THE NOME DAILY NUGGET
GEO. S. MAYNARD, Editor
RUSSELL G. MAYNARD, Manager.
Published every evening except Sunday by The Nome
Publishing Company, Nome, Alaska.
Subscription Rates Payable In Advance.
Delivered by carrier in Nome, Little Creek and Sunset
Creek, for $2.00 per month. By mail postage paid out
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MEMBER OF ASSOCIATED PRESS
Explains Why Gold
Price Will Not
Be Lowered
w
K -
Despite assurance from the
President and the Secretary of
the Treasury that the price of
gold is not going to be lowered
there are still many rumbles
that change may come in the
gold level. But there is reason
to believe that such comment is
based on unfounded rumor rath
er than fact.
There appears to be at least
three rather definite reasons why
the gold price will not be chang
ed at this time. The outstanding
one is that it requires an act of
Congress. The President has no
authority to do anything to the
price of gold. H. N. Lawrei, Con
sulting Economist in Washington,
D. C., writing in the June Engin
eering and Mining Jotiral, ex
plais that point clearly in these
words:
As originally enacted the law
grantnig the President the auth
ority to change the weight of
the gold dollar included the fol
lowing proviso: “but in no event
shall the weight of the gold doll
ar be fixed so as to reduce the
present weight by more than 50
per centum.” However, the Con
gress made a vital changie in this
provision in the Gold Reserve Act
of 1934. passed on January 30,
1934, when the following limita- (
tion was incorporated: ‘‘nor shall
the weight of the gold dollar be
fixed in any event at more than !
60 per centum of - its present
weight.” The President by pro-!
clamation on January 31, 1934,
reduced the weight of the gold j
dollar 59.06 per centum, or to 15
5-21 grains of gold nine-tenths
fine, equivalent to $35 per ounce.
For thie "Inactive Gold Account”,:
the Secretary' of the Treasury is
compelled to pay the statutory
price of $35 per ounce for all of
the new gold produced in the Un
ited States. Congress would have
to pass an amendment to the Gold
Reserve Act of 1934, increasing'
the weight of the gold dollar to
21 l-3d grains of gold nine-ten-!
ths fine, before the price of gold
would be reduced to $25 per
ounce.
But, as Mr. Lawrie points
out, there are other reasons why
the gold price probably will re
main stationary for some time.
While the nation is attaining nor
mal business recovery, the peak
has not been reached and the un
employment problem is still a
major one. The Economist is ot
the theory that the remainder of
the world has advanced further
than the United States in eco
nomic recovery and no unem-j
ployment problem on any serious
scale exists abroad. Thus this na
tion would suffer more than the
rest of the world by action reduc
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WALTER W. JOHNSON CO.
351 California St. San Francisco, California.
Builders of Gold Dredges, Prospecting Drills,
and Other Placer Mining Equipment
ing the price of gold. Continuing
his line of reasoning, Mr. Lawrie
says:
It (lowering the gold price)
would precipitate an extensive
and prolonged deflation, indust
rial stagnation on a large scale,
and an increase in unemployment,
why would the Administration
take action which would be so
adverse to our domestic econo
my', especially at a time when
progress is being made in eco
nomic recovery?
And the Economist makes a
third point, equally sound reas
oning, which tends to dissipate
at this time any belief that the
price of gold will be lowered:
The Administration inspired
the agreement between Great Bri
tain, France, and the United Stat
es to stabilize currency and re
move trade barriers, and conse
quently would be reluctant to
withdraw from the accord, an act
whcih would be inescapable if
this United States w’ere to de
crease the price of gold from $35
to $25 per ounce. Great benefits
to foreign trade have occurred
since September 25, 1936, when
this currency accord was signed,
through the removal of trade ob
stacles and the greatly improved
stability of the pound, franc and
dollar. These are economic advan
tages which are increasing as
time passes and cannot be lightly
appraised in improving demoestic
and world economy. In order to
emphasize the nature and extent
of the obligations assumed by the
United States when the Tripar
tite Agreement was signed, the
memorandum of September 25,
1936, Paragraph 2 is quoted in
part as follows: “one constant ob
ject of which is to maintain the
greatest possible exchange and to j
avoid to the utmost extent the
creatLn of any disturbance of
that system by American mone
tary action.” Nothing could dis
turb the monetary systm more
than arbitrary action by the Un
ited States reducing the price of
gold from $35 to $25 per ounce.
Although news dispatches re
ported that France has slid off
the gold standard in an effort to
save its financial structure, it is
turning to England and the Un
ited States for assistance, and
while they may help France in
her financial troubles, it is rea
sonable to assume that neither
will sacrifice trade and economic
security by lowering the gold
value. ,
There seems to be ample ev
dence that gold in this country
is going to remain at $35 an oun
ce for some time to come.—Alaska
Juneau Empire.
NOTICE OF FORFEITURE
To Fred Seidel, Gust Aspen,
Chas. L. Milock, Gus Anderson,
Frank Krebb, Alex Meister, Fan
ny Milock, and to each of your
heirs administrators, and assigns:
You and each of you are here
by notified that I, the undersign
ed, a eo-owner, have expended
the sum of one hundred dollars
($100.00) in labor and improve
ments upon the Dredger Claim
Association Placer Mining Claim,
situated on the Neukluk River in
the Cape Nome Recording Pre
cinct, Territory of Alaska, the
location certificate of which is
on record in Vol. 20, Page 81 of
the former Council Recording
Precinct, Second Division, Ter
ritory of Alaska, as assessment
work in order to hold said pre
Shishmaref—Deering—Candle—SeJawik—Kotzebue—Kiana
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mises under the provisions of
Section 2324. Revised Statutes of
the United States of America,
for each of the following years:
From 1910 to 1937, inclusive.
You are further notified that
the undersigned co-owner has
paid out for said work and im
provements the sum of $100.00
per year for each of said twenty
seven years, amounting to $2,700.
00,this being the amount requir
ed to hold said property from
1910 up to and including July
1st, 1937. And, that if within nine
ty days (90) from the completion
of the service of this notice by
publication, you fail or refuse to
contribute your proportionate
share of such expenditure as co
owner, your interest in said claim
will become the property of the
undersigned under said Section
2324, Revised Statutes of the Un
ited States.
CHARLES STROM, Co-Owner
Publish—Oct. 1, 8, 15, 22, 29, Nov.
5, 12, 19, 26, Dec. 3, 10, 17, 24, ’37.
When and if the duke of Wind
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biggest job is going to be finding
the proper title for it.
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