The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-10-23
,urcxs 10 WEALTH ACCUMULATION.

Early ~ not quite ineffective In lts operation.
rn.n the s4320.000 due Nov !. which WAS
ror.I 10 the bondholders last Monday. free
-, rsbste, scarcely Sl.O00.000 has been ac-
.,r,ed. and Of the interest maturing subsc-
,n, To Nov /, offered at q rebate OF one-hfth
y, per cent month. the amount taken has
Kan trining This is the more surprising.
h.c,u,e tho national banks alone hold over
sanoCsO.OO0 OF bonds on which the interest
.,,sbIe under the Treasury offer Is nearly
sIorOO 900. and they can at the moment lend
~. money At 5 per cent per annum and better.
pvtdsntly their officers do not look for m aim
,.r,nre OF the present rate. and are counting
upon decline from 1t,
without the aid profiered BY the Treasury.
,bs furry among borrowers. which. at the be-
shining %, the month. sent interest up to 40 per
..n, per annum on loans on stocks for short
u.rioj,. has so far subsidized that the prices OF
.,ock, have recovered almost entirely from its
Affects. and whatever panic there was amouR
.,ock OPERATORS has disappeared. Outside OF
IN. stock market there has never been any
nIneh whatever. and for purposes OF legitimate
trale tho banks have been free lenders at
4 r-r cent In fact. the chief ~ not tho
o,ly srFsrers from restricted accommodations
h,v, been the holders OF industrial stocks OF
dopA,tul value. who have not been able to bor-
.sousntly been obliged to sell them for what
aver they could get. Hence. as an argument In
favor OF unlimited bank circulation secured
onlv nv bank assets. the recent contraction OF
bank loans fails altogether.
The r.sut OF the episode demonstrates the
truth q, what was said In this column. fort
night ago. about the countrya financial
strength and its ability to resist the shock
Many sudden demand upon its monetary re-
sources In spite OF our hahitunl excessive er-
mansion OF credit. VIII n is always an element OF
danger We have so soli. n foundation for our
financial system In the shape OF gold and Gov
.rnment mo,,y, that temporary imrairments
Of that haa!s. Ike that which We have lately
been expetieucinc. leave no lasting effects be-
hind them Compared with last spring. there
has been in this city violent contraction OF
hank loans and deposits. but. compared with a
year ago. the expansion Of them has been
anita as marked On Oct 20. 1898. the loans
Of the New York hanks we're 1857 OOO0O and
their deposits S745. 100000 Last Saturday
their loans were s70OoOO.OOO aud their de-
ros's s7''9 OOOOOo. Thus. in years time.
thorN mas been gain OF man. millions OF dol
lara In the money supply.
'ess striking but equally convincing proof
o'thc nations wealth is afforded by the en-
tirely useless and unproiuctive expenditure
from an economic point Of view. OF which the
recent International yacht races in New York
harhor have been the occasion. The building
and eQulnment Of the American acht cost it
IA said. $4,000. and sailing her against
Tho British yacht has probably cost an
other Sl50.00O. making the total expen.
dIture ny her owners S3OO.OOO This how
ever IA only a small fraction OF the ex-
rense Of the races. The spectators have
raid, It Is estimated nearly 81. 900. 900 for the
privilege o. witnessing them. and the news
papers s10O00ofor reporting them. Certainly.
Sl.400.000, is a sale estimate OF the total which
our citizens have been willing to throw away
merely for the few DAYS amusement which the
view Of the races offered them. and that they
did II cheertuy shows that they felt they
,Nuld afford IT,
When. Furthermore. 1t is considered that
yacht races are only one among a thousand
waysin which our citizens devote their means
to other than weath-producing purposes, the
demonstration becomes still more striking.
The maintenance OF private pleasure yachts.
both sailing vessels and steamers. annually
consumSa far greater sum than that which
was spent upon the contest between the British
and the American yachts. Horse racing costs
nearly as much as the running Of pleasure
yachts does. II not more. Private railroad
cars are kept by many rich men each costing
ahoutS25.OOO to build and about 500 day
for their maintenance. Then. there are the
numerous private carriages and horses, the
country residences. the travelling In Europe
and In this country. all Of which yield no
pecunsry return. How much. also. 10 devoted
to theatre and opera going and to dinners and
snppers connected herewith. is past conn ute.
In one aspect indeed. the labor and materials
consumed in ministering to the amusement OF
people are not wasted. They have a reflex ac-
ton upon productive capacity. both by restor-
ing wasted energy and by stimulating its en-
royment The appetite for the enjoyment OF
the pleasures OF this life Ia as potent motive
Tor exertion as are hunger and love. More.
over, II gives value to the means for It's
qualification which otherwise would not exist.
Considered merely as instruments for creating
more wealth. yachts, raeehorses. palace cars.
country villas, theatres. opera houses and all
other appliances OF luxury are worthless Like
PICTURES. statues and precious stones they are
items OF wealth only because they are desired.
ana because those who desire thsm will nay
Tor than Hence. the diversion to their
production OF labor and skill by so much re-
duces the production OF more useful wealth
an checks the accumulation OF 1t.
For wealth consumed In war there Ia no sucb
Won ior purposes OF recreation nm 4 social enjoy
n'eht. The war now going on In South Africa.
Iof instance will cost Great Britain at least
s"hoV0'oOO, and probably more, for the trans
poftation and feedn OF troops for the man
"Iacturr OF arms and ammunition and for sun
PVng other war material. The Boers. on their
'i""'l oe put 10 an expense which. though
NOT so great as that OF Great Britain, will bs
very Iarge. and both sides will suffer from the
destruction Of property and the interruption OF
Wo'uctN industry which military opera
u'hS necessarily entail Our recent war with
spain eoStus SlOO,0OOOO0. and Spain nearly
ha.t mat sum. The cost OF the War OF Secession
70 ooth the North and the South was not less
man "oOOOOo,O0O. without counting the
''"retp destroyed and industries paralyzed.
rest'lenre and famine. like war. destroy
wealth. Without leaving heh nd them any COM
'eNNd'lug benefit Fortunately for this coun-
w. W" nave not recently had to suffer from
'ese dread vtsitatons. but history tells US
VI lhe havoc they have wrought and the
numerous Individual cases Of sickness and OF
t'tma'ure death which pass unnotIced by all
w. 'hose directly affected by them amount,
.rn together. to a residence OF moderate pro-
'haa IL