Daily capital journal. (Salem, Oregon) 1903-1919, 1907-07-20

Barring crisis in 1871 that depressed
finally every money center the
world over.
Export Of Gold.
The foreign bank situation still
I continues reduced as to reserves,
the Banks of England and France
both showing lower than year ago,
and each stralning for a recovery of
gold. The movement of export which
we are watching with such interest,
and doing nothing arti6cally TO off
set, will probably have much effect
upon our situation later when the
fall squeeze begins. It may be easily
presumed that these two banks will
not be such easy aids to our own
cramped conditions two months later.
In other words, we doubt whether
they will permit the re-import OF this
same gold which is going out now,
when we attempt to bring It back
late in August and September. Last
year, II will be remembered, when
our far-sIghted Shaw produced the
mechanical condition by which we
were enabled to bring over gold arti-
ficially, Notwithstanding that the real
conditions OF interest rate and sup
ply OF money abroad did not warrant
Il, the foreign banks stood idly by
until one day the Bank OF England
walked to the fact that gold was
scarce the world over, and that Eng
lands trade was being drastically af-
fected hTen the bank put up the
rate one and two per cent threaten |
ing three, TO stop the outflow. and
found that, too late, this had been
done. and all England suffered for
many months after.
VIII England Stop Re-imports?
This year Il Is TO be presumed that
he Old Lady OF Threadneedle street
Will not be caught mapping. and II,
md when, Cortelyou tries the Shaw
actics OF paying interest in transit.
he Bank OF England's rate may
Ihlckly rise prohibitively. forbidding.
We. shall begin TO be then in the
hroes OF our yearly money stomach
che. and what medicine shall relieve
1877
Americas Waste of Gold.
And this brings us to a consldera-
ion OF the outrageous waste OF gold
eserve in America, through our
uperannuated. vicious currency sys-
EN-. There Is gold money enough
'elng carried around In the pockets
4 our people uselessly. In the shape
4 warehouse receipts. TO make re-
eryes easy around the world.
hose $50 yellow-backs. every man
tho carries a roll flashes on you
hen he opens II, represent n wicked
'aste OF the basis of prosperity. u
! as II a man reoklessly poisoned
lilllons OF bushels OF grain In ware
ouses. when thousands OF people
ere dying OF starvation. And yet
ith this condition prevailing. we l
ave President who could. IL he o
ould. put through the reform bills
/ short order. and make a greater
acord In history for his administra- a
on than can possibly be obtained I
therwise. Railroad reform Is a very 7
tile subject as against currency re- n
,rm. through the lack OF which the u
luntry is losing millions yearly. and "
,olishly defying disaster, G
Light in the sky. =
All these are serious considera- :,
ons. and the horizon line Is not yet n
ear enough for much optimism. n
evertheless. that the situation Is Il
caring there Is no doubt. and the 4,
lin way In which much that Is de- o.
'essing is met. gives good evidence n
at probably the worst has been en-
as far as securities are Z,
barring always the dan n
RS of this falls money market. In
lmplete recovery, however. and n,
gh prices seem still a great way II
I. Meantime. the security market -
rnishos a most attractive field for q,
e investor, and preferred stocks.
nvertible bonds. short and long a,
ties, aud even some common m
ncks, make up wealth OF selec- m
ms, any OF which. n purchased, are CT
re 90 produce great results for the he
vostor who will hold them. al
J, 5. BACHE a co. Of