March 31, 1949 (6 pages)

F 4 Nevada City Nugget, ‘Thursday, March 31, 1949 FORESTS” WARNS DEPARTMENT Warning that “if the United States is to maintain a place of economic leadership in the world of tomorrow, it can ill afford to temporize with its forest’’, United States Department of Agriculture miscellaneous publication No. 688 is recently off the press and is of special interest to Nevada county, 7 residents since this is “‘a A gilie forest county’. . “(he report brings together in concise form the over-all findings * of the nation-wide forest. re-appraisal which has been under way for several years past. The report declares not only that the saw timber supply is declining under the impact of an annual cut. which together with natural losses is 50 per cent greater than current annual growth but also that its quality is deteriorating. At the same time, the sumMary says, indications are that the nation’s long-range potential timber requirement is considerably greater than the present annual cut, especially if prospective mew uses for wood, expert and a ,back-log for national ‘security are taken into ‘account. These overall needs include dependable timber supplies sufficient “to sustain and expand the supply of consumer goods and employment in the wod industry’’ to provide for national security, and ‘to. contribute to:international peace and well-being’ through helping meet world. timber needs in time of shortage. Setting a long-range, flexible goal, the report suggests that if these needs are to be met the country should aim to grow from 18 to 20 billion cubic feet of all timber, including from 65 to 72 billion board feet of sawtimber, a year. At present annual growth _is put at 13 billion cubic feet of all timber, including 35 billion board feet of saw-timber. However, the report states that even if good forest protection, management, and practices were generally ‘applied to American forests within , the next few years it would still take several decades before this growth goal could be achieved. ‘Tomorrow’s wood supply is the forest trees growing today, but for the nation as a whole, accordng to the report, the forest growing stock is “below par in quantity, quality and distribution,’’ while 164 millon acres of the country’s commercial forest area or 35 per cent, is ‘‘defrosted or has less than 40 per cent of full stocking.’’ And the further the long-time depletion which produced this condition is allowed to go unchecked the more difficult and costly becomes the job of putting the forest resource in shape to met the nation’s need. The report recognizes substantial progress in forestry, both public and _ private, in recent years. There is ample evidence, especially in the south and Pacific northwest, where’ timber grows rapidly, that forestry .pays and is goog business. Throughout the country a growing number of owners aré putting their lands under good forest management. The best showing is reported to be by the lumber and Pulp companies which together own 15 per cent of the commercial forest ‘land in private Ownership. Small holdngs, which comprise three-fourths of the private forest land are said to be -‘‘the toughest problem.’’ More vigorous action, concludes the report, is needed to get good forestry generally applied. The action proposed the cooperation of federal, and local governments, private owners and interested agencies. It falls into three parts, (1) public aids to private forest landOwners, especially small owners; «2Y public control of cutting practices on private land sufficient to stop forest destruction and keep the land reasonably productive; and (3) expansion and intensified management of the national forests. The public aids, some requiring new federal legislation, others in effect but in need of strengthening, follow: More and broader technical assistance to private owners, particularly small owners, in establishing and tending forests, and in havesting and marketing forrequires state, est products, and corresponding assistance to mill operators and other processors. In this. connection, the report says that in 1948 under a _ federal-state cooperative program 173 farm foresters gave such assistance to private owners in 650 counties in 49 states but that an adequate _ program in tlis field would cover some 2,000 counties. Stepping up of educational and demonstration work in forestry such as is done by federal and State agricultural forestry agencies is advocated. Inceasing federal aid to states . in the production and distribu2 tion of nursery stock for foresk planting, and making planting stock available to non-farm as well as farm owners. Emphasizforest planting, the report says there are 62 million acres ‘of private forest land either denuded or so poorly stocked as to be practically idle; that. prior to 1947 only about 2% million acres of private land was successfully planted, and that in’ 1947 about 114,000 acres were planted. Creation of a federally sponsored forest credit system to make long-term loans on terms and conditions ,suitable for forestry purposes, adapted to the and contingent upon sound forest practices, together with a federally sponsored insurance’ sys-= tem to protect such loans and to reduce the risk inherent in forestry enterprises. Other measures’ proposed in this part of the program are additional federal aid to speed adequate forest fire protection for the 439 million acres of stateowned and private forest land in ‘need of it; strengthening of cooperative protection against forest insects and -diseases; expansion: of: all phases of forest research; encouragement of forest cooperative associations among small landowners; and service to states in the improvement of forest tax laws. , As to the second part of the action program recommended— “public control of cutting on private land sufficient to stop forest destruction and to keep the land reasonably productive’”’ —the . report recommends basic federal! legislation setting up standards as a guide for local forest practices and authorizing federal financial aid to states which have regulatory laws consistent with its requirement. It would also provide for federal administration in states that request it or which, after reasonable time, do not put regulation into effect. The law would ,not require sustained yield management nor, so long as. cutting practices meet required standards, would it regulate when or how ‘much of his timber any owner might cut. , Dealing wtih national forests, the program’s third part recommends their further development and expansion ‘as a great public asset’’ capable of producing much larger returns in sustained output of timber, livestock ° forage, water, wildlife and recreation, if more intensively managed. As to expansion, it is recommended that there be added to the present national forests and to state and community forests, a considerable acreage of land so badly depleted that it is unlikely private owners will restore them to productive control, and certain areas of special importance for watershed protection and other public services. PLANTATION: DAYS IS HUGE SUCCESS HERE Literally hanging from’ the light fixtures because of the huge crowd Saturday night, the Plantation Days variety show of the Nevada City Elks was a_ huge success. Southern fried chicken and dancing rounded ou® the show. The dinner served family-style was cooked in true southern fashion by Hap Rickert. The show, under the direction of George. Hansen and Frank Stewart was. one .of the best produced here. Stewart, master of ceremonies, joined with Hansen to present one of their famous impersonations. Hansen brouht down the house with his torch-singing number, Another outstanding skit: was presented by Bob Paine and Stewart. Songs by the Lionettes added to the show. The song birds were: Virginia Clapp, Audrey Kerrin, 3ernice Gibson and Rose French. Heard for the first time in Nevada City were two popular ballads by Bob Peterson. Bill Tobiassen sang southern music. Other outstanding featu res were presented by Dr. Cy Kerrin, 3i11 Gibson, Dee Montonari, Marvin Shock, Charles Hilpert, Jimmy Sharpe, Chet Merschel, Burnis Hilpert. Dancing to the music of Jerry Austin and Avery Philip’s ‘‘Dixieland Band” followed the show. In charge.of the affair were R. V. Conrad, Hobart Snider and Marvin Shock. What sweet delight a quiet life affords. ——Drummond needs of private forest operators, ring the need for more widespread ol By JOSEPH STAGG LAWRENCE Vice-President, Empire Trust Co. Excerpts from an address by Mr. Lawrence before the Colorado Mining Association, Denver, Colorado, February 1, 1949. One of the major ‘prablems confronting the government and the people of this county in the post war period has been inflation. Since 1939 the cost of food has gone up 147.3 per cent, wages 182.2 per cent, wholesale prices 112.4 per cent, and transportation, as measured» by railroad freight rates, 52 per cent. This rise in field in our economy, with the single exception of gold. Even the president’s salary and his ex-pense account reflect the changing value of the American dollar. I need hardly mention to this audience that the decline value of the dollar has presented political issues of the post war sions, in his capacity as president of the United States, Mr. Truman has asked congress for extraordinary powers to deal with this problem. Throughout the recent campaign he taxed the 80th congress with inflation. responsibility for its failure to continue the OPA and grant him the necessary authority to keep prices at reasonable lévels. In his analysis of the problem, the president has accused, at various times, the grain speculator, the high: profits of corporations, the conspiratorial monopolies of big business and the alleged failure of our ‘banks to keep credit within bounds. At no time and on no occasion did he place his finger on the single Valid cause of the distressing rise in prices from which this country has suffered. That cause, as every monetary economist has long since pointed out, is the excessive issue of currency and the enormous expansion of bank credit necessitated by the fiscal practices of the federal government itself. Nor has the president, or any of his advisors, pointed out that the only effective check on prices which all the experience of history has ever demonstrated has been the check which an honest gold standard provides. As we move from the president to the federal reserve authorities, we find a similar-concern for inflation. Here, again, remedies are periodically proposed to correct this pervading---ailment; In the 1945 annual report of ‘the federal reserve. board, Mr. Eccles suggests that the board be granted authority to impose any reserves upon the banks of the country which it might deem _ desirable. It also asks for the right to determine the character of a bank’s bond portfolio. It asks for further qualitative credit controls similar to the limits on borrowing for security purchases and the regulation of consumer credit. Here is an official body charged particularly by law to Operate the American central banking system in a fashion that will promote a sound banking structure and an honest currency. It has ample funds for research and is able to employ outstanding experts in the field. Yet, in spite of this peculiarly responsible and competent position, the board has failed in the last fifteen years to call attention to the one condition which alone will serve to check the infinite expansion of bank credit and the unlimited issue of ‘folding money —namely, an honest gold standard. What is the reason for *this startling failure? Why is it that the administration and the executive agencies capable of diagnosing our price problem and _ prescribing authentic remedies have meticulously avoided the only . possible sound prescription? The answer is to be found in a sedative ideological importation known as a managed currency. This theory, “like so many others that have confused and bedeviled' the American people in recent years; has come from England. Probably the chief exponent of a managed currency in the last generation has been the late Lord Keynes. Immediately after the first world war, John Maynard Keynes was one of the stoutest supporters of an honest gold standard. In fact, prices has pervaded almost every: in the }. us with one of the most acute period. On three separate occastocks to total demand deposits comiums ever penned eon behalf] and currency is more favorable ‘of the yellow metal have come some of the most eloquent enfrom ‘the hand of Lord Keynes himself. serie of Mr. Keynes changed. He not, only believed it best for a government to control credit and currency to regulate the price level, but that it was a solemn fduty for every government to do “portance, this injunction applied -particuularly to Great Britain and the United States. ! Under his. skillful exposition Mr. Keynes found converts. both in England and this country. As corollaries of a managed currency, he added the theories ‘of pump. priming and government control of the bond market. He was frankly committed to a program of continuous. inflation. Only in this way could England find relief from the succession of crises which had plagued that country during the 30’s and the continuation: of which he apprehended after the second world war. This bland sophistry has made such headway in American thinking that the authorities, wrestling today with the problem of inflation, fail even. to mention goldt as a possible check on the evaporating value of the dollar, In spite of an _ official conspiracy. of silence which shroud this subject, we know that the American people,.-like all other people; have a@ deep-seated longing for the change affords. ese Elsewhere in the ‘world men are eagerly bidding for the’ precious metal. In Mexieo.:the peon, in France the peasant, in China the coolie all seek this tried and tested haven for their savings. ‘-It is a shocking comment on the deterioration in the American concept of freedom that this country Jeads the way in denying to the individual the right of refuge in gold which is still enjoyed by people in other parts of the world. I do not mean to imply that gold will automatically stabilize the price level and establish a permanent and invulnerable value for the dollar. Fortunately, where ever gold is used as a base for a currency, itaffords considerable breathing space for price levels and business fluctuations. : The competent advocates of gold. have never argued that it prevents price fluctuations or leys of the busigess cycle. Howtations on the range of price fluctuations. It does so because it acts as a check upon the infinite expansion of currency and credit. It makes impossible the type of extreme price behavior which is now taking place in other parts of the world, price behavior whose ultimate correction can come only in the form of currency confiscation or repudiation by the government. It behooves every one of us to become fully cognizant of the importance of gold upon our daily lives. Our wages, our breadbasket, .our luxuries depend upon gold. No material thing will wield more influence on our future than will gold. With this limited but vital function in. mind, what can we do in this country to return to a solid currency basis? Many students who understand the operation ‘of a gold standard and who believe that monetary salvation can be found only in a return to gold, fear the resumption of specie payments by our government. They argue that any attempt to redeem currency at $35 an ounce of gold might result in a rush on the American mint which would denude_ the treasury of its gold stock. This fear. is’ probably well founded. Bear in mind that the price of gold was fixed in 1934 at $35 an ounce and that since then the wholesale price index has gone up. 125 per cent, hourly wages 154 per cent and fuel 88 per cent. Only gold retains a nominal value of $35 an ounce. Even though we have approximately two-thirds of the known gold stocks of the world, even though we have 5.6 times as much gold as we had in 1929, . even though the ratio of gold w Px to Holmes Funeral Home ar under the personal a staff trained to our tional way of helpful \ at costs any family \ easily afford, LE gS AEF, 246 Sacramento St. } Os } -'. . at a time when it is very often impossible for the family to coordinate their thoughts, is 47 our most essential service. Turn ae direction of , 7 x tradiattention HOLMES FUNERAL HOME J. PAUL BERGEMANN, Owner Telephone 203 24-HOUR AMBULANCE SERVICE €Oe s = can Nevada City . today than 20’s ‘or the period prior to the : . first World war, an unrealistic However, during the period of 4 price of $35, if maintained in an the early 30’s, particularly after open : Great Britain was forced off the cause a disastrous drain on our gold standard in 1931, the views gold stocks. eliminates the peaks and the val. ever, it does place definite limi. it was during the market, would probably It is in the light of this possibility that> we suggest an intermediate step. Let the government change the provisions of the gold reserve act of 1934 and permit a free open market in so, Because of their great im-'gold. There is no reason in equity, morals,. or good economic sense why the miner should not be permitted to take his gold to the mint, accept 35. paper dollars. for it, or .receive it back in properly certified form and selHl.it in the best market he can find. After all, every other producer, whether of services or of tangible goods. has precisely this same right. It is a right which every one takes for granted in a free economy, a right which is enjoyed by ‘people elsewhere who presumably do, not have the advantages that we possess. In such a market where bidders are free to pay any price they choose and where sellers can offer their supplies, a fair value would be developed. If, in the light of this value ascertained over a period of time, it seems that the government could resume specie payments of $35 an ounce, then certainly : it be jsafe for it to do so without incurring the. danger. of: a’ disastrows, drain of gold stocks. On te other hand, if such a market*“should demonstrate over security which a gold unit of €x. . a “period of time a value at some higher level—say $45 to $50— then, obviously, it would be unrealistic for our government ever to attempt to return to a $35 an ounce ° basis. Here is a sound test of the possible return to a gold standard, a practical test of the value fot gold on which such a return could be effected. The men who argue that a free gold market will tend to confuse the public and create chaos are. simply afaird to submit to this on a fair, practical basis. BUILD NEVADA COUNTY OLYMPIA WELDERS Grass Valley-Nevada: City Hiway PHONE 61-J-3 would What Is Going On in the EIGHTH GRADE by Darleen Crowley Well we just finished our civics finals, received the good and. bad news on that,’ and we all thought that’s all there was to it. But Mr. Bonner had a different idea—Yes, now we have to pass a big history test. Worry! Worry! Worry! We are also starting to study about the Donner Party, and I have heard some rumors that we may go to Donner Lake. So you see it’s not all work, even though it’s close to it. The girls of the Eighth Grade ‘under the supervision of Mrs. Thibault, are starting baseball. We plan on playing Grass Valley later on in the year, and we also plan on winning every game. The boys under the coaching of Mr. Bob Bonner are starting softball, and you should see them, there really good. I. sure feel sorry for the teams they are going to play in. the summer. In the way of entertainment Mrs. Thibault’s Seventh grade has invited us to attend an April Fool’s dance, Friday night at’7730. to 10 p.m. There will be fevada City Written and Edited by Students of Nevada City. Elementary School dancing. It is sure to be an evening full lot of fun for everyone attending. The Eighth grade went to the high school last Thursday to s¢e an entertainment given by the Marysville-high school. A very good time was had by all. [ guess that is about all the news for now, so be reading next week for more about the Eighth grade. GOLD FLAT P-TA WILL SEAT OFFICERS AT MEETING TONIGHT The recently elected officers of the Gold Flat P-TA will be installed at a special meeting tonight at 8 o’clock in the Gold Flat School. Mrs. Lioyd White, retiring president, will preside at the short business meeting. Mrs. Lou Powell, Jr., past president, will install the new officers. On. the program for the evening will be Robert Peterson who will sing two popular _ numbers, and the Gold Flat School chorus under the direction of Mrs. Pauline Stevens. of a popular dances and old time folk Refreshments will be served. G Telephone Grass Valley 1050 GLENBROOK BUILDING SUPPLIES BUILDERS & CONSUMERS LUMBER COMPANY OUR ARE TOPS IN QUALITY & PRICE Fh Call us for a free estimate today. Ga — HOW YOU GET YOURTELEPHONE ADDRESS Your number guides a call to you from across the nation quickly as you can walk 2. Picking your number is a people. From their charts they find an available pair of wires in a cable to your neighborhood. The volume of calls carried by the central office equipment serving your number is often checked to see if it has the capacity to handle added calls. This is part of our job of making telephone service reliable and efficient. 4. A lot of new numbers have been added in the past few years. For today there are twice as many telephones in use on the Coast as ten years ago. All these new telephones make yours: more valuable, You can reach more people. more can reach you. Yet rates remain low. A few pennies still buy a call—a real value in these days of high prices. ae almost as next door 1. Your voice highway—a pair of tiny wires— is labeled with your telephone number at this central office distributing frame. From here, the wires lead out of the office, through cables, to your telephone. They also go the other way—on into a special section of complex equipment that has the specific job of handling your calls. job for trained ‘Street. Perhaps earth. But your 3. Someone calls your number. and, ina matter of moments, you pick up your receiver to answer. Perhaps the call is from just across the it comes half-way around the number guided it to your telephone. and no other. Seems almost like magic when you think of it. another of the little things that add up to good telephone service for you. Give the Pacific Telephone (@) and Telegraph Company SS eS A A SS Se Se SE SND Me me mhlegs SD ee Ghee eee gladly to aff the Red Cross _£ te QO #e€ AO netaAanma > & Ss © fo ot

F 4 Nevada City Nugget, ‘Thursday, March 31, 1949 FORESTS” WARNS DEPARTMENT Warning that “if the United States is to maintain a place of economic leadership in the world of tomorrow, it can ill afford to temporize with its forest’’, United States Department of Agriculture miscellaneous publication No. 688 is recently off the press and is of special interest to Nevada county, 7 residents since this is “‘a A gilie forest county’. . “(he report brings together in concise form the over-all findings * of the nation-wide forest. re-appraisal which has been under way for several years past. The report declares not only that the saw timber supply is declining under the impact of an annual cut. which together with natural losses is 50 per cent greater than current annual growth but also that its quality is deteriorating. At the same time, the sumMary says, indications are that the nation’s long-range potential timber requirement is considerably greater than the present annual cut, especially if prospective mew uses for wood, expert and a ,back-log for national ‘security are taken into ‘account. These overall needs include dependable timber supplies sufficient “to sustain and expand the supply of consumer goods and employment in the wod industry’’ to provide for national security, and ‘to. contribute to:international peace and well-being’ through helping meet world. timber needs in time of shortage. Setting a long-range, flexible goal, the report suggests that if these needs are to be met the country should aim to grow from 18 to 20 billion cubic feet of all timber, including from 65 to 72 billion board feet of sawtimber, a year. At present annual growth _is put at 13 billion cubic feet of all timber, including 35 billion board feet of saw-timber. However, the report states that even if good forest protection, management, and practices were generally ‘applied to American forests within , the next few years it would still take several decades before this growth goal could be achieved. ‘Tomorrow’s wood supply is the forest trees growing today, but for the nation as a whole, accordng to the report, the forest growing stock is “below par in quantity, quality and distribution,’’ while 164 millon acres of the country’s commercial forest area or 35 per cent, is ‘‘defrosted or has less than 40 per cent of full stocking.’’ And the further the long-time depletion which produced this condition is allowed to go unchecked the more difficult and costly becomes the job of putting the forest resource in shape to met the nation’s need. The report recognizes substantial progress in forestry, both public and _ private, in recent years. There is ample evidence, especially in the south and Pacific northwest, where’ timber grows rapidly, that forestry .pays and is goog business. Throughout the country a growing number of owners aré putting their lands under good forest management. The best showing is reported to be by the lumber and Pulp companies which together own 15 per cent of the commercial forest ‘land in private Ownership. Small holdngs, which comprise three-fourths of the private forest land are said to be -‘‘the toughest problem.’’ More vigorous action, concludes the report, is needed to get good forestry generally applied. The action proposed the cooperation of federal, and local governments, private owners and interested agencies. It falls into three parts, (1) public aids to private forest landOwners, especially small owners; «2Y public control of cutting practices on private land sufficient to stop forest destruction and keep the land reasonably productive; and (3) expansion and intensified management of the national forests. The public aids, some requiring new federal legislation, others in effect but in need of strengthening, follow: More and broader technical assistance to private owners, particularly small owners, in establishing and tending forests, and in havesting and marketing forrequires state, est products, and corresponding assistance to mill operators and other processors. In this. connection, the report says that in 1948 under a _ federal-state cooperative program 173 farm foresters gave such assistance to private owners in 650 counties in 49 states but that an adequate _ program in tlis field would cover some 2,000 counties. Stepping up of educational and demonstration work in forestry such as is done by federal and State agricultural forestry agencies is advocated. Inceasing federal aid to states . in the production and distribu2 tion of nursery stock for foresk planting, and making planting stock available to non-farm as well as farm owners. Emphasizforest planting, the report says there are 62 million acres ‘of private forest land either denuded or so poorly stocked as to be practically idle; that. prior to 1947 only about 2% million acres of private land was successfully planted, and that in’ 1947 about 114,000 acres were planted. Creation of a federally sponsored forest credit system to make long-term loans on terms and conditions ,suitable for forestry purposes, adapted to the and contingent upon sound forest practices, together with a federally sponsored insurance’ sys-= tem to protect such loans and to reduce the risk inherent in forestry enterprises. Other measures’ proposed in this part of the program are additional federal aid to speed adequate forest fire protection for the 439 million acres of stateowned and private forest land in ‘need of it; strengthening of cooperative protection against forest insects and -diseases; expansion: of: all phases of forest research; encouragement of forest cooperative associations among small landowners; and service to states in the improvement of forest tax laws. , As to the second part of the action program recommended— “public control of cutting on private land sufficient to stop forest destruction and to keep the land reasonably productive’”’ —the . report recommends basic federal! legislation setting up standards as a guide for local forest practices and authorizing federal financial aid to states which have regulatory laws consistent with its requirement. It would also provide for federal administration in states that request it or which, after reasonable time, do not put regulation into effect. The law would ,not require sustained yield management nor, so long as. cutting practices meet required standards, would it regulate when or how ‘much of his timber any owner might cut. , Dealing wtih national forests, the program’s third part recommends their further development and expansion ‘as a great public asset’’ capable of producing much larger returns in sustained output of timber, livestock ° forage, water, wildlife and recreation, if more intensively managed. As to expansion, it is recommended that there be added to the present national forests and to state and community forests, a considerable acreage of land so badly depleted that it is unlikely private owners will restore them to productive control, and certain areas of special importance for watershed protection and other public services. PLANTATION: DAYS IS HUGE SUCCESS HERE Literally hanging from’ the light fixtures because of the huge crowd Saturday night, the Plantation Days variety show of the Nevada City Elks was a_ huge success. Southern fried chicken and dancing rounded ou® the show. The dinner served family-style was cooked in true southern fashion by Hap Rickert. The show, under the direction of George. Hansen and Frank Stewart was. one .of the best produced here. Stewart, master of ceremonies, joined with Hansen to present one of their famous impersonations. Hansen brouht down the house with his torch-singing number, Another outstanding skit: was presented by Bob Paine and Stewart. Songs by the Lionettes added to the show. The song birds were: Virginia Clapp, Audrey Kerrin, 3ernice Gibson and Rose French. Heard for the first time in Nevada City were two popular ballads by Bob Peterson. Bill Tobiassen sang southern music. Other outstanding featu res were presented by Dr. Cy Kerrin, 3i11 Gibson, Dee Montonari, Marvin Shock, Charles Hilpert, Jimmy Sharpe, Chet Merschel, Burnis Hilpert. Dancing to the music of Jerry Austin and Avery Philip’s ‘‘Dixieland Band” followed the show. In charge.of the affair were R. V. Conrad, Hobart Snider and Marvin Shock. What sweet delight a quiet life affords. ——Drummond needs of private forest operators, ring the need for more widespread ol By JOSEPH STAGG LAWRENCE Vice-President, Empire Trust Co. Excerpts from an address by Mr. Lawrence before the Colorado Mining Association, Denver, Colorado, February 1, 1949. One of the major ‘prablems confronting the government and the people of this county in the post war period has been inflation. Since 1939 the cost of food has gone up 147.3 per cent, wages 182.2 per cent, wholesale prices 112.4 per cent, and transportation, as measured» by railroad freight rates, 52 per cent. This rise in field in our economy, with the single exception of gold. Even the president’s salary and his ex-pense account reflect the changing value of the American dollar. I need hardly mention to this audience that the decline value of the dollar has presented political issues of the post war sions, in his capacity as president of the United States, Mr. Truman has asked congress for extraordinary powers to deal with this problem. Throughout the recent campaign he taxed the 80th congress with inflation. responsibility for its failure to continue the OPA and grant him the necessary authority to keep prices at reasonable lévels. In his analysis of the problem, the president has accused, at various times, the grain speculator, the high: profits of corporations, the conspiratorial monopolies of big business and the alleged failure of our ‘banks to keep credit within bounds. At no time and on no occasion did he place his finger on the single Valid cause of the distressing rise in prices from which this country has suffered. That cause, as every monetary economist has long since pointed out, is the excessive issue of currency and the enormous expansion of bank credit necessitated by the fiscal practices of the federal government itself. Nor has the president, or any of his advisors, pointed out that the only effective check on prices which all the experience of history has ever demonstrated has been the check which an honest gold standard provides. As we move from the president to the federal reserve authorities, we find a similar-concern for inflation. Here, again, remedies are periodically proposed to correct this pervading---ailment; In the 1945 annual report of ‘the federal reserve. board, Mr. Eccles suggests that the board be granted authority to impose any reserves upon the banks of the country which it might deem _ desirable. It also asks for the right to determine the character of a bank’s bond portfolio. It asks for further qualitative credit controls similar to the limits on borrowing for security purchases and the regulation of consumer credit. Here is an official body charged particularly by law to Operate the American central banking system in a fashion that will promote a sound banking structure and an honest currency. It has ample funds for research and is able to employ outstanding experts in the field. Yet, in spite of this peculiarly responsible and competent position, the board has failed in the last fifteen years to call attention to the one condition which alone will serve to check the infinite expansion of bank credit and the unlimited issue of ‘folding money —namely, an honest gold standard. What is the reason for *this startling failure? Why is it that the administration and the executive agencies capable of diagnosing our price problem and _ prescribing authentic remedies have meticulously avoided the only . possible sound prescription? The answer is to be found in a sedative ideological importation known as a managed currency. This theory, “like so many others that have confused and bedeviled' the American people in recent years; has come from England. Probably the chief exponent of a managed currency in the last generation has been the late Lord Keynes. Immediately after the first world war, John Maynard Keynes was one of the stoutest supporters of an honest gold standard. In fact, prices has pervaded almost every: in the }. us with one of the most acute period. On three separate occastocks to total demand deposits comiums ever penned eon behalf] and currency is more favorable ‘of the yellow metal have come some of the most eloquent enfrom ‘the hand of Lord Keynes himself. serie

of Mr. Keynes changed. He not, only believed it best for a government to control credit and currency to regulate the price level, but that it was a solemn fduty for every government to do “portance, this injunction applied -particuularly to Great Britain and the United States. ! Under his. skillful exposition Mr. Keynes found converts. both in England and this country. As corollaries of a managed currency, he added the theories ‘of pump. priming and government control of the bond market. He was frankly committed to a program of continuous. inflation. Only in this way could England find relief from the succession of crises which had plagued that country during the 30’s and the continuation: of which he apprehended after the second world war. This bland sophistry has made such headway in American thinking that the authorities, wrestling today with the problem of inflation, fail even. to mention goldt as a possible check on the evaporating value of the dollar, In spite of an _ official conspiracy. of silence which shroud this subject, we know that the American people,.-like all other people; have a@ deep-seated longing for the change affords. ese Elsewhere in the ‘world men are eagerly bidding for the’ precious metal. In Mexieo.:the peon, in France the peasant, in China the coolie all seek this tried and tested haven for their savings. ‘-It is a shocking comment on the deterioration in the American concept of freedom that this country Jeads the way in denying to the individual the right of refuge in gold which is still enjoyed by people in other parts of the world. I do not mean to imply that gold will automatically stabilize the price level and establish a permanent and invulnerable value for the dollar. Fortunately, where ever gold is used as a base for a currency, itaffords considerable breathing space for price levels and business fluctuations. : The competent advocates of gold. have never argued that it prevents price fluctuations or leys of the busigess cycle. Howtations on the range of price fluctuations. It does so because it acts as a check upon the infinite expansion of currency and credit. It makes impossible the type of extreme price behavior which is now taking place in other parts of the world, price behavior whose ultimate correction can come only in the form of currency confiscation or repudiation by the government. It behooves every one of us to become fully cognizant of the importance of gold upon our daily lives. Our wages, our breadbasket, .our luxuries depend upon gold. No material thing will wield more influence on our future than will gold. With this limited but vital function in. mind, what can we do in this country to return to a solid currency basis? Many students who understand the operation ‘of a gold standard and who believe that monetary salvation can be found only in a return to gold, fear the resumption of specie payments by our government. They argue that any attempt to redeem currency at $35 an ounce of gold might result in a rush on the American mint which would denude_ the treasury of its gold stock. This fear. is’ probably well founded. Bear in mind that the price of gold was fixed in 1934 at $35 an ounce and that since then the wholesale price index has gone up. 125 per cent, hourly wages 154 per cent and fuel 88 per cent. Only gold retains a nominal value of $35 an ounce. Even though we have approximately two-thirds of the known gold stocks of the world, even though we have 5.6 times as much gold as we had in 1929, . even though the ratio of gold w Px to Holmes Funeral Home ar under the personal a staff trained to our tional way of helpful \ at costs any family \ easily afford, LE gS AEF, 246 Sacramento St. } Os } -'. . at a time when it is very often impossible for the family to coordinate their thoughts, is 47 our most essential service.. Turn ae direction of , 7 x tradiattention HOLMES FUNERAL HOME J. PAUL BERGEMANN, Owner Telephone 203 24-HOUR AMBULANCE SERVICE €Oe s = can Nevada City . today than 20’s ‘or the period prior to the : . first World war, an unrealistic However, during the period of 4 price of $35, if maintained in an the early 30’s, particularly after open : Great Britain was forced off the cause a disastrous drain on our gold standard in 1931, the views gold stocks. eliminates the peaks and the val. ever, it does place definite limi. it was during the market, would probably It is in the light of this possibility that> we suggest an intermediate step. Let the government change the provisions of the gold reserve act of 1934 and permit a free open market in so, Because of their great im-'gold. There is no reason in equity, morals,. or good economic sense why the miner should not be permitted to take his gold to the mint, accept 35. paper dollars. for it, or .receive it back in properly certified form and selHl.it in the best market he can find. After all, every other producer, whether of services or of tangible goods. has precisely this same right. It is a right which every one takes for granted in a free economy, a right which is enjoyed by ‘people elsewhere who presumably do, not have the advantages that we possess. In such a market where bidders are free to pay any price they choose and where sellers can offer their supplies, a fair value would be developed. If, in the light of this value ascertained over a period of time, it seems that the government could resume specie payments of $35 an ounce, then certainly : it be jsafe for it to do so without incurring the. danger. of: a’ disastrows, drain of gold stocks. On te other hand, if such a market*“should demonstrate over security which a gold unit of €x. . a “period of time a value at some higher level—say $45 to $50— then, obviously, it would be unrealistic for our government ever to attempt to return to a $35 an ounce ° basis. Here is a sound test of the possible return to a gold standard, a practical test of the value fot gold on which such a return could be effected. The men who argue that a free gold market will tend to confuse the public and create chaos are. simply afaird to submit to this on a fair, practical basis. BUILD NEVADA COUNTY OLYMPIA WELDERS Grass Valley-Nevada: City Hiway PHONE 61-J-3 would What Is Going On in the EIGHTH GRADE by Darleen Crowley Well we just finished our civics finals, received the good and. bad news on that,’ and we all thought that’s all there was to it. But Mr. Bonner had a different idea—Yes, now we have to pass a big history test. Worry! Worry! Worry! We are also starting to study about the Donner Party, and I have heard some rumors that we may go to Donner Lake. So you see it’s not all work, even though it’s close to it. The girls of the Eighth Grade ‘under the supervision of Mrs. Thibault, are starting baseball. We plan on playing Grass Valley later on in the year, and we also plan on winning every game. The boys under the coaching of Mr. Bob Bonner are starting softball, and you should see them, there really good. I. sure feel sorry for the teams they are going to play in. the summer. In the way of entertainment Mrs. Thibault’s Seventh grade has invited us to attend an April Fool’s dance, Friday night at’7730. to 10 p.m. There will be fevada City Written and Edited by Students of Nevada City. Elementary School dancing. It is sure to be an evening full lot of fun for everyone attending. The Eighth grade went to the high school last Thursday to s¢e an entertainment given by the Marysville-high school. A very good time was had by all. [ guess that is about all the news for now, so be reading next week for more about the Eighth grade. GOLD FLAT P-TA WILL SEAT OFFICERS AT MEETING TONIGHT The recently elected officers of the Gold Flat P-TA will be installed at a special meeting tonight at 8 o’clock in the Gold Flat School. Mrs. Lioyd White, retiring president, will preside at the short business meeting. Mrs. Lou Powell, Jr., past president, will install the new officers. On. the program for the evening will be Robert Peterson who will sing two popular _ numbers, and the Gold Flat School chorus under the direction of Mrs. Pauline Stevens. of a popular dances and old time folk Refreshments will be served. G Telephone Grass Valley 1050 GLENBROOK BUILDING SUPPLIES BUILDERS & CONSUMERS LUMBER COMPANY OUR ARE TOPS IN QUALITY & PRICE Fh Call us for a free estimate today. Ga — HOW YOU GET YOURTELEPHONE ADDRESS Your number guides a call to you from across the nation quickly as you can walk 2. Picking your number is a people. From their charts they find an available pair of wires in a cable to your neighborhood. The volume of calls carried by the central office equipment serving your number is often checked to see if it has the capacity to handle added calls. This is part of our job of making telephone service reliable and efficient. 4. A lot of new numbers have been added in the past few years. For today there are twice as many telephones in use on the Coast as ten years ago. All these new telephones make yours: more valuable, You can reach more people.. more can reach you. Yet rates remain low. A few pennies still buy a call—a real value in these days of high prices. ae almost as next door 1. Your voice highway—a pair of tiny wires— is labeled with your telephone number at this central office distributing frame. From here, the wires lead out of the office, through cables, to your telephone. They also go the other way—on into a special section of complex equipment that has the specific job of handling your calls. job for trained ‘Street. Perhaps earth. But your 3. Someone calls your number.. and, ina matter of moments, you pick up your receiver to answer. Perhaps the call is from just across the it comes half-way around the number guided it to your telephone.. and no other. Seems almost like magic when you think of it.. another of the little things that add up to good telephone service for you. Give the Pacific Telephone (@) and Telegraph Company SS eS A A SS Se Se SE SND Me me mhlegs SD ee Ghee eee gladly to aff the Red Cross _£ te QO #e€ AO netaAanma > & Ss © fo ot