wears out slowly than any
other thing in daily use. Why is this the only tool
OF W hch men ever fear that there may not be
enough IL axes or planes set scarce in any COM
try we know that Others viii come from every part
of the civilized world. But gold can be moved at
less cost than any other tool we use. Why should
we fear that it will not come where it Is needed
Suppose that saws or axes would cut twice as
well. when there were few, as when there were
many could there ever be a lack of themf Or if
ploughs would turn up twice as many acres in
day, if they scarce, should not be sure that
ploughs would be sent from all other places to the
place where they could do the most work
But there is no other tool, except money,
which has this power of doing more work
when it is scarce than when it Is plenty.
If IL grows scarce. prices fall; that is. the
same amount of gold will buy more. Price Is
nothing but an expression of the comparative de-
sire for money and for things to be bought If the
desire for money gains, as when it is scarce, the
same amount will buy more wheat or pork, and
prices fall If the desire for things gains as when
they are scarce, the wheat, or pork or cotton VIII
buy more money and prices rise So the tool called
money if IT ever grows at any point instantly
begins to do more work; prices fall and money VIII
buy more there than elsew here.
In every part Of the world. men W no have gold
are watching prices TO see where il viii buy the
most of the things they want. As soon as any
place becomes the best in which to buy, they send
gold thither Formerly this natural gravitation OF
gold to the place where it was most needed took
some weeks or months. But now the telegraph
tells buyers every morning, In all the markets OIL
the world how much wheat or cotton they can get
tor their gold in New-YOrk When this Is the best
market In which to buy, their orders 90 by teie-
| graph, and their gold in London or Paris De-
! gins to do its work in this city long before
| it can arrive here Thus more money comes to a
gold-using country. and actually begins to do It's
work in buying long beforeany wise or any Con-
gess can detect the fact that is needed there
Each merchant may know how prices of his goods
at New-York compare with prices Of those goods In
other countries but no man can know enough OF
the prices of all articles, here and elsewhere, to TX
| the day when the range of them becomes on the
whole lower here than II is in other lands. But the
instant gold is needed here it begins to come obey
ing a law Of nature as subtle and sure the law OF
gravitation. Usually. the first warning that men
have of lack of gold is the news of its shipment
from abroad, TO pay for goods already bought.
In the mighty stream that PUSHES over Niagara,
there is power enough to grind wheat for the whole
world. Each great mill may have a simple device
like governor which, If the wheels run too
slowly, will lift a lever, open gate little wider,
oil yatar IN Ga through the power
wheel. Or, if the wheels too fast their rapid
motion will lower the lever, partly shut the gate,
and leave little more of the stream TO flow away
unused. Thus rains and springs far away IN
Canada, Michigan or Minnesota, which fur
nish unlimited power, could be made to
supply 10 each Of many mills only the exact
amount that it requires. In like manner. the
laws of nature put the gold from all the mines and
vaults in the world at the command of gold-using
countries, and perfectly regulate the supply that
each can get exactly what 1t needs. If prices go too
high and the wheels of trade too swiftly. the
gate begins to close, and less gold comes because
less is needed. If prices go too low the sefregulat-
| ing law of hard-money opens the gate, and more
gold flows in, from the mines of Australia or the
| bank-vaults of Europe, to meet the need. That
share goes to each country which its work requires.
Ifft needs more prices fall it sells goods cheaper
and in greater quantity and gold comes IN.
If it has than its true share prices
rise; it buys more goods and sells fewer, and gold
goes out. We have power TO meddle with this
most beautiful and grand arrangement, and can
cut ourselves off from all it's benefits by the use of
bad money. But we have no power to improve
upon the plan Of nature by shutting out the only
kind OF money the supply Of which is virtually I'M
limited and is absolutely and surely regulated each
day by the needs of each nation that uses It.
What would be thought Of the farmer who should
wall in his farm so that he could never get more
seed or tools if his supply should fail Bad money
of any kind drives gold out of use. 1t
shuts out the vast supplies of good money
which come from all over the world to those who
use and need it, and leaves to depend wholly
upon our own supply of the money we use. That
supply we must bndly ADJUST to our needs, as best
we can. and no nation ever yet has known when
to stop issuing bad money. By its use, it is to
build Chinese wall about the land, so that good
money cannot come in, and TO issue more and more
paper as prices mount up higher. Flush times
of fancied gain may come, but crash Is sure to
follow. Good money regulates itself, as TO supply,
more promptly and accurately than any set of men
can regulate il. If needed. it comes in unlimited
amount a current a. vast aud ceaseless the river
at Niagara If it Is not needed it shuts itself or
without NOISE, or shock or blunder.