The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1909-11-04
More Gold Discovered
In Rich Alaska.

Fugitives from justice in Alaska re-
Gently made discovery of a new and
valuable gold deposit. And to judge
by recent news received from the
money market this find comes at a
fortunate time The constantly in
creasing business of the world owing
to growth in population, to an ever
enlarging area of trade, and to the
natural development of the demand
for necessities, comforts and luxuries
made by peoples advancing in civil
ization and enlightenment requires a
constant replenishment of gold.
That there is now. an insufficient
supply of the precious metal is evil
denced by the stringency of the
money market-the high rates of in
terest imposed by the bank Of England
and other great lending institutions.
Regarding the present condition Brad
streets for October 30th speaks clear
ly; and, moreover, what it says along
such lines is always worth attention
and may generally be relied upon as
true. We quote its editorial at length;
''The mere fact that force of cir
cUmStanceS has compelled the Bank
OF England to make successive ad-
VanCes in its discount in three con-
secutive weeks is eloquent testimony
to the sensitive state of the money
market" writes our London CORE
spondent under date of October %.
The general opinion-or, perhaps,
hope-in Lombard street was that the
"Old Lady of Threadneedle Street."
would be able to safeguard its posi-
ton by making per cent. a thorough
ly effective rate Recognizing the ne
cessity of this, the market, which, by
the way, was denuded of more than
four millions of its surplus of floating
credits in one week. helped, there
being only a small margin between
the outside" rate for three months
time bank bills and the official mini
| mum. Naturally, the further advance
administered a mild shock, and the
question which is absorbing most at
tentiOn is, will even per cent. have
the desired effect? If gold cannot be
attracted to London Cby the way, it is
limited that the Bank of France is
quite agreeable 10 lend assistance on
| moderate terms) and the normal
| weekly arrivals of the metal are not
| secured by the bank, while the heavy
seasonal drain for Egypt and South
America continues concuTrently, the
| chances are that d per cent rate
will become imperative. Such a con
| tingeucy has TO be reckoned with.
| Obviously, such a material advance
| in money values would be likely tC
| check the welcome industrial revival
| so that in this respect alone a further
| increase in the rate is undesirable
| While the money market has now di.
| gested the event philosophically
| acute depression has gripped the Stock
| Exchange in consequence of general
| liquidation by operators who had not
| sufficiently allowed for the money fac
| tor. Naturally enough, speculative
| initiative viii not be shown while
| money is dear, or so long as the pros
| poets remain uncertain and discour
/ aging.
The foregoing is confirmation Of
what The Journal has declared. A
new supply of basic metal must ever
| flow into the treasures of the world
to meet the demand, and unless this
be the case trade is certain to be
upset, prices will fiuctuate, money
stringency will be inevitable and the
people must bear the chief bruat OF