The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-10-08
Rx gibson GARDNER.

BY gibson GARDNER.
WASHINGTON. Oct. S.--Can a
nation have too much gold, Is a
big balance OF trade a sure sign OF
prosperity or lie Il a menace TO the
laboring man. These are questions
20, hertas public #eR IN Washing.
ton.
The United States has in the fed
eral reserve banks, according TO u
statement OF September "a, $2so,22+.-
600 in gold. Since Jan. l. We have
received gold from abroad TO the
amount OF ssoo.0eo. oo0. The annual
production OF sold is approximately
stte tre. eee 80 We ha*e-in- the
United States now over two billions
In gold. Which Is larger than the
combined gold supply OF any other
two nations In the world. In addi-
ticn TO this the year will close woh
balance OF trade In our favor
what the foreigner owes US for
goods sold and Embellishments
ing TO approximately $4,000. o0o. 900.
And over and above this the control
Ter OF the currency announces that
the national banks which make up
the federal reserve system have
money ia their vaults In excess OF
the law-prescribed reserves which
would permit them TO expand their
loans 10 the extent OF an additional
SO ,00o, 0o0. 900 So on the asset side
OF Uncle Sans lodges IL adds up
thus: Gold In vaults. three billions;
money due for goods sold abroad,
three billions: extra accumulations
OF cash IN banks seeking investment
at good rates of interest, three bill
lions. Gold money. ordinary money
and promissory notes TO the tune OF
nine billions.
What OF IL, Is everyb body rich 90
is this accumulation OF gold men
ace? Former Director of the Mint
lC. ID. Roberts thinks too much gold
Is a menace. So does w. P. G. Hard
ing. of the federal reserve board. In
recent speech in Birmingham, Mr..
Harding called attention 10 the dan
ger OF a period Of wild imitation Of
speculation" After speculation
comes reaction. That is the danger.
There is the Blue Monday after the
Saturday drunk
| Former Director CT the Mint Rob
erts has things to say on the sub
jeet OF gold: The people who argue
that the United States has vast un-
developed resources and therefore
| can absorb an unlimited amount OF
gold. forget that gold by itself can
do nothing. II cannot dig trench
| or lay a wall or pillow a held except
as IL IL used to pay a workman. II
| there were a corresponding increase
IN the supply OF labor and we could
have corresponding increase In
the production OF commodities. then
indeed we could use the new sup
plies of gold TO advantage. In the
last xhen gold has come from
abroad. labor has come with il. Now
the whole world is thrown out of
balance We are increasing our In
fiux of gold with no labor coming
with il. The capacity OF the coun-
try for production Is not being in
crea sed."
Fred C. Howe. commissioner Of
immigration OF the port Of New
York. agrees that the supply of
labor will be short, not only during
the war period but after the war.
The number of laborers coming here
has been reduced by the war Is per
per cent. Mr.. Howe believes the
cutting on OF immigration will con-
tinue for a considerable period after
the war.
In view Of this situation Mr.. Rob
eyts concludes that this accumula-
tion OF gold Is bad thing He says:
The same amount of labor and the
same amount Of commodities meas
ured against a much larger amount
Of gold must he figured In higher
terms; in other words. wages and
commodities must rise"
This prospect 10 not pleasant to
those who take the strictly banking
rolnt of view. Mr.. Roberts is con-
uec.ed with the City Bank OF New
York. and he adds: 1T may look
like better times and there might be
a slight advantage to those who get
the rise first, but 1t would b gam