The Daily Alaska empire Newspaper, October 30, 1933, Page 4

v i | St ‘and it sees grave d . 4 Daily Alaska Empir_e ROBERT W. BENDER - - GENERAL MANAGER oublished _every _ evemng _except Sunday by _the EMPIRE PRINTING COMPANY at Second and Main Streets, Juneau, Alaska. Entered in the Post Office in Juneau as Second Class matter. SUBSCRIPTION RATES. Dellvered by carrier in Juneau and Douglas for $1.25 per month, By mail, postage paid, at the following rates: One year, in advance, $12.00; six months, in advance, $6.00; one month, in advance, $1.25. Subscribers will confer a favor if they will promptly notify the Business Office of any failure or irregularity in the delivery of their papers. and Business Offices, 374. phone for Bditorjs MEMBER OF ASSOCIATED PRESS. The Assoclated Press 1s exclusively entitled to the use for republication of s dispatches credited to it or not otherwise cre per and also the local news published he ALASKA CIRCULATION GUARANTEED TO BE LARGER THAN THAT OF ANY OTHER PUBLICATION | GOLD MINERS COMMENT. In the current 1ssue of the Engineering and Mining Journal are two short statements on the gold ruling of President Roosevelt and the future of gold mining. One is from Edward H. Cuark, President of the Homestake Mining Company, and the other by P. R. Bradley, President of the Alaska Juneau Gold Mining Company. Mr. Clark said: Eminently fair is the so-called “gold ruling” issued by President Roosevelt on August 29. There has been every reason why gold should participate in any enhance- ment of value that changing economic con- ditions might bring about for metfals and minerals in general One result of the ruling should be to stimulate the search for new gold properties in the United States and its dependencies. Indeed this stimulus is already apparent, to judge from the large number of gold mining enterprises that are seeking financial back- ing. The gold output of the United States, now less than 200,000 ounces monthly, should see an increase. There have been a large number of marginal properties at $20.67 an ounce that will now be able to contribute to the production total, provided they can raise the necessary capital. On this latter account, investors will be cautious. The same cautious vein is apparent Bradley's statement, which follows: in Mr. The present market price for gold is analagous in many respects to 24-cent cop- f. TDOSe . WHO, o8 new gold mining ntures based on b s gold price may find themselves in the same position as those who started copper-mining ventures based on 24-cent pound copper. The same analogy holds for stock values—24-cent cop- per does not mean that every pound of copper in a given mine will bring 24 cents, nor does $29 gold mean that every ounce of gold in a given mine will bring $20 to the operating company. In terms of our dollar, gold is bringing a most attractive price, and this fact in itself will direct much attention to gold mining. However, the future is full of un- certainties, such as increased taxation, in- creased costs of production, the time element and further acts of expediency and necessity by the Administration. Furthermore, the present gold market is one outcome of the “effort made to restore normal economic order, and once this order is restored, it seems a fair assumption that the dollar will again be at par and gold at $20.67. Activity will be stimulated in gold mining, but prudent investors will hesitate to take definite action based on an indefinite situa- tion. I think the real benefit that wil accrue to the gold mining industry from the present situation will be the increased interest that will endure and be effective after present conditions have passed. Since these statements were made public, Presi- dent Roosevelt has taken another step that gives the gold mining industry even greater benefits than the original ruling on which they were based. At the time they were written, the gold miner, in order to reap the added profits from his operations, had to sell his gold abroad which cost him a not incon- siderable sum for shipping expenses'nnd in ex- change. Today, with the Government buying newly mined gold at a price above that offered on foreign exchanges, the gold miner is freed from the expen- diture and knows from day to day just what his product is worth. How long this market will con- tinue is, of course, a matter for speculation. Stab- ilization of currency may occur within the next six months, or even a year. When that occurs, gold will also be stabilized, but it doesn’t seem likely that it will return even then to the old $20.67 figure. BEWARE OF CONTINU BOOTLEGGING. G The recently published Scott-Fosdiek report, based on a survey sponsored by John D. Rockefeller, Jr., the current series of articles in The Empire by Associated Press writers, and many other similar discussions anent what is to happen after the repeal of the Eighteefith Amendment are timely. There is every probability that repeal will be effective by December 5. One of the first things facing the Administration and Congress in January will be a revision of taxes on the re-established alcohol trade. Forthwith regular and special sessions of State Legislatures will be confronted with the task of taxing the same business. The new warning proceeding from the Rocke- feller sponsorship is against high taxes on liquor no matter what form of control shall be tried. To impose high taxes will be to continue bootlegging, now suffering a body blow from ‘the widespread sale of 32 beer. The Rockefeller against conditions thg influence is flung squarely 1l continue racketeering. the great expectations of national and The avidity # Governments have jumped at the chance to tax beer adds color to this warning. Theoretically high imposts should discourage the consumption of spirits. But by this time, everyone that the old racket set-up is ready to under- legal liquor offered at a price jacked up by know The way to take the worst evils out of legal and illegal liquor is to eliminate private profits from both. This creates a set-up on which other en- forcement measures may rest securely, giving a real basis on which true temperance education may be expected to work normally. Exorbitant taxes are an invitation to bootlegging and smuggling. From these two forms of criminality have sprung the most vicious racketeering systems of all those which infest the country. If proof of the popularity of NRA were needed, it is found in the fact that one of the candidates for Mayor of New York City is using the Blue Eagle on his election posters. feeling a bit discouraged at present. A lot of people are looking forward to a hard (liquor) winter. ; Jim Farley is credited with being the greatest Postmaster General since Ben Frenklin. But Ben, if we remember correctly, wasn't Chairman of any party’s National Committee. A Sound Piece of Credit Inflation. (New York Herald Tribune.) Plans are under way, according to advices from Washington, to enable depositors to realize part, at least, of funds which they had in banks that were either closed or put on a restricted basis fol- lowing the bank holiday last March. Apparently the machinery for performing this task has not yet been finally perfected. Assum- ing that a sound method can be worked out, how- ever, the general objective is one that is highly com- mendable. There are two reasons why the establish- ment of liquidation machinery of this sort at an early date is urgently needed. One is that it would avert the danger of including under the deposit guaranty. scheme (which becomes operative on January 1) banks of doubtful strength; the other is that /it would produce a credit expansion which would offset to some degree the restrictive action involved in the widespread bank closings of last March, Every effort is being made to bring all banks into the deposit guaranty scheme when it goes into effect, but it is no secret, of course, that some banks will be unable to qualify. With such ma- chinery as that proposed the Government would be in a position to take over the good assets of such banks as were left out, furnishing, in exchange, Government paper on which cash coula be realized. It is not, apparently, the intention of the new corporation to extend its operations at this time to those banks that were closed between 1929 and the declaration of the nation-wide bank holiday last Spring. (The National Depositors’ Committee has estimated that deposits totaling about $5,000,- 000,000 are tied up in these institution. However, quite aside from such closings there is a big task to be performed, and the potential benefits are |substantial. At the end of June there were 1,104 unlicensed Reserve member banks with deposits of $1,424,000,000 tied up and 2016 non-memoer banks with $1,071,000,000, making roughly $2,500,000,000 in “frozen” deposits exclusive of those in mutual sav- ings banks. The release of any considerable part of this total would constitute a plece of credit inflation—as distinguished from currency inflation — concerning whose desirability advocates of soft and hard money would find themselves in enthusiastic agreement. The Calendar-Crowder Crowded Out. (New York Times.) One of the numerous unhappy products and by- products of Federal Prohibition was the swamping of the Federal courts with petty cases. The cal- endars grew apopletic with them. A sort of cal- {endar-delivery, the disposal of big batches of them with small fines or remissions of fines, became the only method offering a little respite for the weary judges, But new cases came pouring in, and if a defendant insisted on a jury trial, more time was wasted and it was harder and harder to get a conviction. Repeal of the Eighteenth Amendment by De- cember 5 is certain. Arrests for violating the Pro- hibition laws are still being made. The hauling-in of persons charged with being guilty of what will soon cease to be an offense is an absurdity that seems to justify Mr. Bumble's definition of the law. According to our Washington dispatches, the Department of Justice is understood to have “vir- tually” decided to “drop dry law prosecutions, as such, immediately after the thirty-sixth State has cast its vote for repeal” So far, so good. What about prosecutions between now and November T, when the required number of States will have voted for repeal? The course to be followed, with various other Iqueslions arising from the prospect of repeal, has been discussed by President and Cabinet. A decision on prosecutions is looked or hoped for this week. It is satisfactory to hear that the official view is on the side of common sense against technicality. If the letter of the law rules, prosecutions will go on till the thirty-sixth State has ratified. Arrests will be made up to Deecmber 5. Yet November 7 is the death notice, December 5 the interment notice, of National Prohibition. What sense is there in arresting violators of laws made under an amendment dead and damned and only formally alive? The Government is said discontinuation of a great cases now on the docket. The faces of the Fed- eral ‘court calendars are beginning to lose that purple and bloated look. Before long the Federal jecourts will return to their proper and necessary business. to be pondering the number of Prohibition If Bishop Cannon would speak out of the full- ness of his heart, the American public might get something worth reading.—(Detroit Free Press.) Americans who once upon a time, hugged Ger- man marks to their expectant bosoms are not likely to think kindly of deflation.—(Toledo Blade.) A mathematician who keeps abreast of the times figures out that we have 32 per cent beer and 88.8 per cent repeal—(New York Sun.) Scientists are testing the drift of the continent Maybe the G. O. P. National Committee could give them the figures.—(Dallas News.) Nazis have gagged the German press and may prescribe the firing squad for an editor who splits an infinitive.—(Indianapolis Star.) “I dress to fit my pocketbook,” says a writer (Atlanta Constitution.) { | | ‘indication that At any rate, the kidnaping industry must be nanciers are under the * ifluenc: ) for Today and -- By WALTER Washington and Wall Street Copyright, 1933, New ‘The Wall Strzet Journal, a news- paper not given to loose talk, h: described the attitude of the capi- tal market as a state of “emotion- al paralys The paralysis is evi- dent enough, and its in limiting recovery of the heavy in- dustries are not generally under- 2ffects stood. That the paralysis is the| result of an emotional disturbance is mot so casy to demonstrate. But the jumpy behavior of the mar-| kets, the waves of hope and fear which come and go, are a, strong investors amd fi- not so much of judgment as of nerves. The Wall Street Journal argues that the emotional para of capital has been induce by a fear of inflation. It goes on to point out that this fear arises from the belief that the growing volume of government borrowing its “extraordinary commit- ments is steadily carrying the Ad- ministration away “from the level fields of free choice to the slippery slopes of compulsion.” In other i words, the Administration is bor- rowing or planning to borrow, so s much that finally it may not be able to borrow, and will be forced to resort to the printing press. This seems to me a reasonable but incomplete diagnosis. Why is it, we must next ask ourselves, that the Administration is com- miting itself to these immense ex- penditures, to billions of dollars for public works, for paying of de- positors in closed banks, for loans to home-owners, to railroads, and heaven knows what else? What, in essence, is all this use of capital by the Federal government but an attempt, and a rather inadequate attempt at that, to fill the vac- cuum produced by the paralysis of private credit and investment? The larger part of this govern- ment expediture would become un- necessary if private initiative would revive. And yet, it appears that private initiative is paralyzed when it contemplates the conse- quences of the government's doing what it is too paralyzed to do it- self. P 1t does not take us very far tc argue that the fear of inflation is the cause of the paralysis of capital. For we have seen that the danger of inflation arises from the attempt of the government to pro- vide capital which is not forth- coming because capitalists do not invest. The inactivity of private capital is the immediate reason why this Administration, follow- ing the precedent of the Hoover Administration, is being driven in- to commitments that may produce The danger which cap- inflation. jtal feels is the effect, rather than the cause, of its own para- lysis. Where, then, shall we find the cause? We shall find it, I be- lieve, in one of the characteristic dilemmas of the effort to combine Recovery with the New Deal. Broadly speaking it is a fact that American capital investment i largely directed by the Wall Street community. There is no evidence that there is an organized monop- oly, but it can hardly bs doubted that the main investment market is decisively influenced by the state of mind in Wall Street. This influence is particularly strong, at a time like this, on the bearish side. When the captains of fi- nance - are discouraged or appre- hensive, their sentiments infect in- vestors, bankers and speculators in all the financial centers of the country. Now the captains of fi- nance are discouraged and ap- prehensive and this is, I should suppose, immediate cause of that “amotional paralysis, Wwhich the Wall Street Journal describes. But why are they discouraged and ap- prehensive? Is it because of the N. R. A. or the Securities ‘Act or come of the other measures? My guess is that if the truth were pluntly stated it would be that it is mot so much because of any particular measure, but becaus® they feel in Washington a gen- eral sense of hostility and distrust which may produce they know not what. PR Still speaking bluntly, it is evi- dent that this hostility and dis- trust do prevail in ‘Washington. Now, the state of mind in Wash- ington also has its causes. They may be summed up by saying that the exposure of certain of the financial practices of the boom, and in conspicuous cases, even of the depression, has caused the hostility, and that the lack of ade- quate financial leadership has caus- ed the distrust. Take, for exam- ple, the case of Mr. Wiggin. Sure- ly the head of so great a bank occupies a position of- public trust. Yet there is the list of his salar- ies, bonuses, and the pension; if @ public official arranges matters for himself in this fashion what would be the general verdict of the com-| munity? Can the performance be defended except on the cynical as- sumption that the standards which must be applied to a great banker who handles the people’s money are lower than those which must oe applied to a politician 3 Now, it can be said that amplé 1s was Mr. Wiggin's compensa- tion, the sums involved are rela- tively small compared with the gts from liquor taxes.|Maybe that's the reason there are nudist camps— | magnitude of the operations of the pank, Perhaps, But we are exam-| THE DAILY ALASKA EMPIRE, MONDAY, OCT. 30, 1933. ! Tomorrow i 20 YEARS AGO Frocm The Empire I_mw_-,......_... Roller skating enthusiasts were looking forward to the big prize mask skating carnival to be held at the Jaxon Rink with many | prizes for costumes and a ladies’ gold watch as a2 grand door pi Other prizss were, a $10 pipe for the best dressed man, silk, um- brella, best dressed lady; best dressed man’s character, Gillette safety razor; best lady character, two bottles Mumms Extra Dry. -3 LIPPMANN York Tribune Inc. ining states of mind. And such losures as these precisely be- they are so personal and 50 dramatic, create hostility and distrust in Congress and in the country toward Wall Street. A government r:sponsible to public opinion is bound not only to offer remedies for such abuses, but what is more immediately important, to dissociate itself in the public mind from Wall Street. Therefore, we have had, since March 4, what might be described ad.'a rupture of diplomatic rela- ns betwe:n Washington and Wall troet. Recent arrivals from Chichagof were enthusiastic over the latest strike at the Chichagof mine and said the vein Was upwards.of 12 feet in width and carried values {of $1,500.00 per ton. . 0 But while this rupture is main- tained, Washington ardently desir- It was believed by Volney Rich- mond, manager of the Northern Commercial Company, that there es to have Wall Street resumewoyld be more overland traffic the investment business, Itigyring the winter, from the In- is absolutely essential to recovery.)terior to the Coast, over the Fair- This brings us to the real diffi-| panks and Chisana trails than culty of the present position. AS ever before had been transported an essential part of the New Deal gcross Alaska by horses and dogs. the Administration must reform, finance. As an essential part of| pr W. W. Council, of Cordova, Recovery it must révive finance.|ywas a passenger aboard the Ad- But how do you reform and re-|mira] Sampson, on his way to his/ ve a financial community with home from the States. which you will not have anythinz to do? } The Treadwell Club was busy It is a stalemate, and I do not with many activities planned. The ¢e how it can be broken until dramatic club was to put on the both Washington and Wall Street! first of its shows during the make up their minds on matters| week, the football club was to of fundamental principle and then|give a dance at the club house, act upon their decisions. It is for'a social dance was scheduled at Washington to decide whether it the Treadwell Club with music means to reform private finance| by the club orchestra, and many or to supplant it. If it means other events which were eagerly to supplant it, then its present looked forward to by people on program for the use of govern-|both sides of the Channel. ment credit is ridiculously inade-| quate. I do not myself believe| that it could be made adequav:“cellen‘t show at the Treadwell without an intervening period of Club at which the feature of the suffering too frighiful to contem-|evening was singing by Miss Crys- plate, and I do not believa that tal Snow and Monte Snow. the Administration either desires! a revolution of this sort, or has| Mrs. Brightman and children any mandate for it. But if it is|took passage on the Georgia thi to reform, and not to supplant, morning for their home in Sitka. rivate finance, then it becomes of ! vital importancs to disclose the| People crowded the Grand The- whole scope of the reform and to atre to see the members of the ¢ clearly its limits. Private in-!First Alaska Legislature in motion itiative can revive under definite pictures. The pictures had drawn restrictions; it cannot revive inan good crowds to theatres in Daw- atmospher> of indefinite apprehen- | son, Fairbanks, Nome, Valdez Cor- sion. If private finance is to be dova and Seward. W. D. Gross, used as one of the major forces|owner, was showing them in Ju- of recovery, the Administration neau for the first time. would be cutting off its nose to ke = splte its own face if it fafled to . say exactly where the New Dc-:flk‘ FINE [ n finance begins and ends. ! | Watch and Jewelry Repairing ! 1t is ‘for ‘Wall' Street to decide! | 8t very reasonable rates | whether, in principle, it will ac-| | WRIGHT SHOPPE | cept the New Deal or resist it., | PAUL BLOEDHORN 2 I say in principle, and by acospt»i.‘ . ance, I do not mean signing on the dotted line. I mean loyal de- termination to attain the objects of! the reforms, sincere resolution to’ maintain the new standards of financial practice. There are ways of testifying to such an attitude of mind. i Cigars Cigarettes Candy Cards The New Arctic Pabst Famous Draught Beer On Tap “JIMMY” CARLSON With a clarification from Wash- ington of what the New Deal means in finance and with a will- ingness to accept it in principle by Wall Street, one might hope for a resumption of diplomatic inter- course and of practical co-opera- tion. That is clearly necessary to overcome the emotional paraly- sis which has closed the capital markets. In the resulting stagna- tion of investment is to be found the greatest immediate obstacle to re-employment, and the most dan- etous threat not only to Recov- ery, but, in the longer viek, to tHe orderely setting up of the! New Deal. : -, A campaign to eliminate danger- ous curves and narrow bridges is under way by the Indiana State Highway Commission. A packed house enjoyed the ex-| Conservatism —which in the banking business means putting safety FIRST in every trans- ction—has been the working principle of The B. M. Behrends Bank through all the years that it has served the busi- ness and personal interests of Juneau people. Broad experience has equipped us to help our customers convert present day 3 business advantages into new and greater achievements. The B. M. Behrends Bank I PROFESSIONAL | Helene W. L. Albrecht PHYSIOTHERAPY , Massage, Electricity, Infra Red | Ray, Medical Gymnastics. | 307 Goldstein Building Phone Office, 216 | ————p DRS. KASER & FREEBURGER DENTISTS | Blomgren Building | PHONE 56 Hours 9 am. to 9 pm. [ | Dr. C. P. Jenne DENTIST Rooms 8 and 9 Valentine | Building Telephone 176 - g B Dr. J. W. Bayne DENTIST | Rooms 5-6 Triangle Bldg. | Of’ice hours, 9 am. to 5 pm. | Evenings by appointment, Phone 321 ~ | fi Dr. A. W. Stewart s DENTIST i Hours 9 am. to 6 p.m. | SEWARD BUILDING Office Phone 469, Res. | | Phone 276 Dr. Richard Williams | DENTIST ] OF'ICE AND RESIDENCE ;l Gastineau Building, Phone 481 | K | —— hed — Robert Simpson- t. D. Sreduate Angeles Col- lege of Optometry and DR. R. E. SOUTHWELL y Optometrist—Optician | Eyes Examined—Glasses Fit | Room 7. Valentine Bldg. | | | | H i Office Pnone 484; Residence Phone 238. Office ™ours: 9:30 B secretary. = ik 3 R i O E ——— B a 5 ] - = 2 8 v D u Fraternal Societies | Gastineau Channel | 3 B. P. 0. ELKS meets every Wednesday at » 8 p. m. Visiting ty brothers welcome. L. W. Turoff, Exalt- ed Ruler. M. H. Sides, KNIGHTS (-)F COLUMEUS Seghers Council No. 1760. Meetings second and last Transient brothers urg- ed to attend. Councll Chambers, Fifth Strecs. JOHN F. MULLEN, G. K. H. J. TURNER, Secretary Our trucks go any place time. A tank for Diesel Oil | and a tank for crude oil save ' burner trouble. A PHONE 149, NIGHT 148 { RELIABLE TRANSFER | o | 1 | T} Wise to Call 48 Juneau Transfer Co. when in need of MOVING or STORAGE Fuel Oil Coal Transfer Konneru p’s MARE for LESS JUNEAU SAMPLE SHOP The Little Store with the BIG VALUES | p | C. L. FENTON i CHIROPRACTOR | Soutn ¥ront St, next to | Brownie’s Barber Shop orfice Hours: 10-12; 2-5 Evenings by Appointment Harry Race DRUGGIST | | Juneau Coffee Shop | Opposite MacKinnon Apts. Breakfast, Luncheon Dinner | , Open 7:30 am. to 9 pm. | | HELEN MODER | To sell! To sell!l Advertising i your best bet now. AGENCY (Authorized Dealers) GAS OILS | uneral Parlor <] | to 12; 1:00 to 5:30 | Licensed Funeral mmi.. o | e e e e ]‘m g pyd Embalmers ey TR AL TS ght Phone 1851 Day Phone12 . | Rose A. Andrews . Graduate Nurse e Gy e { Electric Cabinet Baths—Mas- SAEEC sage, Colonic Irrigations S A BIN) S Office hours 11 am. to 5 pm. | ! Evenings by Appointment | ‘ Second and Main Phone 259 Everything in Furnishings r— .Y for Men o T SN S PN PRt | Jones-Stevens Shop || — "~ e i G o e e T LADIES'—CHILDREN'S l ] | READY-TO-WEAR | THFE Jmf:g"LSNDRY . d Street Near Third | F ween ] ‘ §| Sewart ree e ' l % A “ ,! PHONE 35 ’, *r— L] e T N R SO ALLAMAE SCOTT UNE PERMANENT WAVING SHOPPE Phone 218 for Appointment “Exclust Entrance Pioneer Barber Shop m;’;wmm"-- k] B £ Hoslery and Hats A ———————— . HOTEL ZYNDA Large Sample Rooms ELEVATOR SERVICE | GARBAGE HAULED Reasonable Monthly Rates | | E. 0. DAVIS | TELEPHONE 584 I. Day Phone 371 i e 2 E H 8 E MAYTAG PRODUCTS W. P. JOHNSON McCAUL MOTOR COMPANY o Dodge and Plymouth Dealers | | Gastineau Building EVERYTHING ELECTRICAL S B T R 8 T —— e —. | BETTY MAC BEAUTY SHOP | 107 Assembly Apartments | PHONE 547 | | Smith Electric Co. [l l | A B B 1 LG 8MITH ana Comona ! J. B. Burford & Co.