Elacial Situation
WHAT IS DOLLAR DEVALUATION? II
(2nd in a Serial of 5 Columns)
"Devaluation of the dollar would be as shattering a
blow to U.S. power, prestige and health and to the well
being of every American as a takeover of the entire U.S.
by the Russians," one of the nation's top currency experts
said to me in an off-the-record talk the other day. "It would
mean instantaneous disaster for the foreigners who own $20
billion of dollar claims today and it would lead to a com
plete breakdown of our entire international financial sys
tem." In less dramatic words. President Kennedy, Treasury
Secretary Dillon, Reserve Board Chairman Martin to
name just a few have said the same thing on-the-record
and there is no possibility whatsoever that we will devalue
the U.S. dollar in the foreseeable future.
Nevertheless, fears about devaluation are spreading as
we continue to spend far more abroad than we earn abroad,
as the deficit in our balance of payments remains danger
ously high, as foreign claims against our gold reserve mount,
as our gold supply sh-rinks. Here's an attempt to translate
the devaluation bafflegab into our words.
Q. What it devaluation of the dollar?
A. The dictionary definition of devaluation it "to
diminiih the value of something." In the case of the
dollar, if we devalued, we would diminish its value in
lermi of gold and also in terms of other currencies
assuming other nations did not immediately copy
us and devalue their monies to precisely the same de
gree as we did the dollar.
We would devalue by rising the price at which the
U.S. Government stands ready to buy from or sell gold
to any qualified foreign government or banks or interna
tional organization.
The price of gold today is $35 an ounce and it has
been frozen there since we last devalued in 1934, almost
30 years ago. Say we raised this price from $35 to $70 an
ounce. The gold value of the U.S. dollar would be l70th
of an ounce instead of l35th. The dollar would have been
devalued by half.
Q. How could devaluation be achieved?
A. It could be done only by an act of Congress. Under
the Bretton Woods Agreements Act of 1945, the President
cannot even propose devaluation unless Congress first gives
him the authority to do so, and even a rumor of this re
quest would plunge the free world into monetary chaos.
Also we would have to obtain the approval of the Inter
national Monetary Fund, to which we and most nations
of the West belong, for all member countries have pledged
not to make any major change in the value of their cur
rencies without the IMF's okay.
Despite widespread belief to the contrary, the dollar
could not be devalued by any "stroke of the pen" deal:
Q. Why does anyone favor dollar devaluation?
A. Because our foreign creditors have such enor
mous dollar claims against our gold reserve and our
hoard has been shrinking, the proposed "solution" is
that we write up the value of gold so we'll have a
"profit" and so will all other countries owning gold
the basic precious metal that backs paper curren
cies today.
If we raised the price of gold from $35 to $70, our
$15.6 billion gold reserve would be worth $31.2 billion. We
would have doubled the amount with which to settle claims
against us. At $70 an ounce, our gold would be a much
Jess attractive buy to foreigners.
Because our dollar's value in other currencies would
be cut in half, the cost of our goods to foreigners would
be cut in half too. Theoretically, our exports would be twice
as attractive, and theoretically this would boost our sales
abroad. At the same time, the value of a dollar to a for
eigner would be cut in half and the cost of goods we im
port would be doubled. Theoretically, imports would be
much less attractive and we'd be less eager to buy im
ported goods. For instance, a German car costing $2,000
or 8,000 marks would cost $4,000 for the same 8,000 marks.
All this assumes other countries would sit by and let
us devalue our dollar by ourselves and not follow suit.
They could not sit by and let us do this which is
why a unilateral devaluation by che U.S. is unthinkable.
Circuit Rider To
Be Returned To Park
Salem -IUPU- Oregon's cir
cuit rider was scheduled to re
turn to the Capitol park this
afternoon to resume a stand
taken on April 19, 1924.
The bronze statue of a cir
euit rider atop his horse was
toppled and smashed by a
falling tree during last year's
Columbus Day storm. The rid
er's head was crushed, seams
iplit, and mounting bolts
itripped.
It cost $5,400 to have a new
head recast and other repairs
made by Vancouver, Wash.,
gculptor James Lee Hansen,
the secretary of state's office
announced.
The Oregon National Guard
and Highway Department
loaded the statue on a special
truck for the return to Salem
this morning.
No special ceremonies were
planned for its return.
Phimister Proctor created
the statue which was a gift of
Robert A. Booth, former state
senator and Oregon pioneer.
The statue was unveiled April
19. 1924.
Senate Extends Aid
Funds for Airports
Washington -WH- The Sen
ate, beating back an economy
drive, voted Monday to ex
tend for three more years the
current authorization of S75
million annually in federal
aid for airports.
The Senate rejected 64 to
14 a move by Sen. William
Proxmire (D-Wis.) to cut the
program back by one third,
or to $50 million a year.
The following funds would
be allocated, to states on a
JO-30 matching basis in etch
of the next fiscal years begin
ning July 1. 1964:
Oregon, S901.766: Idaho
Hf57.532; Washington S873,-
Your Money's
Worth
By SYLVIA PORTER
Copyright, Hall Syndicate, Inc.
iii liniiij
Customers Say
They Like Poly Clean
DRY CLEANING
Bright Clean Results
Everytima
COURTEOUS
on Duty to Assist & Advise You
8 a.m. to 9 p.m. DAILY
POLY CLEAN C
AIR CONDITIONED COIN
Brothers Killed in
Light Plane Crash
Puyallup, Wash. iUPD- Two
brothers were killed when
their light plane crashed into
trees at the south end of the
runway at Thurn Field early
today.
They were Al and Wayne
Wiles, both of Puyallup. Al,
35, was piloting the Stinson
four-placer when it crashed.
Pierce county sheriff's dep
uties said the plane either hit
a fog bank and then went into
the trees or the plane's motor
stalled as the craft went into
a turn.
Hatfield Appears
'Calm' on Filmed
Television Show
Salem-lUPll-Gov. Mark Hat
field and newsman Charles
Collingwood will appear calm
and relaxed at 10:30 p.m. Fri
day when "Portrait" is broad
cast over CBS-TV.
Their apparent calm belies
the electric air of frantic ac
tivity which surrounded the
taping of the program at Hat
field's home here Monday.
Scores of cameramen, di
rectors, producers, technic
ians, and truckloads of equip
ment converged on the north
west corner of High and
Kearney streets early Mon
day. Lights were installed, furni
ture moved, cameras placed,
microphones set up.
Crowd Gathers
The Hatficlds. who were
away for the week end, met
Collingwood in Portland in
the morning. They arrived in
Salem shortly before noon.
Streets were blocked off
while pictures were taken of
Graham Calls for
Start of New Fad
Los Angeles - IUPU - Evange
list Billy Graham Monday
night called on the youth of
Southern California to start
a "new fad" of religious de
votion. "This could bring about a
youth revolution which is
needed desperately in our
country," Graham told 42,
108 persons attending the
10th meeting of his current
crusade, which ends Sept. 8.
"As a group of young revo
lutionaries, you could turn
your world upside down," he
said. "You could play a part
in the history of our times."
Noting an increase in teen
age crime, Graham said there
were "thousands of lfi-year-old
failures in American life"
whose problems were "basic
ally spiritual."
"If ever the church needed
to make the Gospel relevant
to the teen-ager, it is today,"
he said. "These young people
are looking for something to
believe in, something to which
they can commit themselves."
Odor Free
Wrinkle-Free
PERSONNEL
rr CT
w
MldFORD maii. thibuhe. MEDf ORDi OHEGON
in Nation's Capital a
Editor's noie: What kind
of city will civil rights dem
ontrators find when they
stage their "March on
Washington" Wednes day.
The following dispatch re
reports on the capital's
racial situation.
By LOUIS CASSELS
United Press International
Washington - IUPU - March
ing on Washington to call at
tention to racial problems is
like carrying coals to New
castle. The nation's capital already
has plenty of racial problems
of its own.
It is the only U.S. city in
which Negroes outnumber
their house. Crowds of on
lookers gathered.
Mrs. Hatfield had left in
structions to prepare lunch
for 14. She ordered a quick
change, and 40 were fed.
After lunch the taping of
the interview began.
A sound recorder went out,
and they had to start over.
Then a grass fire threatened
a nearby television relay, and
fire trucks roared past the
house while Hatfield chatted
unconcernedly inside.
Wife Watches in Truck
Mrs. Hatfield, still wearing
an apron from lunch, sat in
one of the television trucks
and watched the program on
a monitor.
The Hatfield living room
became oven-like from the
heat of television lights.
When it was over, a direc
tor commented on Hatfield's
relaxed air.
"I don't feel relaxed," the
governor smiled as he wiped
perspiration from his brow.
A director, after reviewing
the taped interview, comment
ed "that's the best interview
we've ever done. The govern
or is charming, and he's so
articulate."
Destroyer Collides
With Japanese Ship
Eureka, Calif.-IUPII-A Navy
destroyer escort collided with
a Japanese motorship in the
fog in Humboldt Bay Monday,
but no injuries were reported
on either vessel.
The destroyer escort USS
Edmonds, under the com
mand of LI. Cmdr. Sandy
Locheim, had been on a Navy
week end in Eureka along
with another destroyer escort
and a destroyer. As the three
ships left in the fog with vis
ibility less than 100 feet, the
Edmonds scraped the side of
the motorship Kinko Maru,
which was riding al anchor.
The Navy ship bore the
brunt of the damage with its
port side davits and lifeboat
smashed and some radar rig
ging damaged.
TOE POLY CLEAN CEMTE1
is a Clean, Comfortable. Convenient Place
to do Your LAUNDRY and DRY CLEANING
8 POUNDS of DRY CLEANING FOR 8 QUARTERS
DRESSES, SWEATERS, SUITS, SLACKS, SKIRTS, SLIP COVERS, ALL DONE IN ABOUT 35 MINUTES
Drapes a Specialty and a Sizeable Economy for You!
BIG 12 LB.
AGITATOR TYPE
RCA Whirlpool
WASHERS
25
OPERATED LAUNDRY AND DRY CLEANING
whites. Its 456,000 Negro and
344,000 white residents live
year-round in acute aware
ness of the tensions that build
up in a city when it desegre
gates at a rate generally con
sidered too slow by one race,
and too fast by the other.
Ten years ago, Washington
was a city with segregated
schools and public facilities.
Today. Negroes enjoy un
restricted access to hotels,
restaurants, theaters and oth
er public accommodations. To
refuse service to any person
because of his race is a crime
punishable by law.
The public school system
has been completely i n t e
grated since 1954.
Washington's principal in
dustry, the federal govern
ment, hires and promotes
without regard to race.
About three-fourths of the
residential areas within the
District of Columbia boun
daries are occupied predom
inantly or exclusively by Ne
groes. To white residents, t h e
change has been dizzy fast.
They grumble about Negroes
"taking over" the city. And
they blame Negroes for the
high rate of aggravated as
saults, robberies and other
crimes which have made it
unsafe to walk the streets of
the capital at night.
To Negroes, the barriers
which have fallen are less con
spicuous than the formidable
ones which still remain. They
grumble about the informal
but effective conspiracy be
tween lending institutions and
real estate interests which
keeps them from obtaining
homes in the all-white sub
urbs, and compels them to pay
outrageous prices for over
crowded housing in the inner
city. They blame discrimina
tion for the fact that Negro
incomes average only 70 per
cent of white incomes, and
Negro youths are four times
as likely to be unemployed as
white youths.
Despite their frictions and
mutual resentments, Washing
ton's whites and Negroes have
one great common bond. Both
are frightened by the possi
bility that accumulated ten
sions might blow off in a
major race riot.
This specter has haunted
the city since last Thanksgiv
ing day, when 300 persons
were injured in a Negro-white
melee which broke out in the
D. C. stadium following a
football game.
Fear of a race riot has made
responsible Negro leaders
chary of resorting to such
weapons as massive sit-ins or
picketing demons t r a t i o n s
here. And it has made re
sponsible while leaders aware
that there is no time to lose
in removing the remaining
roadblocks to equality of op
portunity. It has also made both
groups a little nervous about
Wednesday's "March on
Washington." That's why Ne
gro leaders have been at such
pains to insure an orderly,
peaceful rally. And it's one
reason why white religious
bodies have gone to great ends
to make the march a biracial
protest against injustice in
stead of an all-Negro show.
Because both groups recog
nize the powder-keg potential
of Washington, some observ
ers feel that the capital is
actually less likely to exper
ience a major race riot than
a city which is complacent
about the state of its race rela
tions. Another safety factor in the
Washington situation is the
feeling, which exists even
among the most impatient Ne
gro leaders, that the city IS
making progress, that it is
moving steadily in the direc
tion of greater equality.
Housing is the chief bone
of contention at present. Ne
groes are demanding a chance
to buy homes and rent apart
ments in the suburbs which
are now almost exclusively
white enclaves.
The District of Columbia.
69 square miles of federal
territory, today constitutes
only the inner city of the
W a s h i n g ton metropolitan
area, which stretches far out
into Maryland and Virginia,
and which has a total popula
tion of 2,200,000 persons.
In the metropolitan area as
a whole, whites outnumber
Negroes by 3 to 1. It is only
in the inner city - the District
of Columbia - that Negroes
are in a majority at present,
about 57 per cent.
Even in the district, Ne
groes are effectively barred
from the area west of Rock
Creek Park, which contains
most of the city's best resi
dential sections. There is one
swank residential section -along
16th Street Northwest -which
is now heavily occu
pied by Negroes. It is known
locally as the "Negro Gold
Coast."
But the vast majority of
Negro families live in row
houses, apartments and tene
ments in the wide arc of the
city that lies east of 16th
Street. They pay up to twice
as much as a white family
has to pay for comparable
$ $ $ $ s $
!
Double Load
TUMBLE ACTION
RCA Whirlpool
WASHERS
35
EMM
space in the suburbs. And
they don't like it
Recently the President's
committee on equality of op
portunity, headed by former
Gov. David L. Lawrence of
Pennsylvania, has been meet
ing with leaders of the priv
ate housing industry in an
effort to open up suburban
areas of Negro occupancy. A
few cracks have already ap
peared in the white cordon.
One major Virginia apartment
development (Parkfairfax) op
crated by Metropolitan Life
Insurance Co., announced this
month that it will open its
doors to Negroes.
Second only to housing on
the Negro's wants list is equal
ity in employment opportun
ity. A cabinet-level commit
tee head by Vice President
Lyndon B. Johnson has been
laying the lash on federal
agencies to upgrade Negro em
ployees, who are heavily con-
centratcd in the lower civil '
service grades. The Washing-1
t TTUnn T . i i.: l
iuii uiuciii L,t:i;ue lias aimcv-
cd major breakthroughs in re
cent years by persuading all
of the major downtown de
partment stores to begin hir
ing Negro clerks. Peoples'
drug stores, a city-wide chain
which is perhaps the largest
single private employer, now
has a high percentage of Ne
gro employees in every cate
gory, including pharmacists
and store managers.
Outside of government, con
struction is Washington's big
gest industry. Negroes are
still concentrated heavily in
the unskilled jobs, but the
Labor Department is applying
steady pressure to get con
struction trade unions to give
Negro youths a fair break in
apprenticeship training. A
few unions the operating en-
gineers, for example have
gone out of their way to
make room for Negroes, but I
others are resisting. The car
penters' union has only 20
Negroes among 4,500 mem
bers. Whites also have griev
ances. The principal one is
$$$$$$$$$$$$$$$$$
Short On Income? Long On Expenses?
Call STARK Finance Co., Medford's only home
owned, independent finance company, and arrange
for a C-A-S-H loan to take care of your fall needs
or ask about CONSOLIDATION, pay all your bills and
Stark
Phone 773-1817
$
SUPER BIG BOY
WASHERS
Cram them full, takes up to 9x12
shag rugs . . . great for sleeping
bags. Any big loads.
t
Next Door to JOHNSTON STORES
MEDFORD SHOPPING CENTER
Driyt In at tha Biddl Rood Entrance
TUE8DAY. AUGUST 27. 1163 y
Powto Keg
the high rate of street crime.
Washington is not, as some
picture it, the most crime-rid
den city in the country. Ac
cording to the FBI's uniform
crime reports, it ranks 11th
among the nation's 20 larg
est cities in its overall crime
rate.
But it docs rank first in ag
gravated assaults chokings,
muggings and beatings which
are commonly referred to as
"street crime." Last year it
had nearly 400 assaults for
every 100,000 population.
That's twice as many as New
York, four times as many as
New Orleans, and ten times
as many as Seattle, Wash.
Police statistics show that
Negroes are involved in about
85 per cent of the felony ar
rests here. They also show
that about 80 per cent of the
PACIFIC
NORTHWEST
COMPANY
Investment Securities
Sine 1921
302-3 Fluhrer Bldg.
Central and Main
Phone 773-7319
Bruct T. Mill
Registered
Representative
Telephone 773-7319 to consult with Mr. Hass or Mr. Mills on
investment and retirement programs using the securities of
utilities, banks, insurance, industrial, and Mutual Fund shares.
Other offices in Portland, Salem, Eugene, Seattle, Spokane,
Tacoma, Aberdeen, Bellingham, Yakima, Wenatchee, Walla
Walla, Kennewrck, Boise, Lewiston.
ACIF1C IvIORTHWEST COMPANY
investment Securities
Members: Midwest Stock Exchange
Correspondents of . . .
KIDDER, PEABODY and COMPANY
Members: New York Stock Exchange
have only one place to pay and one small payment.
1 phone call, I office visit and you have the CASH
you need.
Finance
Medford
2739 North Pacific Hiway
Our washers take out most of the
water. Our dryers are kept lint
clean. You dry fast and economically.
victims of crime for Negroes.
The largest number of street
crimes are committed by un
employed Negro youths who
have dropped out of school
and who have little hope of
finding decent jobs.
Some white people, includ
ing southern members of Con
gress who play an influential
role in governing the federal
city, are persuaded that the
rising crime rate is the result
of "coddling" by the courts,
and that sterner police meas
ures are the only corrective
needed.
Most Negroes and some
whites agree with the conclu
sion of the Washington Post
that "this is a poverty prob
lem, not a racial one" and can
best be attacked by providing
vocational training and job
opportunities for slum youth.
Edmund E. Hais
Vice
President
ifi
Co.
ifi
DRY
nfni
10
(2)
0