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Collection: Newspapers > Nevada City Grass Valley Nugget

March 24, 1949 (6 pages)

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3 #—Nevada City Nugget, Thursday, March: 24, 1949 Paper Is %On Jan. 20 of this year there appeared in the pages ef the ““Commercia! and Financial Chronicle”’ an article entitled “The Question of a Free Gold Market” by Dr. Walter Spahr, executive vice-president of the econogmists) national committee swpahr thas taken the gold, gmining industry to task for a) asking for an “‘increase “Sm ike price of gold,”’ <b) asking “Wor the establishment of a free spold market and (c) asking for ta subsidy for the gold mining simdustry. He goes farther when ‘Aihe says: **“Their ‘Bs. creating a wapidly becoming a swoid mine interests ‘people ‘of the United @Quotes are Dr. Spahr’s.) agitation, consequently situation which is case of the versus’ the States.” ‘Before continuing further 1 ‘would like to make the record . telear. The gold miners. do advo«eate “am increased price for woki”™ and they do advocate a free market, but they do not advwocate subsidies. They do not Meheve in subsidies. ‘The statement that tion «of the gold miners is ~veloping into a case of the “miners against the people of ’Inited States is pure balderdash. Wn the first place these discussions are between prefess to know “he matter and for the most part represent opinions on ‘what has appeared to be a hight¥y .controversial subject, In the Second place, the gold miners are willing to concede a _ voice Se anyone who has anything to memtribute to such discussions, ft they will fight for their right & Go the same. In the third @iace, Dr. Spahr’s arguments will mwot stand up under searching samalysis. "The tenor of Dr. Spahr’s Yiele leaves one with the impresgfion that he believes statements ®y the gold miners will lead to a the. agitadegold the people personal ar@reat deal of confused thinking mabout the relationship between Whe value of gold and our paper money and that gold miners will mse some sinister power to in#imence people to “raise the price @f gold.’ First of all, the gold mining imdustry has no more power to “imcrease the price of gold’’ than they do the price of chickpeas amd perhaps even less. The forces ‘which determine these variations %m price are much stronger than they. In ‘fact, Dr. Spahr makes @his quite clear himself and I «ynote from his article. “Whenever the fixed tink beYeween paper money and gold is Wroken regardless of whether the Bink rests upon a direct or in@irect process of redeemability @he value of the _ irredeemable Waper in terms of gold will de«Hime and the price of gold in @erms of paper will rise. This is simply because PAPER IS PAWER and GOLD IS GOLD (the wapitals are mine). Under such eeonditions, the paper money price @f gold will be determined by ttre “forces of supply and demand siffetting both gold and paper.’’ il ‘bélieve the above is a stateBrent ‘with which gold miners samd economists would be in full mzpreement. Wdiue .of Currency Changes, : Wot Gold ‘Dr. Spahr advocates the re@emption of paper money by wold, ome ounce of gold for $35. We is opposed to a “price in@rease”’ and he is opposed to a Wree market. We, the gold miners, Welieve that some of the most «onfused thinking is being done . Uy Dr. Spahr and others who ad‘Wocate such a policy, and I will explain why. These gentlemen start with the wrong premise and “that. ts that the price of gold “eam ‘be raised or lowered. Gold iis a standard against which curiwencies are measured. Actually, “e@urrencies increase or decrease in walue, the value of gold does nto @hange. When Dr. Spahr talks @f increasing .the price of gold fre srecognizes not that the gold iSs worth more, but that the curwency is worth less. He says and wightfully, that when a currency is «cut loose from gold it drifts ‘Motiower and lower levels of value, And Gold Is Gold . By NEIL O'DONNELL ‘Executive Vice-President, Idaho Maryland Mines Corporation who . something of . Paper Dr. on monetary policy. This has been the experience of centuries. If one cannot measure the value of curreney against gold then how can it be measured? The only measurement left is by the amount of goods it will buy. Today’s dollar will buy about onehalf of what it would in 1939, so the net result of cutting our dollar free from gold has been to decrease its purchasing power. How and why has the purchasing power of the dollar been decreased? In part by the increasing of wages and in part by the high increase in taxes, both of which are reflected in the selling price of every type of goods: and Wages were increased political program and taxes were increased partly because of the war, partly § be. cause of a political program ‘and partly because of changing world . conditions. The paper dollar has ino valne in itself, its sole value . is in what it will buy, and today services. as part of a . it will buy only 50 cents. (in gold) worth of goods.’ Dr. Spahr proposed to sell everyone who brings in a paper dollar 1-35th of }an ounce of gold when the paper j dollar will only buy 1-70th of an ounce of gold worth of ; If any fraud has been proposed by. anyone this is it. this type goods. Fursuing of thinkbe determined: for the dollars as against gold: the industry is reestablished where normal . trade will determine the price at which the miner will give his ounce of gold, whether that price be in pounds, pesos or dollars. They believe that this market should be a free market, established in the United States where not only the miner could trade his product for currencies, but where currencies could be traded for currencies or for gold. The gold miner, besides being a practical man, is also a patient man. He has seen the government arbitrarily close his mines on short notice with no provision made for paying his plants, or taxes, or paying for keeping water pumped from his mines, not for days or Weeks, but for nearly three years under the infamous Limitation Order L-208. He has read in the testimony presented before a House committee in which Mr. Milo Pers kins wrote Mr. Donald Nelson on Dec. 19, 1944, in part as follows: : “It is essential that -a reduction in gold mining should be envisaged for the postwar period.’”’ Can you imagine that! Now he has just about reached the conclusion that he will not be pushed around anymore by misguided theorists. He is going to have his say whether it is found palatable or not and he is going to stick as close to the facts as he can. He will serve his own and his country’s interests best by seeing that the thinking about gold becomes less confused rather than the reverse. WARDEN HISCOX ASKS DOG OWNERS’ HELP IN PROTECTING WILD LIFE dog owners of A warning to its ultimate» conclusion as one must with every new . program, what do we have? We \-find ourselves establishing a new price in gold for our goods twice jas high at is was in 1939. Every exporter of automobiles, of. industrial machinery, and of manufactured goods will find himself losing markets perhaps forever under a program of making the the dollar redeemable with our present wage and tax rates. ing to The gold miners are practical men and they would not attempt the impossbile. In this case, making the dollar redeemable in gold is attempting the impossible. As I have noted, such a procedure will double the cost in gold of our salable goods in the world’s markets, and as such is undesirable. We can keep our goods at the same gold price as we had in 1939 and make the dollar redeemable in .gold at $35 per ounce, but in order to do so we would have to go back to 1939 wage and tax rates. In fact, the taxes for purely governmental purposes would have to be lower than 1939 because Wwe have assumed new burdens which would have to be paid out of the same gross tax as was assessed in 1939. One of these is the cost of taking care of wounded and sick veterans of World War II, amounting to $5 billion per year or more; another is the interest on the debt increase amounting fo another $5 billion per year. There are others. No practical person would attempt to get wages and taxes back to 1989 levels. Therefore, the logical procedure is to recognize the new relationship of purchasing power of a dollar with gold. In various parts of the world various ideas pertain as to that relationship. In China, they say a dollar will buy the same amount of as 1-100th of an ounce of gold.’In other places the ideas vary, but nowhere can you find anyone who believes that he should deliver as many goods for a dollar as he does for 1-35th of an ounce of gold: The gold miners. only ask that the present existing relationship be recognized. This applies not only to the dollar, but to all currencies.. When one reads of nations resorting to barter because they cannot reach agreement on the relative values of their respective currencies one wonders if mankind is really as intelligent as it is purported to be. A Free Gold Market Desirable In order that the proper value + . at a time when it is Ll F sour most essential service: fa to Holmes Funeral Home a-staff trained \ a : easily afford. J. PAUL BERGEMANN, Owner Telephone 203 24-HOUR AMBULANCE SERVICE
246 Sacramento St. : often impossible for the family ‘ a to coordinate their thoughts, is § “S under the personal direction of @ . to our traditional way of helpful attention at costs any family can very Turn — a ae Nevada City been issued by state fish and warden, who said hundreds of deer are b#ing killed in. nearby regions by bands of roving dogs. this area has Ear] Hiscox, game The deer, thin and weakened bythe long cold winter that has covered the foraging areas with deep snows, have fallen prey to dogs. Hiscox pointed out deer will be fawning in. May, adding the animals will lose their favtns if dogs are allowed to molest them. The effect on the future of the deer population in the area is serious, the game phasized. Areas where deer have been found dead following attacks by dogs, include: Blue Tent, Columbia Hill, Lava Cap Mine Ridge and Montezuma Hill, as well as areas in the foothill region. Hiscox reminds dog Owners of the California game code which makes it unlawful to allow dogs to track or trail deer during closed season. Violators of this section (No. 1287) may be fined $25 or $500 or be sentenced to. six months in jail. The veteran game warden asks cooperation of dog owners and sportsmen to help protect deer now recovering from one of the most serious winters in recent history. Always look out for the sunlight the Lord sends into your days. —Hope Campbell DR. WALTER MULLIS DENTIST 435 ZION ST. PHONE 564-. NEVADA CITY NO STRAIN: NO WORK NO MUSS When We Do the Laundry It’s so easy—so simple, to open the packages and put away the. sparkling clean clothes! Laundry done our way is washed clean, ironed to perfection and folded with precision. Save all washing bother — : * GRASS VALLEY LAUNDRY and DRY CLEANERS 111 BENNETT STREET insurance on, warden em. . PHONE 108 ‘PROPERTY TAX questing that a free market be: 15 PER CENT ABOVE 1947-48 Property taxes throughout Nevada ,county this year are 15 per cent higher than they were last year, ‘California Taxpayers, association reported. total $934,200, while the levy for 1947-48 was $811,179. Property levy for the county itself this year totals $431,973, up 14 per cent over: the $377,373 levy for 1947-48. Property taxes for the cities in the county for 1948-49 amount to $67,934, which is 26 per cent higher than the $53,991 levied for 1947-48. This figure does not include city sales taxes or busi-~ ness licenses and fees which cities levy. : School district demands for property taxes in the county this year reached $426,008—an increase of 18 per cent. over the $359,525 levy for 1947-48. Levies for special districts in the county for 1948-49 total $8,285, 59 per cent less than the $20,290 levy for 1947-48. Over the. state property taxes for $671,353,026, 21 per than the $555,578,654 1947-48, the association "Property tayes for county purposes—statewide—reached $254,906,422 for 1948-49, up 21 per cent as a whole, 1948-49 total cent more levied for found. from the -$210,944,016 levied for 1947-48. City levies on property this year amount to $114,633,353, an increase Of 11 per cent over the $103,692,204 levied for 1947-48. School district levies on local property total $257,776,180 for 1948-49, up 27 per cent from the $202,603,395 levied for 1947-48. Property taxes for special districts for 1948-49 amount to $44,037,071,\ an increase of 15. per cent over the $38,339,039 levied for 1947-48. “There is scarcely a unit of government in California which could not do some economizing,’’ the taxpayers’ association § said, Taxes levied by the county,'} cities, schools, and special districts in the county for 1948-49 ACHIEVEMENT AWARDS PRESENTED TO CUB SCOUTS AT DINNER A +potluck dinner was held hb’ Cub Pack No. 23 at Seamnn’s lodge with achievement awards being presented by Cub Master Onda’ Smith. Bobcat awards were given to Charles Eden and Bill Mullis; Bear awards to Ronny Williams and Jimmy Kendrick; Wolf awards to Kenny Maloney, Melvin Schuldt, Eugene. Foote, Bobby Wicks and Allan Ellis. Gold arrows were presented to Bruce Hesla, Jimmy Kendrick, Ronny Williams, and Eugene Foote. Receiving silver arrows for extra achievements were Bruce Hesla with three; Ted Ness, six; Bobby Wicks, _ six; Feter Hill, two; Bob Goss, two; Larry Hornberger, one; Allan Ellis, one; Jimmy Kendrick, two; Ronny Williams, one; and Eugene Foote, one. Bob Wicks and Bob Smith received Denner’s stripes,.Assistant Denner’s stripes were awarded to Bob Smith and Bob Fisher. Elected by their dens to serve as keeper of buckskins were Eugene Foote, Kenneth. Maloney, Larry Hornberger, and Harold Hummelt. Allan Ellis was elected sergeant at arms of Den No. 1. Den 3, with 87 achievements, won the achievement ribbon for February, and Den 5 won with .98 achievements for March. ‘Dens 2 and 5 tied for uniform inspection honors. Parent attendance was won by Den 4. Table decorations for the dinner was the handicraft assignment for February, \Den 4 won the ribbon for this “work. Handicraft for March was soap carving. Original objects ‘were judged, with Den 5 taking. the final honors. Fred Relaford received a special award for his exceptional work in ‘carving a pipe organ and bench. The best skit of the evening was turned in by Den 4. pointing out that: HOLMES FUNERAL HOME The Holmes Funeral Home serv{ce is priced within the means 0’ ell. Ambulance service at al! nours. Phone 203 246 Sacramento St. Nevada ('tv March 27 Is Deadline For Vote Registration March 27 is the deadline for registration for voting in the school’ district trustee election May { 20, according to County Clerk Ralph E. Deeble. Registration applies to the following: 1. Those who have moved out of a. voting precinct since the November general election. 2. Those who were cancelled for their failure to vote in ene of the last two elections. 3. New voters in the district. Cheerfulness is a _ friend to grace; it puts the heart in tune to praise God, and so honors religion by proclaiming to the world that we serve a good master. Thomas Watson The mind that is cheerful at present will have no_ solicitude for the future, and will meet the bitter occurrences of life with a smile. —Horace NEVADA CITY—ON THE THRESHOLD TO THE BEST IN SPORTS RECREATION ® NEVADA CITY CHAMBER OF COMMERCE Se Holmes Funeral Home Installs New Organ Remodeling of the chapel the Holmes Funeral Home has been completed, with the addition of an electric organ, ac~cording to Paul Bergemann, owner. Installation and final adjustments on the mellow-toned organ completed Thursday by Sherman-Clay of San Francisco. Other improvements~ at the chapel include: painting, newlytextured walls, lowering of the ceiling, and installation of new rest rooms. at were SEWING MACHINE RENTALS -REPAIRS Buttons and Belts covered, Hemsticthing, Buttonholes TAYLOR’S 233! Mill St. Phone 276-M Grass Valley — Telephone Grass Valley 1050 GLENBROOK BUILDERS & CONSUMERS LUMBER COMPANY ——4J OUR BUILDING SUPPLIES ARE TOPS IN QUALITY & PRICE e * & Call us for a free estimate today. S SPRING HAS ARRIVED AT THE PHONE GRASS VALLEY 1087 oe FURNITURE COMPANY Public Market Bldg. So. Auburn Rd. Grass Valley Furniture Co. Spring Opening New Styles New Models Prizes Daily During Our Spring Opening! GRASS VALLEY