SOCIAL SECURITY IS
CAUSE SPECULATION
(By Preston Grover)
WASHINGTON, D. C., April
(AP)—Credit Secretary Morgen
thau with throwing a spotlight,
•although for just a moment on
one of the underlying big prob
lems incident to operation of the
Social Security Act.
Within 17 years, he said, "vari
ous laws, such as social Security
sinking fund, and so forth, will
absorb about $30.000,OOO.OOOworth
of public debt.”
Don't be misled into thinking
the social security money will be
used (to retire the government
debt. That isn’t the law. His
statement simply means that in
about 17 years the social security
act, together with sinking fund
"and so forth” will pile money
into the treasury, and the treas
ury will invest it, just like an in
surance company.
But in connection with the pros
pect of such a sum massing in the
hands of government (and some
estimate it may nearly double
that) many questions arise that
ge in the hair of practical politic
ians as well as in the hair of ec
onomists.
Questions
What if there came along a
first line war, or a number one
national emergency, or a lot of
pesky little emergencies.^ How
well would the government with
stand the temptation to dip into
the pot, take it all in the name
of national emergency or national
exigency.
Suppose a depression came al
ong and the middle-aged and
near-pension-aged folk decided
they needed the money right away
instead of waiting? And the in
flationists insisted that the pen
sion savings under the social se
curity ought to be pumped into
(lov. Clyde Tingtey of New Mex
ico shed tears as relief workers
were ejected from his Santa Fe
office by state police, who used
tear gas to enforce their com
mands. The governor is shown
wiping his eyes. (Associated Press
Photo)__
business to perk up business ?
And columns of elderly and near
elderly marched on Washington
demanding pre-payment of "the
old age bonus?”
But if no big fund is built up in
which employes have a definite
concrete stake which they can
call theirs by right, then what as
surance is there that some Con
gress might not decide to abolish
social security or reduce it great
ly? Already there is afoot a pro
gram backed by many business
men urging that the social secur
ity payments be met on a pay-as
you-go basis by raising enough
taxes each year to pay the needs
rather than by taxing enough in
addition to pile up a reserve fund
If employes pay social security
taxes on a pay-as-you-go plan for
several years, can they argue that
they have a “right” to pension or
unemployment benefits as convin
cingly as if they had an actual
reserve opposite their names on
the social security register? De
fenders of the reserve fund plan
to argue that unless employe
“rights" to pension or unemploy
ment benefits are made evident
by- such a fund, there will be a
tendency by employers through
the years to seek to trim off part
of the benefits so their own share
of the tax loan will not be so
heavy.
Weather Today
(U. S. Weath-ir Bureau)
Mostly fair weather obtained
over the Nome-Fairbanks air
way on the morning observations
while low clouds were reported
at Kotzebue and some snow flur
ries were observed in the vicin
ity of Flat. Fair skies also pre
vailed along the Gulf.
Temperatures were lower last
night over western and northern
Alaska and remain 10 to 12 de
grees below freezing point over
the Fairbanks and Nenana sec
tion. '
Barometric pressure is relative
ly high over Bering Sea district
and western Alaska and it is like
ly that generally fair weather will
continue for Nome and vicinity
tonight and Thursday with little
change in temperature. Gentle
variable winds are indicated.
The lowest Nome temperature
last night was —2 at 4:50 a.m.
while the highest yesterday was
19 above.
$10.00 paid in advance will
give you the Nome Daily
Nugget for six months, A
saving of $2.00. Do it now !
Northern Light & Power Co.
i r i
AND
Alaska Telephone & Telegraph Co.
j Second Avenue and Lane’s Way
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G. E. BASSETT, Nome Agent
^ ,'iF*r?•
John Oscar Hetzer (above), of
Houston, Tex., was arersted in
Los Angeles by federal agents
who said he confessed robbing a
branch bank at Portland, Ore.
The loot totaled $18,195 and $7,
100 in currency was found in
Hetzer's luggage. Hetzer’s alleg
ed accomplice, James D. Courcy,
shot himself when officers sought
to arrest him. (Associated Press
Photo.)
Jack McCord Is
On His Way
To Coodpastor
(Continued From Page One)
ed by McCord in drilling the up
per Toiovana River and will do
some work in the Kuskokwim
and still more near Nome.
"This is the first entrance of the
American Smelting and Refining
Company ir. Alaska, and the first
active entrance of the Yuba firm,'
Mr. McCord said. "Between the
two companies, they have a com
bined capital of over 100 million
dollars that will now be available
for development of Alaska.
“Alaska is the best prospecting
area of the United States,” Mr.
McCord said. “All of the big
substantial mining companies are
now looking toward Alaska and
are fast taking up likely dredg
ing and quartz locations."
Preston Locke, engineer for the
American Smelting and Refining
Company, and another engineer
British Fighter
Defeats Levinskv
j
(By The Associated Press)
LONDON, April 28, — Jack
Doyle, 21G pound Irish tenor,
last night struck another blow to
uphold British boxing prestige,
when he gave Kingfi.sh Levinsky
of Chicago, 212 pounds, a brutal
twelve round beating.
Although Levinsky was never
knocked down, he continued to
fight back but didn’t land a dam
aging blow during the entire
fight, as Doyle hammered him to
pieces.
Adding Wizard
Tied Champion.
Warsaw, Poland
(Continued From Page One)
Members of the department of
fered many suggestions to the
Hoosier calculation expert after
his demonstration. They invited
him to return to the university
next fall for additional tests.
Both Gierke and Finkelstein
are of interest to psychologists
because of their remarkable per
ception and memory which mak
es possible the lightning calcu
lation. Their methods of proced
ure differ somewhat.
Finkelstein holds a doctor’s
degree from Warsaw University
in Poland and has been engag
' for the Yuba dredging concern
will come to Alaska soon, Mr. Me
I
Cord said, to oversee operations
of the two companies already
planned and to look at other pro
perties.
Mr. McCord has been Outside,
, much of the time in Now York
at the offices of the American
Smelting and Refining Company,
and in California conferring with
Mr. Locke.
POLSON’S
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NEW LOCATION
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ARCTIC BEER PARLOR
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Jack Solomon, Proo.
I
ed in rapid calculation for the
past nine years. Gierke has been
at it intensively for little more
than a year.
The LaPorte calculation wix
ard takes his own sheets of paper
and his easel for mounting the
sheets, pointing out that he can
not use blackboards successful
ly. He has been booked for a
number of demonstrations.
Cavey's Bakery
—
GOOD CUP OF COFFEE
BEST PASTRY IN NOME
Good Meals
OPEN FROM 6 AJH. TO 1 A.M
-;
I
TALKS SHOW THAT MEN ARE
“DULL", WOMEN “CATTY”
(By The Associated Press>
MINNEAPOLIS, April (AP) —
Mon are "dull” and women "cat
ty”, declare J. Spencer Carlson,
Eieroy Siromberg and Stuart W.
Cook, after a “psychological
study" of 604 conversations dur
ing symphony concert intermis
sions.
The three investigators summar
ized their findings like this:
Women devote 30 per cent of
their conversation to talking to
women about women; the remain
ing 70 per cent is devoted to men,
musTP and weather, in that order.
Men’s conversations were 25
per cent about music, four per
cent about weather and the rest
about money and women—in that
ordfer.
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