Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-28

ened realization that they no longer repre-
sent their individual opinions, but a whole
community, or state or nation. Thomas
Jefferson and Andrew Jackson were radi-
calls and opposed by the substantial people,
just as Hearst is now, yet they were
elected and rank in history as fathers of
democracy and patriotic. sane and safe
executives. 1t is seriously argued that
Hearst in official position would be far
less dangerous than running amuck in yell
low journalism. If Hearst should be
elected 1t will be because a majority of the
voters want him, and in this country the
majority has the privilege Of naming it's
servants, even though some of that ma
jority speak broken English and earn less
than 81 day.
All records for rapidity are being beaten
In the development work now under way
on the properties Of the Daily Es-
tates Copper Company, located in the city
nearly mile long by nearly a third Of a
mile wide in the heart of Butte, equal in
surface space to the width of Madison
Square in New York city and extending
Waldorf-Astoria. Messrs. Coram and
Heinze were ten years getting the mines
assembled and 1t cost them in excess Of
$40 600 600 hard cash to do it. Tremen-
dously valuable mines lie on the four sides
Of the area, and the deposits and veins
within its bounds are as we'll defined to
engineering knowledge as though they
remains to get down to the copper and
take it out. To that end four immense
shafts are being sunk at the rate of 200
Of the year Davis-Daly will be in list of
big producers Of the Butte district. The
company had the advantage Of a 100000
working balance in the treasury to begin
with, the underwriters having provided
that amount for rush development when
the company was organized.
A leading authority on finance. in the
broad meaning Of the term. gives the fol-
lowing enlightenfng paragraph on the cur
rent situation:
London, which has always been the
likelihood cease to occupy the middle of
the stage. Exchange is drawn more than
formerly directly upon Paris Berlin and
financial centers and hold large gold re-
serves Of their own. The Bank Of France,
the Imperial Bank of Germany and the
petitors with London in money rates and
in exploiting the supply Of reserve money
The controlling factor upon money rates
in London is the discount upon bills of
exchange. When that rises capital costs
more for all uses, and it is a sign of les
sened supply in proportion to the demand
So far as the rate becomes higher in Lon
don than in any other important center for
any length Of time 1t tends to transfer
exchange to the places at which 1t can be
effected at the least cost. That will ulti-
-mately bring capital, and borrowing will
be done where it can be done to best ad-
vantage. A high rate of the Bank of Eng
land, necessary to prevent depletion of It's
gold reserve or to restore 1t to a normal re-
latfon to liabilities, is sign Of the power
Of other financial centers to draw upon
London and an insuff1cfency there to meet
the demand. Ordinarily 1t denotes an
emergency and the condition Is temporary
Relations are adjusted by restricting loans,
liquidating obligations and placing reserves
on a strong footing. and the current then
returns to it's regular channel and normal
flow. But the rivalry of other financial
haS haen growing stronger with
the increase Of accumulated capital else
where than in Great Britain, and there
Is a tendency OF rates for money to seek
q common level.
II London can no longer maintain a per-
manent or general rate lower than that
of other centers OF financial activity she
cannot hold the sale relation to the worlds
exchanges as heretofore. These will not
center SO exclusively in her clearing
house." and her dominating influence will
wane. In the great development OF In
few years, and the vast extension of credit
operations, with q corresponding growth
of financial strength, the position of Lon
don appears to be becoming relatively less
dominant and her power over the currents
of exchange less controlling. High rates
for money will check foreign drafts and
loans and conserve her gold supply, but
foreign drafts and loans and low rates for
money have been signs of her strength.
the source Of which was in ample supplies
of capital. Can the position of the past
be maintained In the growing rivalry OF
Paris Berlin and New York for control OF
capital and power over international ex-
changer
Wall street is prepared in advance to like
Mr. Cortelyou. He has established repu.
tation for conservatism and the important
interests feel they have nothing to rear
from his direction of the Treasury Depart
ment at Washington. He is careful and
cautious by nature and training, and can
be relied on to make no bad breaks IN
the administration Of the government
to throw the money or Sc
curity markets into commissions. Secretary
Shaw has made all the new departures nee
essary for years to come, and Mr. Cortel-
Won will probably not feel called upon to
pioneer new territory. He has no craving
for sensation or novelties.