The herald., 1898-06-23
GOLD THE RULING MONARCH

GOLD THE RULING MONARCH
In local financial school, auxiliary to
Journalistic enterprise, we are taught
that an abnormal growth of the surplus
holdings of the banks-an accumulation
in bank vaults of money belonging to the
peoples Indicative of prosperity.
This is new and novel proposition
IN finance. If 1t be conducive to the gen.
eral welfare to place in treasure boxes,
in bank vaults or elsewhere, $3.50 per cap
tia of the circulating medium, and per-
nit It to remain idle, 1t follows that the
more money is locked up and prevented
from performing its natural functions, the
better will the conditions be. Ergo, bury
all of the peoples cash, and an ideal stu
alton obtains
What rubbish is this to place before an
intelligent clientele? What violence does
it not do to the common-sense compre-
hension Of the people?
Why does the money accumulate in the
bank vaults, here as well as everywhere
else throughout the country? Why is the
surplus in excess Of the legal require
ment greater at every money center than
ever before in the history Of the country?
Why are the balances due to the United
States upon it's unprecedented exporta-
ton of breadstuffs last year permitted to
remain on deposit in European banks?
Why are many banks in this country
sending their surplus abroad for invest
ment? Why is there such scramble for
the three per cent certificates of indebted
ness of this government, when the lowest
legal rate Of interest anywhere in the
United States is 100 per cent more?
Is not the reason apparent to the dull
est comprehension? Money, paradoxical
as it may seem, has become scarce instead
Of plentiful-it has become more valuable
than any other kind of property. The
only form of investment that now lures
the capitalist is securities, bearing fixed
rates of interest, payable at given time
and place, and the value of which is en-
HANGED rather than curtailed by the
steady fall in the value of all other
classes of property. The poor man pre-
fers these low-priced bonds to an in
vestment in home, because of the fear
that before title is finally secured its
selling price will have fallen below the
figure he contracted to pay. The limit
less undeveloped resources Of the country
offer no attractions to the men Of means
in these days, for the same reason. They
shrink from investments in property upon
a falling market-they are waiting for
values to touch bottom. We hear Of the
enormous profits Of this industry and of
that, but it is observed that few new
mills and factories are being erected, and
the tendency is all in the direction Of con-
solidation and restriction of manufacture.
A trust is formed by the consolidation of
ten manufacturing concerns-not for the
purpose of increasing production, but for
the purpose of restricting it-and the ten
are worked half time or five of them are
closed altogether, pending the return of
good times.
And what are good times? Times when
labor in all of the fields Of industry is
adequately rewarded. When there is
profitable employment everywhere for
willing hands to do. When there is sure
reward for energy expended in clearing
the forest in retaining moist and arid
lands. in planting orchards, in digging
bitches, extending railroads, building
mills and in extracting the precious met
ais from the earth. When the deposits in
the banks do not far exceed the loans.
When people have confidence in the per-
manency of values and the constantly en-
HANGING worth Of real property. When
SO much greater profit can be counted
upon in every legitimate branch of bus
mess, commerce and manufacture, that
three per cent bonds will go begging
among the capitalists Of the old world.
Disguise the truth as we may, and be-
cloud the future with sophistical reason
ing as we are prone to do. and the facts
return to torment us. The conditions OBJ
tanning in this country are rapidly ap-
proximating those which prevail abroad
Gold is the ruling monarch.