The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-04-09
TREE SILVER?

Is Wall street about to demand the
free and unlimited coinage of silver?
Are the speculative interests of the
east about to denounce the demone-
tization of the white metal?
What else can be the meaning Of the
assertion of New York financial au-
thorities that the worlds supply of
gold is not sufficient for its business?
What else is the conclusion to be
drawn from the statement that bust
ness must decrease because of "the
monetary stringency arising from a
scarcity of money metal?''
People who were bowling for free
silver a decade ago are fairly well sat
isfied with monetary conditions today
because of the great increase in the
supply of gold. They were in debt ten
or twelve years ago and with gold be-
coming scarce they found the price of
their products constantly becoming
lower and their power to pay their
debts becoming less. They imagined
that a greater supply of money would
help matters. and so they demanded
1.-THE free and unlimited coinage of sill
yer at the ratio of 16 to l." They did
not get it, but about that time Cripple
Creek the Klondike, the African
Rand, and other regions began to pour
forth the gold, and the worlds supply
of money became greatly increased.
Everybody knows the "per capiter" is
greater now than even the old-line
Populist demanded it should be in
1895. AS a result prices went up, the
west paid it's debts and laid up money.
1t has found the volume of money
quite sufficient. notwithstanding the
fact that it didn't get free silver.
But, as was shown in these columns
a few days ago, the west and south are
now the creditor regions. and the east
is trying to borrow money. The east
has been specializing and indulging in
wildcat enterprises-not all the east,
of course, but that portion of it that is
most prominent in financial circles.
This element has been plunging into
business more than the increase in
money. or the gold supply. will war;
rant. Consequently it is having
"panics.'' and it now discovers that
the gold supply ''is not sufficient to
carry on the worlds business
]. S. Bache, a New York banker
who issues a weekly financial review
from the Wall street standpoint. points
out this week that the gold supply of
the world is under a strain owing to
the growth of Industrial activity.
"a survey of the general situation
aside from stock market considera-
tions." says Mr.. Bache, reveals a con-
.dition of great trade activity. not only
in the United States but all over the
world. Accompanying this, as in the
United States, is a universal scarcity |
of money and abnormally high rates. |
In other words, the available supply !
of gold throughout the world is under
strain. In the United States this
strain has been somewhat relieved, !
first. by the enormous liquidation in
the security market and second, by
the opening of the treasury lid. Mean
time, the Banks of England, France
and Germany show not only no better
ment in their conditions as revealed |
by their last weekly statements. but on
the contrary a condition of continued |
and unprecedented strain, which, COM
pared with the corresponding periods !
of April settlements in former years, |
has hardly ever been equalled.
1.-The growth of Industrial activity |
throughout the world" Mr.. Bache |
continues, with the accompanying in |
crease in the value of material and la
Dor, as we'll as the increase in trade |
demand for credit and accommoda- |
lions, have reduced the situation to a |
point where the supply of money |
metal is not sufficient. In addition to |
this, during the last decade at least |
half dozen nations have newly adopted |
the gold standard, making necessary |
an accumulation of gold which is
tightly held and constantly increased. |
The question now is. is the monetary |
stringency arising from a scarcity of !
money metal temporary, or must we |
look for a continuation of stringent |
conditions throughout the world until |
some definite and universal remedy is
applied?"
Which undoubtedly means that |
business operations must be reduced |
or else the east must demand an in
crease in the supply of money. And If
it demands more money, will it be sill
yer or paper money?
OF course an abridgement of "busi-
ness operations will, in a measure,
injure legitimate investments as well
as illegitimate speculations. Specula-
lions and those enterprises with in
hated values will suffer most however
-
A CHANGE OF FRONT.
The action of a few railroad mac