Changes Urged so (odd Reserve T^o
Longer Required as Currency Backing
By Sam Dawson
Iff) Business News Analyst
NEW YORK Iff) — Gold and the
United States’ law about it seem
sure to be high up on the topics
for debate when the new adminis
tration takes over in about five
weeks.
The question: Should we keep
a gold backing for our dollars—
even when you can’t get gold for
your dollars?
Changes in the present law are
being urged every week or so.
Some want it eased consider
ably, so that a gold reserve would |
no longer be required as legal
backing for our currency.
Others want the law tightened
so that foreigners—or Americans
operating from abroad—couldn’t
drain gold out of the treasury’s
stock as easily as now.
And a hard core of gold-stand
ard men want the law junked al
together and would have us go
back to the days when every dol
lar was backed by gold, and free
ly exchangeable.
Gold always has been one of
the most controversial subjects in
American politics. It could be
come so once again.
The law passed in 1934 as a de
pression measure set the price of
gold at $35 an ounce, devaluing
the dollar in the process, and
made it illegal for American citi
zens to buy or own it save as
jewelry, household articles, anti
que coins, or for industrial pur
poses. It allows other nations and
their central banks to turn in any
spare dollars they may have—
and they have a lot right now—
MAZONNA’S
General Merchandise
OPEN 9 TILL 6
PROFIT SHARING STAMPS
"Get 'em Here—
Redeem 'em Here!"
Fresh Seal Meat
Dried Salmon
Seal Oil in Bottles
if FREE DELIVERY *
for gold at the rate of $35 an
ounce.
The most recent attack on the
law has come on the rule that a
gold reserve must be held equal
to 25 per cent of the bank notes
and deposits that are counted as
American currency.
This reserve is about $12 bil
lion of the current total gold hold
ings of about $18 billion. This
leaves free about $6 billion to
meet foreign obligations, and these
now total close to $20 billion.
If all foreigners decided at once
that they wanted gold instead of
dollars or U. S. securities, the
treasury would have to suspend
gold payments. Such a run is held
most improbable.
A leading American banker and
the head of the International
Monetary Fund have urged doing
away with this gold reserve rule
as outdated and as a drag on U. S.
international financial dealings.
Henry C. Alexander, chairman
of Morgan Guaranty Trust of
New York, holds that since U. S.
citizens can’t turn in their paper
money for gold, the reserve is of
questionable value to them, even
psychologically, and that all our
gold should be held merely for
the settlement of international
transactions. He argues that sound
money isn’t really based on gold
reserves but on prudent manage
ment of federal finances and on
efficient production of American
industry and trade.
Opponents of any tinkering with
the 25 per cent legal gold reserve
argue that it would undermine
world confidence in the dollar,
would only encourage inflationary
financial policies in Washington,
and might make Americans them
selves wonder about the value of
their paper money.
Numbered Duplicate Stub Tickets
For Sale at The Nugget
riniirin yai u niimi w Bill
I CALL MAIN 65 for
Arctic Sanitary
Service
" a—a— —— ——fl
BOWLING
GIFT
SUGGESTIONS
BAGS
• BALLS
• SHOES
Orders must be in immediately for Christmas delivery
and of course
Gift Stock Certificates
at
AUKRUK LANES
Your Brunswick Supplier for Nome
King of Belgians Weds
Spanish Dark-Eyed Beauty
BRUSSELS, Belgium UP) — King
Baudouin of the Belgians Thurs
day married a dark-eyed Spanish
aristocrat in glittering ceremonies
that saw the nervous bride close
to tears as she ran into difficulties
with her 20-foot train.
The 30-year-old king wed Dona
Fabiola in two colorful and deeply
moving ceremonies—the first in
the throne room of the palace of
Brussels, the second amid religi
ous splendor in the medieval
church of Saints Michel and Gu
dule.
In a postwar world where royal
ty has taken some hard knocks
the people in the street shouted
as of old: “Long live the king!
Long live the queen!”
A smiling confident Baudouin
constantly comforted his bride
with whispered words and gentle
pats on the hand.
Princess Margaret’s husband, I
Antony Armstrong-Jones, couldn’t |
immediately find his seat at the:
civil ceremony.
A television cameraman drop
ped a heavy lens on the floor of
the palace throne room.
But Fabiola’s 20-foot long train
caused constant trouble.
Joseph Cardinal Van Roey. Bel
gium’s highest Roman Catholic
dignitary, repeated the service in
French.
Among those looking on were
King Olaf of Norway, Queen Jul
iana of the Netherlands, ex-King
and Queen Umbert and Marie
Jose of Italy, ex-King Simeon of
Bulgaria and Queen of Romania.
Also, Britain’s Princess Margaret
and her commoner husband, An
tony Armstrong-Jones.
Dr. Lee McKinley will return
Dec. 30, remaining until Jan. 3.
pcwjfw-r'i - T!
Nonstop Flight Bomber
Could Have Done Better ,
LOS ANGELES (41 — A swept
wing B52G bomber which flew
10,000 miles without landing or
refueling could have done even
better if it had carried its two
Hound Dog missiles, the pilot
says.
Even so, the Air Force plane
set a world record for a flight
over a closed circuit, meaning it
was subjected to head winds as
well as favorable winds.
The eight-jet B52G can carry a
nuclear bomb and two Hound
Dog missiles, but they were not
aboard for the flight completed
Wednesday after 19 hours and 45
minutes in the air.
“The Hound Dogs’ jet engines
would have given us extra
thrust,” said Lt. Col. Thomas R.
Grissom. 36, of Cory, Ind.
Average speed was more than
500 miles per hour. The plane flew
across the United States from
Edwards Air Force Base, Calif.,
to Newfoundland, then across to
Alaska, back to South Dakota and
home to Edwards.
Pre-Christmas
SALE
December 17-24
10% OFF
on
MENS
Filson Jackets
Woo! Sweaters
LADIES OR GIRLS
Jackets
Bulky Sweaters
Boys Shirts
Sleeping Bags
With Liner
J & L Trading
Post Ma J
1
It’s so very easy to be 1
THRIFTY
when we do your washing
You're sure to save at our low
prices. Service is fast. Bring
in a bundle soon!
NOME U-WASH
— PHONE BLACK 1 —
— MACHINES DO YOUR JOB!
PARKA SALE I
| ENDS MONDAY, DEC. 19 |
| SAVE * SAVE » SAVE * SAVE * SAVE ♦ SAVE Q
1R A B B I T
Infant Sizes 1-3 Was $ 29.50 Now $ 22.12 ^
Children Sizes 2 *■ 3 Was 39.50 Now 29.63 [w
Sizes 4-5-6 Was 49.50 Now 37.11 n
Sizes 8-9-10 Was 59.50 Now 44.61 wl
Ladies Sizes 10 - 20 Was 79.50 Now 59.61 m
MOUTON m
Children Sizes 2-3 Was 39.50 Now 29.63 fl
Sizes 4-5-6 Was 53.50 Now 40.14 H
Sizes 8-9-10 Was 64.50 ]\0w 48.38 U
Ladies Sizes 10 - 20 Was 89.50 Now 67.11
GREYFOX fj
Ladies Sizes 10-20 Was 179.50 ]\ow 134.61 %
HAIR SEAL I
Ladies Sizes 10-20 Was 215.00 Now 161.26 3
Hairseal Trader Coats Men’s was $215.00 Now 161.25 W
Sourdough Jacket Men’s was $i69.oo Now $126.75 g
Muskrat Parka Man’s was $245.00 Now $183.75 H