The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-08-17


Els an enormous hoard to be saddled witt,
Halfa the circulation and half the gold
reserve might mako better money, In his
opinion.
In concluding his pamphlet, Mr.. Law
SON says:
"tsanke.s as "a rule look to quantity
only More gold! More gold 7 Is their
one cry. But gold is not invulnerable5
any more than silver was. It is IN much.
the same position to-day as silver was
thirty years ago. Precisely the same;
causes end influences are working
againstsit, and the end will be the same.
The legal or contentNna1, value of none
itnry metal can only be maintained so
long rs II does not ma eriaily exceed the
commercial value. In the case OF silver.
SwheiiS the two values Sdivergeds sufficiently
tho so-called silver standard snapped.
III the case of gold the same process of
divergence between the conventional and
commercial values has begun, and when
the breaking point Ia reached the So
called gold standard will q snap rho
breaking rolnt might have been reached
ere now, but for the huge boards Of
gold which the treasures and the state
banks Of Europe are accommodating.
Europe is unconsclously preparing fora
counterpart OF the American silver crisis
of S-tfor a yellow scare, instead OF e.
white one" is;
The opposite view is taken by Mr.. Ellis
II. Roberts. Treasurer OF the United
States, who cites MS a proof that our cur
rency has not outstrpped our wealth lii
commerce the fact that between 1890 and
d n
cent, farm products IS per cent tho
value of manufactures 39.l per cent, ex-s
ports 62.5 per cent. bank clearings 43.7
per cent, and deposits in national and
savings banks 6S5 per cent. The money
in circulation increased 43.7 per cent
This growth In circulation was 1 per cent
less than In national wealth, 95per cent
less than the increase in farm products
4 per cent. more than5$in manufactures,
the same as that In bank clearings, 12.5
per cent. less than In national and saw
ings bank deposits, and 10 per cent less
than that in our exports. SO far as
the actual gold is involved, i says Mr.
Roberts. we can rest secure and salts
fled. The complaint is oftenSlleard that
gold MS currency in coin and certificates
involves too heavy a burden OF cost.
This ratio to the total circulation in tho
United States Is 43,6 per cent. Bank
notes are as sound and strong as, The
credit of the United States-that is to-
say. as lninted gold, and MS human in,
lgenulty can secure They constitute
only 172 per cent. OF the total circula-
ton. They n are, however, not legal.
tender nor money q Of final redempti on.l
Nevertheless, Mr. Roberts thinks that
In view of the large additions to bank
notes in circulation during the past
year, mo 4 need exist for artificial meth
DDS to 8inclte to more rapid and a.bnor-s
nal growth. "A healthy regulat of our
currency, no declares, is S. the interna-
tional movement OF gold 4. He. Ike Mr..
Lawson. thinks that an ternational.
clearing house with a central S store Of
gold ms aEreserve against the i'd eposit Of
currency would be advisable, but he
points ont that one difficulty in the os-5
Establishment of such a clearing house:
would be the dispute as to here the
central stock Of gold reserve should be,
London, France would want IT, In Paris,
while the United States would insist
that the gold should be held 4; In this
country.
give at4lengtf these views, a s out.
lined In the Wall Street Journal, In or
der that our readers may catch the drift
of the discussion, but we can see no dam.
ger Of the threatened gold nflation:l
Firstsofsall, China and Mexico and other
large countries have not yet ad opted 4 The
gold standard, but Will sooner or; alter ,t.
be compelled to do 50, and that will Will
crcateya new demand for gold as q money
metal. SIS IN addition to that, / t must be
emenlbered that we have In. the United
States alone a large June # q; Il paper
money, the United States notes sanlo cunt
ing to- something like $3.50. 600, 900. Isl silver
certificates amounting to s46s ooo 900 and
national bank notes amounting to ) 41o,-
0oO, 900. Somewhat the 4; same condition
exists in other countries, and It would
seem that#all this paper currency, which
is based largely up on the credit e. Of the
government, would have to be retired be-,
fore there would be IA lethora Of gold
money. tbs also to be ide ere thai
the general business OF the world, espee-
cially Of the United States, is increasing
at Al enormous rate, g nd 1t will REQUIRE
more money from time TO time to carry
1t on. n Isl u II 81 si}s