Europe's ‘’Managed Money* Policies
Puts U.S. Gold Standard ‘on the Spot*
(From July Mines Bulletin! j
Even with amendments to the
Murray Gold Bill (S590> and the ■
similar companion bill by Rep. W.
Baring of Nevada, the U.S. Trea- :
sury has turned thumbs down on
any subsidy for domestic gold
miners, regardless of the amount
per ounce. The amended bills
pointed out more clearly that
these are subsidy bills, but the
treasury says that the objections
contained in its original report ,
on S. 590 still holds good.
An editorial in the June issue j
E. & M. J. on the Discipline of ;
Gold in the ‘New Era’ by Elliott j
V. Bell, editor and publisher of j
“Business Week” said the U. S. j
faces a “new and critical era.”
Principal reason, he said, was;
the persistent drain on gold and
dollar assets required to settle
deficits in international payments. !
During the 1949-58 period these
deficits averaged about $ 1.5-bil
lion per year. In 1958, he said,
the deficit suddenly jumped to
S3.4-billion, and in 1959. to $3.7
billion. Further comment by Mr.
Bell is quoted as follows:
"The United States program of
international assistance has been,
in effect, like a huge pump-prim
ing program, conducted on a glo
bal scale. It has financed a tre
mendous foreign demand for Am
erican goods, and it has made pos
sible the rebuilding of Europe’s
industrial plant.
“Obviously when this great out
pouring of dollars comes to an
end, world trade will lose some
thing that has been a prolonged
and powerful stimulus. There
will, I think, no longer be room
for doubt that the era of world
wide post war inflation is over;
the big question will be whether
deflation must inevitably follow?
“Now, why must our great glo
bal pump-priming program that
has done so much good be ended;
“No country, not even the U.S.,
can keep on giving away its
money to foreigners forever with
out reaching the bottom of the
barrel. How soon the bottom of
the barrel is reached depends on
two factors: one, the willingness
of foreign central banks and gov
ernments' to keep on accumulating
dollar balances without asking for
gold; two. the reserves of gold
IN THE SUPERIOR COURT OF THE
STATE OF ALASKA
SECOND JUDICIAL DISTRICT
NOTICE TO CREDITORS
No. 00-21-P
IN THE MATTER OF THE ESTATE OF
CARL OSCAR HENNING JOHNSON.
deceased j
NOTICE IS HEREBY GIVEN that Bon
Valjean Davis of Nome. Alaska, has been
duly appointed Administrator of the Es
tate of Carl Oscar Henning Johnson, de
ceased.
All persons having claims against said
estate shall present them, in proper legal
form, with vouchers attached to the
said Administrator at Nome, Alaska
within a period of six (fit months from
the date of this notice.
Dated this 7th day of July, 1960
BON VALJEAN DAVIS.
Administrator
Virgil D. Vochoska.
Attorney at Laic
Attorney for Administrator
/ ( \ \
t '
\ \. / /
\ Ever-widening circles / j
of discriminating Westerners / /
\ are discovering. Water"
*°iy makes Olympia
^ refreshingly
/ different
available should it be asked for.
"At present we have left about
$ 19-bi llion in gold, a very large
sum, and far more than any other
country has. However, foreigners
now hold just about S19-bil lion of
short-term dollar assets for which
they could demand gold.
“This brings us 1o the most im
portant reason why our balance
of payments deficit is disturbing.
Any substantial conversion of
foreign dollar balances into gold
would have a restrictive effect
upon our economy. Under the
workings of our money system,
gold withdrawals tend . to reduce
the money supply, tighten credit
and bring about deflation. This
is the discipline of the gold stan
dard. Under the gold standard,
nations which pursued loose fiscal
policies, had persistently unbal
anced budgets or persistent de
ficits in their international bal
ance of payments, soon found
themselves losing gold and had
to mend their ways promptly or
risk being forced off gold.
“In the period of world-wide
depression in the 19.10's, this gold
standard discipline proved insup
portable and country after coun
try abandoned the gold standard
and adopted ‘managed money’
polices. They were willing to let
the external, foreign - exchange
value of their currencies fluctu
ate in order to be free to take
whatever steps they wished to
maintain economic stability at
home.
“Now all of the principal coun
tries of Europe have stabilized
their currencies. In effect, the
world has returned to a gold ex
change standard. Since the United
States has maintained from 1934
a fixed price of gold at which
it will sell to foreign central
banks and governments, most I
countries keep only part of their
reserves in gold and a large part
they keep in dollars. The dollar
has thus become the principal re
serve currency of the world. As
such it will be narrowly watched
and there must be absolutely no
question about our ability to meet
instantly in gold all demands that
may be made on us.
“The practical consequence of
this is that, for the first time in
a quarter century, the United
States has lost the freedom to
take whatever fiscal or monetary
measures it sees fit to maintain
domestic economic stability. For
the first time since the early
1930’s we are subject to the dis
cipline of the international gold
standard.”
ij CALL MAIN 65 for
I Arctic Sanitary
I_Service_j
Shishmaref 'Mission{
()I>serves .SO Years
Of Serviee Sunday
The Lutheran Congregation at
Shishmaref marked its 30th birth
day Sunday.
It was in July of 1930 that Rev.
Elmer H. Dahle, his wife Inge
borg and children Ben Morris
and Kiatcha landed on the beach
there with materials and began
construction of the mission.
The structure was erected with
local help and since then has
taken an important place in the
community life.
Rev. Dahle died of a heart at
tack last February while serving
this third term at the mission he
founded.
Guest of honor at the festivities
was Miss Arna N.iaa, executive
secretary of the Lutheran Daugh
ers of the Reformation of the
Evangelical Lutheran Church.
This organization has supplied the
funds for the establisment and
operation of the Shishmaref Mis
sion and for 24 of the past 30
years it has been headed by Miss
N.iaa. She was principal speaker
and brought greetings from the
church headquarters in Minnea
polis.
The anniversary sermon was
delivered by Rev. John Maake
stadt of Our Savior’s Lutheran
Church of Nome, who served the
Shishmaref congregation from
1955 to 1958.
Rev. Norval Hegland, Mission
superintendent was chairman of
the observance. Miss Helen Frost,
i who has served for almost 30
years in this area, is the mission
ary in charge at Shishmaref.
Former Soviet President
Resigns From Presidium
LONDON, iff>—Klementi Voro
shilov, 80-year-old former presi
dent of the Soviet Union, resigned
Saturday from the presidium of
the Communist party. Moscow
radio has announced. The presid
ium is the party’s ruling body.
The aging marshal resigned the
presidency in May because of
failing health and was replaced
in that post by Leonid Brezhnev,
53.
Office: Res.
Black 76 f Main 52
Call . . .
ARCTIC OIL
DELIVERY
— AUTOMATIC SERVICE —
Stove Sm Furnace
oil on
GOP 7_.eader Derides Demo Ticket
WASHINGTON, M — Charles
A. Hallcck of Indiana. House Re
publican leader and 1960 GOP
National Convention chairman,
derided the Kennedy - Johnson
ticket as a cynical combination
housed under a “preposterous”
Democratic party platform.
“Combining Sen. Lyndon John
son, a veteran conservative, on a
ticket with Sen. John Kennedy, n
fledgling liberal, represents a pol
itical deal made with callous dis
regard for party integrity and
principle,” Halleck said.
Democrats Set Collapse Record
LOS ANGELES, UPi—The Demo
cratic convention broke an all
time record at Memorial Coliseum
Friday: 100 persons collapsed
from the heat during the big Ken
nedy-Johnson rally.
The - previous record was 42,
last year during a World Series;
game. The day's maximum tem
perature was 92 degrees.
Hoi Time In Old Town of Moscow
MOSCOW, (f*—Monday for the
fourth straight day. Moscow
broiled in 93-degree heat — and
this city was not built for torrid
weather Citizens in their homes
and buildings, often behind mas
sive walls and without benefit of
air conditioning, say there hasn't
been such heat in this old capital
since the Czarist year of 1905. The
Russians had a revolution that
year.
Japanese Government Leaders
To Get Extra Police Protection
TOKYO, if)—Extra police pro
tection was ordered for top Japa
nese government leaders follow
ing the stabbing of retiring Prime
Minister Kishi by an elderly ex
treme rightist.
Police were reported particu
larly concerned not only over the
safety of the new conservative
standard bearer, Hayata Ikeda,
but for a number of lel'twing lead
ers ol parliament ton.
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