Why The U.S.
Must Protect
Its Gold Reserve
By FRANK CORMIER
WASHINGTON, —For more
than a year, the Eisenhower ad
ministration has been fussing
around the edges of the gold prob
lem. Now it is getting down to
brass tacks.
Why the sudden emphasis on
emergency action when Uncle
Sam still owns $18 billions of
gold — about half of the free
world’s total supply?
It’s largely a matter of arith
metic.
First of all, $11.5 billion of
Uncle Sam’s gold is tied up by
law. It can’t leave the country
because it backs up the part of
the U.S. money supply.
That leaves $6.5 billion of gold
to meet foreign demand—the de
mand which the United States
must satisfy at all times if the
dollar is to remain “as good as
gold.”
Since Oct. 1, foreign nations
have been buying gold at an an
nual rate of more than $5 billion.
Obviously, Uncle Sam’s gold
stockpile would run dry in a
little more than a year if buying
on that scale continued.
To guard against such a devel
opment, the Eisenhower adminis
tration has involved controversial
new policies which have two pri
mary objectives:
1. To dispel any foreign un
certainty about the dollar by
demonstrating that this country
will do whatever is necessary to
make sure the gold stockpile
doesn’t run out.
i. io reauce me aeucu in me
U.S. balance of payments. It is
this deficit—$3.8 billion last year
— which gives foreigners the
money with which to buy Am
erican gold .If there were no de
ficit, there would be no gold
problem.
Critics say something must be
done to reduce, and eventually
eliminate, the payments deficit.
Its a question of how to approach
the task.
The deficit can be pared either
by spending fewer dollars abroad
or by collecting more dollars
from foreigners.
The best way to collect more
dollars is to sell more goods and
services in foreign trade. Ex
ports in 1959 brought in $22.5 bil
lion. And the administration’s
first thought, a year ago, was to
boost exports in 1960. Exports
have advanced sharply since then
but they still fall far short of
eliminating the deficit.
Another item on the plus side
in 1959 was the repayment of
$1 billion in government loans by
other nations. These repayments
are made according to regular
scheduldes and not much can be
Army
MOBILITY FOR NIKE HERCULES. A ready-round transporter developed for Army’s NIKE HER
CULES will enable fast moving field armies to add the HERCULES air defense guided missile to its
arsenal of mobile weapon*. NIKE HERCULES will give field armies a high altitude defense capa
bility and will supplement the HAWK, a low-level surface-to-air killer. HERCULES is a supersonic !
guided missile with a range of over 75 miles and an altitude In excess of 150,000 feet. It can
carry either a conventional or nuclear warhead.
Pheasant Forces Viscount Down
PHILADELPHIA, UP)—-A North
east Airlines four-engine Viscount
with 54 passengers and a crew of
five aboard returned and made an
emergency landing at Interna
tional Airport yesterday when a
pheasant got caught in the land
ing gear after takeoff.
Passengers transferred to an
other plane.
done to increase them.
In 1959, foreign visitors spent
$900 million in the United States.
The government is tryng to pro
mote the “visit U.S.A.” idea.
Finally, foreigners in 1959 in
vested $500 million in the United
States on a long-term basis. It’s
questionable whether the U. S.
economy is growing fast enough
at present to warrant much of
an increase.
There you have the major items
which work to reduce the pay
ments deficit. There’s room for
improvement all along the line
here — but you can’t throw a
switch and expect dramatic re
sults.
On the deficit side, the biggest
item in 1959 was the $18.8 billion
which American spent to import
civilian goods and services. One
way to reduce the deficit would
be to restrict import through
quotas or higher tariffs. How
ever, that would inspire retali
ation against U. S. exports. The
government has done nothing in
this area.
The next largest item last year
was $3.3 billion in government
loans and nonmilitary foreign aid.
Here there are at least three pos
sible courses of action:
1. Eliminate or reduce the aid
and loan programs.
2. Insist that those who receive
aid or loan dollars spend them in
the United States whenever pos
sible.
3. Urge other nations to bear
part of the aid burden.
President Eisenhower has de
cided that the second and third
alternatives are necessary.
The next category is overseas
spending under military pro
grams — a $3.1 billion item last
year.
In this area, the administra
tion has ordered the gradual re
turn of more than half the 484,000
wives and' children who accom
pany U.S. servicemen to overseas
posts. Because these people spend !
millions overseas, the action is
being taken despite its effect on
morale.
Also, the government will try
to shift more military spending
to the United States and persuade
the Europeans to pay a larger
share of European defense costs.
Two other deficit-reducing pos
sibilities have so far been by
passed. Nothing has been done
to reduce American private in
vestment abroad or outlays by j
American tourists.
SPIRITUAL
TRUTHS
GLEANED FROM THE NEWS
Contributed By
NOME GOSPEL HOME
OAKLAND, Calif. — Little
Rickey Stinson, aged 10, has re
ceived a letter with real good
news from the Alameda County
Superior Court. A dear elderly
neighbor of Rickey’s who was a
cannery mechanic had recently
died and now came the news from
the court that this friend had left
250 silver dollars for his little
boy friend.
We can imagine the joy and
happiness this thoughtful gift
brought to the boy, even though
it was a small amount compared
to the other wills. Yet, the Lord
has given a greater amount than
anyone could ever give, for He
has offered eternal life to all who
believe. In simple, childlike faith
anyone can revel and rejoire in
this gift, and even though many
may not understand and they may
consider it a trivial amount, yet
we not only have the gift but
also are so thankful for the
thoughtfulness and love of our
Great Giver. “For the wages of
sin is death, but the gift of God
is eternal life through Jesus
Christ our Lord.” —Romans 6:23.
Paid Adv
Soviet Grain Found More
Radioactive Than U.S.'s
LONDON, Wt—Soviet grain im
ported by Britain contains at
least five times as much stron
tium 90 as grain from North Am
erica, Britain’s radiological labor
atory disclosed today. Strontium
90 is one of the principal by
products of nuclear fission.
The laboratory, which is a de
partment of the British Agricul
tural Research Council, said the
most recent measurements on So
viet flour showed it to be parti
cularly radioactive. All imported
foodstuffs are checked as a safe
guard to the British consumer.
LANDMARKS^
IN THE HISTORY OF I
EYE CARE |
The Code of Hammurabi,
Emperor of the first Babylonian
DYNASTY IN 2100 B.C., RECOGNIZED
THE EYE WAS SO IMPORTANT THAT
SEVERE PENALTIES WERE SIVEN
TO PHYSICIANS WHO CAUSED THE
LOSS OF A PATIENTS EYE.
Rernowned MASTER PAINTER
AND INVENTOR. LEONARDO DA
Vinci is famed in the annals of
opthalmolo&y BECAUSE he FIRST
OF ALL, COMPARED THE ACTION OF
THE EYE TO THAT OF THE CAMERA.
ABOUT ,508 HE RECORDED A
THEORY OF CONTACT LENSES.
DESCARTES EXPERIMENTED
l\ ITH THEM IN 1637.
Until spectacles were introduced in 1300,
MILLIONS OF NEARSIGHTED PEOPLE LIVED OUT
THEIR LIVES UNABLE TO SEE MOUNTAINS,
CLOUDS OR STARS. THE INVENTOR OF
SPECTACLES IS NOT KNOWN. BENJAMIN
FRANKLIN INVENTED BI-FOCALS.
A THOROUGH EYE
EXAMINATION EVERY TWO
\EARS IS YOUR BEST SAFEGUARD FOR
| PROTECTING YOUR PRsCiOJB GIFT OF
W EYESIGHT. YOU CAN GET A FREE FOLDER
fr2—’ ON EVE HEAL TH BY WRITING :
,T—r EVE HEALTH, NATIONAL SOCIETY
'\ \ Vm r<F W PREVENTION OF BLINDNESS,
l 1 11790 BROADWAY, NEW YORK 19, NX
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BEN YOUNG
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NOME l - WASH
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7ELDIN
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