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

WASHINGTON, Oct s.-Can q
nation have too much gold! Is
big balance OF trade q sure sign OF
prosperity or Is Il a menace TO the
laboring man? These are questions
bothering public men In Washing
ton.
The United States has in the fed
eral reserve banks, according 10
statement OF September "a, s2so,22&.'
600 In gold. Since Jan. l, We have
received gold from abroad 10 the
amount Of $500. oe0, O0o The annual
production Of gold Is approximately
sl0o. 900 900. So we have 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-
ton to this the year will close with
a balance OF trade In our favor
what the foreigner owes US for
goods sold and delivered-amount-
ing TO approximately $4,000, 0oo, 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 In their vaults In excess OF
the law.preecribed reserves which
would permit them TO expand their
loans TO the extent OF an additional
So .oeo. 900 900 SO on the asset side
Of Uncle Sans lodges II adds up
thus: Cold 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 everybody rich or
is this accumulation ef geld men.
ace? Former Director Of the Mint
&c. d. Roberts thinks too much gold
is a menace. So does W. r. G. Hard
ing. OF the federal reserve board. In
a recent speech in Birmingham. Mr..
Harding called attention to 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
ject of gold: The people who argue
that the United States has vast IN
developed resources and therefore
can absorb an unlimited amount OF
gold. forget that gold by itself can
do nothing. It cannot dig trench
or lay a wall or plow a Geld except
as 1t rs used to pay workman. II
there were a corresponding increase
in the supply of labor and we could
have a corresponding increase In
the production OF commodities. then
indeed we could use the new sup
plies OF gold 10 advantage. In the
tast when gold has come from
abroad, labor has come With II. Now
the whole world Is thrown out OF
balance. We are Increasing our in
fux OF gold with no labor coming
with il. The capacity OF the coun-
try for production is not being In
creased
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 bu; after the war.
The number OF laborers coming here
has been reduced by the war IS per
per cent. Mr. Howe believes the
cutting of OF immigration will con-
tinue for a considerable period after
the war.
In view of this situation Mr.. Rob
erts concludes that this accumula-
tion of gold Is a 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 De figured In higher
terms; in other words. wages and
commodities must rise"
This prospect is not pleasant TO
those who take the strictly banking
rolnt of view. Mr.. Roberts Is con-
nected with the City Bank OF New
York, and he adds: 1T may look
like better times and there might be
q slight advantage 10 those who get