The herald., 1897-07-26
A Painful State of Affairs
at Dawson City
SILVER AT 456 PER CENT
THEY THROW GOLD NUGGETS
THROUGH GLASS WINDOWS
Captain Ladue's Fine New Gold Resi-
dence-The Gold Levee on the
Yukon-Wall Street Fooled
By The Herald's Special Wire.

DAWSON CITY, July 26, 1S9S.-What
your correspondent has been predicting
for the last six months has come to pass
at last. So great has been the produc-
ton of gold and so large has become the
supply that 1t has become drug in the
market. Last night the city council,
which, as you know was given law-mak-
ing jurisdiction over the Clondyke dig
gings, passed an ordinance forbidding the
washing out of any more gold for the
space of at least one year. 1t is hoped
In this way to stop the overproduction
that has been going on for half year
past, and thus to create something of
normal demand for the yellow metal.
Something had to be done. The situa-
ton here would be ludicrous if it were
not SO painful and pathetic. This morn
ing two we'll known FOUNDERS were be-
fore the police magistrate on complaint
Of the landlord of the Palace hotel; who
said that the men had thrown several
large gold nuggets through the plate
glass windows of the hotel because he
refused to take the nuggets as the price
of nights lodging When it is UNDER
stood that it cost something like $751;
900, measured in gold, to bring the two
windows from Seattle to Dawson City,
it will readily be seen that the offense
was serious one. The magistrate fined
the offenders 100000 which they paid,
and deemed themselves to have gotten
off very easily. Gold has deprecated SO
much since the windows were purchased
that they cannot be replaced for the
amount Of the fine.
The large fine residence that has been
in process of construction for Captain
Ladue, the founder of Dawson City,
during the past three months is rapidly
nearing completion. 1t is one of the best
residences in the city, but the fact that
it Is built of gold blocks rather cheapens
it's external appearance. Public senti-
ment here is that Captain Ladue, as
one of the richest men in Dawson City
should have built a home that would
have been more of credit to the com
munity. 1t is due to the captain, how
ever to explain that his fortune has beer
seriously affected by the depreciation ii
the price of gold.
The snow floods in the Yukon are ne
longer a source of danger to Dawson
CITY The oraat .gnld ennha nkment nj
Will prove an effective protection agains
any possible flood. The people of Daw.
son City are congratulating themselves
upon the fact that the town is located ir
British territory, for it is well known
that Mr.. Huntington wanted the levee
built at Forty Mile, and that Secretary
Alger would have been glad to give him
his official assistance had the city been
located on American soil. 1t is estimat-
ed that 100000 tons Of gold were used in
building the levee.
The new gold sidewalks in the lower
part of town are not giving very good
satisfaction, as they wear very easily
and are so slippery that they cannot be
used in snowy or rainy weather with
comfort. They may have to be replaced
with more expensive but safer ma
terial.
The reported discovery of silver mines
some two or three hundred miles to the
west of which gave you the outline in
my dispatches yesterday, has created
great excitement, and if the news is con-
firmed there will be great exodus. Peo-
pie are very conservative here, however
as the stories of the frightful suffering
at the time the Clondyke discoveries
first became known in the states are
fresh in their minds.
If silver is discovered in any quantities
it will go far to settle the perplexing
currency troubles that have been visited