The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-10-24
SAVANNAH BANKERS
GIVEN OFFICE IN THE AMERICAN
ASSOCIATION.
NJ 3. LANE is ON COMMITTEE,
.xD JOHN NJ. HOGAN is A VICE
PRESIDENT.


rnited States Treasurer Spoke
Uuon the Effects of the Inflow of
coId-AtInntic City and New York
want Next Convention.
San Francisco, Oct. 2S.-The closing
dow of the American Bankers Associ-
o+ion convention began with prayer
~, Rev. Bradford Leavitt, after which
the call of states was resumed and
statements of natural advantages and
financial and agricultural prosperity
we're recited by the delegates from
their respective sections.
I b. Finley, president of the Fifth
National Bank OF Pittsburg, read a
naper on The Education of Bank
clerks" and was followed by Hon. Ell
lis H. Roberts, treasurer of the United
States, who delivered an address on
the effects of the inflow of gold, in
part, as follows:
Roberts Speaks on Gold.
The discovery of gold in California
lifted the production of the yellow
metal in the United States from $685.
in 1S47 to $50, 900, 900 in 1852, and from
1850 to 1860, produced an average of
S55O000 900 a year. The event marks an
epoch. In twenty-one of each of the
Years since our mines have turned out
less than SAC, 900, 900, while in 1902 they
gave $S0,000000.
The banks, national and other, own
s321 900. Our treasury holds now
$685.. 600 A fair comparison with
foreign official holdings permits us to
combine these sums, and to reach as
the treasure on which our financial
system is based S97I, 100000, hard on to
billion dollars. The public and pri-
vate credit of the British Empire rests
on S166, $4,000 in the Bank of England;
of Germany on $170,371 900 in the I'M
perial German Bank; of Russia on
S4O4 396, 600 in the Imperial Bank; of
France on $404, 500, 600 in the Bank of
France. Exclude the gold of the
banks, our treasury alone holds 3.9
times more than the Bank of England;
38 times more than the Imperial Ger
man Bank; nearly three times more
than Austria Hungary; 62.1 per cent.
more than Russia, and 32.6 per cent.
more than France.
This plethora of the precious metal
in our country presents three problems
interesting and important. What is to
be the effect on our currency? What
on prices and wages? What on our
world relations?
"Our currency rests absolutely solid
on its rock bottom of gold. Some
ghost-seeking Macbeth may discern
weird sisters on the blasted heath. cast
ing their lamentations together, with
the refrain:
Double double toll and trouble,
Fire burn and cauldron bubble
He may dread the rush of United States
{Tont
some Secretary Of the Treasury will
use silver for official payments, may
tremble at the hazard of wild legisia-
ton. He forgets that $3.50, 200. 900 of the
United States notes are of denomina-
tons of so and below. How can they
be gathered in any large volume? The
silver dollars are scattered everywhere,
while the silver certificates are all but
&7OO0,000 in Sos and below. The peo-
pie need all small notes and clamor for
more. They are beyond reach by any
secretary for large payments The
power of Congress is vast, but 1t cannot
climb Niagara, nor can it overcome the
majestic force of this yellow food of
$4,000, 600 a year.
In this country, cash is used for
only 10 per cent. of transactions; in
some localities for less; in Others for
perhaps Is per cent. Cries for more
money have been often heard in the
and no one has said how much The
due limit for circulation has not been
established. Alexander Hamilton
quotes Postlethwaite as supposing that
Inc quantity of cash necessary is one
thlrd of the rents to the proprietors,
or one-ninth of the product of the
iands This really only names other
phhxed Quantities as the standard. We
nave passed far beyond such limit. The
ueory has been proclaimed that the
circulating medium should keep exact
pace with the population. Conditions
vary in different countries and at diff
!eleht periods. In the same land at
perods not remote from each other.
.sfge additions to the currency can not
aaI 10 effect enterprise, industry and
so,,nIleree, the cost of living and the
prices OF commodities. But the curren-
~ Is only one factor bearing on pro-
sueuon and consumption. We shall err
dictator. - 80 80
Advance in wages follows increase in
c cos. OF living. In recent years it has
ohe last and strong Large railway
e9mpanies and other corporations have
no aleu 10 per cent. at one step to wages
i h 10 meet the recognized advance
S cost Of living. The drift had been
s,S"HWard in wages from 1898 to 1898;
me- me- II has been steadily upward. In
co.. S cases 1t has exceeded the rise in
mo-. Oh living. The general average
nov sdIely be stated at from Is to 20
sro cent Persons with fixed incomes
IbJ. puroened with the heavier cost of
M "s without any offset, as they have
roai oeheht of a fall in prices of COM
,,JI lIles when that occurs.
pov..r e1 wages go up, the purchasing
CO., ol those who earn them rises in
pricas a NJ This. process affects
In ~ VI commodities, and adds always
imno4s,. assumption which again gives
ny 70 production and trade.
roa. o orc can deny that the golden in
gro,. contributes to the currency a share
c,rorius more rapidly than the total
price Ion, all at parity; that it lifts
duqtn ana wages, incites activity in in
for,raS, 9hd trade. and pushes enterprise
ineattu' while 1t also tempts to undue
bng o OF commercial and stock job
Statan scale of living In the United
deal such that we consume a great
more -, what we make. We spend
any,Yhaah the same number of people
HELPS ~ on earth. Our agriculture
It's inbo,iee d Europe, indeed many of
our prstoilants would starve without
the nra5ls and meats. How much Of
Ported Socts of the farm shall be ex-
and =. uepends on the crops in all lands
foreier' me purchasing power of our
"p,SS1n Customers.
- invade the old world with
continued on Fifth Page.