Los Angeles herald., 1907-11-09
THE SILVER LINING

~ Spll6 VI the IlOSL desperate eHOrLS
on the part Of the chief money
- handlers of Europe foreign gold
continues to pour into this country at
a rate that is almost unprecedented.
In the hope of stemming the financial
tide the Bank of England has found 1t
necessary, within the past two days,
to raise it's rate of discount from 6 to
per cent.
At no other period since the finan-
cial revolution of 1873 has this power
ful institution, which for many years,
until recently, has dominated the money
situation throughout the world, found
1t expedient to resort to such a rate
of discount as per cent. But not
withstanding this extreme measure
New York appears to be able to COM
mand all the gold that 1t needs. Already
it has secured more than $40,0OO,0 900 in
the precious metal, and regardless of
the high discount rate it will continue
to drain the foreign market until the
American demand is met.
The reason is obvious. The agricul-
tural crops of Europe this year are
away below the average In Scotland
and the north of England the grain
crop is reported to have suffered dam
age to the extent of s15,OOO,00O. So
short is the grain supply of Russia,
which with America and Argentina
practically supplies the world with
cereals, that the czar threatens to pro-
hibit its expectation.
On the other hand. the wheat and
corn yield in America the past season
has been one of the greatest on record
We have more than we require; GER
tain European countries are extremely
short in their supply and must pur-
chase our surplus; they-Great Britain
in particular-have more gold than
their necessities demand; it takes gold
to buy breadstuffs, and logically
Europe must trade her surplus of gold
for Americas surplus of wheat and
corn.
The bar of the great scales of inter
national trade is rapidly assuming a
horizontal position. A few more tons
OF gold-not great figure in the inter-
national equation-and a normal status
will be established. In the meantime
the intelligent American, guided in his
actions by the light of history, and
realizing that his country is the rich
in this or any age, will cut his suit
according to his cloth. He will trust
in the integrity of his fellow man, he
will make reasonable concessions where
they are asked, he will quit seeking
fabulous margins of profit, he will
"make haste to get rich slowly" keep
ing his wits about him, and not
demanding the performance of the i'm
possible. In short, to use a homely
expression, he will keep cool and saw
wood"
Make no mistake about it; the coun-
try is all right. The crisis is thing
of the past. We couldn't get into any
further difficulties if we tried. The
farmer and his tremendous output have
given us a balance wheel that will hold
us in check in spite of ourselves. If
anybody on earth needs to worry it is
the money handlers of Europe, not
Americans.
while the American nation as a whole
Is to be congratulated over the pros
poets of an early return to normal con-
ditions, California in particular is to
be felicitated. The trade erview of
r. G. Dun & Co. for October, issued
Yesterday, should satisfy the most
dubious that business conditions in this
state are better than in almost any
other section of the Union. Part of the
immense sum of $34,000,0 900 received for
the citrus fruit crop of last season is
still flowing into the banks, and an
increase of about 5000 carloads in the
crop OF the season now upon us is esti-
mated. The celery, walnut, bean and
raisin crops are being moved and the
money they bring their producers will
soon begin to find it's way into the
vaults of the various banks. The oil
output for the year will reach between
10000, 600 and 10000, 900 barrels. the price
is advancing and the reserve supplies
are rapidly being sent to the markets.
High prices and strong demand give
the early future roseate tinge. \
What more should California ask than
is in store for her?