The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-12-27
CAUSE Of MONEY PAN|CS
Director of the Mint Explains the
Underlying Reasons.
CONDITIONS NOT NORMAL
No Supply OF Money. Says He, Can Set.
isty the Greed OF Ilsgitimate Specu-
lation --Transvaal War Has
It's Effect.

Washington. Dec. 26.--Mr. Roberts,
director of the mint, was asked to-day
as TO whether the present monetary
stringency in his opinion signified an
actual scarcity of money to meet the
present requirements of trade. He
said;
mo possible supply Of money can
prevent stock exchange panics or peri
DDS of monetary stringency, because
speculation and rising prices will alb
serb any possible increase until the
pressure for ready cash is just as great
upon the new plan as 1t was upon the
old The cry for more money is as
indispensable as the demand for more
wealth. A new supply instead of de-
creasing stimulates it. Men want money
to buy things with-good things that
they think are going higher. Give easy
money in the banks and we have bank
ers encouraging borrowers. AS re-
suit stocks go up and, as they go up.
more people want to buy, and SO the
demand for money increases. You can
not furnish money fast enough to meet
the demand of all who would like to
borrow while prices are going up, nor
could all the gold and silver mines In
the world together keep prices going up
forever
"A marvellous era of increasing
money stocks began in 1850 and started
a period Of speculation and ended in
a world wide smash in 1857, when even
the Bank Of ENGLAND had to suspend
payment, without any decline in pfoduc-
ton and with the minis everywhere
open to both gold and silver. The real
secret of these reactions is in specula-
ton on margins. Those people who
are crying that they have been forced
to throw away their property had never
paid for their holdings. They borrow
ed money on call to make small pay
ments, hoping that a right turn in the
market would give large profits But
in that class Of operations losses come
as easily as profits. That is one of the
conditions of the game. When they
have profits they call it prosperity, but
when they have losses they think the
country has come to a Standstill and
want to know who is to blame. Moth
ing has happened except that they have
been asked to pay what they owe. 1t
is impossible to do away with such
speculation by any increase in the
money supply.
'In short, 1t is not legitimate business
that causes the enormous imitation Of
credit. multiplies the bank reserves re-
quired, and thus absorbs any possible
money stock. Speculation-greed
inevitably do it. and as it is obviously
Impossible to satisfy that appetite, it
is absurd to point to a tight money
market as proof of an insufficient
supply of money.
'Undoubtedly the war in the Trans
vaal has had influence upon cur money
market. Anything that disturbs nor
NAL conditions, which turns the cur
rents Of business out of the course they
have been expected to follow, will affect
business. With trade balances as they
are, our bankers early in the season
had reason to expect gold imports this
fall, and probably directed their bust
ness accordingly. The war has not only
cut off. a remittance of about $2,000,0O(
a week to London from South Africa
but has compelled heavy shipments the
other way. Such a reversal Of the reg
ular and anticipated order makes money
tight in all centers until affairs are re-
adjusted to the new condition. The
world does not depend upon the Trans
vaal for its stock of gold. Coloradt
will produce more god in 1900 than all
North America yielded 10 years ago
and this continent will yield more next
year than the whole world did 10 years