The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1899-12-27
Relative TO the Situation at Present Ex-
isting at Eastern Centers.
Says No Possible Supply Of Money
Can Prevent Stock Exchange
Panics, Because Speculation and
Rising Prices Will Absorb Any
Possible Increase. Until the
the Pressure for Ready Cash il
just as Great Upon the New
Plane as Upon the Old.

erts, Director of the Mint, was asked
to-day as to whether the present none
tary 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 per-
iods of monetary stringency, because
speculation and rising prices will absorb
any possible increase until the pres
sure for ready cash is just as great
upon the new plane as it was upon
the old. The cry for more money is as
unappeasable as the demand for more
wealth. A new supply, instead of salts
flying the demand, 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 bankers encouraging borro wers.
AS a result stocks go up, and as they
go up more people want to buy, and SO
the demand for money increases. You
cannot 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
period of speculation, and ended in a
worldwide smash in 1857, when even
the Bank of England had to suspend
payment, without any decline in pro-
duction and with the minis everywhere
open to both gold and silver.
THE real secret of these reactions is
in a
pie 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
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 .hink
the country has come to a standstill,
and want to know who is to blame.
Nothing 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.
I'm short, it is not legitimate bust
ness that causes the enormous imitation
of credits, multipliessthe bank reserves
required and thus absorbs any possible
money stock. Speculation-g greed will
inevitably do it, and as it is obviously
impossible to satisfy that appetite, it is
absurd to point to a tight money mar
ket as a proof of an insufficient supply
of money.
Undoubtedly the war in the Trans
vaal has had influence upon our money
market. Anything that disturbs nor
NAL conditions which turns the currents
of business out of the course they have
been expected to follow will affect bus
mess. With trade balances as they are,
our bankers early in the season had
reason to expect gold imports this fall,
and probably directed their business ac-
cordingly. The war has not only cut off
a remit of about 100000 week from
London to South Africa, bur compelled
heavy shipments the other way. Such
a reversal of the regular and antici-
pated order makes money tight IN all
centers, until affairs are readjusted to
the new condition.
THE world does not depend upon the
Transvaal for it's stock of gold. Colo
RADIO will produce more gold in 1900
than all North America yielded ten
years ago, and this continent will yield
more next year than the whole world
did ten years ago. Cripple Creek is up
to the record of the Transvaal five years
ago, and Cripple Creek, with Alaska
and the Klondike, will next year exceed
the Transvaal production of 1897. The
golden tide, though checked Tor a mo-
ment, is not going to subside."