Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-12-05
U. S. CURRENCY SYSTEM
INCREASES IN STRENGTH
Every Paper Dollar Has Over
100 Cents in Cold
Behind 1t.
u H. j; IL v Il RATIO IS HIGH
Domestic Prohlems show SIovIny
Down In Industry In Conformity
With Predictions Itcccntiy Made by
Clonc Observers.
RESERVE RATIO Is HIGH
BY Walter Is. Drown,
Written Tor the United New

NEW YORK. Dec. i.-The Ameri-
can currency system con;rasted to
those OF Europe increases in strength.
Every paper dollar Of Federal note
circulation. which Is our present
method Of issuing paper currency, has
behind IL more than 100 cents In gold.
The ratio Of total reserves To de-
rOSIts and Federal reserve note liza
b!liticS combined for the entire sys-
TEN Is 80 per cent. the highest ratio
since October 70. 1917, and, in com
parison with AL per cent year ago.
The rut!o OF gold reserves to Federal
reserve notes in circulation. after set
Ting aside 81 per cent against dcpoa!t
Liabilities. is 1906 per cent as against
1913 per cent a year ago. This Is
something that has never been at
tanned bS any other country n cur
TcHcy circulation. except tie Bank OF
English note, which IL. or was, Sc
cured by the fui! gold equivalent
English currency now includes sever
al hundred millions OF treasury notes,
which are fully nduciary. IN the Sew
YORK d.Str.c; the ratio OF reserves
- note circulation above the 10 per
cent against deposit Liabilities. is
1919 per cent an against 40 per cent
= year ago.
Industry Shaving Down.
Turning 10 our domestic problems
NC una - slowing down In Industry
~ conformity Win the predictions
iAat have been made recently by
close obs rvcrs. although IL is to be
regarded ont! as incidental to the
season and likely To las, not much
NOR. tnan after the turn Of thc year.
HcEvItHcicsS. a general survey OF the
situation indicates Il stcRdy, Il slow
return To normally. The most con-
Serva;!ve authorities confirm tlus
view. hui insist ;Aat there is nothing
resembling Il boom Ia ) .sht. For tins
We may be duly thankful y boom
u only temporary IN duration, where
as what II wanted Is Il steady rrcov-
cry on nancHt basis. and this
- what is coming about.
One q! the most interesting devel-
'pmcntS 10 The effort hc.Ug made 10
merge the large Independent steel
companies into single corporation
That vii. have a better chance Of
competing with the United states
ster! Corporation. Seven companies
are mentioned. which include the Mid
vale steel and Ordnance Company
The l-achnwonna Steel Company, the
Youngstown sheet and Tube Com
pany, Inland Steel Company, Briar
III! steel Company. Steel and Tube
Company OF America and the Republic
Iron and Steel Company. The only
large companies outside O: the com
hination then would be- the Beth,e-
hem Stco! Corporation md Jones &c
l.aughlin. Tho seven companies to-
gcihcr have the developed producing
capacity OF 100000 tons OF steel and
an aggregate present capitalization
If SiGi.00O.000. The proposed comb!-
nation would be- second only to the
United states Steel Corporation and
larger than any other steel consoli-
dation that could he formed in the
United States. This sort OF mercer
has been talked OF for Il number Of
years. but the economic conditions
now prevailing seem likely to force IL
to conclusion.
Favor stock Market.
Hallway equipment companies are
in favor In the stock market. They
have been holding themselves In
readiness for some time for condi-
tons now developing. and which have
not been difficult TO foresee. Nat
urally they have been able TO cut
down their inventories more readily
than other Industrial corporations
and have been employing cash capt.
tai I'm money market operations. much
to their advantage. The point has
hccn reached with the railroads
where they must replenish rolling
stock and rOadbed and through sheer
necessity they have been obliged to
place orders for considerable
amount Of equipment. The arrears OF
deferred maintenance arc estimated
to require fully $4,000. N0O, 900 TO bring
me roads up to the standard of 1914
and as the financial conditions of the
railroads improve their expenditures
IN this direct on. will increase.