Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1899-12-27
SPECULATION ON MARGINS,
This The Real Secret Of Stock Market
Reactions,
INFLUENCE or TRANsvAAL WAR.
Our Market Has Undoubtedly Been
Affected by the HOstiIities In south
AfricH-GOId Production of the
World.

WASHINGTON. d. c., December o.
Mr Roberts. The Director Of the Mint,
was asked to-day as to whether the pres
cnt monetary stringoncy in his opinion.
sicn1cd am actual scarcity of money TO
meet the present requirements of trade.
ID. said:
NO possible supply OF money can pre-
vent stock exchange panics or periods of
monetary strngency. because speculation
and rising prices will absorb any possi-
l'o increase until the pressure for ready
cash is Just as great upon the new plane
as 30 was upon the old. The cry for more
money is as indispensable as the demand
for more wealth. A new supply. instead
Of satisfying the demand. stimulates IL.
Men want money 20 buy things swith-
good things that they think are going
highcr. Given easy money m The banks,
and we have bankers encouraging bor-
rowers. AS a result. stocks 40 mp. and
as they go up more people want TO buy.
and so the demand for money increases.
Noa can't furnish money fast enough to
NEE, thc demand of AN who would Ike
O.. borrow while prices are going up, nor
could aI The gold and silver mines in the
world together keep prices going up for
Over.
REAL SECRET or REACTIONS.
.Tne real secret of these reactions is
speculation on margins. These people,
who are CRYING that they have been
forced TO- throw away their property had
mover paid for their holdings. They bor-
r.ued money on cali to make small pay
.a. hoping that "a usht turn in the
u.L,t would give large profits But i'm
..t class of operations losses come as
as profits That is one Of the con-
of the game. When they have
flo they call ii prosperity. but when
. .ar. losses they thilk he country
m. t0 "a standstil and want TO
Ur. ls tO blame. Nothing has hap
I..I except that they have been asked
.Hat they owe.
ossible TO do away with such
ey amy increase in the money
supply
.1r 10 is not legitimate business
tl4' .a.--s enormous imitation of credits.
fle bank reserves required. and
... 0rnes amy possible money
Stock Speculation erecd-wiu inevitably
., II a.. ass 10 is obviously impossible TO
satisfy flat appetite 30 is absurd Co point
Ueli money market as proof of an
Efficient supply.
INFLUENCE OF THE WAR.
Undoubtedly. The war I'm the Transvaal
bad influence upon our money mar
I.. Anything that disturns normal
tious. which Turns the currents of
mess ont of the course they have
f..u expected to follow. VIII affect busi-
l.. With trade balances ass they are,
our bankers early bon the season had
reason to expect gold imports this fan.
anna probably directed their business ace
..famelv The wan has not only cut off
. remittance OF about S2O00O0O per week
tu London from South Africa bat COM
I. bed heavy shipments the other Way.
Such "a reversal of the regular and an-
lGuafed order makes money tight in aN
c.ntre-. until affairs are readjusted TO
the new condition.
GOLD PRODUCTION.
"The world does not depend upon the
Tran-yal for its stock of gold. Colo
I.d1 viii produce more gold iu 1900 than
aU NGth America yielded ten years ago.
and this Continent viii yield more next
gear than the whole world did ten years
ago. Cripple creek is up To- the record
off Uhc Trasyaal five years ago. and
cripple Creek. with Alaska and the Klon-
d.Ee win ueNt year exceed the Transvaal
I iucion of 1885, The golden tide.
though checked for the moment is not
going t0 suhsiae."