The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1899-12-29
THE MONEY ~sTRINGENCY.
The Director of the Mint Says 1t is Due
to Speculation on Margins.

Washington. December 26.-Mr. Rob-
erts, the director of the mint, was ask
ed today as to whether the present
monetary stringency, in his opinion,
signified an actua scarcity of money to
meet the present requirements of trade.
He said:
mo possible supply of money can
prevent stock exchange panics or pc
RODS of monetary strlngency, 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 II was
upon the old. The cry for more money
is as unappeasable 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 hin are going
higher. Given easy money in the
banks II we nav bankers encourage
ing borrowers. AS a result, stocks go
up, and as they go up, more people
want to buy and SO the demand for
none 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 n silver mines in the world to-
gether keep the prices going up for
ever.
TIL real secret Of these reactions is
in speculation on margins. The people
who are crying that they nave been
forced to throw away their property
had never paid for their holdings. They
borrowed non on call to make small
payments, hoping hat a 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 prosperi-
ty, but when they have losses they
think the country has come to a stand
still and want to 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 by any increase in the
money supply.
I'm short it is not legitimate business
that causes the enormous initiation OF
credits, multiplies the bank reserves
required, and thus absorbs any posi-.
BILE money stock. Speculation-greeG-
| will inevitably do it, and as it is obvi.
ously impossible to satisfy thai appe-
title, it is absurd to point to a tight
money market as a proof of an insult.
ficient supply.
undoubtedly une war IN the Trans
vaal has had influence upon our money
market. Anything hat disturbs nor.
MAJ conditions, which turns the cur.
rents of business out of the course they
have been expected ito follow, will af,
feet business. With trade balances as
they are, our bankers early in the sea.
son had reason to expect gold imports
this fall, and probably directed their
business accordingly. The war has MOI
only cut off a remittance of 81, 900, 00(
per week to LondOn from South Africa
but compelled heavy shipments the
other way. Such a reversal of the regu.
lar and anticipated order makes money
tight in all centers until affairs are re.
adjusted to the new condition.
THE world does not depend Upon thu
Transvaal for it's stock of gold. Colo
RADIO will produce more gold in 19Ol
than all North America yielded ter
years g and Cripple Cree, with
more next year than the whole w0SlC
did ten years ago. Cripple Creek is VI
to the record of the Tr%ansvaal five
years ago and the Cripple Creek, will
Alaska and the Klondike, will mex
year, exceed the Transvaal production
of 1897. The golden tide, though check
ed for the moment, is not going tt
subside.