Judith Gap journal. [volume] (Judith Gap, Mont.) 1908-19??, 1910-01-14
GOLD AND COST OF LIVING.

AS one of the probable causes of
the high cost Of living, President Taft
III lis message. instanced the proper
tionate increase IN the output of gold
as furnishing substantial explana-
ton of at least part of the increase.
The president gave no date bearing
Oh the subject, but financial experts
who have commented on what he said
are far from being OF the same mind
IS to the soundness of his explana-
ton. For one thing, those who con-
.trovert the theory that prices are
higher because gold is more plentiful,
and therefore cheaper, quote from
United States treasury reports to
SHOW that in America at least the
stock of gold money is on the de-
crease, and also that a few weeks ago
gold was selling in London at a rec
ord-breaking price. All the great
money centers are boarding gold with
the exception of New York, which is
being drawn upon by London to pay
foreign obligations Ill South America.
Although our gold output for this
year is estimated at $50 900, 900. the
treasury estimate issued on January
]. indicate a decrease iii the amount
OF gold in circulation sine" December
l, 1908. OF $50 ,W0.W W. This was more
than Offset by an increase OF $40, NOO,-
U3J in national bank notes ard S12,-
OOO,NO in silver. but the net increase
during the twelve months was not
sufficient to keep up with the increase
in population, and the circulation per
capita on December was S34.0S, as
compared with $500 a year ago.
This showing, it is contendcd, dis
poses of the explanation that the high
cost Of living-which had increased
- per cent on the necessaries of life
duling the twelve months in question
put into circulation.
On the other hand. those who con-
tend that the president was right
take a wider view. They assert that
world statistics clearly point to the
fact that prices rise and fall with the
volume OF gold. The close trade in
fercourse between the great CONNER
cial nations has the effect that what
disturbs one disturbs all, and vice
versa. The common stock of gold
must be taken into account, and not
what happens to be in circulation in
America at this time. LOanable gold
always flows toward the point where
the money rate is highest, thus tend
ing to maintain the worlds equilibri-
un. The gold we have been losing is
still a part Of the common stock, and
anyhow it is too small |; fraction of
the whole to affect prices, though it
were taken out OF circulation. That
coincident with the rise in prices
there has been Il great increase in the
output Of gold is thing easily sus-
ceptible of proof. Az official com
putations individually prove, the an
nual production now is more than
double what 1t was ut the close of the
Boer war, and four times what it was
III 1890. The bureau Of statistics has
just issued bulletin giving the an
nual average gold production of the
world since the discovery of America,
and which has most important
bearing OH the merits of the cOntrO-
versy in respect to the cost OF living,
as follows:
Period. Amount
+ rom Il93 to 1900 ... 50, 4OO. N(N,
From l1Ol to 1850 ........ IL, I'M, 900
From 1881 to 1890 ......... l2o, 2OO, 900
From 1891 to 1860 ......... 2lo, l0O, 900
From 1901 to 1903 ......... ?22, lOO, 900
For 1876 ............ 4iO, ON. 900
For 1869 ................. al 900, WO
For 1908 al !tM IEN