Hoarding Of Gold Due To War Fear.

New York Times 100 years ago today, December 12, 1912:
Dear Money Likely to Continue Until the Disquiet in Europe Is Removed.
SIR EDWARD GREY HOPEFUL
But Says Ambassadors' Conference Will Be Non-Committal — Servia Insists on Adriatic Port.
By Marconi Transatlantic Wireless Telegraph to The New York Times.
    LONDON, Thursday, Dec. 12.— A statement made yesterday by Sir Edward Grey in the House of Commons regarding the international situation should tend to remove the anxiety which has arisen afresh in the last few days.
    The only danger to the preservation of the peace of Europe is, in the Foreign Secretary's opinion, "some untoward and unforeseen incident." Of this there is now less probability than previously, as the Servian demands have been moderated and the Austrian policy has been shown to be consistently pacific.
    So long, however, as the disquiet continues there is not likely to be any improvement in the international markets, which yesterday were again depressed. Dear money was the chief factor in the depression, and the dearness of money is directly due to the hoarding of gold caused by the fears of war.
    The Continental shortage of gold is becoming reflected to a serious extent in the British market. Germany has been tapping the gold supply at its source by buying part of the metal arriving in London from the Transvaal mines, and there were also shipments of bullion from the Bank of England yesterday to Berlin. During the week ended yesterday a total of $6,065,000 in gold has gone abroad, compared with $1,875,000 in the corresponding week last year.
    The scarcity of available funds is naturally limiting business on the Continental Bourses, and the London Exchange has followed suit, the unfavorable conditions being further emphasized by the collapse of Americans.
    There is a grain of consolation in the present financial conditions. Monetary scarcity makes for peace. The high rates which Austria and Hungary paid for Treasury bill borrowings from New York, Germany, and the Rothschilds are likely to be a powerful deterrent to Austria against entering upon warlike operations.