The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-06-05

diminished is often used. spur
chase" Is merely an. exchange Of
money from something else, or an ex-
change of other things by it's use, it Is
a mere truism that it's purchasing
power is diminished when prices rise,
but it does not follow that the rise is
due to a depreciation in gold caused
by an over-supply. There may be
many other causes working together
to advance prices. measured in the
most accurate and unvarying medium.
Speaking of the recent boarding Of
gold in France and the consequent alb
sorption from this country by the
Paris banks, Mr.. Talbert says hat it
has demonstrated the fact that "New
York is the only free market in the
world for gold" If attempts are made
to draw gold from Europe when con-
ditions are such that it cannot we'll be
spared, the great banks, especially the
Bank Of England, are able to check it
by advancing their rates for money or
refusing to let it go on a premium in
exchange. Here there is no concen-
tration of the monetary supply or con-
troll over it to prevent it's being drawn
away as from a free market" This
constitutes, in the opinion of this
banker, zone of the very greatest and
3 ppllLlS IL ool AlAiClISldt "CdA-
ness" There has been no effectuaI
means of concentrating reserves or
controlling the rate of discount by
which mobility is given to them. India
is said to be taking from London more
than a quarter of the worlds gold
production. Part Is boarded and part
is absorbed in trade but scarcely any
returns. The same is true in a less
degree with Egypt, the South Ameri-
can states and other parts of the
world.
Referring to these broad facts and
the need of Strengthening reserves in
Europe, Mr.. Talbert says: w begin
to understand now that there is no
over-production of gold, but that if
trade continues to expand and the de-
mand for gold increases in the same
ratio as during the past few years, we
shall be threatened with, If not actual
ly confronted by, a real shortage. For
instance, when China with its hun
sdreds. of millions Of population begins
to awaken and to realize the necessity,
as she ultimately will, Of placing the
finances of the new republic upon a
gold basis to insure national stability
and prosperity, and undertakes to pro-
cure the necessary gold from Europe
or America, we shall witness some
very IuISIGSllll6 hllQ
phenomena. The whole civilized world
will be as greatly and vitality interest
ed in this movement as London has
been interested in the gold require
ments of India. One immediate effect
of the reduced stock of American n
European gold will be to bring about
a sharp decline in prices"
lit is shown that $57, 000, 900 of the
new gold supply since 1907 has been
added to the monetary stock in the
United States. in the hands Of the gov
eminent and the banking Institutions
no account being taken Of the absorp-
ton in the mechanical and decorative
arts. SO that, In spite of the drain in
other directions, our supply has been
maintained rather better than that OF
other financial and commercial q
lions. The chief point which is be-
coming constantly more clearly estab-
Iished is that the supply of gold has
not been ou%t-running the demand. The
demand has Increased in at least an
eaual ratio, and the III OF the rise
iii commodity prices Y be sought
| elsewhere than in the depreciation OF
cold as the result Of overproduction.
| There is no single cause, but the5con-
currence OF many causes, to which we
| have had frequent occasion to refer,
and the chief of which is the enormous
Isalandering and waste of the fruits
az production In unproductive 2
| even destructive ways. 0