St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-05-27
GOLD INCREASING.
WORLDS OUTPUT FOR THE YEAR
WILL BE MORE THAN
$2OO,OOO,OOO.
SOUND BASIS FOR A BOOM,
AND A FACT WHICH MEANS
DEATH TO THE SILVER
CRAZE.
HENRY CLEws, PREDICTIONS.
The WeII-Knoyvn Financier Con-
fiGent That 81 Return of Pros
perity Is Assured.

Special to the Globe.
NEW YORK, May 26. = Henry
Clews, in his weekly review of the
financial situation, says:
My readers will bear me witness
that [ was the first to sound the death
knell to the bear market on March
last, the day following the adjourn
ment Of congress, when 1 proclaimed
that the time had arrived to buy ev-
erything and sell nothing. 1 then said
there was no stock dealt on the stock
exchange so poor that would not ad-
vance conspicuously from that time
forward I was governed by the fact
that congress had adjourned. also
took into consideration the fact that
the gold scare was about to culmlnate,
because the hunt for gold had COM
menced to result in increased produc-
ton, the worlds output of which would
amount for the coming year to prob
ably 5000 900, 900, with the prospect of
it's yearly increase for some time to
come. The effect of the gold discov
cries in South Africa, which have
made such a speculative craze in min
ing shares on the London exchange
and the continental bOurses, has been
to revive business in every direction
and carry Europe out Of a rut of de-
preston which started at the time Of
the Barring failure in 1890. This coun-
try is bound to benefit under the in
fuence growing out of increased gold
production both here and elsewhere,
and
REVIVAL OF BUSINESS
interests could not possibly have
sounder bottom to rest upon than
that of the yellow metal. About $45,
100000 of gold will be taken out of
the African mines probably this year.
The properties connected Herewith
are now selling on the London market
on a basis of 5000, 900, 600. The pro-
duction of gold this year in this coun-
try is steadily on the increase, espe-
cially in Colorado, Montana and Ida
no, and will soon be the basis of a
gold imitation craze in this country
not unlike what is now being expert
enced in London and elsewhere. 1t
is important to consider that the
worlds output of gold hereafter,
amounting to about 100000 (and
likely to increase year after Year,,
will mostly all Of it perform the func-
tons of money, and no part Of it is
likely to go into the war chests Of the
European nations as heretofore, as
they have. now all accumulated their
full emergency supply. Another i'm
portant feature to take into considera-
ton is that the
SUPPLY OF MONEY
now in this country amounts to $24
per capita as against the time of the
panic of 1873, when it was s17 per cap
ita, and going still further back to
the panic of 1851 when it was only
$15 per capita. When prosperity again
reigns supreme in this country, which
will soon probably be the case, judg-
ing from present appearances, there
will be a sufficient return of confidence
to make the circulation of this $A per
capita so rapid as to possibly make
our present volume of circulating me-
dium excessive When this occurs.
which will be very soon in my opinion,
kill the present Western and Southern
silver craze. This $24 per capita in
money will be added to each year be-
yond doubt by at least $50,0O0,O0O of this
country's product of gold. This will
soon satisfy even those who are now
calling for more silver money that
the country's supply of money will be
ample to go round without diluting
hIr
free silver coinage or by any other
very questionable means of increasing
this country's supply of money. Gold
is the country's standard and must so
continue, to enable it to stand abreast
with other f1rst-elass nations. United
we stand divided we fall' To admit
of our maintaining our present proud
supremacy amongst the nations of the
world, the best metal is none too good
for this country as the standard basis
for money, and that is
GOLD AND ONLY GOLD.
Gold is one of our products, and we
of all nations should utilize it for all
it is worth and recognize it as supreme
No country can afford to do so better
than ours.
Railroads in this country like the
New York Central, whose credit ad-
mits of their selling their treasury
securities in Europe, as the New York
Central has done, will be likely to do
so one after the other. This money
will go into extensions, Improvements
and repairs; and nothing will add to
the general business activity of the
country more than such expenditures.
There is enough of this kind of rail-
road disbursement needed to make
good times for a long time to come.
1t was nearly three years since the
New York Central directors voted to
sell the treasury shares of the COM
pany at 100. A part was disposed Of
but there has been no time since until
now when the $4,000 shares left on hand
could be sold in this country or in Eu-
rope at par value. This negotiation,
which is reported to have been made
at 1922 in London, must be put in
evidence as showing the return of con-
fidence abroad in American securities
after an absence of it for three years.
The most remarkable feature in con-
nection with this sale of stock was
the immediate advance of New York
Central shares 4 per cent in the mar
ket. If the situation had warranted
a bear attack, one would certainly have
followed the announcement of this ne
gotiation, and in that case 1t would
probably have been fall of per cent
instead of an advance. If the bears
had felt sure Of their position, they
wouldn't have wanted a stronger point,
| to sell on than the fact that New York
| Central had increased its capital stock.
| Instead of their forcing the market
| down on the announcement the bulls
| took the initiative and marked the