THE NOME NUGGET
Published Monday. Wednesday and Friday by The
NOME PUBLISHING CO.
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W. A. and EMILY BOUCHER..Editor*
Entered as second class matter October 14, 1943, at the postofftc#
at Nome, Alaska, under the Act of March 3, 1879.
Monday August 25, 1947
The Money-Lender
(Seattle Post-Intelligencer)
SEN, HARRY F. BYRD of Virginia has offered some
facts about the prodigious money-lending enterprises of
the Federal government, and some suggestions concern
ing them, that should give the American people betted
understanding of the financial affairs of their country.
Since 1934, says the Senator, the government of the
United States has dole(} out in loans just slightly less
than 110 billion dollars to various foreign and domestic*
borrowers.
More than 110 agencies of the Federal government
have constituted the flood-gates through which this tre
mendous sum of money has poured, the Senator further
reports.
Moreover, most of the money has never been paid
back and much of it never will be repaid.
Wouldn’t it be the sensible thing, suggests Senator
Bryd—before lending any more money, particularly
to foreign governments which have little capacity for
repayment and even less intention to repay—for Con
gress to scrutinize the entire set-up of the Federal Gov
ernment?
Wouldn t it indeed be a very wonderful thing, as he
urgently proposes, for Congress to conduct this scrutiny
with a view toward curtailing future loans with better
regard for the depleted and dwindling resources of the
United States, and toward getting something back on
outstanding loans wherever possible?
We could very substantially reduce our burdensome
public debt if we made fewer loans and especially if we
obtained repayment on old loans, says the Senator.
We could utilize the considerable seavings thus ac
quired for the general costs of our own government, he
says, and thus relieve the American people of a goodly
portion of the excessive tax burdens they now carry to
the detriment of their jobs and home and families. j
The “hodge-podge” of Federal lending programs, as'
Senator Byrd says, has made Uncle Sam the champion j
money-lender of all time.
But Uncle Sam, we should all remember, isn’t really
the rich and benevolent lender he pretends to be.
In his role as an international money-lender, Uncle
Sam is not using his own money and actually hasn’t any
money of his own to lend.
Uncle Sam, as a lender, is himself a borrower.
Every dollar he loans or spends is exacted from the
American people as a tax against their current earnings,
or borrowed against their credit and thus made a debt
against their future earnings.
The American government does not itself ever earn a'
dollar or have a dollar of its own, but is a custodian of
the money of the American people—and the manner in
which it discharges the duties of that custodianship de
termines the degree of prosperity and financial security
which the American people enjoy.
It would surely be a fine thing, as Senator Byrd sug
gests, for the American government to make an account
ing of its vital custodianship in the matter of lending
policy—as a preliminary, if nothing more, to determina
tion of future policy in that matter.
The Value Of Plain Talk
(The Denver Post)
LET US SUPPOSE that the sefcbnd-ranking officer of
the Russian air force had given a group of Red army vet
erans the warning which we heard recently from Lieut
Gen. Ira C. Eaker.
“ . . . the mightiest tyranny the world has ever seen
is still riding unchecked... . The Russians . .. are com
HOW TO KEEP A HEAD ON HIS SHOULDERS
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PAIEONTOUWSK I
DISCOVER TME 1
REMAINS 0*
EARLY MID6ET I
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mitted to the destruction of democracy. We must make
ourselves strong to meet that challenge if it should ever
come ...”
If a Russian general officer had said those words our
anger and alarm might know no bounds. It raises the
question whether, for our part, we should permit our
military leaders to make such public statements. But
how can the free, voting citizens of this democracy learn
of dangers to their national safety if they may not know
the frank judgment of their political and military lead
ers? Indeed, this is one of the most disturbing handicaps
of democratic government.
, Russian leaders are under no such compulsion to se
cure popular understanding They can, as they did in
arranging the infamous pact with Hitler, make the most
radical shifts of national direction without ever having
to consult public opinion.
In contrast, American leaders have had to discuss the
dangers of Russian aggression with absolute candor in
order to move our people to an understanding of the
necessary protective action. Without such an under
standing democracy could not defend itself.
Even the U. S. state department has on occasion cast
aside the silken niceties of diplomacy to describe Rus
sian threats to free peoples. The department, for exam
ple, took no pains to conceal that its principal expert on
Russia was “Mr. X,” author of a scholarly appraisal of
Communist aims.
But note one thing: While American leaders have had
to speak with candor of Russian aggression, they have
emphasized the defensive nature of U. S. counter-mea
sures. Moreover, our actions have in the main accorded j
with the decency of our spoken aims—which is more
than the Russians can say—and that is our best assur
ance to other peoples that we have no designs upon their
safety and freedom.
It is not warmongering to talk plainly. To do less
would be to mislead our people dangerously. It may
burn the Kremlin’s ears, but that is not without value
in iteslf. Who is foolish enough to believe the Russians i
can be chastened with pretty talk?
THAT’S THAT By bruce gustin
_
Almost ©very year, when a hot
wave envelops the corn belt there
is talk about the corn crop “burn
ing up." Seldom is the damage
from heat and drought anywhere;
near as serious as feared. But this!
year the farmers have more rea
son than ever for being pestimis
tic. They took such a beating from
an exceptionally wet spring and
early summer floods that it is nat
ural for them to expect the worst j
from hot and dry weather.
Signing of a 100-million-dollar
trade agreement between Yugosla
via and a delegation from the
American and British occupation
zones of Germany is significant in
more ways than one. First of all, itj
indicates a determination on the
part of the United States and Bri
tain to go ahead with plans to
make their part of Germany self
supporting even though Soviet
Russia blocks rehabilitation of the!
reich as a whole. Yugoslavia is un-1
der Moscow’s thumb. So it may1
be inferred that Russia is not ad- i
verse to eventual partition of Ger
many. Otherwise, Yugoslavia!
wouldn’t have been allowed to en-1
ter into this trade agreement.
Senator Robertson (Rep.) of,
Wyoming brands as “false” com- j
plaints that the reclamation bur
eau is being handicapped because
of insufficient funds. "This de
partment was given all the money
it can possibly spend during this
fiscal year," he says. Time will
tell. One thing certain, Congres
sional claims that plenty of money
has been provided for reclamation
are a challenge to the bureau to
prove, if it can. that these claims
are unfounded.
Somebody is lying. Howard
Hughes, west coast airplane manu
facturer, says Senator Brewster
iR.-Me.), chairman of the Senate’s
special war investigating commit
tee, offered to call off the Senator
ial investigation of his wartime
contracts if he would agree to a
merger of Trans-World Airlines
with Pan American Airways.
Brewster says he never made such
a proposition. Hughes’ charge and
Brewster’s unqualified denial both
were made under oath. So who
ever is lying is guilty of perjury.
And perjury is a criminal offense.
This “you did”-“I didn’t” con
troversy between Hughes and
Brewster raises a bigger issue than
what the committee started out to
investigate. If Hughes’ charge is
true, then Brewster is unfit to con
tinue as a member of the Senate. If
that charge is false, then it must
have been made for the purpose of
smearing the Maine Senator and
discrediting the whole investiga
tion. In any event, the issue raised
by Hughes’ accusation is one on
which the committee must act be
fore it can decide anything.
N
State department cancellation of
the 7-million dollar cotton credit
earmarked for the Hungarian gov
ernment should meet with the ap
proval of the American public. The
Hungarians with whom the Ex
port-Import bank negotiated the
credit and in whom the bank had
confidence have been exiled as a
result of Communist overthrow of
the Hungarian government. The
Hungarian banks which were to
get the loans are threatened with
nationalization. Under the circum
stances, cancellation of the loan
was necessary. This country can’t
consistently . spend hundreds of
millions in Greece and Turkey to
halt. Communist aggression and
then give millions to Communists
in Hungary.
President Truman’s acceptance
of an invitation to visit Brazil
should contribute to the success of
the Intra-American security con
ference which is being held in Rio
de Janeiro, whether he addresses
the meeting or not. His trips to
Mexico and Canada both were
outstanding successes in promoting
“good will.” The proposed visit to
Brazil should be of immense value
in bringing about more friendly
relations between the United
States and South American coun- 1
tries.
Senator Johnson of Colorado
says, “Let Russia have its world
and then let the United States do
everything in its power to line up
the other nations, helping them
under the Marshall plan to help
themselves.” That seems to be the
only course. But the Senator is
overly optimistic in thinking that
in this way “we can avoid antag
onizing Russia and show the Rus
sians our motives are friendly.”
Nobody can avoid antagonizing the
Soviet government without acced
ing to every demand made by
Moscow.
UNDER THE LAW OF SHIAH 1
<an important religion, widely fol
lowed in Persia) a husband and
wife can agree to marry for any
period of time, even an hour, ac
cording to the Encyclopaedia Bri
tannica. The marriage ends auto- f
matically when the specified time
runs out if both ere alive, but it
can be renewed by consent of both
parties.
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