THE NOME NUGGET
Published Monday, Wednesday and Friday by the
NOME PUBLISHING CO.
NOME. ALASKA
Telephone: Main 125 " P. O. Box 618
$1.50 PER MONTH $16.00 A YEAR
W. A. Boucher ...-.Owner-Publisher
Entered as second class matter October 14, 1943, at the postoffice
at Nome, Alaska, under the Act of March 3. 1879.
BLACK MARKET IN GOLD
(Ketchikan Daily News)
The reduction in the price of gold on the world’s
market from $55 an ounce in 1949 to $38 today was at
tributed to three reasons other than dumping of gold by
Russia, acording to an article appearing in the Scripps
Howard newspapers recently.
Earl Richert, staff writer, cited the following reasons
given him by officials o fthe United States ( as reported
in Delegate Bartlett’s Newsletter:
“1 Nationalist China’s defeat. World black market
gold prices were driven up sharply by the buying of vast
quantities by Chinese Nationalists who wanted a com
modity of value to take with them when they fled from
China. This demand ended several months ago when the
Chinese Communists completed their conquest of the
mainland. And many of the Nationalists who escaped
have been selling their gold. This is regarded here as
the main reason for the price drop.
“2. Currency devaluation abroad. U. S. officials say
this restored confidence in foreign currencies and gold
came out of the hoarding of some countries. Many per
sons then let go of their gold to get currency to invest.
This situation also caused black market prices to fall.
“3. South Africa has been selling semi-processed gold
in the fred market, in full agreement with the Interna- ■
tional Bank and Monetary Fund. This has not been in
great quantities, however.”
Richert s article went on to say:
“High officials here say they have checked carefully
on the reports that large amounts of Russian gold have
been moving mysteriously to such places as Tangiers,
Zurich and Hong Kong. They say they can find no proof
that there is no unexplained source of supply.
‘These officials say they cannot see what Russia
would gain by dumping gold at near the official price of
$35 an ounce—the price maintained by the tJ. S. and
the International Bank and Monetary Fund. Foreign
countries in the Western bloc, they say, would like to
pick up a lot of gold at $35 an ounce to give more gold
backing tq their currency. The more gold they have in
reserve, the more stability the currencies of thes coun
tries would have.
“If Russia could dump enough gold to drive the price
under -35 an ounce, it might make the dollar look over
valued and undermine it and the currencies of Allied
countries in world trade. But Russia would have to
dump anextremely large amount and U. S. officials
don’t think the Soviets have enough to do this if they
tried.
“The U. S. has absorbed about $14 billion worth of
gold since 1938 and is ready to buy gold from other gov
ernments at $35 an ounce. Just haw much would have to
be offered by foreign governments to make the U. S.
cry ‘halt’ cannot be estimated, say the U. S. officials.
“The U. S. gold stock has been going down since last
— September because of sales to foreign government for;
I currency support purposes. U. S. gold stocks now
amount to $24.2 billion, a decline of about one-half bil
lion dollars since September.
“No one knows how much gold Russia has. The Rus
^ sian ruble too is based now on gold at the value of $35
| an ounce.’’
DESIGN OF THE U. S. FLAG
Congressman John A. McGuire, in anticipation of the
granting of statehood to Alaska and Hawaii, has intro
duced legislation setting forth a procedure for the de
t sign of the American flag.
The Connecticut member of the House of Represen
: tative believes that five members of the House should
be appointed by the Speaker to investigate and study
the matter to determine an appropriate design.
_ In declaring need for concrete action, McGuire stated
“CAB Seeks To
Evict Non-Skeds"
NEW YORK, iJP) — The “non
scheduled” airlines industry ac
cused the civil aeronautics board
yesterday of trying to “evict it
from the air” while coddling the
regular companies.
Major independent carriers met
here to form a new’ defense organ
ization, the Air Coach Transport
Association, that will fight a new
CAB regulation they claim would
break up their passenger business.
At the same time they attacked
the CAB for allegedly paying sub
sidies “of more than $60,000,000“
in addition to airmail fees to the
regular companies.
“Despite the fact that he inde
pendent carriers are only five!
years old, w.e have existed with- |
out expecting or needing a finan
cial crutch from the government,”
the new association's executive
committee said.
“Why should the public have to
pay heavily for the operations of
the scheduled airlines, which are
quite wealthy, and then have to
pay so much for their fares?”
The “non-sked’s” flight rates
DOROTHY THOMPSON
VISITING HERE THIS SUMMER
Dorothy Thompson and son
Eric arrived yesterday to make
their home here for the summer.
Mrs. Thompson will be remem
bered as popular owner with her
husband of the Snack-Shack,
which they opened here during
the war and after which she and
her husband spent a summer in
the Kobuk.
She has just graduated from
Radcliffe and will study the past
and present factors involved in
present native cultural patterns
of Nome, under a grant from the
Arctic Institute.
Mr. Stanley Thompson is at
Kenai where he is fishing with
his father, former superintendent
of the Nome School, and plans to
come to Nome after the fishing
season closes in August. He has
just graduated from the School of
Geology at Harvard.
have been about three cents a
mile, compared to nearly five
cents for regular flights, and
about four cents for the recently
established coach flights of the
regular lines.
“In a short time, certain momentous events of vital in
terest to all America will take place. I refer to the im
pending statehood for Alaska and Hawaii. The manifest
destiny, which pushed our borders logically westward
to the Pacific, has now moved us closer to Asia. To the
Americans who have pioneered in Alaska and Hawaii,
and to the peoples of those territories, we are about to
offer full and equal citizenship, with all the duties and
responsibilities as well as privileges of our present 48
States.... One of the problems occasioned by the inclu
sion of these two fine territories as states deals with our
flag.”
Pointing out that there is no law providing for
changes to the American flag other than one enacted in
1818 which steipuates that when a new state enters the
Union an additional star must be added to the flag the
following Tourth of July, Congressman McGuire ex
plained his reasons for introducing the legislation call
ing for a determination by a five-man committee. “The
present arrangement of the stars,” he said, “we owe to
an executive order by President Howard Taft in 1912,
when Arizona and New Mexico joined the Union. If we
accept this as a precedent we can expect another execu
tive order by the President when Alaska and Hawaii
enter -the Union. However, I do not believe that is the
most satisfactory method to solve the problem of our
ever-changing flag. I believe the time has come for Con
gress to determine once and for all who should alter the
flag and how it should be done. This is clearly a job for
Congress and not for the President.”
SPEAK NOW, JOHN, OR ELSE —
~ S:Zi:V- • *
I
WESTERN
EUROPE'S
COAL A NO
STEEL
MEAGER /
PlAN
BRITISH CABINET CONSIDERS
KOREAN SITUATION
LONDON <A*)—Worried Britons
crowded around Prime Minister
Attlee’s official residence yester
day while the cabinet considered
the Korean crisis.
Between 200 and 300 persons
stood silently along the sidewalks
in narrow Downing Street. In No.
10, a full dress cabinet meeting
was on.
Chief worry to Britain is the ef
fect the loss of Southern Korea
to the communists would have on
other Far Eastern trouble spots.
| An informed diplomatic source
speculated a Northern Korean vic
Itory probably would result in a
stepup of communist attacks in
Indochina and Malaya.
Catholic Ladies
Food Sale
On Saturday, July 1, ladies
fcnd gentlemen, the ladies of St.
Joseph’s Parish will feature
one of the finest food sales ever
held in Nome.
If you come to the U. S. Mer
cantile. that’s on Front Street
opposite Bering Sea you know,
you’ll see what will, in all
probability, be the most appe
tizing display of home-cooked
food ever conjured up at any
one time in a given place.
Try to get there about 10:00
a.m.. and allow yourself a few
minutes to look over this boun
tiful assortment of culinary
gems. Remember, it will be no
easy task to decide which of the
many palatable declicacies you
will want to purchase.
A hint to some of you bach
elors who probably tire of your
twn cooking—here’s an oppor
tunity to get that “woman’s
tasty touch” added to your
menu.
No doubt, between now and
Saturday you will be approach
ed above a special cake deco
rated with a house and lot and
6wiming pool. Well, maybe be
fore seeing this masterpiece of
culinary artistry you willl hes
itate. but when you see it you
Will surely want to buy all the
chances on it for you will cer
tainly believe it too good to eat
but it will be far too good not
to eat.
A special feature will be Es
kimo Ice Cream, Muktuk, Seal
Blubber, Soured Walrus Liver,
Cooked Walrus Flippers, Wal_
rus Hide, cooked; Walrus Meat,
cooked; Dried Meat, Dried
Tomcod, Willow Green Leaves
in Seal Oil, Dried Salmon and
Boiled Salmon.
Looks like enough has been
said for this time. You will just
have to come and see for your
selves for then you will realize
why we haven’t attempted to
list the goodies they’ll have—
you know— cakes, pies, jams,
jellies, cookies, bread, potato
salad, chili, spaghetti and meat
balls, and, that’s only about
half. If you man’t make it by
10:00 a.m., any time between
then and 6:00 p.m. will do.
One more little bit of infor
mation—the purpose of this
festival of food. Father Murphy
has aranged to have two Nuns
from the Holy Cross Mission
come to Nome and conduct a
summer catechism session dur
ing August. Travel is expen
sive as we all realize and every
penny you spend at this Food
Sale will be applied to this
purpose.
REMEMBER
THERE WILL BE FOOD
GALORE AT LARRY'S STORE