The Daily Alaska empire Newspaper, November 22, 1933, Page 4

‘ i i 4 —————————————————————————— Daily Alaska Empire ROBERT W. BENDER - - GENERAL MANAGER Published _every evening except Sunday by the KMPIRE 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, $1.26. Subscribers will confer a favor it they will promptly notify the Business Office of any failure or irregularity but he lost in the end. In less than a year after he took office, the vaunted prosperity on which he rode easily into office was engulfed in what | proved to be the most serious depression of our times. At the next election, Gov. Roosevelt, re- | placing Gov. Smith as leader of the Democratic ;‘par[y, was swept into office on an unprecedented | landslide. So if Dr. Tolmie feels the need of consolation he may be able to find it in the fact that he | took office eight months before Hoover and held it cight months after Hoover left it. He, too, was| plagued with hard times, unemployment, a depleted treasury and all of the conditions that finally swept Hoover and the Republican Party into the |and to the external value of the| in the delivery of their papers. discard. He and his party lasted longer, but in the Telephone for Editorial and Business Offices, 374. MEMBER OF ASSOCIATED PRESS. The Assoclated Press 1s exclusively entitled to the use for republication of all news dispatches credited to it or not otherwise credited in this paper and also the local news published herein. ALASKA CIRCULATION GUARANTEED TO BE LARGER THAN THAT OF ANY OTHER PUBLICATION. WHY GERMANY SAID GOODBYE. Behind the German demand for “Equality,” the rock upon which the world's disarmament hopes now, as in the past, have run aground, stands a series of historical developments: 1919: The Allies and the Central Powers con- cluded the so-called peace treaty of Versailles which specifically stated that it was “in order to render possible the initiation of a general limitation of the armaments of all nations” that Germany under- took to observe the military, naval and air clauses, still in operation today, that reduced her military | machine to police proportions. Feb.-Sept., 1932: The Disarmament Conference in Geneva, while seeking the “general limitation of crmaments,” as promised under the Versailles treaty evaded the difficult allied question of equality for Germany. Sept. 15, 1932: The German Government an- nounced that it would not participate further in the work of the Conference until Germany’s right to equality in armaments with other countries should be recognized.. Dec., 1932: Germany returned to the Conference under the Five-Power Agreement, worked out with England, France, Italy and the United States, which acknowledged the principle of “equality of rights in a system which would provide security for all nations.” Thus a reconciliation of French and German views were begun. Dec., 1932-Oct., 1933: Through disarmament, not rearmament, a re-unted Conference, in formal ses- sions and throughout recesses, sought to apply the principle of ‘“equality of rights in a system which would provide security for all nations.” F rench concessions which accepted international supervision of armaments as an alternative to more rigid guar- antees of securtiy, and agreement by the United States not to interfere with collective action against a nation recognized by all to be an aggressor, great- ly aided progress toward a treaty which it was thought both France and Gerrmany could sign. Just prior to the re-convening of the full Conference on October 16, Sir John Simon offered a two-fold plan, not as the last word of the other powers, but as a hoped-for basis for compromise of the French security and German equality demands. During the first period Germany was to be permitted to double the armaments now allowed her by the Versailles treaty, but the real equality of armaments promisec her in principle last December would have been deferred a few more years. This postponement was held necessary in order that the practical worth of armaments supervision might be tested. If supervision proved effective, the second period would see the realization of equality through the disarma- ment of the now heavily armed powers to & defensive level and whatever rearmament was neces- sary for Germany to come up to that same level. Oct. 14, 1933: Before the Simon plan was brought ‘ up for discussion in the Conference proper, Germany withdrew, announcing that “unwillingness on the part of the highly armed States to carry out their contractual obligations to disarm . . . renders im- possible the satisfactory fulfillment of Germany’s recognized claim to equality of rights. . . .” A LIBERAL SWEEP. " Probably never in the political history of British Columbia was a political party so thoroughly washed out at the polls as was the Conservative Government of that Province which, headed by Dr. F. 8. Tolmie as Premier, had been in power since the summer of 1928. Dr. Tolmie led his party to victory just a short time after Gov. Alfred E. Smith had been nominated by the Democrats at Houston and| Mr. Hoover was preparing for his first campaign for the Presidency. Mr. Hoover won the election end their defeat was even more sweeping. Of the| 47"constituencies in the Province, only one r(‘lurnedi a Conservative candidate. Dr. Tolmie's own riding, Saanich, went against him and to a Liberal. The Liberals won in 36 districts, giving it an over-| whelming majority over all other parties. T. D. Patullo, Prince Rupert leader and veteran Liberal general, will head the new Government as Premier,) and is expected to take over the office before the end of this month. | r to the United | O. M. W. Sprague, special ad' States Treasury Department, has resigned because he does not agree with President Roosevelt’s mon-| etary policy. A good move—if you can't support| the boss—quit. What will be the answer? Kansas, the pioneer State of Prohibition will vote on retention or repeal| November 19, 1934. The answer, however, will be| too late to assist in the wet landslide. What will be| ’.I‘he next important question is: | the price of turkeys? Give Him a Chance. (New York World-Telegram.) The very day on which the President took his| first step toward a managed currency was chosen by Senator Thomas and his disciples to demand of the President immediate currency inflation. When the President first announced his gold purchase plan the Senator was inclined to give that plan a trial before pushing the direct currency inflation panacea. But within a few hours he had flopped back to his extremist position. We are not prepared to say that this country will never come to direct currency inflation. Indeed, if other methods fail, it now seems probable that the Administration, with the support of the nation, will go on to that dangerous expedient as a last resort. But—currency inflation or no currency inflation— it would be unwise to entrust the fate of this coun- try to dogmatists with a panacea type of mind who see the solution of our vastly complex economic problems solely in terms of currency. The President is on much firmer ground be- cause he sees the monetary difficulty as part of the larger problem—a needed financial reform to be co- ordinated with industrial and other reforms, all of which combined may produce recovery on a perma- |nent basis. For the currency inflationist, or any one else, ;0 say that the President’s monetary policy is in- adequate béfore it has been tried is not only unfair but unintelligent. Although the President was not' altogether clear in explaining the new policy, he was specific on two pionts. One is his intention to protect the dollar {from undue foreign influences and control. The jother is his intention to raise domestic price levels. As to the first point, there seems to be general agreement that the Roosevelt policy has a good chance of success. As to the second point, the initial result has been to raise domestic prices. ‘Whether that result is only temporary remains to be seen. Obviously, however, the success or failure of the Roosevelt gold purchase method in raising and maintaining commodity price levels will depend in part upon the skill of the Administration and in part upon economic conditions not now practicable. Under the circumstances serious economists and responsible financial experts are watching the ex- periment with open minds. They are not condemn- ing it; neither are they guaranteeing 100 per cent success. The task is to find our way step by step in this monetary matter, just as we are finding our way step by step on the farm and industrial fronts. It is the great virtue of President Roosevelt that in his monetary policy, as in his other policies, he is making progress with an open mind. He is mov- ing. The least the currency inflation extremists can do is to give him a chance. Old Placers Coming to Life. (Seward Gateway.) One of the effects of the increased price of newly-mined gold has been to bring .into action large areas of Alaskan placers, hitherto considered as a shade below commercial value. Large areas of such ground have laid unclaimed for many years, the previous owners having pulled up stakes for better diggings. These are now returning and restaking their holdings while pros- pective dredge operators have- their scouts in the field ready to acquire anything which will return {a fair average. The atom, awhile back declared to have but two elements, now is said to have protons, electrons, neu- trons and positrons. Maybe it's nothing but a salad, after all.—(Rochester Democrat and Chronicle.) i An economist tells us that Americans must exer- cise patience. And poor old Patience almost ex- {hausted.—(Dayton News.) | ic fields. The rate at GOLD RECEIPTS were mined in the varidus domest- on September 8 that the Treasury fixed the price »f gold at $29.62 which this gold| 3" ounce. BEING WATCHED IN WASHINGTON 4' ‘President’s New Policy At- tracts Attention of Treasury Officials By HERBERT PLUMMER ‘WASHINGTON, Nov. 22.—Those ] { climb again. finds its way into Treasury vaults has fluctuated widely month by month this year. Starting off with receipts of 115,189 ounces in Jan- uary, the peak of 187,604 ounces was reached in March. April and May receipts drifted back nearer the January figure. In June, however, a.low of 64,- 445 ounces was reported. Both the July and the August receipts were below 100,000 ounces. In September they began to Receipts of 105985 ounces were reported, a gain of 19,720 ounces over the August fi- gure. ENTER, NEW GOLD The reason for this fluctuation from month to month is difficult to deiermine. Many factors “en- ter into it. It is interesting to note,’ how- aver, in connection with the in- crease of September, that it was Before that aate all gold was subject to the government decree that an ounce of gold was worth no more and no less than $20.67 regardless of fluctuating commod- ity costs. ‘The higher price, in the opin- jon of some experts, caused the release of new gold. Now that the President has embarked on a pol- icy which enables the Reconstruc- tlon Finance Corporation to buy at an even higher price, the flow may be even greater. Already there are indications of increased production. Reports of mining revival come in from all of the gold producing sections of the country. THE PICKS GET BUSY Officlals of the Bureau of Mines in Washington . anticipate an in- crease in production. Just how much of an increase there will be they will not predict. \ But they point to such state- Today and By WALTER LIPPMANN Tomorrow —— In the Money Maze Copyright, 1933, New York Tribune Inc. Commenting on what happened | last week to government bonds| dollar, Mr. Frederic Jenny, the financial editor of the “Temps,” writes that “it proves that the) human will is powerless to manage |a currency, and that in a volun- tary depreciation of the currency, one does not continue to be mas- ter of its evolution but that soon- er or later one is overcome by un- ren and Pearson find that while “in general” this theory has held for the United States, is has not held nearly so well. “From 1834 wholesale prices were lower than the gold supply would suggest”; since 1880 “prices in the United Stat were more erratic than those of England, primarily be- cause of financial difficulties.” { You look closer at the figures | sustaining the basic generalization controllable psychological reac-|and vou discover that “the ratio tions.” We have begun to witness' of gold to production and whole- the psychological reactions, and sale prices in England” is based though they are as yet by no means uncontrollable, they pointed last week in a direction that, if followed out, would mean very ser- ious trouble. There were that investors frightened, ment bonds, and trying to convert their dollars into foreign curren- cies. Obviously, if this continued, if the price of government bonds fell, two very dangerous conse- quences would result: the banks which hold a very large part of these bonds as assets against de- posits would be in difficulties, and the government, which must sell huge quantities of bonds to fi- nance relief and public works and other items in the New Deal, would be stymied. A failure of the government's credit would, as the President has repeatedly pointed out be a ser- jous matter. Last week for a day or two, there was at least a tre- mor in the government's credit. very clear signs were becoming . . The nervousness of the financial markets reflects the secrecy which covers the monetary operations now being conducted by the Ad- ministration. The policy has nev- er been expounded. It is not un- derstood by the public. No one seems to know who is administer- ing it. Each day there is the an- nouncement of a new price for gold. But who determines that price, on what principle and by what calculation he determines it or precisely what he is trying to accomplish by it are mysteries. Tt suspicions should circulate when in matters of vital public interest there is official censorship and official silence. When men look to unofficial sources for light they find little to help them in forming a clear opin- jon of what ought actually to be done. Thus Mr. Edward H. Col- lins, of the Herald Tribune, in the course of a very able dis- cussion of the dangers of the pres- ent policy, concludes by saying that “whether a return to the 67-cent dollar is the best move from a sound money standpoint, or wheth- er a return to gold should be at an early or distant date—these things, it seems to the present writer, are secondary, so far as the United States is concerned.” Mr. Collins is, no doubt, right in thinking that the gold content of the dollar can not now be deter- mined exactly. But a firm public opinion is hardly likely to crystal- ize around the confession that the sound-money advocates do ot DO know where or when they wish to| stabilize the dollar. At the other pole we have the decision of Senator Thomas of Colorado that “there are many reasons for believing that our price of gold must go to double the statutory figure—that is.must not stop short of $41.3¢ an ounce.” But what are those “many rea- sons?” Senator Thomas does not disclose them. And so with the official policy enshrouded in mystery, the unof- ficial sound-money view vague and inconclusive, and the unofficial heretic view dogmatic but inex- plained, the ordinary man is like- 1y to say, this is a big operation and I guess I am taking chloro- form. . - One does not, however, like to give up completely the effort to understand. And so we turn for light to the writings of Professor G. F. Warren and F. A. Pearson. They are repyted to have pro- vided basis of the present policy. Fro mevery elaborate statisti- cal studies covering a long period | of time they have, as I under- stand it, reached this conclusion. I quote their own language: “For seventy-five years before the World War, world monetary stocks had to increase at the same rate as did the world physical volume of proluction in order to maintain stable commodity prices in England. If gold stocks in- creased more rapidly than did oth-' er things, prices rose; if they in- creased less rapidly, prices fell” So much for England. What of the United States? Messrs. War- ments as that made by Governor Rolph of California that there is sufficient placer mining ground in his state to furnish subsistence for 100,000 men. Also they point to the fact that heretofore mine production has been gauged by the margin of profit possible at .67 an ounce. With the gase advanved at the will of the President, and with the were -selling govern-4 is inevitable that rumor and| on ‘five-year moving averages” which ‘“eliminate short time var- jations.” this? Taxing the theory of its own face value, all that Professor Warren really claims for it is that | over a long period of time, on the | average, there is a reasonably close correspondence between the sup- | ply of gold and the volume of pro- | duction. He specifically disclaims an exact correspondence for the United States or a short term im- | mediate correspondence anywhere. | That being the case there should | be no illusion even among those who adopt the Warren theory that with it they can immediately raise price level where they wish it tc be, or that they can closely or firmly control the monthly or even yearly fluctuations of the price level. | Now what is one to make of | | It follows that tnere is nothing ,in the Warren theory which en- ables any one to do more than make a rough guess at the most convenient price for gold, nothing in it which would warrant pro- longing indefinitely an uncertain- ty which might become devastat- ing. Accepting the* theory at its full pretentions, nobody can really | say that the present dollar is not depreciated enough. For internal , prices have not yet nearly adjusted { themselves upward to the immense depreciation which has already ta- ken place. What the American people might | reasonably ask for, since the prin- | ciples of the monetary operation |are to be kept secret, is somc | strong evidence that the Adminis- tration is as much interested in the government credit as in some arbitrary price for gold. The best | evidence it could give would be a | demonstration that when circum- stances call for it, it is just as ( willing to lower the price of gold | as to raise it. So for a day or two it might reduce the price just tc show that it can reach for the brakes as readily as it can step on the accelerator. — DR. RAE L. CARLSON HERE FROM HOME IN KETCHIKAN Dr. Rae L. Carlson, optician from Ketchikan and a member of the Territorial Board of Optometry, is in Juneau for several days. While she is in Juneau Dr. Carlson i at the Zynda Hotel Daily Empire wWanc Ads Pay. Gastineau CABS Prompt Service '\ Phone 10 GASTINEAU HOTEL men than any other prove their worth to Mining and Fishing dominates the business life of the Juneau district, employing more capital and more Both management and employees of these great interests demand the best in banking service, and for forty-two years they have found it in The B. M. Behrends Bank. The complete facilities and seasoned serv- ice of Alaska’s oldest and largest bank will The B. M. Behrends THE DAILY ALASKA EMPIRE, WEDNESDAY, NOV. 22, 1933. — ! 20 YEARS AGO PFrom The Empire St .3 NOVEMBER 22 ,1913. Frank Metcalf was an arrival from the south on the steamer Al- aska the previous evening. — A great time was enjoyed by the members of the Gastineau football team at their banquet at Spatz Cafe which was given at the re- quest of B. L. Thane of ‘the Alaska Gastineau Mining Company, who wjred from San Francisco for the team fo cclebrate its victory over the Treadwell team. Speeches were made by J. R. Whipple, Capt. George Bayless, Coach Enoch Per- kins and members of the team and during the progress of the dinner, toasts were drunk to Mr. ‘Thane. The Alasga-Gastineau Mining Company was taking possession of the new offices provided by the new extension of the Valentine Buillding. about two days to get established in the new quarters. 1 3 Excellent reports had come down from Kensington in the past twen- ty-four hours. B. Neiding, with his tunnel crews working in the Kensington cross- cut, had struck the outer strata of the Johnson lode and‘it looked very favorable to strike the lode within another 100 feet. v Daily Emprre Want Ade Pay Anchorage, Alaska. October 26, 1933. NOTICE IS HEREBY GIVEN, that Nels Magnuson, entryman, to- gether with William John Reck and Arnot Hendrickson, his = witnesses, all of Juneau, Alaska, has made final proof of his homestead entry, Anchorage 07372, for a tract of land embraced in Forestry List 8—48, H. E. S. No. 175, New Series No. 1545, situate on the Westerly shore of Gastineau Channel, containing 10.57 acres, and it is now in the files of the U. 8. Land Office, Anchorage. Alaska, and if no protest is filed in the local Land Office, Anchorage, Alaska, within the period of Publi- cation or thirty days thereafter, said final proof will be accepted and final certificate issued. J. LINDLEY GREEN, Register. First publication, Nov. 15, 1933. Last publication, Jan. 10, 1934. COPPER Tea Kettles THAT WHISTLE! —Solid copper —Easy to fill —Whistles when, water boils —Thermoplax non- burnable handles $1.50 Junean Drug Co. Phone 33 Delivery Service P. O. Swbstation No. 1 industry. you. o It was expected to take|| Superintendent B.| , PROFESSIONAL Helenc W. L. Albrecht | PHYSIOTHERAPY Massage, Electricity, Infra Red Ray, Medical Gymnastics, | 307 Goldstein Building | Phone Office, 216 J | 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 SARGRTE S Dr. J. W. Bayne DENTIST Rooms 5-6 Triangle Bldg. OfZice hours, 9 am. to 5 pm. Evenings by appointment, Phore 321 \ k | Dr. A. W. Stewart DENTIST Hours 9 am. to 6 pm. | SEWARD BUILDING Office Phone 4¢3, Res. Phore 276 l Richard Williams DENTIST OFFICE AND RESIDENCE Gastineau Building, Phone 481 Dr. B Robert Simpson t. D. Greduate Angeles Col- lege of Optemetry and Opthalmology Glasses Fitted, Lenses Ground l DR. R. E. SOUTHWELL Optometrist—Optician | Eyes Examined—Glasses Fitted | | Room 7. Valentine Bldg. ! Pnone | Phone 238. Office Hours: | to 12; 1:00 to 5:30 | | Rose A. A;xdrews_ Graduate Nurse Electric Cabinet Baths—Mas- i Fraternal Societies I OF | I Gastineau Channel Sl \ B. P. 0. ELKS meets every Wednesday at 8 p. m Visiting brothers welcome. L. W. Turoff, Exalt- ed Ruler. M. H. Sides, Secretary. —_— e KNIGHTS OF COLUMBUS Seghers Council No. 1760. Meetings second and last Monday at 7:30 p. m. Cransient brothers urg- ed to attcnd. Council Chambers, Fifth Strecd. JOHN F. MULLEN, G. K. H. J. TURNER, Secretary —_— Our trucks go wny place -uygx| time. A tank for Diesel Oil | and a tank for crude oil save ' burner trouble. 3 ! PHONE 149, NIGHT 148 RELIABLE TRANSvER | l s\ Wise to Call 48 Juneau Transfer Co. when in need of MOVING or STORAGE Fuel Oil Coal Transfer Konneru p’s MARE for LESS 1 and Embalmers { Night Phone 1851 Day Phone 12 « | ——— —— e ——ll Phone 218 for Appointment | Entrance Pioneer Barber Shop | JUNEAU SAMPLE SHOP The Little Store with the BIG VALUES C. L. FENTON CHIROPRACTOR Soutn Yront St, next to Brownie's Barber Shop orfice Hours: 10-12; 2-8 Evenings by Appointment To selll To selll Advertising s your best bet now. — FORD AGENCY sage, Colonic Irrigations 9 Office hours 11 am. to 5 p.m. | SABIN l Evenings by Appointment Second and Main Phone 258 Everything in Furnishings ® 2 for Men kS ~ — | 3 ke Jones-Stevens Shop | |z —— LADIES'—CHILDREN’S ’ READY-TO-WEAR THE JuNEAU LAUNDRY ! Beward Street Near Third Franklin Street betweem | | Front an? Second Streets ' ) PHONE 359 l. Lt L] | P e s JUNEAU FROCK SHOPPE i w but not Expensive” Hoslery and Hats GARBAGE HAULED Reasonable Monthly Rates E. 0. DAVIS TELEPHONE 584 Day Phone 371 | | | ‘ GENEEAL MOTORS and MAYTAG PRODUCTS W. P. JOHNSON McCAUL MOTOR Smith Electric Co. Gastineau Bullding EVERYTHING ELECTRICAL BETTY MAC BEAUTY SHOP 107 Assembly Apartmests PHONE 547 $5.00 per month | J. B. Burford & Co. “Our doorstep worn by satisfied | customers”