The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-27
TRIES TO EXPLAIN
Mint Director Roberts Talks d Gold
Supply
AND STOCK EXCHANGE PANIC
Quantity Of Money Will Not Prevent
Such Conditions.
SPECULATION THE REAL SECRET
Tight Money Market No indication That
Supply Is insufficient.
C0lORADO'S GOLD YIELD is INCREASING
And Mines In South Africa VIII Not
lie Needed As IN the
Fast.
Tight Money Market No indication That
Supply Is insufficient.
COLORADO'S GOLD YIELD IS INCREASING
And Mine. in South Africa WIN Not
He Needed As in the
Fast.

Washington, December 26--Mr, Roberts.
as to where the present monetary
stringency, in his opinion, signihed an
actual scarcity of money to meet the pres
ent requirements of trade.
Hc said; mo possible supply of
money can prevent stock exchange panics
or periods of monetary stringency. because
speculation and rising prices viii absorb
any possible increase until the pressure
for ready cash is just as great upon the
new plane as II was on the old Men
want money to buy things with--good
things that they think arc going higher.
| Given easy money in the banks and wa
have bankers encouraging borrowers. As
result stocks go up and as they 20 up
more people want TO buy, and so the de-
| mnnd for money Increases \ marvellous
era of increasing money stocks began ia
| 1850 and started period OF speculation
which ended with a grand world wide
smash in 1857 when even the Bank of
England had TO suspend payment without
any decline in production and with the
mints everywhere open To both gold and
silver. The real secret OF these reactions
is in speculation on margins These peo-
pie who are crying that they have neen
forced to throw away their property had
never paid for their holdings They bor-
rowea money OH call TO make small pay
ments. hoping that right turn in the
market would give large profits, But In
that class OF operations losses come as
easily ms profits. That Is one of the CON
ditions OF the game. 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. II is not
| legitimate business that causes The
enormous imitation Of credits multiplias
the bank reserves required, and thus alb
serbs any possible money stocks Specu-
lation greedwill inevitably do il. and
as it is obviously impossible to satisfy chat
appetite, II is absurd 10 point 10 tight
money market as proof of an insufficient
supply of money.
Undoubtedly the war IN the Transvaal
has had influence upon orr money mar
bet. Anything that disturbs normal con-
diiions, which turns the currents NJ hush
ness out Of the course they are accus-
TONED TO follow viii affect business
Win trade balances rs they are,
our bankers early in the season had roa-
son "a expect gold imports this fall, and
probably directed their business accord
ingly The war has not only cut off a
London from South Africa hut compelled
heavy shipments the other way. Such 3
reversal Of the regular and anticipated
order makes money tight in all centers
until affairs become readjustod to the new
conditions
The world does not depend upon the
Transvaal for rs stock of gold. Colorado
will produce more gold in 1900 than all
North America yielded ten years ago. and
this continent will yield moro next year
than tho whole world did ten years ago,
Cripple Creek is up 10 the record Of the
Trarsvaal five years ago and Cripple
Creek With Alaska and the Klondike, will
next year exceed the Transyaal production
OF 1897 The golden tide though checked
for the moment, Is not going to turn"
Washington. December 26.rt was stated
at the treasury today that the amount OF
bonds which have been deposited and ac-
cepted by the secretary as security for in
ternal revenue receipts 10 be deposited
with National bank repositories is s17,-
100000. OF which 81 900 900 have been de-
posted by New York banks The entire
list foots UP thirty-one banks, located in
fifteen different States.