Elk City mining news. (Elk City, Idaho) 1903-1913, 1905-09-16

and the net value Of such crops is sinai-
ler in the commercial sense. When the
farmer, fruit grower and cattle raiser
make money-reap a fair prohC Oil
their products there are generous pui-
chasers. This makes business Tor the
commercial man and traffic for the rail-
road. 1t helps education, religion ana
the arts. and it furnishes means Tor I'M
the latter acting as a Sum-
illus to business. 1t is, therefore
gross mistake to eliminate the SlOO, ooo'-
900 in cold which American mines ana
placers will produce this year IN sum-
ming up the factors of business prosper
ity. Large crops at low prices insure
plenty of feed at the farms, but make
little or no business. Railroad building
is brisk in the south at present because
the price of cotton has advanced ana
the advance insures both traffic improve
ments, a more liberal support for educa-
ton, religion and the amenities OF llte'
The editor of Dunn's Review, whose
experience is wide in dealing with bus
mess conditions, wisely remarks that
Gin all discussions in the course OF price
of both commodities and securities 1t is
becoming necessary to consider the Ell
feet of the production of gold, although
it is obviously impossible to determine
the exact potentiality of this factor.
Yet the element is there, and compar-
ison of cmrant quotations with those
prevailing at earlier dates would miss
at least part of the value if the compar-
ative quantity of gold produced did not
enter into the calculations. While 1t IS
always possible to overestimate the
Importance of such an indetermnate
factor, every intelligent contribution to
knowledge on the subject merits care
full study for the future will demonstrate
the Importance of this line of thought. "
In 1896 the worlds production of gold
was valued at slightly over 5000, 900, 900,
while last years yield exceeded $780,
900, 900, and 1905 will establish still
higher record, perhaps double that of
1896. Dun's index number of COM
modify prices has risen 80 per cent
during that period, and the average of
the sixty most active stocks ia per
cent. While no such exact figures are
available regarding wages, it is well
known that a similar upward tendency
has prevailed not only for skilled arti-
sans, but household service and practi
cally all occupations. National prosper
ity, through development of natural
resources, large crops and conservative
government, undoubtedly provided the
greatest factor of strength, but the
abundance of gold also contributed, as
it contributed before when America was
discovered by Columbus, and when the
gold resources of California, Australia,
South Africa and Alaska were made
known.
Let us suppose" says Prof. Johnson,
in his address before the Pennsylvania
bankers, that the banking reserves of
the country are increased $50, 900, 900 by
the deposits of miners. This $50, 900, 900
may be made the basis of an expansion
of bank credit to the amount of $780,
900, 900 or even $500, OOO,0 900, 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
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 volumn OF
gold affects first the prices Of stocks
and bonds, for these are the articles
bought by the men into whose hands
the money first naturally comes. The
price of such speculative commodities
as wheat, cotton, corn, steel, etc., are
affected almost as quickly-not the
price of all at the same time, but frs
one, then another. If there is a grea
speculative interest in wheat and little
in other produce, new money and thu
credit it supports may all go for time
into the purchase Of wheat. On thu
other hand, after time, however, i
will get into general circulation ant
affect the prices Of most commodi
ties, touching first wholesale prices
then retail, and finally rents, wage
and salaries" CRITIC.