WE NOW OFFER
FOR SALE
ENTIRE RELIANCE
BRAND FOOD
products And
COFFEE & SPICES
i
9 .
DELIVERY HOURS
10:30 A. M.—2:30 P. M.—5:30 P. M.
Any Orders Placed After 5:30 P. M.
Will Not Be Delivered Until The
Following Morning. ^
BON MARCHE
STORES
LINCOLN HOTEL
JACK DEVINE, PROP.
“THE HOME OF THE SOURDOUGH”
ROOMS BY THE DAY OR MONTH |
SQUIBBS ADEX TABLETS
COD LIVER AND HALIBUT LIVER OILS
CONCENTRATED PLEASANT TO TAKE
A VALUABLE MEDICINE
THE LARGE BOTTLE, $1.00
NOME DRUG STORE
Opp. Telephone Office Telephone Main 15
“Cappy” McDougall, Proprietor
ALASKA LIQUOR STORE
DOMESTIC AND IMPORTED LIQUORS
AND WINES
^ BEER
GOLDEN GLOW, HAPPY PEPPY, 15 cts Bottle
HOLIDAY TABLE WINE Telephone Main 15
JOHN LEPRI, Prop. ' DAN ALVICH, Mgr.
NOME MACHINE SHOP
W. L. SLACK AND SON, PROPRIETORS
Our, Aim—Satisfied Customers
BOILER, MARINE, TRACTOR, ACETLYNE AND
ELECTRIC WELDING
MATERIAL STOCKED: i SHAFTING, STEEL, BRONZE,
BUSHING, BABBITT, ACCESSORIES.
Prompt Attention to Local and Out of Town Work
FINN ALLEY CAFE
CABDROOM
BEER
Lunches and Dinners
NOME, ALASKA.
Northern Light & Power Co.
AND
Alaska Telephone & Telegraph Co.
Second Avenue and Lane’s Way '
LIGHT, POWER AND ELECTRICAL SUPPLIES
LOCAL AND LONG DISTANCE TELEPHONE SERVICE
Communications
Addressed to The Nome Nugget
PRESS RELEASE
JUNEAU, ALASKA
Additional information was made
public today by Director John E.
Pegues relating to the discount
charges allowable for moderniza
tion loans under the provisions of
the National Housing Act.
In response to many requests, and
to clear up misunderstandings, the
Director issued the following state
ment:
Need for Clarification
“I find there is much confusion
and uncertainty about the standard
5 per cent discount rate,” Mr. Pe
gues said. “In fact, a number of
interested people, individuals who
were planning to make improve
ments to residential property thru
this method of financing have been
given the idea that in addition to
.the 5 per cent discount, an 8 per
cent interest rate is
“This is entirely
more than 5 per ce
be paid under the government’s in
sured loan plan.
“The most simple and clearest
explanation of the whole plan was
that recently given by Mr. Roger
Steffan, Director of Modernization.
Loans Made Easy
“In this Mr. Steffan said ‘On Aug.
9th, twenty-four hours before “Mod
ernization Credit” flashed across the
I country, if a property owner who
jhad an established relationship with
a bank (including a fair-sized check
ing account) had taken to the bank
ample collateral, say government
bonds, and been granted a small
loan at 5 per cent, he would have
been well satisfied.
‘On an open loan basis it would
have been hard for him to get ac
commodation for as long as a year
(against one to five years now).
But suppose he succeeded. As a man
i on a salary he would have had to
start saving to pay the loan on the
due date. The chances are he
would have begun putting aside a
little every month into his account
so that at the end of the term he
would draw one check and pay off
the loan. He would have had a 5
per cent loan, he would have ac
cumulated the repaying fund in a
checking account on which, by law,
he would have received no interest,
and that would have been a “real”
5 per cent loan. No one would dis
pute that.
5 Per Cent Limit of Discount
‘No one would say that because
this customer kept depositing a few
.dollars in a checking account so he
j could pay off his loan you should
count the theoretical loss he sustain
led from not being able to invest the
money at 5 per cent as part of the
interest charge on the loan.
‘That is almost identically the way
the transaction is handled for a bor
rower on the Modernization Credit
Plan. He pays 5 per cent discount
—never more, because the Govern
ment won’t permit it. But because
this^-plan is intended for non-de
posfters, particularly for those who
.haven't been able to borrow for
some years, the Government re
quires that payments be made (in
effect about the same as is neces
sary to the collateral borrower!—in
definite monthly installments. On
these payments, as a rule, he gets
no interest, just like the checking
account customer referred to. The
fact that the monthly installments
are required by contract is to the
borrower’s advantage. That is a
sure-fire safety device against “for
getting to pay.” The monthly in
stallment plan, with its twelve to
sixty payments, costs the bank more
than if it were dealing with collat
eral customers who would pay off
in one lump sum. They can’t han
dle such loans any other way, how
ever.
* * *
‘Whether or not the borrower
saves up this monthly account by
putting it into a checking account,
having it apply on his note, or carry
| ing it around in his pocket, doesn’t
'make the slightest difference in the
cost to him. The cost of the loan
! is only 5 per cent related to that
| something we all think of as “in
HAGEN
JEWELER AND OPTICIAN
.
OPEN FOR BUSINESS
9 Hand Painted China
Silverware, Watches, Jewelry
JACK SEIDENVERG
NOW OPEN FOR
BUSINESS
IN MY NEW BUILDING
-
NOME LAUNDRY
Joe Amarok, Prop.
All Types of Laundry
Work Done Cleanly and
Efficiently. Call and Get
Our List of Prices
East of Catholic Church
Nome, Alaska.
' ..'i. —. »> ■■■ ■ 1 1
I
THE GREEN LANTERN
Cardroom And
Beer Parlor
1st Ave. and B Street
CITY LAUNDRY
Harry Saito, Prop.
Opposite The Bank
Clothing Pressed And
Cleaned
Laundry Work At
Reasonable Prices
TUB BATHS DAILY
II AX. TO IS P M.
ft.... j1' v/ ......**
Cavey’s Bakery
OPEN FROM 6 A.M. TO 1 A.M.
GOOD CUP OF COFFEE
BEST PASTRY IN NOME
Good Meals
ARTHUR EIDE
PAINTING
AND
PAPERHANGING
REPAIR WORK
PLACE ORDERS
AT POLET’S
n i -■■ --
FOR ALL KINDS QF
CARPENTER WORK
BUILDING or CONTRACTING
SEE
Hans Petersen '
Corner Finn Alley A 1st. Are.
Industrial Workers
Of Alaska
Meet Every First
Thursday of each Month
Nome, Alaska
Next Meeting
Jan. 3. 1935
' U-.
SPEED COMFORT DEPENDABILITY
FLY WITH THE MAIL
PACIFIC ALASKA
AIRWAYS INC,
OPERATING
BI-WEEKLY MAIL TRIPS BEWEEN FAIR
BANKS AND NOME—LEAVING NOME 8 A M.
TUESDAYS & FRIDAYS.
RADIO EQUIPPED PLANES
Office 1st Ave. and Stedman
NOME, ALASKA.
terest” when we mention loan costs.
It is true, of course that if he puts
this money away safely in a bank
either by means of deposit or pay
ments, to insure that the loan will
be taken care of, he provides funds
which the bank in turn can use to
extend more credit. But that is ex
actly the same thing that happened
when our checking account custo
mer saved up his money in his
Checking account to pay up his loan.
Turnover Brings Profit To Bankers
‘Taking the two elements togeth
er, the note and the accumulation
plan, the bank is able to turn over
its funds on a basis that will bring
an amount greater than 5 per cent
on the original loan, but that is
always true on every banking trans
action. It is the only thing that
makes it possible for banks to keep
alive.
‘When all is said and done, the
property owners without the require
ment of a checking account, without
any collateral except his earning
power and his good name, ^ets a 5
per cent loan, just as surely as the
“Collateral borrower.” (And there
are many places where the latter
cannot get credit cheaply.)
‘The mathematical “ration between
gross return and average balance
outstanding" exists almost exactly
i the same and sometimes at a higher
figure—in every borrowing relation
ship. It is often overlooked that the
simple discount arrangement of the
Modernization Credit Plan includes
in one package the three things that
have to be considered together in an
ordinary loan!
‘(1) The cost of the credit.
‘(2) The cost of the repayment
plan, paid for in the lower return
or no return on accumulating sums,
and
‘(3) The deposit account which
adds to the “ratio” of the ordinary
customer, but as a special conces
sion is absent in the Modernization
Credit plan.’ ”
CHANGES REGULAR
ADVERTISING NUGGET
Changes of regular advertisements
will be accepted up to 4 PM of the
day preceding insertion. New ad
vertisements will be accepted for
insertion in^the paper up to 1:30
PM of the day of insertion—The
Nome Daily Nugget.
Subscribe for The Nome
Daily Nugget—$2.00 Per
Month by carrier. $1.50 Per
Month by Mail
COMPLETE LINE OF WINES AND LIQUORS
RANIER BEER 15 CENTS BOTTLE
ALSO A COMPLETE LINE OF
CIGARS & TOBACCOS
(Front Street Opposite Nome Motor Co.)
NOME LIQUOR STORE
»
NOW IN SEATTLE IT’S
HOTEL
Mayfl< >wer
, R. P. WARD, Manager
4th AT OLIVE
I •
k
.