The Daily Alaska empire Newspaper, March 24, 1933, Page 7

e THE DAILY ALASKA EMPIRE, FRIDAY, MARCH 24, 1933. (EDITOR'S NOTE—This ar- ticle is the second of a series discussing monetary and rclated problems in the light of recent developments.) By J. R. BACKETT NEW YORK, March 24—Expan- sion of the currency does not nec- essarily mean inflation of the na- tion's money supply. because bank This is deposits. not curr constitute ihe bulk of the money. Bank deposits &t the calling of the bank holiday were about $40,000,000,000; money in circulation, including currency, about $6,700,000,000. This is a to- tal of $46,700,000,000. Distinguished Frem Inflation If this sum were increased be- yond the nation’s economic needs or increased artificially, there would be inflation. In the present situation currency expansion is planned only to the extent necessary to sa / the de- mands of bank depositors. Thus, if, on the reopening of the banks, the people withdrew $2,000,000,000, money in circulation would in- crease to $8,700,000,000, but this same $2,000,000,000 would be with- drawn from bank deposits and the total of all money—bank dep: and money in circulation—would be the same. its YOU and YOUR MONEY and in the form of bank deposits, indicated above. evpanded and yet have a substantial backing. 1.BANK TAKES US BONDS AND OTHER COLLATERAL TO FEDERAL RESERVE 2.FEDERAL RESERVE GIVES MONEY FOR BONDS 3.BANK G.VES MONEY TO DEPOSITORS. ' | Currency expansion might be in- |flation if the government simply issued it and distributed it to the public. This would be net addi- tion to the money supply. How It Circulates The new money now planned s into circulation just as money Iways does normally. The banks of the country go to the Federal | Reserve banks and afe given the money when they give the Fed- eral Reserve the required govern- ient bonds. he banks give out this money to those of their de- positors who demand if. In time | the deposiiars may be expected to redeposit the money. Then the | banks will take the money back |to the Federal hkezerve and gel their securities again. Inflation need not be ortific- ially induced in the sense of print- ling currency. It is easier to in- |flate credit which is inflating | bank deposits. In 1929 bank deposits were $55,- 200,000,000; money in circulation, $4,700,000,000, a total money sup- ply of $59,900,000,000. { A large part of the bank depos- its had been invested ana re-in- vested beyond a safe point; to a | point, that where there was a credit inflation. | A bank’s deposits are increased A DELICIOUS CONFECTION! Fresh “Cordial | Cherries” | (CHOCOLATE COATED) FULL POUND 50c¢ ARRY RACE Druggist THE SQUIBB STORE No. 2.—Before and After Currency Expansion DS 2 QORI Q0 ROS o Controlied curreney expansion as distinguished from mere “printing press” meney is looked to as a means of making up in part for the shrinkage in the maticn’s tetal money, both that in circulation The sketch below indicates how currency may be: largely by loans. Thus if Mr. A deposits $10,000 in the bank, the bank may lend $5,000 of it to Mr. B. Mr. B. redeposits it, and the |bank's deposits are now §15,000. If the bank lends, say, $2,000 to {Mr. C, which is also re-deposited, |the deposits now are $17,000. | This process on a nation-wide | scale may go too far, with the re- |sult that money is diverted to speculation and bad loans made. When ‘Deflation Be ns When the speculation gets out| of hand and the bank attempts to collect the bad loans, deflation s in, and the reverse of the pol- described in the foregoing be- icy gins. If the loans are held down, there is no inflation, or, at least, the inflation is not harmful. Thus in- flation of credit n be good or bad In 1928 there was cre |iuilation, but it did not go be- yond nation’s needs. Inflation deflation of the credit supply 1 &'vavs going on according to the needs vl wuiiness | Likewise money in circulation var- ies in time, but not so widely as | credit—bank deposits. GREEN IS NOT WITH ROOSEVELT President of American Federation Opposes W Camp Plans WASHINGTON, March 24— President William Green, of the American Federation of Labor, told a Congressional Committee today that President Roosevelt's plan for civilian conservation corps “smacks of Fascism, Hitlerism and a form of Sovietism.” TO REDRAFT MEASURE WASHINGTON, March 24.—After bristling opposition by the Ameri- can Federation of Labor before ths Congressional Committee immed- iate indications were given that the employment measure will be re- drafted. It is also said a drive is on to rewrite the Farm Relief measure. P T JUNEAU FROCK SHOPPE “Exclusive but not Expensive” Coats, Dresses, Lingerie Hoslery and Hats dit LATIN JOCKEYS- 'EARNINGS RIVAL any list of professional athletes who have made their prewess pay |them big money, the name of the jockey Irenea Leguiamo, idol of the Buenos Aires racetrack, belongs | one-to-three. { In ten years of riding at the |Jockey Club hippodrome he has collected $365,000 in commissions lon winnings of the mounts he {has ridden., That represents five ‘per cent of the prize money plus ‘ano:her five per cent invariably jgiven to the jockay by the ' owner of a winning horse. It does not include generous gifts from the jowners of race winners, which probably amount to ancther $100- 000 or more. A ten-year average earning of 1836500 would be notable for a sports ace in the United States, even in the lamented “golden age.” |Perhaps only Babe Ruth can match it. It is the more remark- able in Argent for Legu [won all his stakes in pesos, of |which it took two, and now takes four, to make a dollar. And stakes {have declined since 1928. Set Two World Records Leguisamo is a Uruguyan who started riding on the Buenos Aires track in 1922. Since then he has |ridden 2,980 horses, of which 887 Eor 19.7 per cent, won. His big- gest year was 1930, when horses he rode won $527,600 in stakes {and when he twice set world rec- |ords—one day by booting’ in six |winners on an afternoon card, and {ten weeks later by riding in every jone of eight races, winning seven |and placing second in the other. | No other South American athlete lcan approach Leguisamo’s record as a money-maker. The gold win- nings of little Jose Jaredo, the pay of the best profes iball player and the fecs best bullfighter could be lumped together and look little beside the takings of “Octopus” Leguisamo. | Fears Kidnapers Recently the police uncovered a (plot to kidnap the jockey, and the BABE'S SALARY | BUENOS AIRES, March 24—On | ensuing publicity revealed some things about him that the public much as it idolizes him and sings tangoes dedicated to him, had never known. His villa, at the edge of a Buenos Aires suburb, is as burglar-proof as special X fon could make it. His grounds are filled with flow- reed dogs and songbirds attends himself. His fondness for animals explains why veteran railbirds can count on their fingers the times he has used his spurs on mounts, even in the *hardest finishes. But he hasn't a horse on the place. e The Ketchikan Meat Company was taken over last week by A F. Bethe, who has been its man- for the past several years. % cretary-treasurer of ns Packing Compar of Tacoma, went to Ketchikan to range the transfer. Mr. Bethe been in Ketchikan since 1921 and before that he was in the Interior for 'several years. lall of which he Old Orchard Whole Juicy CHERRIES Chocolate Covered in Cream .50 CENTS Full Pound JUNEAU DRUG CO. SUBSTATION NO. 1 Phone 33 Free Delivery AR A SPECIAL VALUE for Tomo! rrow at Our Liquidation SA LE Boys’ and Girls’ School Shoes and Oxfords Values to $4.50, SALE PRICE $1.95 Boys” Storm King Boots, sizes 3 to 6. Regular $4. 50 values. SALE PRICE $3.45 Boys’ and Girls’ Keds All sizes—$1.00 Arnold’s Store Open Bootery Evenings Use Alaska Lumber JUNEAU LUMBER MILLS PHONE 358 INDIAN WAR DANCES 1. 2 3. 4. SEA Wiate B : General Admission, 50 cents MASKED, FANTASTIC GHOSTS Saturday, March 25 Alaska Native Brotherhood Hall Mrs. Peter Smith—Mrs. Chas. Green featured in “THE MOON—THE MAN”—Ancieat Indian Act WEIRD LAND OTTER GHOST DANCE. PTARMIGAN DANCE. LION DANCE. INTERPRETATIVE FISH DANCE. Hard to Discourage, : Gains Boxing Letter Without Hitting Lick CHARLOTTESVILLE, Va. March 24—Seddon C. Nelson has been awarded the University of Virginia major spart “V" in boxing, al- though he has never com in an intercollegiate bout his four Although it was not possible to use Nelson as a substitute in box- ing, " the athletic assoclation ex- plained in making the award, “he continued to box four years be- cause of his love of the sport, benefitting not only himself, but fall his fello said the commit- “We should like to encourage such spirit, as it is worthy of emu- lation.” Nelson sparred with the top- notchers on the boxing team in the {junior-middleweight and welter- weight classes. Records show that the major sport “V” has never been given to| any other man at Virginia who ) I | MIDGET LUNCH | | | Under 01 Management | |1 || TOM and MARIE STURGE | | Open Sunday | | i1 \ [ . E BRO It’s as Simple as A, B, C . Good foods cost no more, it saves money three ways — it keeps you healthy, lasts’ longer, cooks better. $50.00 Will be paid for information leading to the arrest and conviction of the party or parties guilty of pilfering the : MIDGET CAFE All information will be treated as confidential. Tom Sturge O‘ld_v Papers for Sale at Empire Oifce United Food Co CASH GROCERS PRUNES, nice size, 41lbs. . . . . . . . 25¢ e e WN SUGAR, 5 Ibs. . . . . . ... 25¢ FLOUR,491bs. . . . ... ... .. $L10 GOING UP IN PRICE HILLS RED CAN COFFEE,1b. . ... 32¢ SPECIAL COFFEE, Ib. ... .. .. POTATOES, 251bs. .. . . 19¢ YAKIMA NO. 1 GEMS MAYONNAISE, Nalley’s, quart . . . 43¢ SPICES, your choice, 2 0z. cans . . . . 8e e i il i o i BUTTER, Fresh Creamery, 2 lbs. . . . 47¢ BANANAS, Golden Ripe, 3bs. . . . . 23¢ FRESH FLOWERS on Northland OUR MOTHER’S COCOA,21b. can . . 23¢ TASTY MALT, Camera Deal . .. . . 45¢ SALAD OIL . BRING YOUR BOTTLE . « 20c quart, 79¢ gallon ATS FOR YOUR SUNDAY DINNER e +GROCERIES 403 Choice Chickens and Roasts MEAT . . 403-2 rings WE DELIVER