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TODAY'S BUSINESS MIRROR
Print-Shop Currency Makes
Government Spending Easy
By SAM DAWSON
New York, Nov. 7 i Gold should the government let you
have it in exchange for your paper dollars?
People who are supposed to know all about such things are
choosing up sides on that question. Some of the nation's top
bankers say yes, the United States must go back to the good old
'days before 1933 when
Curran and Bridges Clash Joseph Curran (left), president
of National Maritime Union, shouted to Harry Bridges at
the CIO convention at Cleveland, O., and told him to keep his
"nose out of our union." Harry Bridges (right), left-winger
leader of the west coast longshoremen, who had attacked
Curran's union Is shown leaving the convention after ad
journment. (AP Wirephoto)
PROBLEM OF GIVING FOOD AWAY
Indians Helped the Pilgrims;
Now U.S. May Help Indians
Washington, Nov. 7 (U.R) The government is thinking of ways
to help out the Indians on their food problems, Just as Indians
helped the pilgrims more than 300 years ago.
The government has a big food surplus now. It got it by buy
ing up groceries ana noaraing tnem so mat farmers will get a
V'fair" marlcpt nrli
Six Jump Safely
From Bomber
Milledgeville, Ga., Nov. 7 U.
Six servicemen parachuted safe
ly from a disabled B-25 bomber
near here last night, and the
plucky pilot who fought the
plummeting plane away from
this populous area was credited
with preventing possible trage
dy. Capt. David W. Wenger of
Denver, Colo., ordered the oth
ers to Jump when one of the
plane's engines failed and a maf
neto fire burst out in the other.
Then he rode the plane down
to 800 feet altitude, steering it
away from the town, before he
finally jumped.
The plane crashed in a wood
ed section about 14 miles north
west of Milledgeville. If Wen
ger had not ridden it into open
country, It might have crashed
into the town.
All the Jumpers escaped in
Jury except 1st Lt. W. T. Achro
mowicz, of Ipswich, Mass., the
co-pilot, who suffered a sprain
ed ankle when he hit the ground.
Donald Brick Plant
Will Be Replaced
Donald The loss In the fire
which destroyed the Donald
Brick and Tile factory was first
estimated at $60,000, but Joseph
Fisher Sr., who, with Joseph
Fisher Jr., is ower of the brick
nd tile plant said that valuation
was probably too high, although
It will cost much more than $60,
000 to replace the plant. It was
understood that $10,000 of the
value was insured. The kilns
re the only part of the plant
which will be useful for a recon
ttructed factory.
The Fishers have had a crew
clearing away the debris and
announced that they will build
again immediately and hope to
have the brick factory back In
operation soon after the first
of the year.
"It will be an entirely differ
ent kind of building," Mr. Fisher
Sr., said.
The old structure was built
In 1913.
But what to do with the hoard
of dried eggs, butter, powdered
milk, cheese, turkeys and other
foods?
If the foods are put back on
the market, prices will go down
and the government will just
have to buy up more.
Congress decided it was bet
ter to give the food away free
to somebody who would eat it
rather than to let it spoil.
But, it agreed you can't just
give the food to the ordinary
city consumer because then he
wouldn't buy as much food at
the grocery. That wouldn't
solve the surplus because there
wouldn't be any net increase
in consumption.
All Safe on
Grounded Shin
Vancouver, B.C., Nov. 7 (CP)
Fifty-one passengers and the
35-man crew of the 1,134-ton
S.S. Chelohsin last night walk
ed safely to shore over 500 yards
of barnacled ocean bed when the
coastal steamer grounded in
blinding fog on the beach at the
entrance to Vancouver harbor.
Inbound from up-coast Pow
ell river, the 175-foot vessel
scraped up onto the beach at
low tide. It was the worst fog
to hit Vancouver and the lower
British Columbia mainland this
year. All marine traffic had
been halted before the Cheloh
sin attempted to crawl into har
bor.
Union Steamships, Ltd., own
ers of the Chelohsin, were too
busy evacuating the passengers
and preparing salvage opera
tions to comment on the ground
ing. Some reports said the ship
was holed, taking water and may
break up, but these could not be
confirmed.
Passengers, carrying their
luggage, and some of them tot
ing dogs in ship cratings, climb
ed down Jacob's ladders to the
beach and trundled across the
soggy ocean bed to shore. The
tide was about a mile out at the
time.
From the shore the passengers
scaled cliffs leading up to Van
couver's famed Stanley park.
Buses took them to a downtown
bus depot. Taxis whisked them
to homes and hotels from there.
Enter the Indian.
On many reservations there
is a pressing food problem.
Congress figured that free food
for Indians wouldn't cut down
on their regular buying but
would ease the pinch.
In addition to Indians, Con
gress also decided other possi
bilities for giving food away in
eluded: Federal school lunch
charitable institutions in this
country and abroad.
It also directed that the sur
plus food be bartered with for
eign countries wherever possible
for strategic materials.
Now government officials
charged with carrying out con
gressional instructions are trying
to figure out how the program
will work. No final decisions
have been reached.
Some government people fig
ure it would be better to sell
the food to foreign countries at
a big loss than to give the food
away free to people in this coun
try. That way the government
wouldn't show such a big loss
on its price support books.
Nevertheless, one of these days
government men may drive up
to the reservations with free gro
ceries.
The Indians won t provide a
complete solution to the surplus
problem. But it may help the
Indian and the government.
Body Found in Sandy
Sandy, Nov. 7 W) The body
of Robert R. Ralph, 67, Portland,
was found in the Sandy river
yesterday at Dodge park. He
had been fishing while he and
his wife were at their cabin over
the week-end.
1 TT-r
Hubbard Entertains
High Lodge Leaders
Hubbard Margaret Myers
of St. Helens, grand chief of
Oregon Pythian Sisters, made
her first official visit since
taking office to Arion temple
No. 24. With her were grand of
ficers, Elsie Thompson of Ore
gon City, gr. sr. and Nada
Grinde of Silverton, gr. man.
Past Grand Prot. Eunice Burke
of Salem and PGC Cobie deLes-
pinasse of Hubbard were also
present as were the P. G. pre
late, Hubert Thompson of Ore
gon City and Grand Secretary
Waltre Gleason of Portland, of
the Knights of Pythias.
Marie Covey, MEC, of Anon,
presided over the meeting. Fran
ces Byers was inducted into the
order. The beautiful lady degree
was bestowed upon Mrs. Myers,
by the staff with Opal Berkey as
soloist.
Mrs. Myers revealed in her
talk that her aim for the year
was to obtain a television set
for the Pythian home.
Temples represented Included
over 50 guests from Auroraj St.
Helens, Oregon City, Salem,
Silverton, Wheeler, Portland,
Redmond and Baker and 50
members of Arion at Hubbard.
Refreshments were served.
Escaped Cons Captured
Lakeview, Ore., Nov. 7 P
Two California road gang con
victs
here
County Sheriff Tommy Elliott.
you
could get gold coin for your pa
per money. Others say that such
a return at this time would be
"witless."
The dispute broke out this
week in San Francisco at the
American Bankers association
meeting. It came to the fore at
the same time in New York at
the National Foreign Trade convention.
Washington officials have
been dragged into the word bat
tle, but mostly to deny reports
they were thinking about
changing the value of gold, now
set at $35 an ounce.
Pressure to get Washington to
pay from $45 to $55 an ounce
has been strong of late. Obvious
backers of the proposal are those
who mine gold and have it for
sale. But others urging it con
tend that by raising the paper
dollar value of the huge hord
of gold buried at Fort Knox
Ky., the government would
make a big paper profit it could
apply to the soaring public debt
Opponents of the proposal
point out that at the same time
the government, by raising the
price of gold, would also be low
ering the value of every sav
ings account and life insurance
policy in the country. This is be
cause the dollar would be de
valued in terms of its present
purchasing power.
Since only congress has the
legal right to raise the price of
gold, the question is just talk at
this time.
But the debate over raising
the bans against the coinage of
gold and the possession of it by
private citizens is getting hotter.
The National Foreign Trade
convention, attended by 1.800
leading businessmen and bank
ers, voted unanimously in favor
of "the restoration in the near
future of the free convertibility
of the dollar into gold on the
basis of its present gold value."
That means, the foreign traders
want you to be able to take a $5
paper bill into the bank and get
a $5 gold piece to put in the
Christmas stocking, the way
your grandfather used to do for
you.
The American Bankers asso
ciation heard both sides and fin
ally resolved that the price of
gold should remain at $35 an
ounce, but took no stand on
"free convertibility."
One of the arguments for the
return to free convertibility, is
that it would put a check on gov
ernment spending. It's easy to
print paper money to meet the
expenses of running a govern
ment. But if the government had
to fork up actual gold for that
paper money when ever you ask
ed for it, the argument runs,
Washington couldn't go on
spending more and more every
year it wouldn't have it to
spend.
The National City bank of
New York, one of the largest in
the nation, comes out in its "No
vember Bank Letter" with this
observation of gold:
"The seductive case of cover
ing government expenditures at
the print-shop is something that
statesmen always will have dif
ficulty In resisting."
Meanwhile, the paper dollar
in your pocket is good. It may
not buy as much as it used to.
is.--, an IT Oer. AMljlr e.lM&
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IK-INSTRUMENTf?' M
V t TT C U Uf i i is t a M 111 -'f ii
I- 4
f -1 :
L0B. ill
Capital Journal, Salem, Ore., Monday, November 7, 1949 13
Call to Musicians A mammoth violin in the Munich rail
road station advertising Germany's first fair for musical in
struments at Mittenwald, noted for violin production.
the Yukon to Seattle. One peril
was hijackers who lay in wait
for outgoing dog sleds laden
with gold.
But today, department offi
cials say, the job of transporting
gold from field to market is a
relatively drab routine. Hazards
have been all but eliminated by
modern air transport.
The Fishwheel strike hardly
had been heralded to the world
when crews began clearing an
air strip. Reports from that
Arctic outpost say it was clog
ged with planes used to bring in
gold seekers and supplies and
standing ready to carry cargoes
of gold in event the strike pans
out.
Meanwhile, in Seattle, the
government's gold buyers Just
waited.
If the gold comes through,
they'll merely step up the tempo
of relaying it to U.S. mints.
where it will be molded into
bars for burial in federal vaults
at Fort Knox.
NUGGETS LIKE BEANS TO THEM
Alaska Ex-solon
Suggests Secession
Ketchikan, Alaska, Nov. 7 UP
Joe Krause, a former member
of the territorial legislature,
says he will urge Alaska to se
cede from the United States un
less congress makes it a state.
Krause told the house mer
chant marine and marines sub
committee yesterday he would
urge that Alaskans hold a state
hood convention and prepare to
elect members to the house and
senate.
"However, if congress will not
seat those members, I shall sug
gest to the people of Alaska that
they petition the United States
to become an independent na
tion with a constitution adopted
by the people and" for the people
of Alaska."
During that period employes
at the assay office heard tales of
romance and high adventure as
prospectors told of experiences
along the hazardous trail from
Gold Strikes Don't Bother Men
Who Bury Metal at Fort Knox
By GLENN MARTZ
Washington MB U. S. Treasury officials who assay, buy, and
store gold in government coffers are never excited over reports
of gold strikes in the Yukon.
As prospectors hurried to stake claims in the ice-locked sands
and frozen gulches of Fishwheel, Alaska, government officials
charged with handling gold bul-
lion viewed it in impersonal
terms of national wealth and a
possible source of tax revenue.
When word came later that
the supposed strike was suspect
ed of being a hoax, officials
merely shrugged.
Even if the Fishwheel boom
fizzles, there may be others later
and perhaps rich ones.
In any event, lt simply will
mean more work for employes
at the U.S. assay office in Seat
tle. Wash., where most of Alas
ka's "yellow wealth" is funnel
led into the United States.
There Alaska's sourdough
prospectors and great mining
companies sell gold dust and
nuggets over the counter to Un
cle Sam much the same as a veg
etable gardener sells beans to his
local merchant. Only in this in
stance the commodity bartered
is worth $35 an ounce.
A gold rush is nothing new to
the treasury department's assay
office in Seattle. A federal gold
purchasing station was establish
ed there July 16, 1898. It open
ed in time to receive the first
shipment of gold from the great
Klondike strike of that year.
During the next 18 months
more than $5,000,000 worth of
gold passed over its counters.
In rapid succession came
strikes at Chandalar, Pedro,
Firth River, and Fairbanks,
pouring a steady stream of gold
into U.S. mints.
Car Plunge Fatal
Florence, Nov. 7 W! A car
plunge off the Coast highway
and down a hillside was fatal
sometime early yesterday to mo
torist Frank Johnson, 42, Rt. 2,
box 93A, Coos Bay.
Tourists to View Dam Work
Walla Walla, Wash., Nov. 7
(iP) Tourists will be able to
watch McNary dam construction
from an overlook building now
in the planning stage, H. Brandt
Gessel, Walla Walla architect,
said yesterday. The reinforced
concrete structure will cost be
tween $60,000 and $75,000, Ges
sel said. Plans will be complet
ed soon.
but any one jn the world would
were captured south of be glad to have it, if you don t
Saturday night by Lake want it even if he can't get
gold for it Just now.
4
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