f
Gold Stock Outlook Dull Without Rumor Of Devaluation
SLMER WALZER
$i"t York 0?) Reces
Jolishes the gold shares,
sa6 the. current "Investor's
Reader" published by the na
tion's largest brokerage house,
Merrill, Lynch, Pierce, Fen-
ner & Smith
And then
the article
shows them
down under a
paragraph ti
tled "all that
glitters' . . .
"and unhap
pily for gold
stock buyers,
without the
man-made sparkle of devalua-
Elmer Wer
tion rumors, the gold stock
outlook is dull."
Costs of gold production
are high and the American
miners must sell their gold to
the U. S. government at the
fixed price of $35 an ounce,
the article continues.
Then it quotes the head of
the foreign research division
of the New York Federal Re
serve Bank as saying there
will be no devalution of the
dollar or Increase in the price
of gold.
Gold Is a great thing in in
ternational finance. Nothing
can be done with gold, but it's
nice to have a stockpile of it
if you're a government. You
don't have to have it in your
own vaults. Most governments
are content to leave It in the
New York Federal Reserve
Bank.
The Unmoving Element
If a country with a gold
supply here wants to ship
gold to another nation, it
merely orders the New York
bank to reduce its entry by
the amount of gold it wants
to ship and add it to the ac
count of the nation which is
to receive it. The gold stays
put.
In times like these when
gold is a mystery factor to
many people, bankers like to
recall an old story that first
appeared in the late 1920s.
As the story goes, all the
nations of the world voted
to store all their gold on a
little island in the Pacific
Ocean. Only a few knew the
location of the island and it
had no sending apparatus to
communicate with the out
side world.
A few men lived on the is
land and they could Teceive
messages. When a nation
elected to send gold to anoth
er, it would send a message
to the island. The men there
would move the gold to ' be
shipped from one cubicle to
another and the deed would
be done. The fact the gold
was there made everyone se
cure and there were no wor
ies about physically shipping
it.
Each year an expedition of
a few people would visit the
island to check up on the at
tendants. What You Don't Know
On one of the inspection
trips, the inspectors were hor
rified to find the island had
disappeared.
"What'U happen when the
world finds out," 'one of the
younger men said.
"We won't tell them, son,"
the elder expert replied.
"They'll never have any diffi
culty at all if they think the
gold still is on the island.
Just thinking they still have
it is all that is necessary."
And so the world went on
and on without any gold, and
nobody ever missed it.
Hope likewise has raised
the hopes of gold shares to
new highs since the Merrill
Lynch index was started in
1940.
Despite eager talk of a
gold price hike, the Investor's
Reader article .notes, "Most
economists consider the pros
pects of a gold price hike re
mote." One thing the gold miners
have that most businesses
DIDN'T HEED MARQUEE
Greenville, N.C. API A
theater whose marquee ad
vertised the movie, "Don't Go
Near the Water," was sur
rounded "Tuesday by waters
6f the flooding Tar river.
LIBRARIAN DIES
Cincinnati (IP) Dr. Charl
mers Hadley, 85, long-time
Cincinnati librarian and form
er president of the American
Library association, died Sunday.
don't have, however, is a
steady customer.
It is the U. S. Treasury
which will buy all the gold
offered at a price with a floor
under it.
fnimV lipcMum JKW) IWWIIIIli'ill"lu'lilwiawWWMUIHUWWAIiuWllluiiJI minimum
NEW! Expanded
Departments
More Merchandise
and Better
Selections!
2J ,M
r
MAIL TRIBUNE, Medford, Or9on, Wednesday. May 14, 1958 9
New Tranquilizers Are
Being Studied by VA
MEKYTHING
FOR PLAY TIME IN WASH-AND-WEAR
SEE THESE SPECIAL SALE ITEMS AND OTHERS
X
I'
-A
Reg. 2.98 Sheen
Cottons, sub-teen
Special - Save!
Exicting purchase for 8 to
16's! Drip-dry cottons, prints,
solid colors, everything new.
Capris, toreadors, cuffs!
Hurry save!
Reg. 2.98 Wash 'n
Wear favorites
for7tol4's
Pedal pushers sets galore!
Capris, toreadors, cuffs. Drip
dry, sheen cottons, prints,
solid colors. Be early, see
them a ! II
7, i v
Sale! Open-weave
Shirts, reg. 1.98
Stock Up - Save!
Air-cooled weave keeps you
comfortable on hot daysl
Sanforized cotton, white and
colors. Stock up at this low
pricel
Mothers! Reg. 2.98 Sandals for cool
comfort, now at big saving!
Wards barefoot sandals, all
time favorites, supple leather in
red and white. Girls' sizes 8ft
to 3.
SALE! Regularly 5.98 Summer
Dresses. Washable cottons',
rayons, .sheers
ONLY
Save en the newest summer styles, even the
chemise included. Prints, checks, plaids and
solids in gay pastels, some darks. 7-15, 12-20.
9
Elaine of Hollywood
Circle Bras
Reg. 1.98. Save!
Famous design gives mould
ed uplift. Cool cotton, daint
ily lace trimmed. Adjustable
straps. White.
X JZn"l
SALE! Reg. 1.39
Sleeveless Shirts
IC
WASHAUI
Dan River Jamboree minia
ture red plaid, washfast col
ors, won't run or fade.
Reg. 1.98 Slacks
M '
y
jf Llt
Mix or match. 3 to 6X
f i
,..,.mM..,l rtiiiniii i ur ii,iii i-iOin-ni m , , ; ,, ,:...-; ,,;.,,..,-..--i-:.-',..- " .
SALE Perfect Quality
Washfast, 80-sq. Percale!
Sew your own fashions and Save
too! Many light-hearted prints to
choose from. 36" wide.
For Better Service - Precut in 5 Yard Lengths
Four newer tranauilizine
drugs will be evaluated for
use in treatment of mental
illness by a large scale Vet
erans administration study,
S. T. Brannock, officer in
charge, Medford, Veterans ad
ministration office, said to
day. The study just getting un
der'way at 35 VA hospitals is
the third in a series of VA
major cooperative research
projects on tranquilizers,
Brannock said.
Drugs to be used are the
compounds (phenothiazine de
rivatives) proclorperazine. tri-
flupromazine, perphenazine,
and - mepazine, which show
promise in treatment of men
tal illness. .
Chlorpromazine, a tranqui
lizer now in general use for
mental patients, also will be
administered in the VA study,
since comparison of its effects
will aid in evaluating effects
of the other drugs
Controlled Project
The carefully controlled
project will involve veterans
newly admitted to the 35 par
ticipating hospitals, a total of
about 800 patients with shizo
phrenia, the most baffling
mental illness, Brannock
stated.
In addition to tranquilizers,
all will receive other treat
ment, such as psychotherapy
and the physical medicine
and rehabilitation therapies,
as indicated by their indivi
dual needs, Brannock said.
The project is part of VA's
continuing chemotherapy in
psychiatry studies, started in
Ashland Council
Approves Budget
Ashland The Ashland city
council and budget commit
tee recently approved a $1,
327,318 budget for fiscal year
1058-59. A total of $112,888
will be raised by taxation,
raising the city levy from
about 17.4 mills to 17.6 mills.
The budget is within the 6
per cent limitation. City Su
perintendent . C. Biegel said
and no election will be neces
sary. Last year the estimated
tax was $105,194, and the to
tal budget was $1,094,595. -
Estimated revenue for fis
cal year 1958-59 will be $99,'
024, he said, and the estimat
ed balance will be $429,114,
RARE SPECIES CAUGHT
London - (IP) British Mu
seum experts said today that
creature half-fish and half-
animal caught by a North
Sea trawler was a very rare
species. The experts said the
creature, two feet, six inches
in length, was a mammal
known as oxynotus paradox
us. They said only 14 speci
mens are known to exist.
Salem (If) A balanced
Salem city budget of $4,390,
000 for the fiscal year starting
July 1 has been revealed by
City Manager Kent Mathew-son.
1956.
VA hospitals participating
in the new study include
American Lake, Wash., and
Roseburg, Ore.
Holmes Defends
Remarks Against
Freight Rates
Salem (tP) Gov. Robert
D. Holmes said Tuesday his
attacks against "discrimina
tory" east-west freight rates
imposed by the Interstate
Commerce Commission were
not attacks against the rail
road themselves.
In a statement replying to
the Railroad Brotherhood's
Legislative League of Oregon,
the Governor said:
"The only demand which I
or my administration have
made upon them (the rail
roads) is that they use their
power and resources in the in
terest of the public which
have chartered and created
them." ,
Complaints Reiterated
Gov. Holmes reiterated bis
complaints that the discrimin
atory east - west percentage
freight were damaging Ore
gon's economy.
The governor said his re
marks about ireight rates had
been misinterpreted.
"What we want and need
in Oregon is not less trans
portation, but more; not few
er freight trains operating
but more of them," he said.-
Previously the governor
came out for repeal or the
three per cent freight and 10
per cent passenger excise tax
es imposed during the war.
Short of
CAS El
For Your
Summer Fun?
. lack of money standing in
th way of a vacation? Make
your plane then see u for
th cash you need! You'll like
our friendly, corteout service.
A DHPISKJH OF MCtffC FMHCE
PACIFIC
INDUSTRIAL
16 S. Central Ph. SP 3-5308
DICK HANS, Manager
REPUBLICANS!
, y v'
: z
i .
I
Who
Can Win
in November?
The FACTS
say
took how the people voted for him in 1956'
UNANDER
Eisenhower
Holmes
Hatfield
MAJORITY OVER
OPPONENTS
ALL OF OREGON
MAJORITY (OR
DEFICIT) IN
Multnomah County
wen by 120,419
won by 77,189
won by 7,599
won by 18,643
won by 43,658
won by 13,762
won by 14,827
lost by 6,203
1956 Abstract of Votes
VOTE
SIG UNANDER
REPUBLICAN for GOVERNOR
He CAN Win in November!
Paid Political Ad., Unander for Governor Committee,
Robert Dickey, Chairman, Medford Center Bldg., Medford