Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1904-09-02
WILLIAM J. BRYAN
ON THE PROSPECT OF TOO
MUCH GOLD COIN.

Are We to Have yellow Scare" instead ol
White One?-European Pinanciers Are Be
coming Alarmed at the Increased Gold Out.
put.
In an address delivered by Mr.. Bry.
an, he said that the people were en-.
titled to the gold standard if they
wanted it; that if they concluded that
the gold standard made money toe
plentiful and wanted radium stand.
ard, that they were entitled to that
too, adding that there is said to be
just two pounds of radium in the
world.
Referring to this statement the New
York Evening Post says:
"The implication would seem to be
that an analogous dearth of tie vel ow
metal stands in the way of its serving as
an acceptable medium of exchange.
Unfortunately for the covert insinua-
tion, the United States treasury yes
terday, for the first time in its history,
held ever one billion dollars in trust
funds, and its holdings of gold
amounted to $S46,655,OS6. Mr.. Bryan
is fairly good at pursuing issues, but
he seldom Overtakes them."
Although Mr.. Brysn's statement as
to the radium standard was a bit of
v,Ino NJ 1a font that olpoaI 10
there is dissatisfaction shown with the
gold standard by some OF the stalwart
advocates of that standard. The Oh
lection these gentlemen make is that
on account OF the increase in the pro.
duction OF gold recently. money is
becoming altogether too abundant.
While seriously speaking, it is not at
all probable that anyone would advo.
vocate a radium standard, it is a sol.
emn fact that there is, just now, in
certain quarters, protest against the
gold standard.
On the same day the Evening Post
printed this criticism, the Wall Street
Journal directed attention to state
ments by w. r. Lawson, of the London
Financial Times, and United States
Treasurer Ellis NJ. Roberts. The Jour-
nal states that it is q remarkable fact
that just at the time when the candi-
date of the party which has so long
opposed the gold standard has an.
nounced that the issue is" irrevocably"
settled in this country, some of the
political economists are looking
ahead so far as to say that the time is
not far off when gold will 60 the same
way as silver has and no longer be
available as the worlds standard OF
value" The Journal points out that
in the last century nearly 1900, ,OOO,-
600 of gold has been taken from the
earth, So. 600. .0OO. 600 of which has been
produced since 1891. While the Jour
nal admits that this production is q
tremendous gain to the worlds wealth,
it says that it is clear that there
might be such an increase in the yell
low metal that it would no longer be
the best commodity to serve as
standard OF value in making exchanges
of commerce" Indeed, the Journal
says that "some of our writer's on
financial subjects think that already
the stocks of gold are heavy" and that
"the point has been made by some
that the circulation of money in the
United States has outgrown the needs
of the people and that we are carrying
an excessive supply of gold"
Mr.. Lawson, Of the London Finan'
cidl Times, thinks that the estimate
made by our Director of the Mint that
the per capita circulation OF the money
in the world is $9.47, is undoubtedly a
prodigal allowance of money. Mr..
Lawson says that American currency
has been inflated to the amount OF
$760, 600 in the past seven years
and that this has become an embar-
rsssment of riches"
Bankers as a rule look to quantity
only. More gold! More gold! is
their one cry. But gold is not invul-
nerable any more than silver was. 1t
is in much the same position to-day as
silver was thirty years ago. Precisely
the same causes and influences are
working against it, and the end will
be the same. The legal, or couven-
tional, value OF monetary metal can
only maintained 90 long as it does not
materially exceed the commercial
value. In the case OF silver, when the
two values diverged sufficiently, the
so-called silver standard snapped. In
the case of gold the same process Of
divergence between the conventional
and commercial values has begun, and
when the breaking-pOint is reached
the so.called gold standard will snap.
The breaking-point might have been
reached ere now, but for the huge
boards of gold which the treasures
and the State banks of Europe are &C.
cumulating. Europe is unconsciously
preparing for counterpart of the
American silver crisis in 1S93-for q
yellow scare, instead OF white one"
Mr.. Roberts address. from which
the Wall Street Journal quotes, was
delivered before the North Carolina
Bankers Association, and was entitled
"Is our currency growing too fast?"
Mr.. Roberts address was not delivered
as an answer to Mr.. Lawson; but Mr..
Roberts took up the subject OF our
growing money circulation and con-
tended that the currency was not
growing too rapidly. As proof that
our currency has not outstripped the
growth in wealth and commerce, Mr..
Roberts says between 1890 and 1900
the national wealth grew 44.9 per
cent, farm products SO per cent, the
value OF manufacturers 39.l per cent.
exports 62.5 per cent. bank clearings
43.7 per cent, and deposits in national
and savings banks 6S.5 per cent. The
money in circulation increased 43.7
per cent. This growth in circulation
was per cent. lest than that in ma.
tional wealth, 9 per cent. less than the
increase in farm products, 4 per cent
more than that in manufactures, the
same as that in bank clearings, l2.5