Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-05-11

tremendous expansion In o u elFcuid
ton which has lately taken place. Dur
ing the last three years our cur
rency increased nearly $50 millions.
while in the last seven years the IN
crease has been SAT millions, and our
per capita circulation has risen from
1928 to s31 in the last seven years
In other words, In this short period
W. have added $50 millions TO our
stock Of gold and about 200 millions 70
our supply Of bank notes. What Is 70
be the effect Of such an enormous al
dition 10 our currency at a time when
lis is not needed? 1t Is likely 10 lead
to a period OF imitation? It is TO be
hoped not; and in view Of the conser'
yatiye temper which prevails IN imam
sial circles no such contingency IS n
sight, although such m expansion as
this must inevitably exert an import
ant influence upon values. Such con-
Igestion would be impossible had " 2
an elastic currency system capable Of
expanding and contracting automati-
cally according to the country's wants.
During the last two presidential cam
paigns currency reform on these lines
was loudly promised. but congress has
adjourned once more without action,
and in the coming election the cur
lrency question seems likely to be push.
ed aside. Fortunately. VIC can endure
a redundancy Of gold currency much
Ibetter than one OF silver; neverthe-
less, extremes OF expansion or con
Traction do moi tend to develop bus
mess stability.
Gold exports continue heavy In vol
ume, and thus far oyer $23, 000, 900 have
been shipped to Europe. which sum
, has been more than Offset by arrivals
: from Japan. More gold seems likel,
2 TO follow. The Panama payments are
OF course, an important element, bul
. this transaction has been skilfull.
! handled with a view to disturbing thu
Y international markets as little as pos
ll6ible. Paris needs gold In any even
2 to meet the strain imposed there b.
! the decline In Russian bonds and I,
provide for the new war loans. Bot
Russia and Japan have commence
y to borrow on an extensive scale, an
such operations will be an importan
factor in the foreign money market
until the war is yer Japan's earl
victories will sting Russia into NOR
desperate efforts for recovery, hov
soeyer remote the chances Of success
seem now. Our own market has bee
I only slightly affected by these NOV,
ments, owing 70 our large gold suppl
Z, and the lessened demands Of bot
le trad and speculation as stated abov,
p but the placing of a portion OF the.
g loans here is a significant movemel
Of and. II successful, likely to exten
y Another important factor in the loo
u money market just nov Is the financi
= operations Connected with the $4,000
y 900 city bond sale, with payment T
y $40, 000,0 900 OF telephone notes n
2 with winding up Of the steel syndicat
etc. Evidently important calls q
ny likely to be made upon our mon,
* market though the prospects are 4
a. continued ease until crop demands /
sert themselves.
Much depends upon the coming hi
vest. Last year we had short Gro
of cotton. wheat and hay. Only a /
corn crop saved us from more 81
ious reaction. As it Is. the west ct
tinues fairly prosperous. the south
enjoying more activity than usual. a
An III the east that suffers most frt
reaction, the curtailment Of industr
AZ operations being marked and persi
lent. Wall street Is facing two impo
ant uncertainties-the crops and I
elections. In August we may be al
to anticipate both with some certain
but not M As for the electit
az that promises to be less exciting q
less disturbing than usual. with !
tariff the chief subject OF controyci
ana concerning which little IL lik ely
be done. Meanwhile, fluctuations
the stock market will probably be 4,