The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-22

WItlnRIy 10 30 AV an tONNnOt Oh = OT y POI
cent. in call money rates. Nor can any
observer OF the financial situation leave
out for one instant in his calculations the
immense and constant influence exercised
upon monetary conditions by the increase
in the production Of gold. Every week
sums Of money running from 1000 900
upward are laid down in new gold in Lon
don, the worlds central market for such
supplies. Since 1897 the worlds produO-
ton OF gold has increased almost at the rate
Of $50, OOO. 900 a year, as compared with an
increase Of but %, 600, 900 d year for a long
time preceding. Since 1893 the yearly
production Of gold has doubled, despite the
vast interference with the output Of the
Transvaal mines caused by the BOer war.
and il is considered certain by experts in
these matters hat In ten years more the
worlds production Of gold will again double.
Not only is the Transvsal pouring out gold
now nt a greater rate h ever. but enor-
nous discoveries Of the yellow metal have
been made in our " and other countries,
a further help being the great increment
in the gold output arising from the quantity
Of gold taken out as q by product from the
copper and silver mines. The rise in the
value Of copper and silver has Of course
led to a great development Of the mines
carrying these metals. and the amount Of
gold produced in the process Of this copper
and silver mining forms no inconsiderabIe
quantity Of the entire volums OF new gold
brought forward. The effect Of this in
creased gold production pom the price OF
commodities and securities Il now ap-
parent everywhere. Whatever may be
the philosophic truth or falsehood Of the
so-called cumulative theory Of money. il
is indubitable that the lower purchasing
power of money arising from 40 vast an
increase as has been witnessed in the last
decade Of the worlds volume Of standard
money has resulted in an increased selling
price Of all stocks and commodities whose
value lies in equities as distinguished FROM
fixed liens. II follows from this, as perhaps
Wall Street has not fully considered, that
the price of railway stocks, who's volume
bears only a small proportion to the bond
capitalization Of these companies. must feel
the stimulus Of the new gold production
in a double or perhaps even threefold
degree. With all this reinforced by the
mighty influences Of the increase in gen
eral consumption throughout the country
arising from the enlargement Of population
now being augmented through immigra-
ton alone at the rate OF a million people
a year-and the fact that year in and year
out the balance Of trade in our favor with
foreign countries approSimates half a bill
ion dollars a ear, sufficient grounds are
presented for optimism regarding the finan-
cial situation. This optimism. il may he
stated. was never brighter than il was az
I the close Of last week in the great Wall Street
banking houses.
II is almost needless to observe that the
country's bright business prospects con-
tinue to improve and that the only matter
that troubles our railway managers and
our merchants and manufacturers Of every
description is Tow to take care of the BUSH
ness that offers. Cotton is the sole crop
in the country this year that is turning out
in lesser quantity than was estimated at
the end Of the summer, but II Ia very doubt
full il this reduction in the crop is not more
a blessing than anything else. IL has been
time and again established in the history
of the cotton trade that an advance in the
price Of the sta pie caused by a falling of
in the quantity Of the crop, always pro-
vidinR that this falling OF does not run to
undue extent and that a sufficient quantity
Of cotton IL still left for the fair needs of
consumption, much more than compensates
the planters for the reduction in the mum
Der OF cotton bales. With this pros
perity present and with the assurance that
in the beginning Of the new year at the very
furthest the demands for money in the
great financial centres incident to the
agricultural necessities Of the fall Of the
year and the December settlements will
suffer a great abatement, il il impossible
for any sensible student Of values to look
for a declining market for good securities.
The election outlook during the week was
certainly such as to justify a more sanguine
confidence than has been entertained at any
time previous regs riding the result Of the
contest. OF developments concerning par
ticular securities. except in the case Of
Amalgamated Copper, as noted. there was
nothing during the week. save those which
came to the front at the annua meeting
of the stockholders Of the Illinois Central
Railway. that can be called ut all important.
It ia the common opinion in Wall Street,
whether correct or not, that it will be only q
matter OF time before the Illinois Central
passes definitely into Union PaciAc hands.
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