The times. [volume] (Richmond, Va.) 1890-1903, 1899-12-27
DIRECTOR OF
THE MINT TALKS
No Possible Supply Of Money Can
Prevent Stock PaniCS.
SPECULATION ON MARGINS
l. the Real Secret of These Reactions
The War in tho Iransyaal Has
Had an Influence on Our
Money Market

WASHINGTON. Dec. 26.-Mr Robert.
the Director Of the Mint. was asked to-
day as to- whether the present monetary
strlngency, in his opinoin, signifed an
actual scarcity of money to meet tne pres
ent requirements Of trade. lie SAID:
mo possible supply Of money can pre-
vent stock exchange panics or periods Of
monetary stringency. because speculation
and rising prices will absorb any possI-
bic increase until the pressure for ready
cash is Just as great upon the new plane
as il was upon the old. The cry Tor
more money IS as unappeasable as the de-
mand for more wealth. \ new supply.
instead OF satisfying the demand, slim
ulates 10. Men want money 20 buy things
wIth-good things that they think are
going CHER Given easy money In the
banks and we have bankers encourage
ing borrowers. AS result stocks go UP.
and as they 80 up more people want 10
buy. and 80 the demand for money IN
creases. You can't furnish money fast
enough 90 meet the demand of all who
would like 10 borrow. while prices are
going up. nor could all the gold and sill
yer mines i'm the world keep prices go
ing mp forever
REAL SECRET SPECULATION.
"The real secret Of these reactions IL
IN speculation on margins. These people
who are crying that they have been forced
to throw away their property. had never
paid for their holdings. They borrowed
money on call to make small payments
hoping that a right turn in the market
would give large profits. But IN that
class Of operations losses came as easily
as profits That is one of the conditions
OF the game When they have profits
they cali il prosperity, but when they
have losses they think the country mas
come TO standstill and want 10 know
who Is TO blame. Nothing has happened
except that they have been asked TO pay
what they owe.
"It is impossible to do away with such
speculation by any Increase IN the money
supply.
I'm short. IT is not legitimate business
that CAUSES the enormous imitation OF
credits. multiples The bank reserves re-
ouired and thus absorbs any possible
money stock Specuation-gfeed-w H.
.,,-itablv do il. and as it is obviously IN
POSSIBLE to satisfy that appetite II Is an
surd to point 70 a tight money market as
a proof Of an insufficient supply.
TRANSVAAL WAR.
"I-ndoubtedIy the war in the TransVaal
has had influence upon our money market.
ANYTHING that disturbs normal conditions
which turns tbe currents Of business OUT
Of the course they have been expected 10
follow. will affect business. Win traoe
balances as they are our bankers early IN
the season had reason 10 expect gold I'M
norris this fall and probably directed thelr
business accordingly THE war has not
only cut on a remittance OF about s-'V''-
90 per week 10 London from South AFRICA
but compelled heavy shipments the otner
wav such reversal II the regular ana
ANTICIPATED order makes money usht h'
ali centres until affairs are readJusted 20
tho new condition.
THE world does not depend upon the
TransvaaI for Us stock Of gold COLORADO
win produce more gold In 1890 than an
North America yielded ten years ago, ana
this continent will yield more next year
than the whole world did ten years ago.
Cripple creek is up 10 the record Of lne
Transvaal FIVE years ago. and Grippe
- 'reek with Alaska and the Klondlke' VIII
next year exceed the Transvaal production
.of isg7 The golden tide though checked
for the moment. is not going TO suoside'