Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-08
MORE GOLD is NEEDED
BY FREDERIC J. HASKIN.

built up substantial credit balances.
With these they were able to purchase
large supplies of manufactured goods.
But with rubber down around 10 cents
1t is obvious that only one-tenth as
much credit is due the producing coun-
tries.
The prices Of raw, materials have
dropped farther and more swiftly than
the prices of manufactured goods.
Therefore, 100 pounds Of rubber will
buy nowhere near as much goods as 1t
would few years ago and only about
half as much as 1t would buy only two
years ago.
Great Britain Most willing Lender.
The raw-material-produ nations
must have certain imported goods,
manufactures, and they must find some
way to pay for them. The more rubber
they ship the more will the market be
glutted and the lower win fall the price,
aggravat1ng a situation already bad.
Where possible gold is shipped.
The world borrowing situation is not
favorable to these producing countries
France is lending almost no money at
all outside her own borders or those of
her colonies. The investment Of Amer
lean money in foreign issues is below
what 1t has been for some years. Great
Britain, although impoverished from
every point OF view and with only about
one-seventh as much gold as the United
States, has continued to lend as freely
as her resources have permitted. Her
1endings have not been large, but the
difference in attitude toward world bor-
rowers is notable. The United States
and France, with more gold than they
know what to do with, have shut down
on foreign loans, lending only a frac-
ton of their capacity. Great Britain is
lending abroad right up to the hilt.
1t is the traditional policy of Great
Britain to lend money abroad, to have
investments all over the world, not TO
carry all her eggs in one basket. In
January Of this year Great Britain
found SIS, 600, 900 to lend abroad but
this was 40 per cent below January q
year ago. With her diminishing gold
supply she cannot continue even at this
rate.
Worldwide Prospecting.
Prospecting for gold is going on fe-
verishly all over the world IN an effort
to catch up with the demand. Many
Of big strike in Russia. In the czarist
days preliminary geological surveys were
made which showed strong indications
of gold deposits, especially in the
bleaker wastes of Siberia. They were
never developed chiefly because of re-
moteness and the tremendous cost Of
transportation approach. 1t is under
stood that the present Russian regime,
largely with the aid of American mining
engineers. Is undertaking renewed ex-
plorations.
The flour gold sifters are busy again
on the coastsof California. Flour gold
is gold dust so finely powdered as to re-
Semble the consistency of flour. Gold
dust, such as that patiently recovered
from the streams by placer mining or
panning, is much coarser. The -four
gold is what has been washed down by
the streams, grinding itself into ever
more minute particles. 1t comes to
rest on the beaches. Especially after
storms deposits of 1t will be found along
the edges of wave and tide marks.
| A special type of beachcomber fol-
lows the vocation Of -four gold miner.
He camps on the beach and usually
works only after the sea has been up.
Then he scoops up the sand and washes
the gold out of 1t.