Pine Bluff daily graphic., 1895-11-03

Bankers Magazine, and he inquires what is to be done with s'the coming flood of gold" He says: Assuming that the quantity required for indus trial purposes and to replenish clrcula- tion remains about the same as hitber- to, the bulk of the annual surplus im- ports will simply go to swell the huge accumulation in the banks {of Eng land) vaults;n and it is understood that already the accumulation is so great that it has become necessary to pro- vide increased storage room in the vaults of that bank.
 The London Financial Times sees,no reason flor assuming that there will not be a vast increase in the quantity taken for industrial purposes and ab- sorbed into the money circulation of different countries. On the contrary, it thinks such an increased use must be the logical result of the great augment in production that now seems to be as- sured for many years to come. This will give a stimulus to business of all kinds, and by so doing will cause an advance in prices, which, in turn, will render necessary the employment of larger amounts of gold money for the transaction of stated amount of busi. ness. Manufacturers and agricu1tur- ists will probably develop their respee- i've industries to such an extent as to remove much of the difficulty arising from an inconvenient accumulation of bullion.n
 The question as to whether very large stocks of gold are convenient or inconvenient is relative one, not to be answered merely by reference to the number of dollars or pounds worth of gold contained in the pile. A much more abundant supply would tend to lessen the buying power of the unit, by raising the general level of prices of commodities, even if there were no i'm portant change in the cost of producing the precious metal. But it is well known that modern science has intro duced processes which enormously eheapen the cost of obtaining the aver age ounce of gold, thus rendering it possible to take out gold from rock which previously would not pay for working, as well as yielding a vast profit from mines that formerly would have gaven but moderate one. So long as the results of these operations are not large in comparison with the total stock the big profits may go into the pockets of the gold producers, but when the total of supply is consider ably increased by it the price of gold must fall as measured against the things that are bought with it, and this without reference to what the gold previously in use may have cost to pro- duce it. The latter point was not raised amid the great advance in prices that followed the augmentation in the worlds stock of gold from the mining activity in California and Australia near the middle of the present century. 1t would not be raised now, except by some crazy free silver extremist, if we should have a doubling of prices in con sequence of corresponding augment in the supply of gold.
 The present year will witness an in- crease of about five per cent. in the worlds stock of gold, and it seems probable that within the next few years the annual augment will have risen to not far from ten per cent. The resulting abundance cannot fail to eff feet a corresponding change in the prices of commodities, thus sweeping away the main argument by the abuse of which the free silver extremists have striven to pervert the minds of the people. Nor is there any reason to suppose the change would render by metallism, with free coinage at sixteen to one," any more possible than it is now, for the cost of producing silver has been cheaped far more than in the case of gold It would be idle to sep- pose that cost cannot be further les sened as measured in units of human labor, and experience has shown that a difference of three per cent. or less be- tween the legal and commercial value of one metal as expressed in terms of the other is as fatal to circulation on equal terms" as would be difference of fifty or more per cent And the in- crease in the quantity of gold would lessen if not abolish the need of using silver as the basis of a paper currency, more especially so as a basis of redemp- tion at long way below gold par Chicago Tribune.
 No Danger of Free Silver.
 There appears to be no danger what 4 ,sI r,