New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-12-27
Traders on MARGIN BLAMED.
DIRECTOR ROBERTS SAYS THERE /" W.
LEGITIMATE DEMAND FOR
MORE MONEY
MORE MONEY.

,,.--,,.o, Dec 9s-George E. Roberts the d.
rector OF the Mint asked to-day "ne'II ,,,or
not tho present monetary stringency in MS opiNio"
signifed an actual scarcity OF money W '
nresent requirements Of trade lie SAID
No possible supply of money can pr strngency,
because speculation and rising prices VIZ f- resdv
any possible increase until the press,nio as II was
ca:h Is lust as great upon the new plane as M
mon The old The cry for more money IS a un
opDeasable as the demand for more wealth. , NV
i,fcss' If Men want money TO buy things VIII
gTen C eav money in the banks and have bank
era encouraging borrowers. AS Iesu un, - Tnv
go up and they go up many people wai v " cs
and so the demand for money Increases. 10u can
not furnish money fast enough to meet the demand
going up nor could all the gold and silver mines in
the world together keep prices gong up 6c began
in 1850 and started period OF speeuia'ISS be
even the Bank OF England had TO suspend pa? LhTI
without any decline in production ana win nm, me
real secret of the reaction Is specuaton on ma MAJ
gins These people who are crying that they nave
bald for their holdings. They borrowed money
call to make small payments. hoping that right
pro6ts Thai Is one Of the conditions of the game.
When they have profits they call IL prosperity but
when they have losses they think the country has
come to a standstill, and want 10 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 alton
selling 500 share has an advance OF $40 the
investor who owns II outright makes but 10 per
cent. while the speculatOr who has up only
margin OF $40 makes 100 per cent. That is the secret
OF marginal trading In short. 1t is not legitimate
business that causes the enormous imitation of
credits, multpies the bank reserves required and
thus absorbS any possible money stock. Specu-
letive greed will inevitably do IT, and as It is OBJ
Viously impossible to satisfy that appetite II IS
absurd TO point to a tight money market as
proof of an insufficient supply of money.
Undoubtedly the in the Transvaal has had
influence upon our money market. Anything that
disturbs normal conditions, which turns the cur
rents of business out OF the courses they have been
expected 10 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 business accordingly
The war has not only cut off remittanc Of about
$2,O0OO0 n week 10 London from South Africa, but
compelled heavy shipments the other way Such
4 reversal of the regular and anticipated order
makes money tight in all centres until affairs are
readjust ed to the condition.
The world does not depend upon the Transvaal
Tor its stock OF gold. Colorado VIII 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 to the record OF the Transvaal
1--WE years ago, and Cripple Creek with Alaska and
the klondike, VIII next year exceed the TransVaal
production OF 1897. The golden tide though checked
for the moment, is not going TO subside.