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Page: of 6

1933
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NEVADA CITY
Where Climate, Good Water
and Gold Invite the World.
\
7
Nevada City Nugget
Nevada City Nugget is a Member of the United Press
4
Nevada City Nugget
LIVE NEWSPAPER pub. lished in a live town.
iol VII,-No. 70 The County Seat Paper NEVADA CITY CALIFORNIA
The GOLD Center FRIDAY JUNE 30, 1933
Englebright Would Lift Gold
Treasury Asked For
World Market Price
Since the United States left the
gold standard, and after the Presidential Order of April 19, 1933,
which prohibits the exportation of
gold from the United States, many
statements have been made through
4he Press, and otherwise, that gold
as the result thereof would raise in
price in the United States to $30.00
or $40,00 per uonce. Such statements have been made through lack
of knowledge or understanding of
the situation, and do not reflect the
facts.
By existing law the selling price
of a pure ounce of gold at the Unit_
States Mint is $20.67. This is all,
under existing law and regulations,
that the Mint is permitted to pay f
the same, and since the export
of gold is prohibited; the ben
foreign currency exchange rates and
the selling price of gold o
market cannot be obtained
United States.
WORLD PRICE $26
The selling prjiée of gold on the
world market, jn terms of our currehcey, at present makes gold worth
$26.00 pey/ounce,x but due to the
the exportation of gold is
prohibyed, all that can be received
e same at the United States
Mimt as long as the embargo is in efFoet is $20.67 per ounce. Secretary
of the Treasury Woodin, it may be
recalled, recently announced through
the Press that reports-that the Ad‘ainistration had decided to raise the
price of gold was “without foundafion;"’ and Treasury officials pointed out that an inerease in the price
£ gold would be unfair to those who
ave patriotically responded in turnrug in to the Treasury gold coins and
sold. notes. Secretary Woodin said
GEORGE STARR
FINDS ACTIVITY
ALL ALONG LODE
Having fecentis returned from.a
fifteen hundred mile trip. through
‘he northern mining counties of this
state, George W. Starr, Preswlent of
ihe Mining Association of California
and J. C. Kempvanee Jr., Secretary,
report that mining activities are-not
Localized, but are in evidence in
mining district between Nevada City and Yreka. Although there
ix no where operating mines
and new developments are so much
in evidence as in Grass Valley and
Nevada City, nevertheless th echief
topic of interest every town visited
was concerned the inspiration and
barchase of mining properties and
the success of preliminary developin the
every
place
ment. The hotetls are filled with
ruining men and their lobbies dotted
with groups pouring over blueDue to the passage of the Placer
bill, sponsored by James Stewart of
Auburn, director of the Mining Association of California ,and signed
by Governor Rolph which carried
. the endorsement of a number of the
leading members of the association
operating in Nevada City and Grass
Valley, the northern counties anticipate a great stimulus to this branch
of the industry in those sections.
During this trip, Mr. Starr callea
on. the leading‘mining ‘men in each
section visited and expressed himself as being gratified with the evicence that after years of individua)}
asd unorganized effort mining men
mow realize that their interests are
routual and are eager to pull tosether to improve operating conditions and further their industry.
Leaders in each community visited
are now organizing their respective
chapters, which will elect two delegates to attend an executive committee meeting to be called at a later
date by President Starr. In this way
the entire body of California mining
men will be represented to determine upon the urgent’ requirements
demanded by the industry in direct
accordance with the provision of the
National Industrial Recovery. Act.
standard;
and possibly unconstitutional.
: LABOR AFFECTED ‘it are extremely
. were to be cut off in times like these.
a free market for gold here is not’
contemplated.
RISE IN COMMODITIES regain
Inasmuch as only $20.67 4an be
received at the United States Mint
for an ounce of gold under existing .
law and_ regulations, a d due to the
present increase and expected further increase in e price of commodities, “mateyial and supplies,
many of the lafge gold mining companies fear Ahat within a comparatively short period of time the costs
ions may advance to a point
ill greatly restrict their activor close their mines.The effect of the gold embargo on
the gold mining, industry of this
country is most unfair, inasmuch as
it prevents the industry from receiving the world market price for its
product which at the present time,
in terms of our money, is about
$26.00 per ounce.
NEGOTIATES WITH TREASURY
FOUR SCOUTS A CHANCE.
Four members of the Nevada City .
troop 6f Boy Scouts, who
ken a very active part in all Scout
wotk, are anxious to go to Camp
-ahatsi this year, butt they just
have not got the money, that is $b
which it costs per week. This was the
spot of Richard Parsons, Scoutmaster, at Wednesday night’s meeting of
the Scout Council ,of which Horace
Curnow is president.
‘Anyone who has a day’s. work
for a boy-and will notify Scoutmaster Dick Parsons can help some one
o fthese boys realizé his desire to
get the extra benefit of a-week in
summer camp in company with experienced Scouts from all over Nevada and Placer counties.
Camp hats are now being sported
by a few boys of Troop 6 who have
been registered for camp and had
their applications approved. The
summer camp at Camp Pahatsi is the
mecca for all the Scouts of the Ta_
hoe Area and a week at camp ‘“‘is
something”’ to tese boys.
Judge Raglan Tuttle was asked to
represent the Nevada City cauncil
on Service Club Day at Camp PaImmediately after the order pro_
hibiting the exportation of geld was
issued, in anticipation of the serious . !
results it might have on the gold
mining industry, I took the subject
up in detail with the Treasury Department and requested that the orhatsi, July 22, when a dinner will
be given for Service Club and other
representatives. Judge Tuttle will be
among the speakers on that occasion.
It was suggested by . President
Curnow that the Boy Scouts assist
in the Work of providing the C. CG.
C. camps of this county with reading
der be so modified as to permit the
exportation of newly-mined gold pro.
duced in the United States, and am j
still negotiating with the Department
on this problem.
Up to the present time, however, .
no provision has been made for
gold miner to receive the world mar‘.
kete price for his product. He is placed in the disasterous _position of
having to sell his gold for less than
it is worth. No other
the gold standard has left such an
injustice unremedied.
In the Union of South Africa, Canada, Australia, Rhodesia, Mexico,
New Zealand and all other gold-producing countries, with the exception
of Russia ,now off the gold standard,
the gold miner has been allowed a
market where gold brings its world
price. Justice to the gold miner demands that newly-mined gold be provided with an unrestricted market.
_ MINING A FACTOR
The gold, miner has had no part in
fdreing thd country off the gold
in fact his renewed activ_
ity during the depression has been
one of the favorable factors resisting
deflation. In the United States, there
is an added reason why one industry
may not be singled out to be penalized by expert restrictions. In many
other countries there are export duties from which revenue is derived
running the country.
In such countries an embargo on
newly-mined: gold could be justified
as an export duty equivalent to the
difference between the domestic Mint
price for gold and the real world
price. Advantage of this been
taken by no foreign country so far.
In the United States, however, no
such justification exists, because our
Constitution provides, ‘“‘no tax or
duty shall be laid on articles exported from any State.” Consequently,
the present plight of the gold miner
for
has
in the United States is the result of; ing fine horses-in California accordregulations that are discriminatory
The gold mining industry of the
United States is an important employer of labor. In many_ localities
the main source of cash income, is
wages from the local gold mine. It
would be ‘serious of such income
It is important to maintain and encourage active developments and op_
erations of our gold mines.
This can—enly be accomplished by
keeping the gold mining business
profitable; and this can only be done
in view of rising costs. of operations
and under present law, by permitting
the gold miner to export his gold,
and receive the world price thereon.
Many gold mines in the United
States are leading a precarious existence, because they operate with
such a narrow margin of profit.
MAY CUT DEVELOPMENT
The allotment for prospecting and
; council
i
. which they
1 See horse races, trotters j;pacers and
matter and jig saw puzzles and the
approved the _ suggestions.
Residents of this-eity who have old
Magazines or jig saw puzzles for
no longer have any use,
‘are urged to call on the nearesi Boy .
ies 28
HERE’S CHANCE TO GIVE (',
!
have ta-.
t
.
. HERE'S THE LOW DOWN
ON THE SILVER DOLLAR
There are 480 grains in one
tj
:
.
. . Ounce. A __ silver dollar weighs
i 41216 grains, of which 41¥y%
grains are an alloy’of no value,
leaving only 371% grains of. sil, ver in a dollar, or 77 1-3 hund. redths of an ounce.
. Silver bullion has traveled the
submarine route,
. always circulates at par, 100
. cents. To get the value of silver
in a dollar multiply the
i price per ounce by the
0.77: 1-3. For
factor
instance, with the
. ounce, multiplying this price by
the factor given, we get 21.65
; cents, as the actual value of the
silver in a dollar.
. To make the value of the sil. , ver in a dollar worth 100 cents,
i the price of silver would have to
. be $1.29 an ounce. At this price .
. Sixteen ounces of silver equals .
. the value of one ounce of gold. .
This-was Bryan’s battle ery—‘‘16
to 1.’’ Ration at present is about
74 to 1.
but the dollar . .
market . ;
\. price of silver at 28 cents per . .
.
.
.
i
.
lI
Scout in their neighborhood and he
will see to it that these articles are
mbargo.
City Council Agrees
_ Upon Swim Pool Site
The city council, meeting Wednesday evening, virtually agreed
upon a site for the municipal swim.
ming pool. It will be on Park avenue with Little Deer running
through it, consists of portions of
; Property belonging to Mrs. William
Young, James Goeédie, A. H. Haddy
and Mr. Dunlap; father of Mrs. C:
Thomas, who lives on that property.
Options ‘have been secured on two
of the four properties involved and
i the councik.s confidently expects
; Shortly to receive options on the
. other two. A. H. Haddy donated his
part of the proposed site, a strip 40
by 80 feet, for swimming pool purposes. =
BetWeen seven and eight acres are
to be included in the site, which, it
j is expected will be developed over
a long period into a fine recreation
park. City Engineer Ed. C. Uren has
been asked to make a survey of the
property.
The board also accepted the bid
of the Sacramento Pipe Works to
conveyed to the boys in th eC. C.! Supply 2900 feet of steel slip joint
C. camps.
The finance committee made an
pipe, 15 inches in diameter, for
$3100. This was the lowest bid and
excelletn report. conforms closely to the estimates
0 made by City Engineer Uren. The
Thomas Reynolds and two sons ; pipe is to replace the redwood stave
arrived in Nevada City last Friday . pipe which burst when ater was
fora visit with Mr. Reynold’s wife. . turned into the Canada Hill reserThey left Sunday for Echo. Lake. voir following the prolonged snow
Where they go to build a summer . Storm last winter. No bids on trench
home for Mr. Cairns of St. Helena.
country off:
Dry. Repeal, Riley Tax
Plan, Race Bets, Win:
Gas Tax Raid, Loses
The made
some
people of Cafifornia
very definite decisions in the
Three
of every four voters expressed their
desire to repeal the Eighteenth
Amendment and placed California in
the column against Prohibition, making the eighteenth state to vote repeal, as against that has upelection of last Tuesday. out
none
held it.
Proposition No. .1, the Riley tax .
plan, carried, but without so large .
and enthusiastic a majority. It will .
probably show a two to one vote in
the affirmative. The heaviest
against the measure, as was expected, Was in the large cities, while
rural sections mustared the greatest
strength in favor of it.
Unemployment relief bonds, which
enable the state to borrow Federal
funds, for relief purposes, carried by
voie .
better than two to one.
After being defeated for many
years, the pari-mutual racing bill
was approved with an indicated vote
of 7
fectively revise the business of breedto 4 in its favor.
ing to its proponents, since
fosters this
racing
doubtful whether
People will attend
horse show. But to
this will result.
an occasional
runners do their stuff on circular
tracks after years of travel on
smooth highways in. motor cars “at
45 miles or better, no longer appeals
or thrills. Pari-mutual betting, it
may be, will attract some of the
throngs that once frequented California race tracks, but so far as
genuine interest is concerned, according to those who opposed the
measure, it will be in the betting
and not the horse. In fact, dogs,
under an auction system of betting,
Serve as well.
School tax exemption for private
schools lost again. It was especially
foredoomed, to lose in a period when
the tax burden is most oppressive. It
has been voted down many times by
California’s electorate, but may be
industry. Opponents of;
expected to appear on the ballot in
(Continued on Page Five) a
every state general election.
Nos. 9 and 10 on the ballot, providing for gas tax diversion were
snowed under with an 8 to 3 vote.
When one out of every four
in California owns or
motor ear, no other
be expected. The measure was _ unjust to car owners and they were
easily able to defeat it. State Finance Director Vandegrift, who fathered the measure, has added to his
Wide unpopularity.
persons
operates a
result was to
The’ cownty government
giving supervisors greater power in
, the administration of county affairs,
without the long drawn-out process of carrying all matters before
the plate legislature, was carried
' by approximately a two to One vote.
The measure providing for re-assessment of earthquake damage in
Los Angeles, and for making effective cemain legislation enacted at
the recent session of the legislature, !
both passed by large majorities.
Nevada County’s vote follows:
Repeal 18th Amendment
ING Stes ans ae 893
No. 4 ( Educational Institutions)
POR oes Re 1275
1708
(Earthquake Poperty)
1772
693
No. 8. (County Government)
Yes 1725
No ‘674
No. 9 (Gasoline Tax Diversion)
Yes 364
No 2604
No. 10 (Gasoline Tax Diversion)
Yes 313
Measure, t
Se ee eee 2608
This will ef-! :
digging were received and the board
will take up that matter at its meeting next week.
.
COUPLE ACCUSED OF
-. DISTURBING PEACE
Business, picked up again yester.
day at the city hall when John Clepp
filed -a complaint of disturbing thepeace against a man and wife who
occupied a neighboring cabin. Chief
of Police Robson was called Thursday night to quell a disturbance alleged to have been created by Harry
Tucker and Josephine Tucker. Tucker was arrested on a warrant issued
by City Judge Coughlin and brought
into court. His condition was such
that his hearing was continued to
Friday morning when he will be
brought into court to answer the
charge. Mrs. Tucker was not brought
to jail yesterday but the warrani
may be served on her today.
Chief of Police Robson filed a
complaint against William Mendoulet, charging him with parking a
car within a pedestrian cross-walk.
He was assessed $2 upon his plea of
guilty and promised to respect the
traffic rules in the future.
O
MISS WILMA CRASE OF
GRASS VALLEY IS DEAD
Miss Wilma Nadine Crase, 19
wears old, was borne to rest yesterday afternoon following services in
the mortuary establishment of W. R.
Jefford and Son of Grass Valley. The
Rev. Samuel Tamblyn of Meridian
peached the funeral sermon.
SACRAMENTO, June 29—(UP)
—Definite ‘limitation of the governor’s tenure to the single
year term and abolition of all
necessary bureaus, commissions and
departments is advocated by State
Treasurer Charles Johnson as the
quickest and best way to remove
the “spoils system” from state ZOvernment.
four
unCHARLES G. JOHNSON,
State Treasurer
Bureaus and departments which
are absolutely indispensible should
be absorbed by various constitutional
offices—that is, elective offices such
as controller, treasurer.
Johnson declared the ‘‘spoils system’’ had crept into. the state gov‘ernment and brought with it a tremendous and top heavy bureacracy.
Each governor, he said, is confronted with the necessity of meeting political debts by appointments.
“Favorites are selected, not for
their political or financial contribution during the campaign, and the
‘spoils system’ ruthlessly applied to
those who have for four years proven
their. honesty and efficiency in pub,
lic office,”” Johnson said. “They are
removed ‘and a ¥ Ldsacinecs
favorites." ls
their fitness, but as a reward for}
‘July 10.
State Treasurer Hits —
State Spoils System
limitation of
governor's. tenure «would prevent that executive from devoting
considerable part of his time to the
building up of a politieal machine
by appointment. Besides, he obServed, Califonia isn’t in the habit
of reeleecting governors. Only once
in the state’s history has a chief executive Deen reelected, Hiram Johnson. jie
The treasurer said
‘the
“During the last 20 years, colStitutional government has suffered
fromdiversion of itspower to--bureaus,’’ Johnson said. ‘‘For a period
it was thought all functions of constitutional government would be delegated to bureaus through the power
of administrative influence.
“The public should look well to
their interest to prevent further exPloitation of the constitutional offices by the plenary directid. of
the governor for the benefit of his
political favorites.
“The trend of public opinion def.
initely indicates a determination to
prevent extravagance and waste in
government, It is high time that
politicians realize it is time to give
taxpayers a new and clean deal in
state government,”
SKI CLUB MEETING
POSTPONED TO JULY 10
The Nevada City-Grass Valley. Ski
Slub_ Association postponed _ their
meeting which was to have been held
last Monday evening to Monday
. Sheriff Geoge R. Carter, the president, wishes to have a good attendance of members pesent at the meeting in order to come to some decision
as to the leasing or selling of a portion of the elub’s property ae. the
‘. Central Bonne,
.
‘The Board of Supery will .
meet next Monday to ¢ e vote
of last Tuesday's special election,
count 30 oda > a 0 i