Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1914-01-30
CAUSES OF HIGH
COST OF LIVING

The much-discussed subject o.
the relation Of an over-productior
of gold to the high cost of living j!
treated, in a name characteristic
Of the man in point of brevity and
lucidity, by DR.. David Starr Jor.
dap, recognized as one of the
worlds foremost students of and
authorities on political economy.
Dr.. Jordan takes the view of this
question that seems to be the only
rational one and points to the fall
lacy OF the theory that any apprec-
liable influence has been exerted
upon living costs by the worlds
increased production of gold. he
holds that the most potent factor
in bringing about an advance in The
cost Of necessaries of life has been
the colossal expenditures of the
governments of the leading nations
in maintaining great and costly
armies and navies. DR.. Jordan's
remarks which appeared in the
issue of Mining Science, are as fol-
Lows:
What shall we say of the theory
that prices rise steadily because too
much gold is produced to meet the
needs of business? And what of
the plan steadily to increase the size
Of eacn gold coin that it's value
may keep pace with the rise in cost
of living?
We shall say that there is no such
redundancy of gold. The idea that
the commences of gold the world
over is the cause of rising prices,
finds little favor among the bank
ers. 1t is indeed a patent fact
that there is no such surplus of
precious metal as to cheaper its ac-
tual DR. relative value. The bust
ness world is suffering from a
scarcity Of gold which goes with
excessive borrowing and excessive
taxation.
Both Of these conditions are due
in. part to the rush toward the cit
les and towards urban industries,
but chiefly to the demand of actual
war in the Balkans and threatened
war elsewhere in Europe; and to
Illustrate war, as shown in the rela-
tioDs of Germany, France and Eng.
land. But other causes cooperate
to make gold scarce while prices
still rise. For example,, the savings
Of four hundred millions Of Hindus
are represented by British coin. Ir
default Of banks, most of these
savings r buried in the ground.
It is estimated that in Asia a,
much gold Is returned to the grount
each year as Is taken from thu
mines Of the world. Assuming thai
each native In India saves 19 each
year on the average, this would
mean $4,000, 600, 900 withdraw
each year from circulation.
Besides all this, millions of mel
arc withdrawn by CONSUMPTION an,
by enlistment from productive ser
vice, to become t~ax.eaters on al
enormous scale. The capital Of tn
world Is largely spent in waste
and this to a degree which is grow
ing so rapidly as to excite alarr
among all f~fnanciers who look NOR
than ten years into the future.
The remedy, then, is not large
coins, nor a higher charge for seis
norage, but less waste. There
not gold enough to go around
the business Of the world. There
not enough Of food or useful thint
produced. Too many men are worl
Ing at useless things, and the worI
ing end business world have t.
many soldiers, protecting the mc
who work, when the] only prote
tion the working men need is d
Tense from the necessity of fearir
soldiers or Of being soldiers.
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