Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-01-01
banks held .52,oOo,o 600 making a total OF
S2s}S 1873 2A5 s-'-' a. i.-5s'tAs
What is to Be Effect.


This plethora Of the precious metal TN our
country presents three problems interesting
and important. What is to be the effect on
our currency? What on prices and wages?
and what on our world relations7
Silver dollars can not be gathered In num-
bers sufficient to threaten danger, even If
redeemed in gold, and not exchanged into
silver certificates. as the law provides. As
United States notes and silver certificates
are becoming more and more denominations
Of SO and under, the need of small money
prevents their use In any form for raid
government gold would be to besiege Gil
braltar with carbines.
Possible peril lies another side. eau
tious hnancfers express alarm at the ire
mendous imitation which has taken place
In recent years, and is still going on. Since
July 1. 1897. our total circulation has in
creased by SIP. $3.50. OF this growth
gold in coin and certificates stands for
$422. 4S7. 965. and this metal in both forms
has become s977. 1862 g92, hurrying forward
to a round billion.
It is very safe to predict that the inflow Of
the precious metal into our currency can
not we'll be less than $50 Co., 600 to 10000
600 year, and possibly more, after allow
ing for all deductions. Aside from national
bank notes this gold constitutes the only
addition to our currency.
Currency is Safe.
Whatever perils may befall, whatever
crash and ruin may come In the early fu-
ture, they cannot involve the currency.
They may reduce credits clip margins
from stocks paralyze enterprises for q
time. Even If corporations shrivel and
banks totter. all our money will remain
fortified in gold sure and steadfast.
Higher Prices.
We must admit that with all other things
equal. large additions to the currency carry
up the prices Of commodities measured In it.
Notable advances have taken place In the
prices Of articles Of necessity during the
past five years. Tests Of them may be
made by comparison of wholesale rates for
leading commodities. Thus. pig iron sold
In 1897 at $40 %; the price now Is $21; steel
mess pork was then $10.25, now 1t Is $1S. 50
family beef was then $3.50, it Is now S1S;
corn was 81 cents, 1t Is now So; wool was
then q, 1t Is now 30; cotton was 81, 1t Is
now S.55: wheat and silver are lower-wheat
was sos cents, it is now lower at SO.5 cents;
silver in London was .GO4. it is now .493.
On the whole, we may say with fairness
that the prices of commodities as a whole
have advanced within five years as much
as Is per cent or 80 per cent If we add the
prevalent tendency to great freedom of ex-
penditure, we can accept these figures as
moderate and reasonable indications Of the
greater cost of living.
The burden falls heavily at once on per-
sons with fixed salaries and limited incomes
who can find no offset. Real estate, except
In favored forms and choice locations In
cities, has not improved In earning capacity
as a rule. There are thus large classes Of
our people to whom this imitation Is an evil
without paliatlOn.
Can American skill and energy keep
ahead Of the rise in commodities and in
wages? The answer will decide whether we
can hold and tighten our grip on foreign