The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-08-04

employed N payments in this country,
when reduced TO the same degree of eff
cheney, amount 10 $3.50. 90 900 more; total
money and substitutes for money. when
reduced 70 a like efficiency. or velocity of
circulation, $3.50 0oo,coo per week.
"An practical financial questions.
whether they relate 20 the effects OF leg
isla'sion or to a new sold discovery, or 10
any other circumstances. are slmy2y ques-
tons concerning the relation Of the new
elements or new circumstances to the
MONETARY staLu quo. To ascertain this
status definitely and accurately IS the
first and mos. essential and at the same
time the most difficult, step in the pro-
cess The rest is relatively easy II IS.
therefore, well worth while. even at the
risk of reDetitton. TO examine this statu
quo Chat is, the present condition of the
money of the country and OF the pay
men's lhsrt have % be made with ID from
another point of Jew
The exchanges or payments at the
present timn are aboue $3.50. 0o0. 600 a
week These are made with the following
inStrusn entaistieS: Government gctd and
in circulation, emitting what IS held in
banks and treasures and wnas- IS hid
din in boards or otherwise suffered TO be
idle, 1900 600; bank notes n actual cir
cuiation, SIZE. COO. 900: Individual credits and
credit instruments, about S3l,5oO0t0, 600 q
year When these last are reduced 20 the
same degree Of efficiency as coins or
circulating ncreS-which have about ten
times more efficiency than private creds-S
the latter shrink to $750OOO,0O0 per week.
Total circulation in money and credits
weekly, s15o0,0O0,COO.
1T VIII be seen that the total payments
in a week-or IN any ether measure OF
time-a-e exactly equal % the total sum
of money and money substitutes clrcu-
lated during such week or other measure
of time. This must always be the case:
One is comDlime tnary TO the other. If
the total sum of circulating money IS first
reduced, the exchanges will afterward
either diminish IN number or in value TO
the exact dimensions of the sum of money
or they may diminish partly in number
and partly in value. The result would be
that prices would fan.
IF the exchanges first diminish,
whether through economies edected IN
the mode of dealing, or in the channels
of diffusion, or from war, panic or other
the whole sum of money VIII. diminish
correspondingly. The value of each of
the fractions or single dollars which COM
pose the sum will follow that of the sum
in the numerical proportion which they
bear to 1t. In other words, prices will
rise.
The former of these cases explains the
occurrences which have followed the de-
monetization of silver and the contraction
of credit by the failure of the Barings.
Both the number of exchanges. which
formerly amounted TO about 5000, 100000
q week, and the value of commodities ex-
CHARGED have fallen
apparently expended their force. and In
the future l look for more activity In |
trade and for a rise In prices. These re- |
suits Will be ascribed by some people to
the tariff, by others TO some other cir
cumstance, but. in my opinion, erroneous |
i. Both the fall of prices and the de-
preston in trade which have already /
taken place, and the rise in prices and
to trade which l look for. are to I
be explained with reference to the cur
rency alone. provided that in consider
III two al re IN
cluded which are usually omitted
THE first is the part which is played /
by individual credits as substitutes for
money and the second is the relative We
locity or efficiency of money and of credit +
substitutes.
Il have endeavored to bring these facts
together into concrete form. and to give
you the result of my observations and
reflections on the matter but the sub
ject is so vast and the difficulties of COM
putation are SO great that l am by no
means confident that have entirely sue
ceeded.'
When asked with regard TO the probable
result of the new gold discoveries, Mr..
Del Mar replied that he thought the
Klondyke discovery. by itself. will have
little effect, but that indirectly it is des-
tined TO have a very powerful influence
upon prices and trade
Il have found, on my visit to the Pa
cific coast" he continued that the vast
continually employ themselves in hunting
'or mines, and who formerly devoted
their time and effort largely TO silver
mines, or as much to silver as TO -old
mines. have now entirely transferred
heir laborS to the search for gold. These
men constitute an army. which we may
Z. 600 to 100. eco men. AT times their num-
0ers greatly increase; at others diminish.
t is difficult to determine their true num-
Der ct any time but l think it lies at
hpfWeon those
These men. as 1 say have entirely
transferred their labors to the search for
several years past. The result is that not
My klondyke, but numerous other auri-
erouS districts, placer mines and quartz
edges have been discovered. developed
nd placed in condition favorable for the
Employment of capital. | think the gen.
raj outcome of it will be an enormous
production of gold.
Important discoveries hare been made
n British Columbia and in the extremely
orthern and southern parts OF California,
1ost of which | have personally exam
ned. Perhaps the most important of all
he discoveries is closely connected with
he interests of Boston. As | understand :
! this city is largely interested in the
Topeka & Santa Fe and the
Atlantic & Pacific railroads The great
as yet been made on the coast during
he past few years is within 50 miles of :
his line of railway.
The discoveries consist of two districts,
l one of which is a vast mass of con-
Iomerate auriferc=zs ore, very similar to -
he Rand in the Transvaal, forming an
ntire hill, and containing, as nearly as
lay be estimated from present appear
noes and developments, some so odd mil
OnS of tons of gold ore, which the local :
xperts estimate at an average value of ;
o per ton. but which. viewing the matter
a large sense. and with reference to the
lany uncertainties of mining. it would
e safer perhaps. to place at So per ton. e
he cost of reducing this ore on a larce 4
Gale can be brought down TO about 81 '
er ton. Let us say, to be perfectly safe, c
80 per ton- 1
Taking the value of the ore at mini '
Ium. and estimating the cost of reduc-
g it at maximum, this would leave q q
% per cent profit The conglomerate Is
isily got at. 1t can be quarried with :
pick and a spade No explosives are :
aeded and but little timbering. Water s
round from = distance of about ei-,>t I
lies through steel pipe lines and abour v
quarter of a million gallons per cay I
institute the present service. The pro- a
,ller mills and the cyanide solution. The p
hole of this district is already staked 5
1t, and the prices asked for claims vary I
ON $1,000 TO 100000 each
Not far from this immense mass of (
iriferous conglomerate is a hill which q
insists almost entirely OF iron ore Inc :
tactical value of this last find must re- l.
ain fo- the present in abevance, be-
fuse of the absence of fuel. The near
It accessible coal mines are in New
exlco. ana smelling coal, delivered at "
le iron mines would cost too much to N
able the latter to compete successfully ~
it'll the mines OF Pennsylvania. ONO and -
sewhere L bel,e-e the present esti- -
n ton. but hopes are entertained of us -
sing placed there at g. AT either cost -