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LET’S THINK ABOUT
THANKSGIVING
AGAIN YOUR NX OFFERS SUGGESTIONS
FOR THANKSGIVING DINNER
—-pa
★ SWIFTS FULLY COOKED HAMS
★ GRAIN FATTENED YOUNG BEEF
★ TENDER YOUNG OVEN READY TURKEY
AND READY STUFFED TURKEYS
★ ROASTING CHICKENS AND FRYERS
AIRBORNE cut flowers
Carnations Chrysanthemums Pompoms Roses
Brighten up your Thanksgiving table with fresh flowers
AVOCADOES YAMS GRAPES FRESH MILK
BANANAS SQUASH GRAPEFRUIT EGGS
CHESTNUTS LETTUCE MELONS
CRANBERRIES PARSLEY PEARS
CAULIFLOWER RADISHES SPECIAL ICE CREAM
CARROTS TOMATOES SPECIAL PASTRIES
CABBAGE SWEET POTATOES
GREEN ONIONS
CORN ON THE COB
LAST BOAT FRESH MERCHANDISE
APPLES ONIONS JELLIES
ORANGES POTATOES TABLE BEVERAGES
CANNED FRUITS
Full Line of Frozen Foods and Vegetables
u i • rt H r '*•*'* * * « ■%.
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YOUR PARTY DRESS AND EVENING WEAR
WITH ACCESSORIES
We have the platter for the turkey that you need
with a Thanksgiving picture of the Pilgrims.
1 ,et*s all be thankful for that which we have.
CLOSED ALL DAY MONDAY, ARMISTICE DAY
NC COMPANY
Alaska'! Pion»«r Merchant
Good as a Dollar—How Good Is It?
By MELCHIOR PALYI
Dr. Melchior Palyi, author of this issue of Spotlight, is an American
citizen of Hungarian descent, an internationally recognized educator,
author, economist and financial expert. In Europe he taught at the
Universities of Kiel, Goetingen and Berlin; in America, at the Univer
sities of Chicago, Wisconsin and Northwestern.
Second in a series of three articles.
GOLD VS. LIABILITIES
Why should an American want
gold in lieu of U.S. dollars—the
world’s strongest currency, backed
by the greatest gold reserve and
the most formidable productive
capacity? With a balance of trade
that is favorable year after year
to the tune of four to five billion
dollars, we should be gaining gold
constantly. And, we are the No. 1
creditor country, not a debtor
nation; on balance, the world
owes us some $15.2 billion. What
then, is there to worry about—
unless something entirely unpre
dictable should occur?
That is just the point. The ques
tion is not how strong the dollar
is wfien everything goes well. The
question is how would it stand up
under pressure? The kind of pres
sure that a statesmanly approach
much take into consideration may
arise for several reasons.
War, For Instances
For example, even a minor in
ternational conflagration could
bring about a deficit in our na
tional budget which is scarcely
balanced in thg biggest boom of
all times—implying the threat of
a fresh price inflation and sub
sequent devaluation. Nor is it for
gotten that the dollar had been
blocked and devalued before.
What matters is not whether
this is likely to happen again.
What does matter is the fact, and
it is a fact, that the possibility of
“tinkering with the currency” is
not being discounted.
Abroad, it is widely assumed
that sooner or later the dollar will
I be amputated again, if only to
avoid an otherwise (allegedly)
unavoidable world-wide slump. In
any case, foreign- owners of dollar
balances, mostly central banks
and commercial banks, are very
sensitive in this respect. In the
Korean “crisis,” without any pan
ic or run, we lost amolst $2 Vi bil
lion of gold that has been either
earmarked for foreign account
—put into safe deposit boxes, as
it were—or taken out of the coun
try.
U.S. a Debtor Nation
That brings us to the crux of
the dollar problem. While statis
tically a creditor country, we are
a debtor nation for all practical
purposes. All but a bare five per
cent of our $42 billion invest
ments abroad are of the long
term type; the major part repre
sents the direct ownership of land,.
plants and mines, Even our port
folio investments are largely un
salable; at any rate, most foreign
governments prohibit the massive
transfer of the proceeds from such (
sales.
And how much even of our $2.2
billion short-term balances abroad
could be liquidated—and trans
ferred—in a pinch is anyone's
guess. But what we owe on short
term accounts, $13.7 billion at
latest count, is "liquid”; wc have
to pay in gold if we are asked to
do so. Wc could pay, thanks to O'
gold reserve of $21.7 billion, if it
were not for a few more claims
on the reserve.
Mortgage on the Reserve
A large amount of dollar notes
is being hoarded or is floating
abroad; how many is a matter of
conjecture. They surely mean an
additional mortgage of several
billions on our gold reserve. Then,
about $6 billion of foreign money
is invested in American securi
ties, mostly of the high-grade type
which could be solSfcon the stock
exchange, the proceeds to boost
the foreign-owned short-term dol
lar balances. All of which still is
not the whole story. Some Araer- '
icans might want to “hedge,” too,
if they see our gold stock dwin
dling.
Of course, to draw gold from
the Federal Reserve is the exclu
sive privilege of foreign central
banks and treasuries. But the
frightened or cautious American
capitalist could help himself if he
wanted to by sending his dollars,
say, to Canada where they can
buy gold. The U.S. dollars would
return and swell the Canadian
balances at American banks. How
far such a run on the dollar might
go if it once gets under way?
The salient fact is that our
colossal gold reserve of $21.6 bil
lion—is not ours at all. Virtually
every cent of it is pledged to for
eign creditors, leaving aside the
potential claims of those “smart”
American operators who might
turn into foreign creditors.
ANNOUNCING |
^HE DINING ROOM of the
BERING SEA CLUB |
Has started New Fall & Winter Hours -
==s
SPECIALIZING IN - - -
The Finest Steaks and Sea Food
RESERVATIONS WELCOMED
For Banquets . . . Functions,
or Parties ... of any size
DINE AND DANCE - - -
--- AT YOUR LEISURE
Hours - ■ 5 p.m. to Midnight
Effective Wednesday, October 17