The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-12-27
MONEY WON'T STOP PANICS.
SPECULATION WILL SOON ABSORB
THE INCREASE.

So Says Director of the Mint Roberts.
New supply of Cash stimulates In
stead of Satisfying the Demand.
Demand Is Created by Rising Price
OF MISREPRESENTATION RESPONSE
BILE for the TrOuble-Enect of south
African War.
Washington, Dec. 26.-Mr. Roberts, the
director of the mint, was asked to-day as
to whether the present monetary strin-
gency in his opinion signihed an actual
scarcity of money to meet the present re-
quirements of trade. He said
mo possible supply of money can pre-
vent stock exchange pancs or periods of
monetary stringency. because speculation
and rising prices will absorb any p ,sible
increase until the pressure for ready cash
is just as great upon the new plane as
1t was upon the old.
THE cry for more money is as unap-
peasabe as the demand for more wealth.
A new supply instead of satisfying the
demand stimulates it, Men want money
TO buy things with-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 peo-
pie want to buy and so the demand for
money increases. You can't furnish money
fast enough to meet the demand for 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.
Secret Is in Speculation.
1.-THE real secret of these reactions is in
speculation 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 opera
tons 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 standstll and want
to know who is to blame. Nothing has hap
pened, except that they have been asked
TO pay what they owe.
ut is impossible TO do away with such
speculation by any increase in the money
supply. In short il is not legitimate bus
mess that causes the enormous imitation
of credits, mutiplies the bank reserves
required and thus absorbs any possible
money stock. Speculation and greed, will
inevitably do IT, and as il is obviously i'm
possibe to satisfy that appetite, il is alb
surd to point to a tight money market as
a proof of an insufficient supply.
Effect of War in TransvaaI.
Undoubtedly the war in the Transvaal
has had influence upon our money mar
ket. Anything that disturbs normal con-
ditions which turns the currents of BUSH
ness out of the course they have been OK
pected to follow, will affect business. With
trade balances as they are. our bankers
early in the season had reason to eX-
| pect 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 ship
ments the other way. Such a reversal
of the regular and anticipated order makes
| money tight in all centers until affairs
are readjusted to the new conditions.
THE world does not depend upon the
| Transvaal for its stock of gold. Colorado
will produce more gold in 1900 than ALI
| North America yielded ten years 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
| Creek, with Alaska and the Klondike,
will next year exceed the Transvaal pro-
duction Of 1897 The golden tide though
| checked for the moment, is not going 10
| subside" AZ
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