The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-03

as they did earlier in the year in cotton and
coffee, and just as they generally have done
in the past Prices fell 10 the average nain-
tanned 10y them for some time previous to
election day and at the middle Of last week
under far better class of buying. had re-
gained nearly all their loss
Looking back over the year. the course
of the security market seems ,ue to the
combined influence of the suhsidence OF
fears on the part Of the business community
that period of commercial distress was
near: to the bountiful crops which a- "A
rule sold at high prices the happy. but gen
orally anticipated result of the election: a
distinct revival in business. and the ample
supply of money available for the use of
both Wall Street proper and the business
world Opinions may differ a- 10 the rel
alive Importance Of these forces but there
will be universal agreement. /; is believed
that the least powerful effect exercised hy
any one Of them was not the prolonged ease
Of money Here the singular fact is that
this is the one point concerning which
optimi-ts at the outset of the year were
most in doubt Hardly one among thes.
friendly critics of the situation or among
the great. wise and farseeing bankers Of
. Nl' COUNTY iH.itFtM at tildl Iltlle lnHI III
could I've possible that suchn rise in values
~ occurred in the last half Of the year
could occur. accompanied hy such re-
newed activity Of business and the de-
mand- for money to move such enormous
] crops without bringing on Il money strin-
gency or, at any rate. developing high rates
for the Use Of funds on call and on time,
and the unwillingness of lenders TO port
with time funds at the beginning Of the
year reflected this conviction. Yet it il
the phenomenon then thought impossible
that has indeed happened, Call money on
the stock Exchange only twice during the
Yea" ha- barely touched . per cent. and
the greater part Of the year has held be-
/ low 3 per cent; while rates for money
/ have, since the close Of the railroad short
term note borrowing period. tended
lower and lower and even now. at
the opening Of another year stand not
only at an unprcedentedly low figure
for such time. but look plainly al If they
would fan further.
The reasons for til is state If Affairs al
though they are ST IN not over clear. seem
TO be these. First. the increased produce
tion of gold here and throughout the world
which along with the increase ia the guam
tity Of our currency money has raised our per
capita money circulation 10 hitherto unheard
of figures: secondly the increased efficiency
OF money due TO ia reduphcaton through
bank credits and 70 the diminished Use Of ac-
tlul cash nude possible by the consolidation
Of corporations, and. thir' 10 the fact that
while business has notably revived ii is
still not up to that OF 1901 or 1902. or at any
: rate has not been sufficient 90 absorb the
increase in the money supply II may he
urged therefore. that what has taken
place in our security market has been in
sense gold imitation. This ia a PROPOSE
.ion that il IL not necessary here to discuss
but the remark that haa been made many
times in this column in the past year seems
again pertinent. that admitting the arg,l-
men' TO be- sound n j. TO be remembered
that gold imitation Is a different affair than
one based on an abundance Of silver or
uaper money, or anything other than an
increase IN the quantity of the worlds
standard Of values According 70 the last
report Of the Comptroller Of the Currency.
the stock of gold in our country Is 81 800,
t00OO0, an amount greater than that OF any
other country and including one quarter
Of the entire gold stock 81 the world. while
"a regards the per capita circulation here
Of $50 10 cl8.2G IL in gold $3.50 in silver
and Sc IN paper. Nearly one-haf the
increased money in the country Of sl2G.-
CCO000 up 10 Dec. ! was in gold Our
circulating medium thus re-ts on firner
foundation than that Of any other civilized
nation. and We could float swithout the
slightest danger quantity Of paper money
far in excess Of that a, present in use.
Beyond and back Of all these factors there
Is another of more Importance than any. as
must appear Individually 10 any one who
looks broadlya AT the situation and. hv travel
or otherwise has some fair conception
and il must te admitted few people have
of the stupendou4 extent Of our country
business relations This b. tho fact
that wealth is increasing IN our country
M thin. time by reason IT all sorts Of lrflu-
cnc-s-e enlarged population from high birth
rate and great immigration. production
on vast scale OF commodities which are
forcing market for themselves over the
world and from the general exercise Of the
iuvcntivenesS ent erprise and active trade
spirit OF our people faster than it Is any
where el-e on the globe. There are great
etatisticans and economists who believe
that fiftv wears hence the chief highway
OF the world = trade will he the Pacific rather
than the Atlantic Ocean and that the richest
waves Of commerce known TO man will lap
the shores Of our Washington. Oregon and
California OF allied sort. Of course. Is the
prosperity Of our Western farmers to which
brief reference has already been made
They. by reason Of the high prices re-
ceived for the wheat and corn that they
have raised. are now in a more aflluent
state financially than ever before, and
every prospect Is that this afiluence will
continue II has become nearly II not
absolutely demonstrated that the home
consumption Of our foodstufs has 80 caught
1ip with our production OF these commodi-
tie that prices Of the commodities will
remain high for an indefinite time 1t is
true that 80 long rs it is the country itself
that paws the high prices for the food
j, rai-s- the receipt Of wealth hy those
engaged in the production Of foodsuuffs
means only the trausference Of money from
one pocket is the country 10 another
and that hence the country AZ whole Is
mo-, a gamer from the process in the direct
cash way that II would be II II sold abroad.
a.. formerly q large portion Of it, food