New-York tribune., 1918-10-09

Speculative attention centred on
International Mercantile Marine is
sues, owing to the interest excited
by the very definite tips that floated
around the Street in various forms,
but all to the effect that the COM
pletion Of the famous deal for the
sale of the company's British assets
was at last to be announced, fol
lowing a special meeting of the
board of directors. But, alas, only
! the old statement that there was
nothing definite to report as to the
progress of the deal was forthcom-
ing, p A. S. Franklin even refrain
ing from making his usual perfume
tory announcement that "satisfac-
tory progress was being made,' al
though he made it clear that the
omission did not mean that any un-
favorable developments had arisen.
But satisfactory progress was
made in the market. the preferred
stock rising to new high price for
the year on very active trading and
closing with net gain of 31s
points. while the per cent bonds
also made a new peak at 103. These
prices were mystery on; inasmuch
as no directors meetings are sched-
: uled in the near future it may be
! some time before they sell "ex-
mystery.'
The advocates Of the gold miners
plan to increase the cost of living
by advancing the price of gold, or
putting bonus on production, are
finding support in unexpected
places. The Equitable Trust Com
nany. through Henry Z. Cooper,
president, is the latest to lend
support to the movement. But the
fact remains that to double the
price of gold. as has been sug-
gested, would inevitably disturb the
whole price structure. and proba-
bly, result, in brief time, in doub-
hing the prices Of commodities.
Moreover, gold is not a necessity at
this time-certainly not to the
United States, which has the great
est hoard ever possessed by any
country. 1t could easily spare
part Of that hoard to settle adverse
exchanges; and there is no occasion
for diverting labor and materials
from other necessary work to get
more of the sentimental metal.
What is needed is steel and copper
and lead and zinc, not gold.
Furthermore, as Professor Irving
Fisher recently pointed out, ''to
raise the price of gold, as proposed,
would not really stimulate gold
production, for the price of gold is
in terms Of itself. Gold is (about)
$40 an ounce because (about)
twenty gold dollars can be coined
out Of an ounce of gold. If we
were to raise the price to $40 this
would really mean that gold dollars
were reduced to half size. We
would simply be making fifty cent
dollar The gold producers would
in the end scarcely be affected by
the change, but the standard Of
value would be lowered at the very
I time when it is too low already"
And further: owe already have
the major part Of the worlds gold
in the vaults of the United States
Treasury. If, after the war, there
should be a tendency for its too
rapid withdrawal. the problem can
be dealt with then, and in several
ways. But as yet such catastro-
; rhe is not even in sight And not
only do we have an undue quantity
of gold at present. but the gold
which we possess is of little or no
use during the war. 1t is, one may
say, interned for the Period Of the
war, and of potential use for after
thewar trade with other nations
and for redemption of credit and
currency. At present it is not
; ; wanted for domestic circulation and
can be little used in foreign trade
while, for war reasons, it is practi-
cally not used at all IN redemption
II is simply an immense unused
hoard laid up for the future"
Finally, more gold would mean
an increase in circulation; and tha.
Is already expanding more rapid:
; than the volume of business.