The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1899-12-28
Cannot Supply Money Fast Enough.

mand for money increases.
Cannot Supply Money Fast Enough.
''You can't 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 sill
yer 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 specu-
lation which ended with a grand
world wide smash in 1857, when even
the bank of England had to suspend
payment, without any decline in pro
duction and with the minis every
where open to both gold and silver.
The real secret of these reactions is
in speculation on margins.
Explains Some Features of the Case.
"These people who are crying that
they have been forced to throw away
their property had never paid for their
holdings. They borrowed money Oh
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 think the country has
come to a standstill and want to know
who is to blame. Nothing has hap
pened, except that they have been
asked to pay what they owe.
SPECULATION THE CAURE OF 1T ALL
One Thing That Is TmpOssible-An Appe-
title That Cannot Be Satisfied.
'Tt is impossible to do away with
such speculation by any increase in the
money supply. If a stock selling at
500 per share has an advance of $40
the investor who owns it outright
makes but 10 per cent, while the spec
ulator who has up onl va margin of $40
makes 100 per cent. That is the secret
of marginal trading. In short, it is not
legitimate business that causes the
enormous imitation of credits, multiplies
bank reserves required, and thus alb
serbs any possible money stock. Spec
ulation-greed-wil inevitably do it.
ans as it is obviously impossible to sat
isfy that appetite it is absurd to point
to a tight money market 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-whicht turns the cur
rents Of business out of the course
they have been expected to follow
will affect business. With trade bal
ances as they are our bankers early in
the season had reason to expect gold
imports this fall, and probably directed
their business accordingly. The war
has not only cut off a remittance of
about 100000 per week to London
from South Africa but 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 ont depend upon the
Transvaal for it's stock of gold. Col
orado will produce more gold in 1900
than ali North America yielded ten
years ago, and this contingent will
yield more next year than the whole
world did ten years ago. Cripple
Greek is up to the record of the Trans
vaaI five years ago and Cripple Greek,
with Alaska and the Klondike, will
next year exceed the TransvaaI pro-
duction of 1897. The golden tide,
though checked for a moment, is not
going to subside"