The Washington times., 1901-07-06


was reached in February, 1900.
1t will be understood, of course, that
when a rise and fall of prices is thus
mentioned, reference is had TO the gen
eral average of the leading staples
| There is no surer test Of general busi-
ness conditions than is furnished by
the price level of the principal com
modities. A sharp rise indicates
| boom; a stationary level betokens a
solid, healthy condition, while con-
siderable and continued fall means
! that a reaction has set in and that the
| business situation is less favorable.
AS a matter Of fact, the business
| boom broke both in Europe and Amer
lea almost contemporaneously with the
| commencement of the war, by which
the South African gold stream was
suddenly damned up. In Europe the
! effect was felt more severely than
| here because nature worked to the
| disadvantage of that continent through
! a series of crop failures, while ours
were good. But even under these cir
! cumstances we felt the break, and
| there is not reputable trade or finan-
! cial journal in the country which does
/ not recognize the change which came
! into the business situation with the
sudden diminution of the gold supply.
In this we do not affect TO underrate
| the value of commercial credit as
factor in business. The quantitative
! theory takes into consideration every
| thing that performs the function of
| money or in any way re-enforces the
money supply. But it is clear that
| three hundred millions in gold will
| carry in safety a larger volume of
commercial credit than two hundred
and fifty millions in gold will under
the same conditions. Hence, when the
amount of available gold is diminished
it will necessarily curtail the amount
of commercial credit that can be safely
| carried. Both contribute to a tighten
ing of the money market, and under
normal conditions of production TO
fall of prices. The check to business
in this country was not serious one.
In truth, the boom had assumed such
proportions that there was reason for
a considerable let-up, and still the
maintenance of fairly good business.
We are simply directing attention to
the fact that there was a turn of the
business tide both in Europe and
America coincident with a marked
falling off in the supply of new gold.
From all of this the conclusion fol-
lows that the whole commercial world
is interested in having peace restored
in South Africa, and work resumed in
the mines of that region at the earliest
possible day. There can be no ques-
tion that upon the soundest economic
principles, a steady growth of the
worlds business requires an ample and
continuous addition to the worlds
stock Of money. This principle lay at
the foundation of the demand for the
restoration of silver. The fact that
the worlds monetary requirements are
now being fairly met by the increased
production of gold instead of proving
that the silver men We're wrong, shows
cOnclusively that their contention,
based upon the quantitative theory,
was absolutely right. The most of
them welcome the increased output of
gold more gladly than some of their
most extreme opponents. The gold
mines. and not gold standard argu-
ments, have for the present settled the
coinage question in the United States
There is a report extant to the effect
that Representative Littlefield of Maine
intends TO introduce a tariff revision bill
in the House next winter. If true,
the news is good. The successor of
Mr.. Dingley is an able leader in some
economic directions. and if he should
succeed in undoing some Of the sad
work Of his predecessor, the country
might be inclined to condone the mistake
he committed in fastening drunkenness
on tie army by championing the cause
ot the hysterical women and lolg-haired
alleged men who succeeded in abolishing
that great instrument Of temperance, the
canteen. 1t is to be hoped that he may be
busy enough in trying to effect little !
tariff reform to leave the other subject |
alone at the next session Of Congress.
If we are entitled TO judge by press re-
ports OF the trial races between Sir !
Thomas Lipton's old and new Shamrock, |
it is by no means settled that the lat
ter is the faster boat under all-around |
conditions. If this should prove true the /
gallant sporting knight can hardly feel /
as sure OF lifting the cup as he did |
in 1893 with his first production.
Again there is a noticeable revival Of !
Boer activity in the field. A British mill |
tary train has been wrecked and one Of /
hcer and nine men Of the Gordon High |
landers killed by the burghers. Possibly, /
after few more and perhaps worse ex-
periences of the kind Lord Kitchener s de- /
mand for ample re-enforccnents may be 1
favorably acted upon. The situation is /
had
commercial consideration that it is max
ing a good market for American horses,
mules, and foJdstutfs
President and Mrs Mckinley ought to
be safe and sound in their ccol and pleas
ant Canton home by the time this edition
of The Times reaches our readers. They
left at a quarter to eight last evening
by special train ever the Pennsylvania
Railway and were due to arrive at their
destination early this morning. 1t IS a
matter for congratulation hat the health
of the Lady of the Whit House has so
improved that she was bic 20 make the
journey and thus ct ape fr n the summer
heat OF Washington. h..h is sometimes
severe in the loca. ~ a. the Executive
Mansion.
As we construe the last official report
OF General Macarthur as commander Of
the Department Of the Philippines, that dis
tinguished officer must have sailed Thurs
IL.