Show I I WONDERFUL CHANGES IN FINANCIAL WORLD Why rh are arc certain I European countries accumulating gold In such large quan titles Henr Henry Clews says Is exerting n a tremendous Influence in iii finance and trade Speculative excesses have been most noticeable as usual in the thc United States where here the rebound from the late panic was sas most pronounced Ger Germany many also has been Jean enjoying ln a marked return of business activity accompanied by br more or less specula speculative tive overdoing It consequently hap PeLts that lint the chief financial centers of the world are now protecting them themselves selves against abnormal conditions In other words theY are arc wisely put putting putting ting on the brakes against speculative ve enthusiasm directing their re resources resources sources to the requirements of mate trade trad London and Paris have havo led In thIs movement with good reason aIt with results London was forced to part with about gold within a month of which nearly went to Egypt and the balance balanco to South America and other countries Nor Noi was this all much of the new gold coming to Lon London LonIon Ion don was secured by other othel Institutions titan than the tho Bank or of England having Mn hen absorbed by Russia and France and thus explaining the recent very err positive action of the tho Bank of Eng II lauds lands directors Just why France and Russia are aro ac accumulating accumulating cumulating gold so Inordinately is 15 not exactly understood In the middle or of Octo October r the Bank of Franco hold held pounds against pounds a year ago Russia held against pounds a year ago On the other hand the Bank of England held only pounds compared with pounds a year enl ago and Germany 31 compared with pounds a year car ago The reason wh why France Flance should bo 10 carl carryIng ln pounds moio than t L year ear ago at al a time of comparative financial easo caso In Paris ParisIs Is not cas easy to lo determine There Is a strong presumption that present pu po and social unrest In Europe Is at the bottom of th this l policy of oC the thc Bank of France Not Nat only the tho Social SocialIstic agitation the Spanish war al and the Turkish revolution have caused a feeling of timidity but there are aro apprehensions regarding the future which cause more or orless orless less lack ot of confIdence In the distant future Germany Is a great power and Is rapidly growing Hor population population tion Is full larger than In 1882 and Is rapidly turning from ago ag agriculture to industry In 1882 Ger Germany many had about engaged In agriculture while in 1001 the numbers so employed had fallen to Meanwhile the number in manufacturing had arisen from In 1882 to in 1907 So Sc great a development of Industry Im Implies implies plies the urgent necessity for foreign Germanys for foreign olga eign commerce Is showing tremendous strides In 1882 her imports were only In 1007 they had risen to As to her exports In these amounted to only while In 1907 the they had jumped to This economic development full explains Gelman Germanys s present aggressive attitude e eborn born of necessity Doubtless hel hei statesmen profess peaceable and will sincerely follow them as asfar asfar far as possible for no one will 11 acc accuse se Germany German of being so foolhardy as to really a war from which she sho would have hae little to gain and ani much to lose loso Nevertheless Germanys eco ceo economic necessities are aro serIous To her hel foreign markets are arc a prime primo necessity and will become more so 0 with the tho rapid development that German Germany ls Is lII likely to experience during th the next decade The difficulty lies In Gee Ger failure hitherto as a ing nation She has no possessions of great greal value in other parts of th the world no strategic position of con com mercial Importance We Ve shut the door upon tipon bet hel In this hemisphere lice Her commerce Is growing and nc needs ds the tho of a strong but she sho lacks lack coaling stations as s well as sue suc cc colonies and the tue protective tariffs of other othel countries interfere with her commercial progress which un under Under der existing conditions should keep paco Iaco wIth her industrial The fhe great greal bankers or are fully Cully aware of the significance of these con I and they would ho bo lackIng In prudence If tho thoy did not seek seck to pro protect protect themselves accordingly It Is probably just such tendencies as those these which Induce the tho present European hoarding o of gold I |