MEMBER ASSOCIATED PtaESS
f VOLUME XXIX, NUMBER 93.
SEWARD, ALASKA, FRIDAY, APRIL 21, 1933.
PRICE TEN CENTS
CAUSE OF ABANDONMENT
OF THE GOLD STANDARD
The answer to the challenge of
a European combination.
That is the significance of the
United States abandonment of the
. gold standard for controlled cur
rency.
The objects of this European
combination, including more than
half the world, was to prolong and
intensify American depression; to
increase unemployment here and
to decrease it in foreign countries;
to leap our tariff walls and to
force the United States to
lower its bars to a flood of aliens,
► and to stimulate selling European
merchandise in the United States.
Leading this movement is Eng
land, with a fund of more than
three-quarters of a billion dollars
with which to manipulate inter
national exchange. This was ac
complished as follows:
Before the British pound sterl
ing was debased, its gold value
u'as $4.86. When it left the gold
standard the pound value fell one
third. It was expected a rise in
prices in Great Britain equal to the
* fall in the price of the pound would
ensue. But prices did not rise;
they were controlled. Thus a pound
valued at two-thirds its standard
gold value would purchase as much
as before. But in the United States
it would purchase one-third less.
Therefore the American dollar
would purchase one-third more in
England than it would in the
United States.
Thus, when England sold an ar
ticle in the United States this art
icle cost her, say $3.60 to manu
facture, and selling for $3.60 in
dollar in the United States, actu
ally returned the exporter $4.20.
That is why England set aside
three-quarters of a billion dollars
with which to manipulate inter
national exchange, in which many
of our international bankers par
ticipated. With this large fund it
was possible to buy American dol
lars and thus make them dear
► while at the same time forcing
the pound sterling downward to
make it cheap.
As pointed out by Garet Garret,
eminent economist, it worked out
something like this: England sells
the manufactured article in the
United States for $3.60. But she
does not buy the raw material en
f'tering into its manufacture in the
United States. She seeks some
country linked with the pound
sterling and having debased cur
rency and buys there.
By thus sending her cheap-made
goods to the United States Eng
land and her commercial allies
not only undersell American man
ufacturers by offering goods for
less than the American manufac
turer can produce them, but she
is paid in American dollars. These
dollars are in the form of gold,
hence we read of “gold earmarked
► to ship abroad.'1 This gold never
*> leaves the country, but passes
from use in the United States.
With 33 countries having for
saken the gold standard one may
understand the strength of the
combination opposed to America.
It has been noted that struct
ural steel used in concrete work
beng carried on by the Federal
government to afford unemploy
ment relief, is made in England.
Cement made in England is sold
in New York for less than it can
be manufactured by American
labor, while American cement
works remain idle. Coal from Brit
ain displaces American coal, tex
tiles replace those of American
mills, along, with shoes, etc.
As all raw materials entering
into the manufacture of these ar
ticles are purchased in countries
with depreciated currency, the
difference in exchange between
England and the country from
which she purchases these rawr
materials, is profit.
Japan has been one of the prin
ciple beneficiaries of the Amer
ican gold standard. She buys
American cotton, uses it to make
canvas-top rubber shoes which
sell in 10-cent stores in the United
States, or rubber boots which may
be retailed in the United States at
60 cents per pair.
One might go on indefinitely
citing the effects of these foreign
goods on American markets and
American labor.
Thus, to meet the condition, the
United States has been compelled
to cheapen the American dollar
in international trade to halt the
pressure exerted to make it at a
premium in foreign countries.
With controlled currency capable
of being restored to the gold stand
ard overnight, the American dollar
will buy as much today as it would
prior to going off the gold stand
ard, and the change will have the
effect of opening our own factories
for American labor.
frenzied buying
NEW YORK, April 21, —Frenzied
buying from all sections of the
country sent the stock market j
ssoaring one to nine points and
utterly demoralized the giant
ticker system- Much of the gain
was detained to the finish, atho
profit taking* wa sencouritered in
the afternoon.
, WAR DEBT ISSUE
' DRIVEN BACKGROUND
; BY GIGANTIC STROKE
i -
i WASHINGTON, D. C., April 21.—
I The war debt issue has been driv
> en into the background by the
1 President’s dramatic stroke effect
; ively removing the United States
> fronj the gold standard.
> By the same token, diplomatical
, ly speaking, British Prime Minister
i Ramsay aMcoDnald, now en route
to Washington, has suffered the
loss of most of his baggage in mid-1
l Atlantic. When he sailed for this!
; country last Saturday aboard the;
Berengaria, Premier MacDonald’s J
- luggage was stuffed with bargain-,
ing points for use in securing dras
tic war revision for Europe.
The dollar disparity with the
pound, Britain’s world trade ad
vantage due to depreciated ster
Britain return to the gold standard,
i ling, and America’s desire to have
were among them.
L
MEM STOCKS SHOW
NOTABLE ADVANCE
NEW YORK EXCHANGE
NEW YORK, April 21,—Profit'
taking in late stock trading Thurs- j
day ££buked gains about one-half
aftf r an avalanche of early buying
had sent prices up one to nine*
points. Metals were notable in the
advance.
Copper jumped to six cents a
pound. Silver surged up farther
and lead and zinc made gains.
Cotton soared. Billions were added
to quoted values of stocks and
staples trading was the wildest
since palmy days of 1929 on for
eign exchanges. Sterling moved
up to $3 89 and then receded to
close at $3.83, 13 cents above Wed
nseday’s close.
ELDEST SOD FORMER
DEMUR CM HIRE
WEDS I COMMONER
BERLIN, April 21.—Prince Wil-;
helm, eldest son of the former
crown prince, became engaged to,
marry a commoner without the;
knowledge of his father or the
former Kaiser, Major von Mueld
ner, the crown prince’s adjutant,
told the press today.
“Prince Wlhelm informed neither
the Kaiser as head of the family,
nor his parents of his intentions,”,
Major von Mueldner said. He de-i
cined to comment on possible con
sequences, but the sharpness of his
statement clearly indicated Ho-|
henzollern misgivings.
IS
COURTROOM, FLORENCE, Ariz.,i
April 21.—Dr. Joseph Catton, famed
San Francisco alienist, gave unex-|
pected aid to Winnie Ruth Judd
at the condemned woman’s sanity
hearing. The pcychiatrist called
as a state witness, told the jury
that will send Mrs. Judd to a state
asylum or to the gallows that, in
his opinion, she was “60 percent
insane.” He qualified this .how
ever, by saying she suffered mainly
from “neurosis of the condemned,”
and that “her condition probably
would become ameliorated if she
was granted a commutation of
sentence.”
CHICAGO DICE TRACK
PREFARES TO REOPEN
CHICAGO, April 21—Exposition
Park, about an hour’s drive from
Chicago, is coming back to the
races.
Under the new leadership of two
prominent turf figures, Joe Cat-|
tarinich of Montreal and Robert
S. Eddy, Jr., of New Orleans, the,
mile track that was forced to close
a year ago, went ahead with plans
for spring and fall meetings in
competition to Chicago’s new half
mile strip at Sportsman’s Park.
CHIN STRAPS FOR COPPERS
CHICAGO, April 21.—Natty gold
braids were ordered for Chica
go police who will be on duty at
the Century of Progress Exposition.
Officers of the rank of lieutenant
and higher will wear the straps
and mohair braid about their caps.
FLASHING METEOR
SEATTLE April 21,—A flashing
meteor which lighted the sky in
beautiful colors was seen over
Seattle and Tacoma, also central
and Southern Washington. Wit
nesses said the burst was followed
by a roar before striking the earth.
j NEW YORK, April 21, —While'
I the dollar still fluctuated violently j
j and depreciated further in reaction
j to foreign currency, stocks and
i commodities continued to boom.
Only United States government
' bonds and equally gilt-edged fxied
l income securities were regarded in
I the buying market. Prices of com
modities and stocks were lifted to
the highest levels in months.
Trading in stocks mounted above |
7.000,000,000 shares for the great-;
est aggregate turnover since May i
1930. The Stock Exchange facili
ties were unable to cope with the'
frantic demand for “equities and
commodities’.’
EIGHT BILLIONS
WASHINGTON, D. C., Aprii 21,—
Authority for the Treasury Depart
ment to issue up to $8,000,000,000
in currency to refund the govern
ment’s floating debt during the
next five years, is provided in a
bill introduced by S^pator MaAdoo,
Democrat of California.
TAILOR-MADE Hi
PERFUMED SEATTLE
TIES ARRIVE HERE
“When the handclasp’s a little
firmer”, might be the proper way
to describe the arrival of certain
friend of Seward and the Terri
tory, as ships come and go at tke
City wharf. And no more sincerely
can this be said of any other ship
than of the MS North Star, under
the command of Capt. S. T. L.
Whitlam. Bureau of Indian Affairs,
Department of the Interior, ar
riving in Seward Thursday after
noon at 2 o’clock.
The motorship brings with her.
according to official count of the
Purser and Radio Operator, Glenn I
Bowersox, 23,013 Seattle hand
made, perfumed and manicured
railroad ties for the Alaska Rail
road. To the onlookers on the dock
the ties looked decidely inferior
to those of Alaska hemlock.
The North Star made a fast trip
nofCh from Seattle, lyng seven
hours in Ketchikan, and then con
tinuing northward. A thick snow
storm north of Yakutat Wednesday
evening called for a lay-up not
far from Cape St. Elias about 8
o’clock. She was on her way again
at 4 o’clock yesterday morning.
Three days will be required for
the unloading of the ties, and then
the North Star will return to Seat
tle. The next voyage will see her
continuing Westward into Bering
Sea with St. LawTence Island the
last port of call.
Passengers on the North Star in
cluded Mr. and Mrs. McLean, Ly
man Culver and Perry Warner.
Mr. McLean is employed by the
Alaska Road Commission at Mat
nuska; Mr. Culver is enroute to
Nome, and Mr. Warner’s destina-;
tion is Seward.
MISSION TO 0. S.
ABOARD SS ILLE DE FRANCE. I
April 21.—Abandonment of the gold |
standard by the United States I
makes former Fremier Edouard
Herriot’s misinon to Washington
infinitely more complicated, he in
dicated today. M. Herriot con
ferred for hours with Charles B.
Rist, under governor of the Bank
of France, who is accompanying
him.
They agreed the importance of
their mission had been reduced
to an informative capacity, and
that it would be impossible to ac
complish concrete results, such as
tariff or debt agreements.
SOME OPPOSITION
WASHINGTON, D. C., April 21,—
The administration’s far-reaching
money bill, giving President Roose
velt unprecedented power-for cur
rency inflation, was introduced in
the.. Senate yesterday afternoon,
and almost immediately Republi
cans and recalcitrant Democrats
girded for a battle upon the Execu
tive’s plan to launch controlled ex
pansion of currency and arming
him for impending international
conferences.
GIGANTIC TASKS OF
MANAGING CURRENCY
IMPOSSIBLE, OPPONENTS
NEW YORK, April 21,—The vig
orous program launched by Presi
dent Roosevelt strikes at the root
of what one prominent group of
economists regarded as the vital
weakness of the present economi
cal system.
Economists have long urged con- i
trol of the value of currency to!
smooth out fluctuations of price
levels and various means have
oeen suggested.
Prominent in the group are pro
fessor Irving Fisher of Yale, John
Maynard Keynes of England and
Professor Gustav Cassel of Swed
en.
Opponents to the plan say hu- j
man ingenuity is made adequate {
to the gigantic task of managing
currency; that no clear system has
ever been devised for an interna
tional gold standard. They attri
bute the breakdown to the system
to the abnormal hoard of funds
resulting from the wrorld war and
with innumerous restrictions on
movement of goods.
UN STOCKS ROSE
FIFTY PER CENT ON
SAN FRANCISCO, April 21—Four
hundred and twenty-three stocks
made newr highs for the year in
hectic trading on tde New York
Stock Exchange as the boom which
developed Wednesday on renewal
of the gold embargo continued at
a furious pace. Leadng issues ad
vanced from two to more than sev
en points.
In some, cases individual stocks
rose 50 per cent in value the first
half-hour of trading.. Tickers were
unable to keep up with the tre
mendous volume of transactions.
More than 1,750,000 shares were
sold in the first half-hour, a rate
equal to 17,000,000 shares for a full
day. _
IN LUNG FOR II fflUB
SAN FRANCISCO, April 21.—
Complaints of pains in the lung by
\Vill\am E. Estes, Sannas Mountain
slayer, were solved Wednesday at
San Quentin by Dr. L. L. Stanley
in an operation that produced a
rubber drain tube eight inches
long and three-eighths of an inch
in diameter.
The convict said the tube had
been in his lung 18 years, since he
had a pleuran operation perform
ed in Kentucky. Apparently it
had been forgotten.
_*_
HS FLASHES
MAIDEN FLIGHT
AKRON, O., April 21,—The diri
gible Macon soared into the air on
her maiden flight and a short time
later was sighted over Cleveland.
♦ Si! $ i(C
LEAD ‘POISONING’
HAVANA, Cuba, April 21, —The
bullet-riddled bodies of four young
men were brought to the city mor
gue at noon yesterday. Police re
fused to divulge any information
on the shootings.
* * * *
STORMS SWEEP OKLAHOMA
CHICKASHO. Okla., April 21.—
Storms, ranging from tornadoes!
accompanied by cloudbursts and
hail to sandstorms, swept Oklaho-j
ma within the past 12 hours, caus
ing death and large property dam
age.
* * * *
FAITH, CONFIDENCE
WASHINGTON, D. C„ April 21,—
Sweeping authority for President
Roosevelt to modify or cancel any
government contract in the inter
ests of economy was recommended
to Congress in budget setimates
that showed a $468,407,600 slash
! below the $1,083,567,500 vote by the
last Congress for independent ex
I ecutive officers, and vetoed by
President Hoover. #
WAS FISHING IN ALASKA
LOS ANGELES, April 21, —In a
telegram to Charles (Pop) f oster,
1 his manager, Jimmy McLarnin
; said he would start training at
! Oakland next Monday for his
championship fight with Young
Corbett world’s welterweight title
holder, here May 29. He said he
; had just returned from a fishing
trip to Alaska.
YOUTH RETURNED
CHICAGO, April 21,—Apparently
unharmed, Jerome Factor, 19-year
old Northwestern University stu
dent held captive by kidnappers
for $50,000 ’ raosom, was freed by
his abductors. Police believe part
of the ransom was paid but the
father denied he paid them a cent, i
— . ». ■ -
FRANCE MAY BE
FORCE!) 10 FOLLOW
LONDON, April 21, —President |
Roosevelt’s swift and unexpected
shelving of the gold standard may!
force France to follow America!
with the ultimate result of bring- j
ing about stabilization of all the'
world’s currencies on a new and1
probably reduced gold basis, it was i
predicted in informed quarters last!
night. i
Although Germany, Holland and ,
Switzerland are still clinging to |
the gold standard, France is in an I
isolated spot. At the same time,!
President Roosevelt has dealt a;
stinging blow at British domina-j
tion of international currencies by1
the exchange equalization fund, it
was admitted.
ON THEIR WAY
COLUMBUS, O., April 21,—Col- ;
onel and Mrs. Charles A. Lind-1
bergh arrived here at 10.45 p. m..
for an overnight stop on their!
transcontinental aerial inspection!
tour. They left Pittsburgh at 9:42 j
p- m.
MI'S OH
CURRIES 1 ME
Alaska’s famous one-man bonus <
committee Jack Faey of Nome, who
arrived in Seward on the SS. Ad
miral Evans from Kodiak, is on ,
the way once more to his far north
ern home where he will try to re- '
plenish the depleted poke during
the summer months. When again1,
“fat” he intends to strike south
once more to again broadcast his;
plea for full payment of the bonus I
to World War veterans.
This mission has taken Jack
into every State in the Union dur
ing the last two years and he esti
mates henas covered nearly 50,000
miles, visited more than 4,000 cit
ies and towns and has obtained
the signatures of approximately
100,000 people to his petition.
This Alaska ambassador without
a portfolio carries three cards is
sued by Congressmen Wright Pat
man of Texasi B. K. Wheeler of
Montana, and Jas. Wickersham of
Alaska, through which he has been
able to gain admittance to either
the Senate or House of Represen
tatives at Washington.
“I preach the gospel of the bon
us”, Faey informed.The Gateway.;
“backed up by authentic facts in;
support of my plea why the bonus i
bill should be paid and why. when
it is, it will be a potent factor to
ward restoration of the United}
States to an even economic keel”.;
LEGALITY UPHELD
SAN FRANCISCO, April 21,—The ,
last barrier to the financing of the j
San Francisco-Oakland Bay bridge
was removed when the State Su
preme Coust upheld the legality of
the bond issue. The decision pav-(
ed the way for the $62,000,000 loan1
for the Reconstruction Finance:
Corporation which will make con-;
struction possible.
SAN FRANCISCO, April 21.—I
Stabbing her fingers with red-hot J
needles to force her to unclench j
her hands, three ruffians tortured
and robbed Mrs. Bernice Feeney, |
aged 40, peninsular society woman, j
escaping with $5,000 in 'jewels.
Mrs. Feeneys* wire-haired fox
terrier Jerry, attacked the torture
robbers until one of them kicked
and cuffed it into a corner of the
car. "Mrs. Feeney was taken to
Mills Memorial Hospital in a seri
ous, condition from her injuries
and shock.
MAIDEN VOYAGE
SAN FRANCISCO, April 21, —
I Four long blasts of the Ferry
j building siren yesterday heralded
I the arrival in the bay of the Grace
i liner Santa Elena. The floating
! palace, Capt. Jens Nilsen, master,
completing her maiden voyage
from New York, was received here
with a symphony of bay whistles
and a delegation of city dignitaries
and a military escort by Mayor
Rossi.
j SENTE PISSES BILL
i BEES: NOW GOES TO
HOUSE CONFERENCE
JUNEAU* April 21.—The beer bill
! passed the Senate this afternoon
i unanimously after one amendment
! was made fmm the ilocr which
struck apartment house., and lodg
1 ing houses from the last of busi
! ness entitled to handle beverages
; under license.
Senator Bragaw of Anchorage
offered an amendment to put li
! censing into the hands of the
| Treasury instead of Federal dis
: trict judges which was defeated
without a record vote.
As passed, beer and wine licens
es may be obtained upon oayment
of $50 fee by common carriers, ho
tels. boarding houses, restaurant
and cafeterias; the beverage dis
pensary license for beer parlors
is $250, serving only draft beer or
in uncapped bottles for immediate
consumption to patrons seated in
the dispensary. Retail licenses $25
selling beverages in original pack
ages with no consumption on pre
mises; clubs $50; bottling works
$100; breweries $100.
The stamp tax provision was
eliminated. All dealers are requir
ed to report under oath before the
10th of each month the amount
of beer and wine imported, pro
duced or manufactured
It will reach the house today. It
is not expected to concur in all of
the Senate’s changes and several
days conference seems inevitable
before differences are smoothed,
over.
The House passed the measure
authoriiing the commissioner of
education to initiate high schooL
correspondence courses to serve
communities having no high
school facilities, and four other
measures making minor changes
in educational boards functions;
the deficiency bill for $1,000 and
claims bill for $7,666. Also; the
Senate memorial urging fox farm
ers be permitted to homestead
lands held, on lease.
OPTIMISTIC PIGTUDE
TORONTO, Can., April 21,—The
close of Canaan markets brought
an optimistic picture with rises
right down, the line and not a
thing to discredit the general opin
ion in financial and industrial cir
cles that Canada will be a gainqr
by the United States’ action on
gold.
Montreal reported wide gains m
stocks though the close was below
the day’s tops. In Toronto the
general list closed near the day’s
tops afte_r the most exciting day in
four years.
STUDENTS DUEL .a,
RUST TIE 5511TEIB5
i
i HETDLEBER. Germany, April 21.
i Heidelburg students Wednesday
1 fought fought the first public duel
in the 550, years history of this old
est German university. State au
! thorities ,the rector of the univers
' ity, numerous professors and mem
bers of students’ organizations in
full regalia were spectators.
After the duel, students wired
I pledges of allegiance to Chancellor
I Adolph Hitler, who recently lifted
| the ban on student duels.
NEW YORK, April 21.—J. P. Mor
[ gan, rarely interviewed or quoted,
was on public record today as en
dorsing President Roosevelt’s ac
| tion in suspending gold exports.
• He said: “I welcome the reported
I action of the President and the
! Secretary of the Treasury in plac
ing an embargo on gold exports.’'
It had become evident that the
effort to maintain the exchange
value of the dollar at a premium,
as against depreciated foreign cur
rencies, was having a deflationary
effect upon already severely de
flated American prices, wages and
unemployment.
FULL-FLEDGED ACTOR
HOLLYWOOD, April 21, - -How
ard Harding Jones, Southern Cal
‘ ifornia football coach, signed a
contract with Paramount Studios
to become a full-fledged actor in
a football picture to be produced
1 this summer. He will represent the
i hard-boiled coach, shouting wild
> ly at his gridders, in the dressing
■ room, which he doesn’t believe in
or practice.