4 A
HEDFORDSWrRIBUNI
"Everynne In Southern Oregon
Rea.lB TheMa.lTr.bune''
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EDITORIAL
2
Flight o' Time
Mediord and Jackson County
History from the tiles of The
Mail Tribune 10, 20, 30, 40
and 50 years ago.
10 YEARS AGO
July 4, 1952 (Friday)
Two Eagle Point youths
lodged In jail and booked for
petty theft for their attempts
to "beat the heat" during
104-degrec weather; they at
tempted to steal a $87 air
conditioning unit.
Salmon was "really run
ning" this week at the mouth
of Rogue river; about 20 boats
fishing in the "jaws" get lim
its. 20 YEARS AGO
July 4, 1942 (Saturday)
A wartime blackout ruling
liars bonfires and campfircs
In the Rogue River National
forest because of the danger
of air raids.
From Arthur Perry's "Ye
Smudge Pot" column: "There
may he a shortage of gasoline
lur electioneering this year..
Candidates may have to gel
from stump lo stump, under
their own steam."
30 YEARS AGO
July 4, 1932 (Monday)
Rogue Valley Democrats or
ganize Roosevelt clubs and
plan lo conduct a vigorous
campaign for FDR.
The Jackson County Cham
ber of Commerce opens a
"How To Meet Tourists"
school for valley residents.
40 YEARS AGO
July 4. 1922 (Tuesday)
The intersect ion of North
Central ave. and Jackson st. is
widened
The countv issues a call for
recall election against the
theritf; Ashland ministers as
fume responsibility for t h e
move and deny the Klu Klux
Klan is behind il.
SO YEARS AGO
July 4, 1912 (Thursday)
The Soul hern Pacific lakes
notice of McHord's new city
ordinances by slowing Ms
trains to eight miles an hour
Inside the city limits.
Thai's Ycur I.Q.?
Nine or ten correct is superior;
seven or eight is eiccllcnr; five or
sis is good.
1 Independence liny was
first observed in Philadelphia
on what date'.'
2. On what substance is the
original Declaration of Inde
pendence engrossed''
11. Who was the President of
ti'e Continental C o n u r e s s
which adopted the Declara
tion of Independence'.'
4. Docs the Declaration of
Independence assert the right
of men lo hold properly?
5. When did Congress de
clare July 4 to be a legal
holiday'.'
ft. The document calls what
"history of repeated injuries
and usurpations'"1
7. in signing the Drciaia-!
tion which colony did each of
these men represent: Richard
Henry Lee, Samuel Adams,
Benjamin Franklin.'
8. War had already begun
when the colonies declared
their independence; true or
false
9. During what period was
Ihe document kept in l.ees
burg. Va , for safekeeping'
10. Who was head of Ihe
Colonial At my on July 4.
177II"
Answers: I. July 8. 1776.
2. Parchment. 3. John Han-
Cock. 4. No. S. It has not. I
NATIONAL
. me msiory 01 in. iv.nq. '.itH'ir lives, their loi tunes ami their sacred honor
Virginia. Massachusetts. Penn-! . . r . . . . . , ,.
lyNama. r. True. 9. War oil1" l,1e name of tici'doni and justice and equality
1812. lo! Ceotge Washinglon. I f 01' all mankind. K. A.
WEDNESDAY. JULY 4, 1962
Charter of Freedom
Why are the flags flying today?
Why are there parades and fireworks and
speeches? Why are people off their jobs?
Many, too many, take Independence Day for
granted, simply as another holiday in early sum
mer, a time for picnics and outings and relaxa
tion, with little thought of its real significance.
Th"e best way we know to recapture the real
sense of tfee day is to read the document which
started it, the Declaration of Indpendencc. It is
perhaps the greatest charter of liberty in human
history.
Read, then, these stirring excerpts:
t
July A, 1776
s Declaratior
THIS Unanimous Declaration of the Thirteen
Unitl S
semblad
"When, in the course of human events, it be
comes necc'ssary for one people to dissolve the
political bands which have connected them with
another, and to assume, among the powers of the
earth, the separate and equal station to which
the laws of Nature and of Nature's God entitle
them, a decent respect
kind requires that they should declare the causes
which impel them to the separation.
"We hold these truths to be self-evident, that
all men are created equal; that they are endow
ed by their Creator with certain inalienable
rights; that among these are life, liberty, and the
pursuit of happiness; that, to secure these rights,
governments are instituted among men, deriving
their just powers from the consent of the gov
erned; that, whenever any form of government
becomes destructive of these ends, it is the right
of the people to alter or abolish it, and to institute
new government, laying its foundation on such
principles, and organizing its powers in such
form, as to them shall seem most likely to effect
tneir safety and happiness. Prudence, ineed, will
dictate that governments long established should
not be changed for light and transient causes;
and, accordingly, all experience hath shown that
mankind are more disposed to suffer, while evils
are sufferable, than to right themselves by
abolishing the forms to which they are accustom
ed. But when a long train of abuses and usurpa
tions, pursuing invariably the same object,
evinces a design to reduce them under absolute
despotism it is their right, it is their duty, to
throw off such government, and to provide new
guards for their future
the patient suffcrence of these colonies; and such
is now the necessity which constrains them to
alter their former systems of government. The
history of the present king of Great Britain is a
history of repealed injuries and usurpations, all
having in direct object the establishment of an
absolute tyranny over these states. To prove this,
let facts be submitted to a candid world."
(Here follows a long list of the abuses per
petrated by the British monarch.)
"In every stage of these oppressions, we have
petitioned for redress in the most humble terms.
Our repeated petitions have been answered only
by repeated injury. A prince, whose character
is thus marked by every -act which may define a
tyrant, is unfit to be the ruler of a free people.
"Nor have we been wanting in attention to
our British brethren. We have warned them, from
time to time, of attempts, by their legislature,
to extend an unwarrantable jurisdiction over us.
We have reminded them of the circumstances of
our emigration and settlement here. We have ;
appealed to their native
and we have conjured
common kindred, to disavow these usurpations,
which would inevitably interrupt our connections
and correspondence. They, too, have been deaf to
the voice of justice and of consanguinity. We
, .. ..
must, therelorc, acquiesce
denounces our separation, and hold them, as we;
hold the rest of mankind, enemies in war; in
,. . ,
peace, iriends.
"We, therefore, the
United States of America, in general congress! 1 "tou.r.hor" line, not Pri
assembled, appealing to the Supreme Judge of j
the world lor the rectitude of our intentions, do, taking it up because he must,
in the name and by authority of the good people! And e is taking something
of these colonies, -solemnly publish and declare ' ""Z
that these united colonies are. anil ot right ought present realities in congress
I to be. free and independent states: that thev are
absolved from all allegiance to the British crown,
and that all political connection between them
ami
the state of Great Britain is, and ought to be,
totally dissolved ; and that, as free and independ
ent states, they have full power to levy war, con
clude peace, contract alliances, establish com
merce, and to do all other acts and things which
independent stales may of right do. And for the
support of this declaration, with firm reliance
on the protection of Divine Providence, we mil-
It,, ,ir , . , i;,,- f,
iiii.m. ncvigc oicuii "iiiu
! and OUr saci ed honor. '
1
HTl.; Declaration of Independence is not only
,1 , . , ,, ..' ,. , .. .'
" masterpiece of the Knghsh language, it is
i also a statement of libertarian political philoso-
j .,lv ,u.t f no,)0 courage, and a fitting State
i' , .... , , ; e ,
ment of the decent aspirations of free men,
t. 1 i .1
il lias nunc nunc uutn
Mates. It lias been a heacon to ireedi.ni lor men
everywhere, and its message is just as relevant
... rs
today as it w as lNi years ago.
The signers of the Declaration were wise and
. temperate men. But they were, make no mistake,
'revolutionaries. Their revolution still continues.
Would that all revolutionaries were as wise
and as temperate- and as determined -as those
fai'-siclltl'd
and com aceous men who pledued
States of America in Congress As-
to the opinions of man
security. Such has been
justice and magnanimity,
them, bv the tics of our
.1 . 11
in the necessity which
representatives of the
",,',i i.'. mm.-.,
;
... 1:1. . .u it..:.- l
m uuciaic uic umuti
Life In Lilliput
Washington Report
By William
Jet United Fe.itura Syndicate
CHANGING ATTITUDE
Washington-President Ken
nedy's attitude toward Con
gress is turning for the first
time from the
velvet - glove
approach t o
s o m ot h I n g
akin to chal
lenge and cri
ticism. From
Day up
to now his
general stance
has b'ien one
understanding
toward both political friends
and enemies on Capitol Hill,
where he himself spent his
earlier career, first as a mem
ber of the House and then of
the Senate.
Hit hard in this or that
vote, he would make it clear
that while he certainly did
not enjoy the blow he was by
nature forgiving and sympa
thetic to the home problems
of even the most rebellious
of conservative Democrats.
He would only shake his
head and go on about his
business.
NOT SO now. Thz President
no longer shakes a head
in mild regret. Instead he is
beginning to shake an admon
ishing finger - and at a Con
gress which is officially Dem
ocratic, though less and less
willing to follow his leader
ship on welfare issues while
remaining pretty faithful on
most world issues.
Some of this altered mood
no doubt would have come
at any rate, since this is a
Congressional election year
and since the nature of the
political animal is to become
more strident the nearer the
approach of any campaign
test .
But the change in the Pros-
iden, s P',si"on s dictated by ,
more than the looming
November. His Congressional
opposition for the first lime
drew real blood in the un
expected defeat in the house
of his new farm program -and
the opposition likes the
taste. Losing the close ones
CHII IJCCUIUO a iwinn, 111 IIOII-
ilics as in haebii. and the
President in concerned that
".s particular habit duos not
become ingrained,
. . .
rpnus he is taking up
a f
suggests - tough" presi-
dential line or not. he will be
able to win as many legisla
tive innings from here on out
this year as lie will lose. Thus
he is putting all his prestige
on the line in a game which,
on any cold reckoning, he
has not tio much chance to
1 wl"
"ZMZZ
I thought that once ihe reaiiy
1,1 " lh",s w,,'- f "ic
;w".v foreign aid, the foreign
,r,lrio pn,K,.Im, wlllU.v,T
l.ix measure he might be able
lo get he would be wise to
look the other way and let
Congress quietly forget about
medical cue and the like or
tins car.
VOW, HOWEVER, he has
' commuted himself to the
reverse course,
public
'demand that congress not
;o"!v the )oh indr,,,n-
Ite V but thm l net ru' it
, across the board on a whole
range of ivntrovcrsl.il items
The President w ho used to be
so scrupulously i-.uetul to suy
that I'omMcss' business was
largely only I'eiu'l'es.s' busi
ness niu s.i nuile p!ainl
that it is li s business, too, m
the most intense u;iv
Al! this is hkel to ine.in
th.it v hen he ceiip.-Hgns this
j f.ill in a'd of IVmi.m ralie l an.
dldatcs hp will hae alirady
'' ML
Willi-
o f amiable
MEDFORD MAIL TRIBUNE. MEDFORD. OREGON
S. White
foreclosed any opportunity to
point with anything like total
pride to the existing Demo
cratic Congress. Indeed, how
he is going to avoid actually
viewing with some alarm is
hard to see; for he is becom
ing increasingly and openly
critical of the conservative
wing of his own party.
And nothing that can con
ceivably happen in the Con
gressional elections can do
more than dent the power of
that wing, which, in another
year, Is not unlikely to take
a certain measure of revenge
upon him.
In the Day's News
By FRANK JENKINS
As this is written, BIG
NEWS is scarce.
For which -Shall
we say? -LET
US BE THANKFUL.
rpHE United Stales of Amor
- ica could do very nicely
with a long, LONG period
during which the headlines
dealt chiefly with little news
such as spending less all the
time than we earn, being
friendly with our neighbors,
bringing our children up in
the way they should go, pay
ing our bills when they come
dn'j, going to bed at a reason
able hour and getting up the
next morning full of vim and
enthusiasm for more good
works.
HPHERE'S some good news.
- Sir Winston Churchill got
out of his hospital bed the
other night and chatted with
his nurses, who reported he is
again taking a lively interest
in world affairs.
During the day, he ale two
hcartv mcH,s w, incU,dcd
chicken, ice cream, strawber
ries, champagne and a liberal
dollop of brandy. A bulletin
issued this morning says he
spent a good night.
Sir Winston has a good con
science and a good stomach.
rMIE correspondents (oil us
that during their meeting
in Mexico City, President
Kennedy of the U.S.A. and
President Matcos of Mexico
covered a wide range of sub
jects, including what to do
about Castro and Cuba - but
failed to reach any meeting
of minds on that subject.
They pledged, however, to
find an answer to the problem
of salt coming down the Colo
rado river from the United
Slates into Mexico and agreed
to try to find a solution to
Mexican demands for 450
acres in downtown Kl Paso
which changed nationality
unite a while hack when the
Kui Cratuto changed its
course.
II
:umnimmnim.
If the United Stales
could learn how to lake the
salt out of ne waters of the
Colorado river. ma be it could
learn how to take the salt out
of the waters of the Pacific
Ocean. In that rvent, the West
could quit worrying about its
future w atcr supply.
IN' THE case of
in El Paso tl
the 4."ul acres
thai chanced
their nationality when the
Rio Grande went on a bender
and started wandering around
over the terrain, it would be
interesting to know what the
inhabitants of the area would
do about it if it came lo a
vote
Would they vole to go back
o Mexico".'
Or would thev ote to s'.iv
in the I' S A "
'rii.M' ..in
IT'g UUl-st
ssis an lntctcs',-
'tien th.it must m e
ocelli red to e ri vivir w ho has
di i en along the in lei national
boundary thataidivtdcs the i
. COMMUNICATIONS
Letters to the Editor must bear the nzme and address of the writer,
although under certain circumstances the use of a pen name or initial
for publication is permissible. The Mail Tribune reserves the right to
edit all letters with a view to clarification and condensation. Letters
submitted for publication must not excevi 400 words. The letters
printed in this column do not necessarily represent the views of the
paper; in fact the contrary is often the case.
The Army's Needs
To theditor; For the first
time since it began operations
here in 1890, the SwlTatn
Army is conducting a major
kiai-telimg fuwd strive in Jtc4
ssft erwrfMir. Kvcn mv t
A.rrvy, lwit amrrn for Ks
a;-src4. S6"ri(e to Kfc&H&iiM!, ic
reos:i::,a with a jmiiwc-ua ot
in?&3xa !ticeirl jswWit
fr,N;a.vii'45.
The Army vev ctipjtai
fu,i:-s becowa its fruxst.
hcaiijr.rters and community
cewtosr he fceo coRrVrnxcd toy
the City of Meiiford as u
ssere Ik occupancy. In addi
tion, when tke Shelter, on
Crevs rd., was flooded by wa
ter from a broken pipe, re
pairs had to be effected to
keep the building open. These
repair costs have to be paid
and much remodeling of that
13-yar old structure must be
done.
About $25,000 of what it
needs to relocate its headquar
ters to a site at the corner of
Beatty and Edwards sts., to
provide ample space for
youth, welfare, social and re
ligious programs, will be pro
vided by the sale of the con
demned present headquarters
site at Fourth and Bartlett sts.
Another $137,185 will be rais
ed, the Army hopes, largely
through voluntary contribu
tions of individuals and busi
ness firms in Jackson county.
No house-to-house solicita
tion of funds is planned at all!
Three personal solicitation
groups have been organized to
make the necessary contacts
with business houses, profes
sional offices, and larger
firms and individuals through
out Jackson county. No one
is being told what to give.
Voluntary participation in
this program is essential. Be
cause this is a one-time, once-in-a-generation
o p p o rtunity
for this type of campaign,
larger than usual gifts re
necessary. That is why all
pledges to the building fund
may be paid over three calen
dar years, or four lax years,
and are tax deductible under
law.
Is this program worthwhile?
We believe il is! If it were
not for The Army, our busy
society might not take time
to properly fight hunger, lone
liness, sickness, delinquency
and despair by caring for the
poor, feeding the hungry,
sheltering the homeless, help
ing un-wed mothers, aiding
imprisoned and befriending
the friendless. This is the
Army's traditional role in our
community and country.
But the Army needs to have
proper facilities from which
such programs can be offered.
We now have the opportunity
. . . for the first time in 72
years ... to show in full mea
sure how much we appreciate
the work the Army has done
and will do in the Rogue Val
ley. Jennings Pierce
fi:)0 North Central ave.
Medford.
Camp Funds Needed
To the Editor: Every sum
mer for the past three years,
one-third of the 000 adult res
idents at Oregon state's Salem
Fairview Home for the men
tally retarded lake a brief
vacation. They work hard
during the preceding 5 1
weeks, preparing food, grow
ing crops, tending their physi
cally handicapped fellow pa
tients, and keeping up the
Home - thereby saving t a x
money - hence deserve a res
pite like the rest of us.
But even that modest one
week vacation may be elimi
nated unless $1000 or more is
raised by donation.
Thus far, the annual vaca
tion camp for the retarded has j
been financed with contribu-!
tions from civic organizations
and individuals, to defray the
minimal cost of $:i to main-i
tain one patient for one week
at the camp site in Silver
Falls State Park, east of Sa
lem. The iimiu y goes In rent
the site from Salem's YMCA
and to pay modest wages to
camp counselors collece stu
dents and Fairview staff mem
bers. The session ji' concluded,
affording vacations In 150 in
mates per week, w-as super
vised by Mrs. Daphne
Schatnck. Fait view's rrcrca-, nouses, and for a shew make
lional director II ran from I lnng prayers: Ihe same shall
June lft-211, and depleted all I receive creator damnation. '
funds plus creating a $1000 tLukc 20 4H. 47)
deficit. "And when thou praycsl.
Now there is no money for thou siialt not be as the hypo
next year, and won't he until : critos arc: for they love to
we nquioate wnat we owe lor
-
Vnitcd ates iTVm Mexico. t
On one side of the line are
prosperity and comfort. On
the other side are poverty and
want.
Yet 0 .
The soil on both sides i
THK SAME. Tie climate on
hoth shie.v t the ;nic The
only diflrretn o lies in i he
way of hf' of .he people The
way of ht of ihe people
mfhiemef, t.i"ii;ly hv the
kind nf n.n eminent the r'v
pie li e under,
difference.
this year. Everyone interested
may send funds, in any
amount, to the Oregon Asso
ciation for Retarded Children,
nnarkeet 'Camping Fund.'
Mrs. Jean Schreiber,
rVesicifnt, Orngon Assn.
ir Retarded Children,
Portland rd.,
fMDM, Ore.
T tke Editor: Much has
iraM stats! fniut old age hospi -
tar! iMtaw in Washington. As
pel notkifcg has been done
aViut it.
The HinvfrAnderson bill has
been, tosses! back and forth
for seme time. In due time
it will end up in the waste.
paper basket.
One of our local poltiticians
Wednesday said that private
insurance programs have fail
ed to provide adequate medi
cal care for older people and
therefore "it is entirely prop
er and necessary for the gov
ernment to initiate a program
that will do it."
Quite true. This politician
may be sincere, yet again, it
may be a scheme to pick up
a few extra votes at the com
ing election. If elected, the old
age hospital plan may end
Mp also in the waste basket.
The King-Anderson bill if
passed is to be sponsored by
Social Security, another bur
den for us steady workers.
also another step toward So
cialism
Not only the old timers
need a hospital plan but a
great many people in the low
earning, or I might say, in
come bracket with a family,
need one also.
Yet most hospital plans.
insurance, costs the average
man with a family, from $6.00
to $14.50 a month, depending
on what type policy he car
ries. Any policy is expensive
for people in the low income
bracket.
I talked with a great many
people who have had hospital
experience in the past. All of
these people had the same
answer. The hospital plan
didn't pay all the bill. I my
self had the sad experience
of paying S500 cash along
with a hospital plan insur
ance for my wife's operation.
I would like to suggest that
we start a stale and national
lottery, the same as they have
in other parLs of the world,
lo help all the people when
hospitalized.
I will be interested to work
along with anyone on the sys
tem that I have worked out.
Howard H. Brown
807 Gilman rd.
Medford.
Gospel and ihe Court
To the Editor: I see it look
the Supreme Court to wake
up the slumbering clergymen
and our chaplains, both Prot
estant, Catholic and Jewish.
Our constitution calls for a
separation of church and
state. They, the nii.e old men
that compose the Supreme
Court, have rendered a just
decision when they barred
prayers in our public schools.
Christ's commandments, for
all new testament Saints,
"render to Caesar the things
that are Caesar's and to God
the things that are God's. And
they (the Jewr marvelled at
him." (Mark 12:17). There
fore, this s'uggests a separa
tion of church and state.
Christ's commands forbid
his apostles and disciples to
take an oath. "Bui 1 say unlo
you. Swear not al all; neither
by Jerusalem; for it is the city
of the great King. Neither
shall thou swear by thy head,
because thou canst not make
one hair white or black. But
let your communication be.
Yea. yea; Nay, nay: for what
soever is more than these
cometh of evil." (Matt. 5 34
37) "For there is nothing hid.
which shall not be manifested; j
neither was anything kept se- j
crct. but that it should come!
abroad." (Mark 4 22).
Kenrier to God the thins
thai are God's. (Mark 12:17)
New testament prayer by
Jesus Christ: "Beware of the
scribes, which desire to walk
in long robes, and love greet
ings in thp markets, and the
highest seats in Ihe synagog
ues, and the chief rooms at
feasls; which devour widnuf.s'
in Manaing in me ?,... , rnri . 1ra nripp.
gogues am? m the corners of ;
streets, that they may be I
fee" or men. enly. I say tin-,
to you. they have their
j ward. But thou, when thou
praye.-Jt. enter into thy closet,
and when thou ha.t shut thy
door, pray to thy " a t h e r
w h c h l s in ,ee re t . and t h y
Father u hu h sect I, in seeret
will reward thee openly "
Ma!! 6 .V
Pr.ners are "t in he p';t
ed m puhhe. !herrf.re ivM tn
public .ehno!
Wtpiam y Brown
11 P Sirvenj M. j
i Medford
i
a
Today & Tomorrow
By Walter Lippmann
lei New York Herald Tribune Syndicate
THE WORLD AND THE
DOLLAR
With its impressive vote on
the Trade bill, the House has
made a far-reaching contribu
tion to peace
and prosper
ity. The bill
should now go
through the
Senate with
out crippling
a mendments,
and the coun-
f try will then
have equip
ped itself lo
1 . ,.
Heal with enmino
in
Europe.
It is now fairly certain that
M. Jean M o n n e t and the
friends of an enlarged and lib
prat Cnmmrm Martnl iro nre.
vailmg over the advoeatcs 0,
an exclusive and restrictive
Franco-German Europe. The
aspects have become good
that the Six will come to
terms with Great Britain. If
so, we shall in the not too dis
tant future be negotiating for
a low tariff trading area com
prising in various arrange
ments ihe n o n-Communist
world.
TT IS PROBABLE that this
creative movement in the
Western world will acquire a
momentum which will soon
carry the trans-Atlantic part
nership to a critical problem
which will have to be solved
in the near future. It will
have to be solved if the en
larged trading arrangements
are to work. The expanding
world economy must have a
more stable and a more ade
quate world currency. In or
der to do away iHh the
chronic exchange 'roubles
which now plague sterling
Strictly
Personal
By Sydney J. Harris
tc- Ftr-ld Enterprises Inc.
FACELESS COMPANY
"Give me the old-time ty
coons," remarked my friend
at lunch. "The ruthless opera
tors who hir
ed and fired
without any
sentimentality
or hypocrisy."
"Why do you
say that?" I
asked -and
then remem
bered that he
had just been
"let go" from
a job he had held for 15 years,
after a merger between his
company and a larger one.
"Because there's nobody I
can blame, nobody I can be
angry at," he said. "And that
frustrates me, that starts my
ulcer popping again."
"Have a glass of milk and
explain yourself," I said
soothingly.
"Well," he went on. "an
you know, I worleed for a
big company. Everybody
there was pretty d-ecent.
The pay w a i good, the
working conditions were
more than tolerable. We
had all kinds of fringe ben
efits. All the executives
were warm and sympathe
tic toward your problems.
"The thing is, though," he
continued, "that they were
just as warm and sympa
thetic when they let me go.
Quite a few of us in the
smaller company were
squeezed out in ihe merger,
you know, Il wasn't our
fault, and il wasn't theirs
-and that's just the trouble,
2 guess."
"Why does that make it
worse?" I inquired.
"Somehow, it's to imper
sonal," he said. "Individual
ly, the men are all decent
there. Yet the important de
cisions are made in an im
personal way by thai lcajal
fiction, known as 'the cereb
ration.' Everybody in asa
thorily was 'sorry.' Evrfy
body tried to be 'e-eleiel,'
Each one saitt 'If it w my
decision, you woule) fcawt
been kept.'
"And that's the whole point
it was no one's decision, fa
cet that fictional character.
And you can't attack a fiction
al character; you can't artu
with it; you can appeal to its
better nature - because it has
only one nature.
"If I d been fired by an old
fashioned tycoon, who didn't
like my work or my person
ality, or the way I wore my
stand it. There would be some
thing tangible to hale or to
accept. But this wav, I feel
as if I've been smothered by
shadows and you can t strike
back al shadows."
Why do you want to strike
bark""' I asked
"Because I feel I've been
done an injustice." lie replied.
and all the executives I've
'alked to agree it Mas unjust
You know, the creed they live
by is individualism.' bu I
can't find an individual m the
mmpanv tiling to take the
responsibility for knocking!
me off "
and the dollar, there will have
to be some kind of interna
tional reserve system . which
does for the world economy
what our own Federal Re
serve system does for our own
national economy.
It has become increasingly
evident that the gold with
drawals and the so-called vul.
nerability of the dollar are
an international problem
which could not be solved,
even theoretically, b; the
United States alone. This is
not a new discovery. U was
foreseen by financial experts
during the war, and it has
been discussed actively here
and abroad since the first
serious gold crisis at the end
of 1958. M. Monnt n his
colleagues have been at work
on it for a long time, and
there is already in existence
highly effective common ac
tion by the central banks to
regulate gold movements.
There is also discussion in Eu
rope and in Washington
which looks forward to - the
pooling of the monetary re
serves of the Common Market
and from there on to an ar
rangement with the United
Stales.
WE SHOULD begin now lo
" prepare our minds for
the effort of solving the in
ternational monetary prob
lem. For while the skilled co
operation of the central bank
ers is dampening down specu
lative attacks against ihe dol
lar, there is no use hiding it
from ourselves that in the
financial markets of the world
the dollar is regarded as vul
nerable. Between 1949 and
1960 foreign gold reserves
and dollar holdings had risen
some S27 billion, and of that
amount the United Stales con
tributed more than $21 bil
lion in the form of gold with
drawals and short term liabil
ities 'convertible into gold.
The feeling in the financial
market that the dollar is vul
nerable arises from a realiza
tion that we are at the end of
a period and of a policy. For
some 13 years we have pro
moted European recovery and
as an essential part of il we
have carried out an immense
operation for the redistribu
tion of the excessive gold
slocks which we accumulated
during and just after the
World War.
rFHE operation to redistrl--
bute gold has had to coma
to an end because tinder the
rules of ihe game as, for good
but transient reasons, wo
chose to play it, it is a one
w a y street. Anyone, except
an American citizen, who has
American dollars csn convert
them into gold. On the other
hand an American citizen
who has dollars or sterling of
francs or marks cannot con
vert them into gold.
Under these rules of the
game we have invested
abroad, we have given aid
made loans abroad, we have
stationed American troops
abroad. All of this has placed
dollars abroad which can be
converted into gold on de
mand. But if, for example, a
loan is repaid, no gold can
move from Europe to Amer
ica. Until 1958 this worked well
enough because we had such
a very big stock of gold. But
as the gold slock has been
drawn down while the liquid
claims have increased, Ihe
time has come when Ilia
claims to our gold are bigger
than the supply of gold.
rpHIS does not mean, of
course, that the United
States became insolvent under
Eisenhower in 1958! Far from
it. Our investments abroad ara
very much larger than our lia
bilities. But our assets are
long lerm and they are not
convertible into gold wtiereas
our liabilities are short term,
are "hot money," and under
the rules of the game as wa
alone, except Switzerland,
play it. are freely convertible
into gold.
The dollejr is nol vulnerable
because ?rrt;nt F.i.sOnhoOor
and President Kennedy, jeint
ly or soveiilly. ere ! vie'ti
ous end resrte-iMbl thin
thry should r. Th dollar is
vulnartblt ieetut at-tai-asa.ir.j
to orwerda uniltfrr-
tly eactenfe ranriard
for tha eho! .n-Commumst
world. Th tie has come In
share Ihe burden by agreeing
on a multi lateral gold ex
chance standard. There is a
need to put an end nd thcr
is an opportunity to put an
end to the chronic exchanga
troubles in London d New
York - wt the overhanging
threats of interna: enal defla
tion, or of exchange control,
or of emergency restrictive
tariffs, or of valuation.
There is no imminent ti'i'-at
. of any ofthcse disasters. But
because iaesc disasters are
not excluded by formal and
public institutional nuasurc
- such as an international re
serve sy-tcm v,c are enter
ing what promises to be a pc
r:od of greatly rxnandirg
world Irarir and of econom;"
growth with unsteady nrrvr
and with diminished conic
dence.