The Washington herald., 1912-03-03
HIGH PRICES HERE TO STAY SAYS
DIRECTOR OF THE MINT ROBERTS
Increased Supply of Gold, However, Is Not
Responsible for the Present. Condition.
By LANES B. MORROW.

There Will pc nlgn seaSohS aHN w.
relatively, but on the whole, so believes
George Evans Roberts, Director OF the
United States Mint, the cost Of living is
Up 70 stay. Values, he thinks, are nor
NAL Business will be brisk and business
viii be slow, the same as In the past
but the movement will be upward, taxing
enc era with another, for long time to
come.
And Mr.. Roberts is in a position TO
know He IS qualified for prophecy, be-
ing a close and able student Of his coun-
try and its inhabitants and rauonal
philosopher as well. While other men
speculate, he investigates. Taking the
human nature and the attitude OF one
sverage American community, he null
tlplies it by ten thousand and gets the
spirit OF the day nationally.
To the rare gifts Of sight and common
sense, he brings to his work in leader
ship and leadership an extraordinary
talent for clear statement. Few living
men can match kim for lucidity OF ex-
preston He wrote a book in week.
back in the agitatorial days Of 1895. on
the silver question. It was printed
above a thousand other books on the
same subject "Coin at School In
finance for such was the title OF the
hook, was used as campaign document
and helped to elect Mckinley. Besides,
it made Mr.. Roberts Director OF the Mint
in 1885. Lyman ]. Gage. then Secretary
Of the Treasury, wanted a man near him
Eho could rapidly and plainly answer
the financial inquiries that were pouring
in from all parts of the country. People
were perplexed over the gold standard.
Debtors imagined it to be monster
that was to devour them. Mr.. Roberts
Helped to steady matters in that anxious
and disturbed period.
The Wise Man OF Iowa
Thus ne began personally TO lead and
teach away from Fort Dodge, in Iowa,
where he was the owner and editor of
a daily newspaper, and where at the age
OF sixteen, and on the very same news
paper, he had learned to be printer.
He Il was who, years after, reduced the
Iowa idea TO language, saying that
protective tariff should not become
shelter for monopoly: The phrase, ''Shel-
ter for monopoly" swept across the con-
tinent and embalmed Itself in editorials.
PARTY platforms, and the political
speeches of great statesmen and stump
ers.
SO Roberts in the Mint grew generally
conspicuous, as he had been conspicuous
locally for many years. A printer and
the son OF a potter, he understood the
common people. Also the uncommon peo-
pie. Farmers Of in Iowa came to him
for advice Politicians got from him the
current of public sentiment, and knowing
his talent, asked him to write their plat
forms and make them interesting, hon.
sst, and Understandable. Business men
solicited his instruction. When he was
twenty he bought a country newspaper
Tor $3.50 He had likewise prediction
ior bargaining. In a few years he owned
The Fort Dodge Messenger. He owns II
wi r.
From the Mint, in 1907, he went to Chi
-ago and the presidency of the CONNER
cial National. Bank. which had deposits
amounting to SO ooo, 900. When that bank
was consolidated with larger one he
returned TO Washington and his old post
In the Treasury.
The Director of the Mint is an econo-
mist a ffnancier, and 4 manufacturer.
Gold under his management, is made into
1nonsy; so are silver, nickel. and copper.
He has to do with metals. The paper
is printed BY another officer OF the gov
ernment Gold being the only standard
of value in the United States. the Direc-
for of the Mint must watch the mines of
the world and know at all times the
stocks OF the metal accumulated and
accumulating in different countries His
figures are eagerly read and carefully
studied in Wall street. ]. Pierpont Nor
gan, therefore. mas Joined the Iowa
farmer and the Iowa politician, and al
three are now waiting in the anterooul
for Roberts facts and Roberts counsel
Gold Has Not Done 1t.
HAS the remarkable increased produc-
ton of gold" I asked him, tended &c
increase the prices of commodities
throughout the world. or Is dear living
10 be attributed to the trusts?"
Your question, like a heavy passen'
ger train, is in two sections" he an
swered. ''I don't care to discuss the
:;eoond section, the one bearing on trusts
beyond saying that while food has beer
EoInR up, manufactured products have
been going down. The market report:
F1roye the truth OF my statement Yot
and 1 are not talking politics now, bui
Jiain business. Nor am limiting my
self TO days and weeks, but am speak
ing OF price periods. So much for th'
last part of your inquiry.
you ask IL the increased gold produc
fion has tended to advance the prtc'
OF commodities. The words tended TO
are, properly used. Many persons hay
ing the attention OF the public are de
claring that the new supply of Golt
is responsible for dear eggs, butter ant
meat, and dear shoes and clothing. It &
an old principle of political economy, a!
every one understands, that the greatel
the stock OF rnoney-which means cheap
eued. rnoney-the higher the prices o
everything else The principle is sound
But, in my judgment. the effect of tn
largely increased production OF gold ol
prices has been much. exaggerated. Their
IS more gold than ever before In his
tory, II Is true but a considerable par
of the new supply has gone to coun
tries that previously used silver or pape
and which were outside the circle OF I'm
psrtant commercial nations. The sur
Mus, II it can be so termed, has beei
absorbed by what may be called DIR.
countries Gold going 10 them, obvious
IL, has not had any nppreciable innu
ence on prices in the United States
Great Britain, France or Germany.
During the last four years, Brazil
which had an irredeernable paper cur
rency, has taken slOc. coo Of gold. Tn
Argentine Republic has accumulate'
$50 ,00O within ten years, japan fift,
millions and Mexico thirty millions
Large quantities OF gold have also son
10 Italy. II is estimated that India ha
drawn oa,ooo OF the metal from tn
worlds stock In the last decade. III
natives once boarded silver; they ar
now boarding gold.
practically, the four hundred million
If gold has been withdrawn from uSS
II Is not in circulation. but has vanishe
into secret places and holes in th
Eround. Last year India received sa1,
5000 in gold from the outside and pro
duced SIO,Oo0.0o0 moro from its ow
mines. The aotal production OF tn
world amounted to ss55, ,eoa0oo. Nearl
ene-hfth of Il, you see. disappeared !
India