Albuquerque evening citizen. [volume] (Albuquerque, N.M.) 1905-1907, 1905-07-08
RELATION OF MINING
TO THE WORLDS WEALTH
From DENVER NEWS
From DENVER NEWS

AS summed up by our conservative contemporary,
the Wall Street Journal, the wealth crop of the United
States-if we may use the word-consists of plants, ami
mails and minerals.
Leaving minerals out of the question and consider
ing only plants apd animals, it appears that every year
the earth produces for the people of this country real
wealth to an amount of between $4,000, 100000 and S.,
600, 900, 900. For instance, what are known as the cereal
crops are worth about $4,000, OOO,o 900 a year, of which
corn accounts for one-half. Cotton, tobacco, hay, flax
and wool account for at least another $1,25Oy 900 900.
Garden truck, fruit and farm animals bring the total well
over $4,OOO,OOO,OO0 a year. This is the foundation of all
business of the world. Man must be fed three times a
day or whereabouts whatever happens. Gold is of no use
to him, coal is of no use to him, iron ore is of no use to
him, railroads are of no use to him, until he is fed and
clothed. The annual yield of food by mother earth is the
source of all industry. Abundance of yield means good
times, and vice versa"
Leaving minerals out of the question will not do.
Gold is the present standard of value the world over, and
when gold is scarce the purchase price of all %perishable
commodities, such as wheat, corn, meats, fruit. etc, is
low, and the net value of such crops is smaller in the
commercial sense. When the farmer, fruit grower and
cattle raiser make m~oney-reap a fair profit on their
products-they are generous purchasers. This makes
business for the commercial man and traffic for the rail
road. 1t helps education, religion and the arts, and it
furnishes means for improvements, the latter acting as a
stimulus to business. 1t is, therefore, a gross mistake to
leiiminate the 500, 100000 in gold which American mines
and placers will produce this year In summing up the
factors of business prosperity.
In 1896 the worlds production of gold was valued at
slightly over $zO0,OOO,OO0, while last years yield exceed
ed $350,000O00s and 1905 will establish a still higher rec
ord, perhaps double that of 1896.
Let us suppose" says Professor Johnson, in his ad-
dress before the Pennsylvania bankers, that the bank
ing reserves of the country are increased $50, 900, 900 by
the deposits of miners. This $50, 000,0 may be made
ahe basis for an expansion of bank credit to the amount
of $200,OOO,OOO or even $500, 600, 900, and the borrowers
of this credit will buy goods and labor. Thus this new
gold, in the form of currency or credit, will sooner or
later increase the demand for various goods and so cause
their prices to rise.
Prices never change uniformly. In a country like
the United States, where business is done largely by the
aid of banks, the credit system being highly developed,
an increase of the volume of gold affects first the prices
OF stocks and bonds, for these are the articles that are
bought by the men into whose hands the money first
naturally comes The prices of such speculative com
modities as wheat, cotton, corn, steel, etc, are affected
almost as quickly-nott the prices of all at the same time,
but first one, then another. II there is a great specula.
tive interest in wheat and little in other produce, new
money and the credit it supports may all go for a time
into purchase of wheat. On the other hand, after a time,
however, it will get into general circulation and affect
the prices of most commodities, touching first wholesale
prices, then retail, and finally rents, wages and salaries. .