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Page: of 8

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from people representing
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CONGRESSMAN ENGLE TESTIFIES
FREE GOLD MARKET WOULD PUT
CHECK ON GOVERNMENT POLICY
Congressman Clair Engle,:
member of the House of Representatives for this section of California, was among witnesses testifying before the Senate banking
and currency committee hearings
on the free gold trading act in
Washington May 5-6.
Mr. Chairman and members of
the committee, I have a brief
statement which I will submit
for the record, reading part of
it and submitting the rest, if that
is agreeable. Though it is rather
brief, I will read but a portion
OL ite
It is a little in anticipation of
testimony which may be adduced
later, but I asked to appear at
this time because I am leaving
town this afternoon and 1 was
fearful I would not have au opportunity to appear before the
committee otherwise.
With the permission of the
committee, after. reading a portion of the statement, I will extemporize briefly; I am sure my
remarks will not take very long.
I have before me the’ release
of the Economists’ National ~ommittee on Monetary Policy signed
by 48 members of that committee
purporting to represent the views
of this committee on the question
of a free market for gold.
I realize, Mr. Chairman, that
probably this question could be
discussed pro and con by economists for the next 20 years, and
I think you all realize that as
well as I, that they could so discuss it for that length of time
without ever. getting to any substantial agreement among the
economists.
But it is important for this
committee to know that there is
very substantial support for this
legislation among the people who
make a study of this problem and
the
The Chairman: Mr. Searls, who
testified previously to you and
Senator Johnson, left as an exhibit for us to see, this container
holding 100 ounces of fine natural
gold. Is there much of that type
of gold being mined in California? :
Yes, sir; there is. That is the
gold in its natural state, panned
gold.
That is correct, we do a good
deal of-that kind of-mining. We
also have deep mines, called
quartz mining, and we have, the
hydraulic mining operations,
which is more or less this type
(indicating exhibit). We do not
use so much panning now. We
did during the depression, though
when everybody was broke. A
and pan gold and sometimes a
fellow would get enough to buy
himself his beans and a sack of
flour; and with a rifle to shoot
game with, we would be able to
get along pretty well, in my
country.
It has been only recently that
we have known that we had a
right to sell gold in its natural
state freely on the market. That
ruling from the treasury came
two years ago, and it took a good
deal of prying to! get it out of
them. But since that time these
sales have gone on.
People are fearful that that
regulation might be changed
again.
And that has had a great effect
on the sale of natural gold.
All they have to do in the
treasury is just write a new regulation; they have that power.
However, I have no indication
from the Treasury that they do
intend to change it.
That is one reason why some
of the major gold mining companies have not converted to a
process which enables them to
get gold in the natural state. It
takes a good deal of. money to
translate some of these gold mining operations to a system which
will give gold in the natural state;
that is, gold not subjected to
chemicals or heat. And they could
go ahead and do that, but they
think that the Treasury might
change the regulations and all
their expense would be for
nothing.
Producing gold for $41 depends
on how rich the ore is. That is the
problem in gold mining always.
If you have a rich mine you can
produce pretty cheaply; if you
have a poorer mine, it costs
more, °
I think that in the best mines
it would require pretty close to
$41, and perhaps more than that.
If you want to return to. the
volume’ of gold production you
used to have, you are going to
have to raise the price of gold
enough to take into consideration
terials costs since we had that
production before.
And when you get a'rate which
will enable the gold mining companies to meet that increase in
labor and materials costs which
have occurred since that time,
then you will get from them the
same amount of production. In
other words, you have ore in the
mine of a certain quality, and it
takes so much money to get the
gold out of that ore; and if you
do not get a better price to meet
your increased labor and materials costs, then you are not going
to get that gold out—but if. the
price-goes.up-and—you-can-meet
those increased labor costs and
those higher materials costs, then
ore will come out of the ground.
I had a bill in at the time, and
perhaps you recall, when they
had up the question of reducing
the reserve behind the currency.
I introduced a bill which would
provide’exactly the same currency expansion . as would the reduced gold reserve, reduced from
45 per cent to 20 per cent.
Now, Mr. Chairman, I am going to skip through this statement, the purpose of the statement being to indicate to you
that there is a substantial element among the scholars of this
Nation—and I do not presume to
know much about economics or
economists—but I am referring to
the release which was sent out
by the Economists’ National
Committee on Monetary Policy..
That was signed by 48 members
of that committee. This release
indicates that the 48 economists
whose names appear have no objection to a free gold market in
a country whose currency is completely inconvertible. In these
countries, according to the Economists’ National Committee on
Monetary Policy, countries like
Russia, Poland, France, Hungry,
and Italy, it is perfectly proper
and in no sense incompatible
with the public interest for owners of gold and producers of gold
to sell their product on the open
market. and for individuals to
buy and own such gold.
This statement—and I have it.
right before me—also indicates
that these 48 economists are in
favor of a free market for gold
in any country whose currency
is freely convertible into gold. In
such a country, they say, with
coins in cerculation, with paper
money freely convertible into
gold, it is perfectly proper for
producers of gold to sell their
product either to the mint or in
a better market, if they can find
(Continued on page 8)
NID AWARDED $61,697
AND INTEREST CLAIMS
FOR WARTIME DAMAGE
United States Northern District
Judge Del Lemmon of Sacramento signed final judgments in favor of the Nevada irrigation district for a total for more than
$79,000 representing damages and
interest as the result of the water
utility suits against the federal
government for damages to canals, ditches and watercourses at
Camp Beale during World War
II training period.
The damage suits were tried in
federal ‘court in Sacramento last
May when a judgment of $55,760
was granted the district. Later
this was increased by $5,937 for
damages to streams, which had
not been taken over by the army.
Interest makes up the balance.
The suit for the Nevada irrigation district was pressed by Sumner Mering, Sacramento; Lynne
Kelly, Grass Valley; P. J. Minasian, Oroville, and Charles F. Metteer, San Francisco.
SWIMMING POOL WILL
CLOSE INDEFINITELY
Verle “Puss” Gray, lifeguard at
municipal pool, announced the
following winners in the bike
races held at the park yesterday
morning.
Bud Seeburg, under nine years,
Gordon Peard, 10-13 years.
Gene Seeburg, 14 and over.
Janice Little, girls.
Gray said another series of
bike races will be held Saturday
morning at 10 o’clock.
The swimming pool will remain closed until medical authorities recommend -reopening,
Gray said.
Last weekend’ Park Commissioner and Gray had hoped to reopen Sunday morning, but the
news of three new cases of polio
prompted them to keep the pool
the advances in labor and maclosed.
‘morrow. During his 18 to 24
Volume 22—No. 45 NEVADA CITY (Nevada County) CALIFORNIA Tuesday, August 9, 1949
HOMECOMING IN
ALLEGHANY SET
FOR AUG. 20-21
All roads in this district will
lead to Alleghany next week
when the mining community of
Sierra county willbe host to-its
99th annual homecoming Satururday and. Sunday, Aug. 20-21,
according to Thelma G. Carvin,
general chairman.
Highlight of the day will be the
annual drilling contest, at which
Hugh and Phil O’Donnell of the
Kate Hardy mine have announced they will defend their
championship. Other events will
include races, pillow fights, tugO-war and many more.
The community will set itself
up for the big day with an allnight dance Saturday in the community hall.
Alleghany had a community
cleanup the latter part of last
week and with its local citizens in
49er costumes, is ready for the
big shindig.
Helping Thelma Carvin in the
homecoming preparation are
Edith Hogan, co-chairman; Roberta Hart, Agnes Kamko, Wilford Hart, May Sbaffi, Walter
Johnson, Rachel Kuhfeld, Joyce
Clemo and Jacqueline Sthrel.
DISTINGUISHED LOCAL
MINER WILL OBSERVE
BIRTHDAY TOMORROW
A Nevada City miner of the
90’s who made a sort of a name
for himself in mining circles, humanitarian works, and politics,
will observe his 75th birthday tomonths stay in Nevada City he
roomed at the Joseph D. Fleming
home, 140 Boulder street, now
occupied by Lamar Fleming. Lamar was a child of three or
four years at the time the husky
young Stanford graduate was
mucking in the Reward mine and
has only faint recollection of the
man.
_ Herbert Hoover also worked in
the Mayflower and West Harmony mines, and it was at these
places he showed the ability that
won him a recommendation for
a position of directing mining enterprises in Australia. Two years
after that he accepted a $15,000a-year job in China, and was on
his way toward a career that took
him to the White House.
Glenn M. Loney Wins
Seale Scholarship at
University California
Glenn M. Loney, Nevada City,
has been awarded a Henry W.
Seale scholarship by the University of California, the university
committee on undergraduate
scholarships announced today.
This award is based primarily
on scholastic achievement and
represents a real distinction, the
university announcement said.
Loney is a senior student in
the college of letters and science.
First Quarter Sales
Drop 10% From 1948
Taxable sales in Nevada county for the first quarter of 1949
showed a 10.24 percent decline
over the same period of 1948, according to a report of the state
board of equalization issued yesterday. Total taxable sales in Nevada county for the first quarter
of this year were $2,911,600.
The state as a whole declined
4.38 percent. Calaveras county
showed the largest drop at 17.20
percent. Largest increase was recorded in Riverside county with
5.93 percent.
SMALL BRUSH FIRES
A small fire burned about, three
acres of brush on upper Banner
mountain Friday afternoon. Fire
crews from Shady Creek, Higgins
Corner. and Nevada City offices
of the State division of forestry
responded.
The Nevada City fire department was called to the Frank
Crampton home late last ThursNugget.
CAN STALIN BE TRUSTED?
Timely, authentic articles by Colonel James C.
Crockett, U.S.A., retired former military attache at
the U. S. embassy in Russia, and military attache at
Berlin. Col. Crockett is a resident, of Nevada county, and has consented to write a series of articles on
his interpretation of the Russian situation for The
These articles answer many questions you and
thousands of others have been asking about Russia.
Col. Crockett is in a position to write authoritatively
on what goes on in Russia, their attitude toward the
United States, and the rest of the world.
Don't miss this exceptionally timely series by a
local man who has had first-hand experience with
the Russian political leaders and has been in contact
with the Russian man in the street.
These articles appear every Friday in The Nugget.
DAVID ELLIS, VICTIM
OF POLIO, RETURNED
BY AIRPLANE TO L. A.
David Ellis, 17, Los Angeles
youth who was visiting here at
the Harold H. Riley home, was
flown to Los Angeles Friday evening for treatment of polio. Ellis
suffered an attack of the disease
about 10 days ago.
The aircraft, piloted by Jack
Miller, Los Angeles, arrived here
Friday about 5 p.m., and took off
with the patient, his mother, Mrs.
Walter Ellis, and a nurse, at 7
o'clock.
_ Three additional cases of infantile paralysis have been diagnosed in western Nevada county
over the weekend, with one patient removed to San Francisco,
another to Seattle and one placed
in Nevada county hospital.
‘Don Holt, 8=year-old visitor
from Seattle, has been returned
to his home for hospitalization
and treatment. Sunday he was
moved by ambulance to Davis
and placed on a Southern Pacific
train for_his home.
«* Carel Odom, 9, residing:.in the
Grass Valley area, has s¢en
moved to the Nevada county
hospital for treatment and observation.
A third patient over the weekend was Don Clark, 30, Grass
Valley store clerk, who has been
taken to San Francisco for hospitalization.
In view of the continued
threat of polio the Nevada County Softball associaion has called
off its schedule for this week.
Nevada County Infantile Paralysis chapter officials said infantile paralysis reports, information and inquiries should be
placed with Ray Hodge, secretary of the local chapter and department of motor vehicles office
manager on the Nevada City
highway.
L. W. Kopp Escapes
Death in Dynamite
Blast in Plumas Co.
L. W. Kopp, .Nevada City electrician, and his nephew, Fred
Pitz Jr., Colfax, escaped injury
when two men were killed by a
dynamite explosion in the Jackass tunnel of a Feather river
power project last week. The dynamite was exploded by lightning.
Kopp was in the tunnel at the
time of the explosion and young
Pitz, on a vacation trip to visit
his uncle, was near the tunnel entrance.
Judd Cottage on Banner
Mountain Road Destroyed
The small cottage of Mrs. Lucille Judd, Scotts Flat dam road,
was destroyed by fire late Thursday. Cause of fire was not determined,
The state division of forestry
sent three tanker trucks to the
fire first spotted by Banner lookout. The walls and roof were a
mass of flames before the trucks
could make the five-mile trip.
Mrs. Judd, who recently returned to Nevada City from Indiana, was alone in the cabin at
the time of the fire. Motorists,
traveling on the Scotts Flat road
to the dam; happened along in
time to assist Mrs. Judd, who has
day to quell a small grass fire.
COUNTY FARM MARKET
Nevada City Apportioned
$2,638.90 In Lieu Taxes
Nevada City was apportioned
$2,638.90 as its share of a $14,820,198 melon of motor vehicle
license fee (in lieu tax) by the
state controller’s office today.
This represents revenues deposited in the state treasury during
the period from April 1 to June
30, this year. Half of the melon
was divided among incorporated
cities and half among the counties. :
Grass Valley received $6,282.62.
Nevada county’s apportionment
was $20,686.40.
4 LINCOLN MEN FINED
FOR VIOLATING 1151
FISH AND GAME CODE
Justice was swift and sure for
four Lincoln men _ yesterday
morning in Wheatland justice
court. They were Gerald Webster, David Harmon, Frank Seriva and Edward Seriva, who
pleaded guilty to violation of
section 1151 of the California
fish and game code, Justice of the
Peace Burhl Gilpin, Wheatland,
fined them $50 each and confiscated their guns.
The four men were spotted
Saturday night in the western
end of Nevada county by Deputy
Sheriff John Blackburn and
Game Wardens Earl Hiscox and
Edward Dennett in the act of
driving along the McCourtney
road without lights. The officers
were on patrol. The men drove
into Yuba county and the officers observed them searching a
field with a spotlight. A search
of the men revealed a rifle, a
knife and a three-cell flashlight.
The men were jailed in Wheatland at approximately midnight
and went into justice court yesterday morning.
Section 1151 of the fish and
game code states that possession
of a light not affixed to a vehicle,
capable of throwing a beam. of
light 32 feet or more, and a loaded rifle is prima facie evidence
of violation of the section.
The officers reported the men
had a 50-candlepower spotlight
on the car, a violation of the
highway code.
WILL OPEN WEDNESDAY
Nevada county farm market
will open Wednesday afternoons
from 3 to 8 o’clock at its Olympia
lake road site, starting tomorrow
afternoon, according to William
Ullrich, a director of the organization.
The market has been receiving
an increasing amount of fresh
fruits and vegetables to offer
Nevada county wives and produce users, Ullrich reported.
NO PROTESTS AT CITY
BOARD OF EQUALIZATION
There were no protests of tax
assessments presented at yesterday’s’ meeting of the Nevada City
council meeting as a board of
equalization ‘at the city hall, The
‘group adjourned until Saturday,
8 p.m., at which time protests of
assessments will be heard.Attending yesterday’s’ meeting
were Mayor Arthur Innis, Clerk
George Calanan, and Councilmen
FAIR TROPHIES
DISPLAYED IN
GRASS VALLEY
The trophies to be awarded
winners of the horse show at the
Nevada county fair Aug. 25-8
are on display this week in the
show windows of the Argall
pharmacy, Grass Valley. Saturday they will be placed in the
window of Bennetts & Steel,
Grass Valley. Miss Edith Scott,
secretary of the 17th District Agricultural association, which operates the fair, arinounced entries
are being accepted for the horse
show at the offices, 115 West
Main, Grass Valley.
The trophies were donated by
Kyle Markets, Nevada City and
Grass Valley, Bennetts and
Steel, Moore and _ Bennallack
Richfield service station, Williams Bros Stationery, Cramers
Auto Exchange, Bill and Stans
Cigar Store, Steel Supply company, Holbrooke hotel, Foote
Electrical company, Bennett’s
Bootery, Grass Valley Paint
Store, Phoenix Drug Store, -Argall Pharmacy, Stennetts Market, Paul Viles, Grass Valley
Liquor Store, Colfax Fruit Growers association, and the 17th District Agricultural association.
Classes of the show include
stock and trail horses, and children’s saddle mounts.
_ Judging program of the Ne--;
vada county fair has been announced as follows:
-~Booths—10 a.m. Friday, Aug.
26. Judges will decide first the
4-Hbooths, second: one family
farms, third: community booths.
Score cards will be made out
for each booth, original copy for
office, duplicate to be handed to
attendant in booth.
11:30 a.m. after completion of
judging booths, lecture wili follow giving points judges approved of and disapproved of,
followed by question and answer
program. ‘
FLORICULTURE—10 a.m. Friday, Aug. 26, judging starts. 3
p.m. if judging is not completed
it will cease and lecture will be
given on judges findings in exhibits, followed by question and
answer program.
AGRICULTURE, AND HORTICULTURE—10 a.m. Friday, Aug.
26, judging will start in 4-H departments first, followed by senior departments. As soon as
judging is completed in one of
these departments lecture will
follow on judges findings, followed by question and answer
program, same procedure to be
followed by other department
judge upon completion of first
judges program.
HOME. ECONOMICS—10 a.m.
Judging will start in 4-H department first, followed by senior department. 4 p.m. if judging is
not completed it will cease for
lecture on what judge finds right
and what she finds wrong; followed by question and answer
program. Judging in home economics will start in canned fruits,
jams, jellies, preserves, marma-, —
lades, followed by. pickles and
relishes, canned vegetables and
canned meats.
LIVESTOCK—10 a.m. Judging
starts in 4-H departments first,
followed by senior departments.
POULTRY—10 am. Aug. 26,
Judging in 4-H poultry followed
by explanation and question and
answer program.
RABBITS—4 p.m. Friday, Aug.
26, followed by explanation and
question and answer program.
GOLD—10 a.m. Friday, Aug. 26.
Authority has been given and
a contract signed to fence a large
area of the Fair Grounds before
or during the fair.
High standard cyclone fence is
to be placed about the area which
is now in general use for fair
purposes. The fence will measure
4500 linéal feet.
This fence will have one 24foot.driveway, four 20-foot drivetrances.
NEVADA CITY SCHOOL —
BUDGET IS ADO
There were: no objec
ent at a public hearing of
vada City Unified Se
budget Saturday afte:
been ill for some time. . H. F. Sofge and Leo Cullen. .
¢ :
the budget was adopted :
ways and four pedestrian en-