The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-07-15
GOLD IN suPERFLUITY.
The Great Piles of Money That A


The Great Piles of Money That Are
Lying Unused in the Banks.
Gold-gluts calculated to make ones
mouth water have been known to exist
before, but never to the extent Of the
present one. 1t is a dream of Midas.
The metal is piled up everywhere, use
less-except just when it is wanted.
The Old Lady of Threadneedle street
has 35O00,OOO sterling in her pocket,
and looks back upon last year, when
she was making more profit, in spite
of the irregularities of her officers with
%, 900 600 sterling. Monetarily the world
is at standstill. 1t is the calm after
the storm, the storm being the finan-
cial crisis of three years ago.
Once the Barings were willing to ship
all our surplus cash to Argentina, to
enable the Spanish-Americans TO revel
in luxury; the continent, too, was en-
couraged to look upon Great Britain as
kind of loan office; whilst, indulgent
parents that we were our Australian
children had our savings showered upon
them that their unemployed might con-
struct useless railways and undertake
superfluous public works. Now all this
is changed. Argentina is pretending to
try to pay us back, and has donned
the white sheet of repentance and
economy; the countries of the continent
turn rather to each other than to us
for help in the financial straits in which
most of them are WallOwing, and as to
Australia, she is endeavoring to resus-
citate her banks and to retrench. In
| fact our debtors in the colonies and
abroad are not in a position to ask for
money. and we have no inclination to
supply them with it. At home the bo-
gus company promoter is being held at
| BAY in a mannerAhe never experienced
| before. whilst legitimate trade is not
| in such an active condition as to make
much demand upon the pile of gold
which is growing up and has already
reached such gigantic proportions.
But this is generalizing. How will
the glut affect each individual investor,
to whom it is of little Importance that
| there is too much gold, if he is so dis
satisfied in his share as to want to
make a little more? The answer is
simple. Although it has been delayed,
| and hope deferred has made the heart
sick. it is beyond the bounds of doubt
that a recovery in those securities
which are now under a cloud of depres-
sion must sooner or later come. The
stream of gold, which is now damned
UP will break the barrier and will over
flow into those channels which are now
parched and dry.
1t is an unfortunate time for him who
seeks absolute safety in his invest
ments, for all absolutely safe securi-
ties are too high in value, from consols
downwards.
The policy is to spread ones money
over a fairly wide area of those securi-
ties which are now neglected because
| thew are not absolutely safe, but which
will sooner or later be buoyed up by
the Overlooking of gold into their chan
nels. There are some bargains to be
picked up out of the beaten track.
amongst, for instance, the little-heard-
of prior securities of some industrial
concerns A glance through the stock
exchange list will show many which are
WELDING a rate of interest quite high
enough. even considering the risk which
attaches to such securities.
Within short two or three weeks,
we who hold railway stock will be on
the tiptoe of expectation as to our divi-
dends. There is more to fear than to
hope Most of the railways show some