The Birmingham age-herald., 1914-09-18

are essential if we are to gain any con-
 tions of Europe now at war have lost in ! South America.
 The Great Gold Pool
 There seems to be misconception of
 the attitude of the federal reserve board toward the proposition that gold pool of S150. GOO be underwritten by the banks of the national reserve system, each sub- scribing an amount proportionate to It's own resources and reserves. The federal reserve board does not mean, according to the understanding in this city, to be understood as drowning upon the propo- sition. As a matter of ract, ufkSt the new federal reserve system is organized the reserve boards relations to the organi- zation of the gold pool of s15c,o0o,00o can only be advisory But the cooperation of the administration at Washington and of the members of the federal reserve
 board is too valuable an influence 10 be ignored by the national banks.
 Apparently the federal reserve board contemplates the situation as one which does not compel immediate action. It may be that the salutary effect of the pool organized by the New York city banks to take sl00,0o0,0OO of New York city notes, and in that way be able to redeem outstanding or existing New York city obligations across the sea will, of itself, furnish so great an influence In steadying the money market and in bring ing foreign exchange down to com
 mercially practical figure that the or ganization of a gold pool of $150,000,000 by the national banks acting as unit, or all most as though they were directed by a unified central bank, will be unnecessary. Those who proposed this pool had in mind the relief of the commercial and interna-
 tional trade misunderstanding else.
 Therefore, the federal reserve board ap- parently deems it prudent to wait little,
 knowing that it would take but few
 days to create a pool of $150,000,000 if that should be found advisable. The fed eral reserve board, according to the un- derstanding in New York, does not oppose
 the proposition on principle, but advises
 merely little delay in view of the be- lief of the board that the underwriting of pool of that kind by all of the national banks may not be necessary.
 Already intimations have been received in this city of the fine effect. especially in London and to some extent in Paris, of the action of the New York city banks which, with the exception of only two or three, have united in syndicate to un- derwrite the payment of the pending oblf- gations of the city. That action is likened to the listing of moratorium and advices received from London intimate that the bankers there look upon 1t as adequately, even splen1idly, supplementing the at- tempts of the Bank of England and the bankers of London, in cooperation with the British government, speedily to re- store fairly good financial and money market situation.
 It Was Expected
 For week or two there have been in timations in the financial district that | the country might learn that the Alaskan peninsular was again to confirm the con | viction of the experts that 1t is scanned and saturated with gold. It was. only shortly after our peace with Mexico that gold was discovered in California. and in 1 such amount as materially to alter oul commercial and financial life. After the civil war there began a great develop ment of gold mining in other states than l California. Before the close of the wal l in South Africa prospectors who had beer lured to Alaska were able to announce l that gold had been discovered in the Yukon district.
 l It may be only coincidence, and vel | if 1t be no more than that there is grea' l interest to be found in the fact tha l while the European war is still pending there comes what seems to be an authori- | tative information that there have beer | discoveries of gold in new region 1T
 Alaska which promises greatly to increase | the territory's yearly yield. It confirms l the view that when suitable transporta | tion has been completed back and forth
 up and down on the Alaska peninsula there will be a great addition each veal 1 to our supply of new gold.