Evening star., 1916-12-24

where the peril of too much gold has
its beginning; not that money in bank
IS pexil. but that idle money in bank,
like high explosive where sparks
abound, is dangerous.
The farmer ! have described spreads
himself. but not SO much as do some men
who are heaping up millions derived
from war business. Manufacturers also
spread themselves. as has noticeably
happened in many instances to the
knowledge Of everybody. Works are
built to take care of boom orders.
Profits have been made with which TO
pay for new factories and the enlarge
ment of others.
"On the face. such expenditures look
sound. But what will happen when
times turn normal? Idle mills and fac
tories are not as hazardous as idle
money in bank. but they cause loss and
trouble. The surplus profits made on
war orders. above the cost of providin g
means for an increase of output, must
likewise be deposited in banks. Then.
in the meantime. shares have gone up
and speculation. unbridled and bare
backed, Is galloping like wild horse
through the country.
The inward flow of gold continues
More food and war material are gong
to Europe Bankers, their safes burst
ing with the gold of their customers
look about them for opportunities tC
employ it. To a banker idle money
is a sin against heaven and earth. He
works with money as one man works
with camel and another man Wltf
its task is daily and nightly. or
Thanksgiving, the Fourth of July anC
Christmas. If dollar halts in the
heat of the sun or takes refuge under
tree during storm the banker IL
there. whip in hand. to start it gong
again.
THE circulation Of money per capita
in the United States at the outbreah
Of the war was $33. It is s4l at pres.
ent From $4,000, 100000 1t has gone tc
S4,100,00O,0O0 Eight hundred million
h as been added to our stock of cur
rency. There was enough to 60 tht
business of the country two years ago
there is more than enough now. Whef
a man has more money than he needs
he grows careless. 1t is precisely the
same with nations"
How can the United States get ric
of it's excess gold?"
a time" Mr.. Won Engelken replied
'England's success and power are eX
planned by the fact that 1t was a'cred,
itor na.ion. Other nations owed II
vast sums. If you and l do business
together and l get all of your funds
then business between us ends unless
| give you time In which to make youl
payments or unless you can borrow Of
some one else.
This country has been doing an inn
mense business with Great Britain
France, Russia and other nations ir
Europe. The transactions have beer
for cash Gold has come in. 1T IL
bursting the walls of our banks. The
Scandinavian countries. however. have
refused to accept any more gold from
the nations that are at war. We have
enough they say. We don't want &c
ruin our people Take our goods and
pay for them in the future
Banks taking gold over their coun,
ters at it's face must. when they turn II
into the national Treasury. accept pay
ment at the rate of $20.6T an ounce.
venture to say that if all the coined
gold in the United States were put or
the scales it would be found that the
discount chargeable to wear and teal
amounted to several hundred thousand
dollars.
But SIS is IS. in my opinion. wher
certified by the nation with it's mark
whether tho money is metal OF paper
Copyright 1915. By James B. MorrowA