The Topeka state journal., 1899-12-27
ROBERTS DOESN'T AGREE.
He Says Wall Street Panics Can't Be
stopped With More Money

Washington, Dec. 27.-Mr. Roberts,
the director of the mint, was asked to-
day as to whether the present monetary
stringency, in his opinion sIgn1fled an
actual scarcity of money to meet the
present requirements Of trade. He said;
mo possible supply of money car
prevent stock exchange panics or per
iOdS of monetary Str1ngency because
speculation and rising prices will alb
sorb any possible increase until the
pressure for ready cash is just as great
upon the new plane as it was upon the
old. The cry for more money is as un-
appeasab1e as the demand for more
wealth A new supply instead Of salts
fying the demand stimulates it. Men
want money to buy things W1th-good
things that they think are going higher
Given easy money in the banks and we
have bankers encouraging borrowers
As a result stocks go up, and as they
go up more people want to buy, and
so the demand for money increases.
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 silver mines
in the world together keep prices going
up forever.
"A marvellous era of increasing money
stocks began in 1850 and started a per
fod Of Speculation, which ended with
grand worldwide smash in 1857, when
the Bank of England had to suspend
payment without any decline in prOduc-
ton and with the mints everywhere
secret of these reactions is in specula-
ton 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 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 standstil and want to know
who is to blame. Nothing has hap
pened, 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, it is not legitimate busi-
ness that causes the enormous imitation
of credits multiplies the bank reserves
required and thus absOrbs any possible
money stock. eculatiOn-greed-wil
inevitably do it, and as it is obviously
impossible to satisfy that appetite, it
is absurd to point to a tight money
market as a proof Of an insufficient sup
ply of money.
Undoubtedly the war in the Trans
vaal has influence upon our 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 81. 900 coo
per week to London from South Africa,
but compelled heavy shipments the
other way. Such reversal Of the reg
ular and anticipated order makes none
tight in all centers until after affairs
are adjusted to the new condition
''The world does not depend upon the
Transvaal for its stock of gold. Colo
rado will produce more gold in 1900 than
al
ago and this continent will yield more
next year than the whole world did ten
years ago. Cripple Greek is up to the
record of the Transvaal five years ago,
and Cripple Greek, with Alaska and the
Klondike, will next year exceed the
TransvaaI production Of 1897. The gol-
den tide. though checked for the mo-
ment, is not going to subside-'