The Dawson news. (Dawson, Ga.) 1889-current, 1923-06-26
INFLOW OF GOLD
SETS A NEW MARK
ooo mn OF 1T IS HELD IN
.,m1rED STATES. KEEPS
UN GAINING STEADILY.

,,rw YORK. N. Yin the midst
w. ob that is confusing and con-
oi r n.s in the commercial and fl
f'U ~ situatioin. the outstanding
a ;aoo,nenon is the continued inflow
phen poid The June circulation state
&Oi go'o the treasury department
n'n' .bat ON the first of the month
shows 30. s'i cold stock in the United
|the lo'@ avciusive of the foreign coins
Stae9 Id bullion outside the treasury
a nd tbe federal reserve banks was S4,-
IN 'a3g 5 70 1o5, a new high record.
w. 49, Is an increase of $4S, 470.T75
me Me-, and of $8o,774,5S0 since Jam
tor NG' II IS the first time any coun-
uaIEh a =, ever held as much as $4,000
IN IN d nSS IN cold. The increase in our
|vy W storl in May was the largest in
gas. o,s OF one month in more than a
|rear and half.
Weekly Increase Big.
IT.. weekly statement of the fed
i resrrye system shows an increase
ti q q; Zoo 900 in gold holdings over
q , oei AGO. Since May 81, the gold in
4, WEE roserye banks has increased $780,
'@G60 This figure would undoubted-
!; OV 1--we been considerably larger had
aot been for the continued paying
ort into general circulation by the
Kinks Ta OF gold certificates as a means
II keeping down the increase in their
own gold reserves.
OT Tbi { continued inflow of gold comes
+, tbe face of official prediction of
aid EXPORTS as a result of the trade
s.lsnce against the United States for
|,5e first five months of the year
|,monnting to $137, 582, 100. The expla-
ration OF course, is that other items,
|rotablv the payment of interest on its
|dsbt TO America by Great Britain,
have more than balanced the net i'm
port surplus.
Economists Shake Heads.
The result is that the economists
have still with them the problem of
What to do with and how to get rid of
mis- unnecessary and, as they view it.,
even dangerous excess OF yellow
metal.
However that problem may be
solved, if it is solved at all, the i'm
portant thing to investor, speculator
and business man alike is what will
be the long range effect of this situa-
lion. The orthodox opinion is that this
huge gold surplus is standing invita-
lion to credit expansion.
So far that danger, if it be dan
per, has been averted. Some authori-
tes claim to believe that it has been
averted. Business, with
The lesson of 1921 we'll learned, and
with the official and semi-official warn
ng against going ahead too fast din
hing in its ears, they say, will not
tmpt disaster again. But if this hap
9y sef-restraint is permanently achiev-
ID it will be the first time in history
Ind contrary to all human nature.
Money Market Easy.
The gold surplus is important from
|Ather standpoint, namely the future
0 money rates. The money market
has been easy all the week and the
drift seems to be toward lower levels.
This, OF course, may be only tempo
nry, but unless there is an enormous
Increase in the demand for credit the
necessary effect of these large gold
holdings must be to keep interest
rates down. In addition to these pure
" financial factors there is also, just
how, small demand upon banking
resources for commercial purposes.