The Washington herald., 1912-03-03

TO use their. capital Ana when capital
waits for an opportunity, as pig iron
sometimes waits for customers. prices
tend downward and not upward The law
OF supply and demand regulates the
wheat market It also regulates the cap
ital market. or the interest rake on
capital"
Were the preachments Of Mr.
Bryan in 1895 that an increased volume
OF money ADVANCES prices and de-
creased volume lowers prices sound and
true?v
mo sensible man ever denied the prop
esition. as you phrase It. During the
civil war 1t required 40 In paper 70
buy 81 in, gold. Calico was 40 cents
yard, and coffee 90 cents pound There
was plenty of paper money. but very
little gold. The argument of 1896 was
to turn aside the stream OF gold pour
ing through and into the country and
substitute a stream OF silver-to displace,
in brief, 10o-cent dollar for q oO-cent
dollar. Since then prices have risen on
a solid basis and not by reducing the
purchasing power Of our money
Where is the largest supply on gold
obtained at this timer
From South Africa, which Is produc-
ing SIS, 100000 annually; then from the
United States. where the production
amounts to about 800 e.009. 900: and next
from Australia, the mines oe which yield
s65 000, 900. England. strange to say, has
augmented its stock Of gold very little
recently. Franco has added largely TO
its stock, however. while in the United
States, since January 1. 1905. the increase
has amounted to $s5o0oo.oOo."
No More Gold Surprises Probable.
"Are great discoveries OF gold likely
TO be made in the future?''
"No surprises are to occur. in my. opin-
ion. South Africa is the only field where
the increase Of production is noticeable,
and the gold territory in that country
Is known and the output can be rough
BY estimated. Tremendous discoveries
might unsettls the business OF the world
II gold could be manufactured like bricks
chaos would follow. But It cannot be
manufactured: the finding of sensational
deposits OF gold is improbable, and mar
can soberiy go about his own Affairs
without disquieting thoughts concerning
the future
How much silver does the govern
ment buy yearly?"
"Between 100000 and 100000 ounces
II IS used in coinIng half-dollars, quarter:
and ten-cent pieces. We ask for bids
when we need silver, just as We should
ask for bids were we to need nails ol
lumber. Silver is now worth about 9
cents an ounce. The value of gold th'
world over is S2e.6 an ounce, and tina
has been its value for many years i
never iuctuates in price"
''wiu the Socialists ever obtain contro
| OF the country?"
mo: too many Americans own proper
~. There Is much loose talk abou
Socialism, and even the Socialists do no
| agree among themselves as TO what the!
want TO bring about suppose. how
ever, they hope TO have the governmen
ultimately take over all the agencies o
production and transportation-thef farms
| factories, railways and steamships nov
owned privately. But such an under
taking Is scarcely more than a dream
A province in Northwestern Canad
bought all the telephone lines an
promptly doubled the price Of tn
service Still there are some simple ex
periments that might be tried in tn
United States one at n time
IT mention these comparatively smal
matters, coming within my knowledge
to show that the governments manage
ment OF business Is never economical"
CCopynght. 1872, by James B. MorrUu.l