THE NOME NUGGET
Published Monday, Wednesday and Friday by the
NOME PUBLISHING Co!
NOME. ALASKA
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E. P. BOUCHER . Managing Editor
CLINTON GRAY . Production Manager
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Entered as second class matter October 14, 1943. at the
post office at Nome. Alaska, under Act of March 3, 1879.
IT WES PMIENC^WAITING FOR'mE PWMS ^
U. S. Gold Measures Affect Canada . . .
IUST HOW ANY LITTLE NATION can be an island
" unto itself economically could not better be il
lustrated than by the present careful fiscal maneu
vering Canada is having to do because of our trouble
with balance of payments and the drain on our gold
reserves.
Because we have an imbalance of $3.5 billion—
not on trade, but on capital movement—we think we
have troubles. But consider Canada with a $1 billion
adverse trade balance.
Also, while we have $40 billion net in foreign
assets abroad, Canada has a net external debt of
about $17 billion.
Translate both of these to our scale and it is as
though we had a $10 billion annual adverse trade
balance and $200 billion in external debt.
But because we are concerned over the drain on
our gold and our adverse balance of payments, we are
taking measures which may worsen Canada’s plight.
The “Buy American” directive, if rigidly en
forced, could result in substantial dollar losses to
Canada—who, incidentally, buys 60 per cent of her
imports from us. . . .
The consequence of this is that the new Canadian
budget revealed recently contains several proposals
designated to make investment of American capital
in Canada less attractive. . . .
In no sense is this “retaliation” on Canada’s part.
It is simply that our two nations are in the same econ
omic boat, when we start rocking same, Canada has
to take offsetting action.
This is an important factor for the new Adminis
tration to keep in mind when it tackles the problem
of our balance of payments. We don’t want to hurt
our best customer and staunchest international friend
in the process of getting our own books squared away.
Miners & Merchants Bank of Alaska
THE FRIENDLY BANK
FULL BANKING SERVICES
To Northwestern Alaska Since 190*
— BRANCH OFFICE IN KOTZEBUE —
Defence Spending
May Exceed
Korean War Peak
WASHINGTON !/P — The de
fense budget, as revised by the
Kennedy Administration for the
next fiscal year, may approach or
exceed the peak spending in the
Korean War.
The estimate for the year start
ing next July 1, as submitted to
Congress by the Eisenhower Ad
ministration, was $42.9 billion.
Specualtion is that additions to
this may range up to $2 billion.
Such a boost would top the $43.7
billion military budget in fiscal
1953, peak spending year of the
Korean War.
At the Pentagon, Secretary of
Defense Robert S. McNamara and
his aides are working up a new
study of strategy as directed by
President Kennedy. Until that is
completed — by the end of this
month — and turned over to the
President and his budget makers,
no firm estimate of the revised
military budget can be made.
However, some preliminary
moves, made in response to Ken
nedy’s request for accelerated ac
tion in defense programs, obvi
ously will cost more money which
presumably would appear in the
revised fiscal 1962 bill.
First of these items is addition
of 55 jet and propjet transport
planes for troop and cargo air
lift.
Responding to the President’s
request, the Pentagon — like other
federal departments — is trying
to eliminate spending for items or
organizations that have become
obsolete.
But the constantly mounting re
quirements of defense virtually
assure that an increase in military
spending is in prospect.
These requirements arise out
of the unrelenting arms race with
the Communist powers and swift
strides made in weapon technol
ogy. The demands have confront
ed both Democratic and Republi
can Administrations since World
War II.
In the nearly 16 years since that
global conflict — including three
years of Korean War—the United
States has spent more than half
a trillion dollars on defense.
How Much Docs
Your Family Spend —
n 1 For What?
NEW YORK — How much
| docs your family spend — and
1 for what?
The government wants to know.
So it’s going to revise the
makeup of the cost of living in
dex last updated in 1950.
A lot of things — tranquilizers,
j for instance — have become note
i worthy items in the American
I economy since then.
And changing times have raised
many other questions, such as
whether the price of hamburger
should figure in the compilation.
The latest monthly index issued
by the government was last De
cember’s 127.5 — meaning that
prices of items listed were 27.5
per cent over what they were in
the 1947-1949 period, which is
the 100 base.
The Labor Department plans a
comprehensive survey of con
sumer spending habits because it
believes the reporting value of
some of the hundreds of items that
figure in the index may be out
moded.
The survey will start in the
New York metropolitan area.
The plans were announced by
Ewan Clague, Commissioner of
; Labor Statistics in the Depart
ment of Labor. Labor Department
j statisticians will be sent out to
j question families who have in
i comes from wages.
The government announced
some time ago that it would con
duct the survey in 27 cities this
year and 27 next year, and in 12
metropolitan areas both years.
The families — selected at ran
dom for the survey — will be
asked to give details on all their
living expenses in 1960.
EL R. Sharnbroich, Postmaster
Suffers Fatal Heart Attack
WRANGELL UR —E. R. Sharn
broich, postmaster here since 1944,
died of a heart attack Thursday
morning. He was 51.
Sharnbroich was widely known
around Alaska. He was a former
Bureau of Indian Affairs teach
er and was a past president of
the Alaska Organization of Post
masters.
Survivors include the widow
and three children.
Wcuid Modify Election
; Code’s Provisions on
IS raighl Parry Voting
JUNEAU l/P> — A bill which
would modify the stale election
' code’s provisions on straight party
voting was introduced in the
House at the request of Gov.
Egan.
The proposed statute changes
the straight party provisions in
three ways.
First, it would permit candi
dates whose names are marked
individually, noth withstanding a
straight party vote in the other
column, to receive the vote in
tended for him.
The second amendment deals
with situations where two or more
candidates are to be elected to
the same office, such as in elec
tion districts which send two or
more members to the State House
of Representatives.
The amendment would provide
that when a voter marks the
straight party square and also
marks the name of a candidate
of a different party, only this in
dividual vote would be counted.
The proposed statute also pro
vides that when a voter marks
more than one straight party
square these marks will be dis
regarded and only those marks
placed beside the names of in
j dividual candidates will be count
ed.
_
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Savings Bonds Have A Birthday
Retiring Treasury Secretary Robert 6. Anderson (left) and the new Secretary of the Treas
ury, C. Douglas Dillon, joined in ringing a replica of the Liberty Bell to signal the 20th anni
versary of the U. S. Savings "or -J p c-ram. The recent ceremonies took place on the west
sieps of the Treasury Building, opposne the east entrance to the White House. Americans now
—,.n over $43 billion in series E and H Savings Bonds. This is an all-time record high.
The Liberty Bell replica in the Nation’s capital has counterparts in every state, donaled by
i* uaing American companies as a feature of the Independence Savings Bond drive in 1950.
State governors, as honorary bond <h. .;’ : i r \ • .r or forces with similar bell
ringing ceremonies this spring.