The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-10-24
explanation Of tn. high cos. of Nv

Ing.
Gold II q commodity. and Its value.
like any other commodity. is deter.
ply to the demand The demand con-
sists OF the use Of the yellow metal
In the arts. or. in other words. In the
making Of jewelry. plate and similar
articles, and In its use as money. II
the demand for gold from these two
sources has remained stationary DUR
ing recent years in the face OF an IN
creasing supply from the mines. II
would be proper to say that gold as
compared with other commodities. has
declined in value. and. therefore, the
increase in prices has been due TO
lowering purchasing power OF goid'
the standard of value. When TIE fae's
are examined. however, We find that
there has been no ground for any sueh
Along with the eNtraor-
binary increase in the gold supply
there las been an unprecedented de-
mand for the yellow metal for use
in the monetary systems OF the worio.
the past forty years the lead
ing commercial and industrial nations
have passed from silver to a soio
standard Of payments. and have SUD-
stituted an immense amount OF Soio
for silver in their monetary systems.
Formal and decisive action in this con-
nection was not taken by the Cn'teo
States until TIE passage OF the Gold
standard law of 1900. This legislation
gold reserve of $3.50, 100000 In
the Federal treasury FOR the redemp- |
ton Of the s3l4.0oo.o0o in greenbacks
issued during the Civil War. Russia
only preceded the United States by one ,
year in displacing her silver stand
ard with gold and in drawing upon
the worlds supply for a large amount
Of the yellow metal There has been.
therefore, comparatively recent and
exceedingly great demands for gold to
take the place of silver in the mono
OF much greater importance than
the increased demand for gold in
strictly monetary sense. however. has
been the need during recent years for !
a larger amount Of gold to finance the
expansion in trade. bus
mess and industry. Gold is the foun- t
dation of our modern credit structure.
and with a healthy advance in bust ,
ness activities there must be a cor
growth in the amount of
gold which is used as a basis. The !
development of our own
resources and the extraordi- !.
nary expansion in mining and manu- !
"a curing, the exploitation Of hither- |,
to untouched parts of Africa and South
America, together with the persistent
demands for gold to finance govern
and business undertakings in
China and the East. have and will on !
set any depreciation in the yellow
metal arising from an increasing pro-
duction from the mines. Some indica-
ton Of tie remarkable use of new
capital may be seen from the: fact
that the listing Of new stocks on !
the New York exchange in 1910 was
$sos. ooo. 900. as contrasted with only
s533. 100000 in 1902. In 1910. new
bonds to the amount Of 81. zoo. oo0. 900
were also listed on the New York ex-
change, as against only $7s4, 100000
in 1902. The notation of new capital
In Great Britain. according to the
London Economist, was more tkan 3d.
500. 100000 in 1910. as compared with
an annual outlay Of only $7s5,ooo, 900
ten years before.
The general consensus of opinion,
In other words, in the chief financial
centres Is that the increasing supply
Of gold has been neutralized by an in
creasing demand for gold. and the I'M
precedented infusion Of gold during
the past decade into the monetary sys-
TENS Of the world has had no effect
in increasing the cost Of living. The
assertions Of the Republican campaign
managers and their crafty advertise
ments are not In accord with the facts
No one should be deceived by their
cunning subterfuEes. A vote for
Woodrow Wilson is a vote for lower
prices and the abolition Of the profits
Of tariff-begotten monopolies.
A mica rest Of ten or fifteen years
at oyster Bay b what Mt. Roosevelt
needs.