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VOLUME 10, NUMBER 50.
HYDER, ALASKA, SATURDAY, AUGUST 11. 1934.
SINGLE COPIES 10 CENTS
SILVER NATIONALIZED
BY GOVERNMENT EDICT
That much discussed but
little ar/.iciipated monetary pro
posal, nationalization of silver,
became a reality Thursday
when President Roosevelt, act
ing under the authority of the
recent silver purchase act, iss
ued an order providing for the
taking over by the Treasury of
all silver in the United States
available for monetary purpos
es at a price of 50.01 cents an
ounce.
The presidential order was
issued almost immediately af
ter Mr. Roosevelt returned to
Washington from his vacation
trip to Hawaii and the Pacific
coast and without preliminary
announcement.
Briejf radio reports received
locally failed ;to indicate reas
ons fcr the sudden action,
which appears to have its in
ception in the recent rapid in
crease in the price of silver.
Viewed from this angle, it ap
pears probable that the move
wa« intended to act as a brake
to speculative pricing which
would .increase greatly the c,ost
of silver purchased by the
Treasury under the silver pur
chase enactment. With mill
ions of ounces of silver still to
be acquired in order to bring
the currency silver backing to
the 25 per cent, minimum re
quired by the new law, the ad
ministration naturally desires
to obtain it at the lowest cost
consistent with the policy of
improving the position of sil
ver. By taking over all silver
stocks and fixing a definite
price of 50 cents an ounce, the
President has blocked specu
lative price forcing and at the
same time placed a huge vol
ume of speculatively held 'sil
ver stocks in the possesion of
the government.
According to present under
standings, the new regulation
will not affect the oflfer of the
government to purchase do
mestic mined silver at 641/2
cents.
Secretary Morgantheau an
nounced later that the nation
alization of the metal would
not interfere with the supply
for industrial uses.
Reports also indicated that
'silver certificates will be issued
against the silver taken over,
on the basis of $1.29 an ounce.
Nationalization of silver not
only gives the government
complete control over the met
al within the national boundar
ies but also removes from the
world market a very large pro
portion of the existing stocks of
silver held for speculative pur
poses. The shortage thus cre
ated will undoubtedly result in
Progress On The Cantu
Mid-week reports from the
Cantu property indicate steady
progress on the diamond drill
ing program inaugurated some
days ago by the Consolidated
Mining and Smelting Compary
to explore the lower exten
sions of the big quartz zone
which outcrops near /the sum
mit of Cantu Mountain and
from which excellent gold ass
ays have been obtained in ear
lier develotpment work.
At the time of the report the
first drill hole was in some
thing over 460 feet and with a
probable 140 feet or so to o
to reach the point where the
vein is supposed to be located.
-O
Hellenthal Chosen For
Democratic Leader
J. A. Hellenthal, pioneer Jun
eau attorney, has received the
unanimous endorsement of the
Democratic Territorial Comm
ittee to succeed J. J. Connons
as Democratic National Comm
itteeman for Alaska.
Mr .Connors resigned seme
time ago following his appoint
ment as Collector of Customs
for the Territory.
Brittannia Engineer Visits
Mr. Paul Everest, field en
gineer for the Brittania Mining
and Smelting Company, ar
rived Thursday on the Fair
banks to examine certain local
properties for his company.
eventual increase in the world
price, (thus enhancing silver
throughout the world, with re
sultant effects on world trade
through increase of the purch
asing power of silver-using nat
ions.
Reports from London Thurs
day indicate that British finan
cial circles expect no immedi
ate effects from the Roosevelt
order and consider it merely in
line with the present silver pol
icy of this government Do
mestic reaction to the new pol
icy was reflected in increased
market activity and advancing
stock prices.
The rally was brief, however,
and stock sales Friday were of
small volume.
News of the President’s new
move was received locally with
a greater degree of satisfaction
than another development of
the governmental silver policy.
A majority of the local silver
students incline to .the view
that Mr. Roosevelt’s action has
done more to 'strengthen the
position of silver than any oth
er measure so far attempted
i^nd anticipate further advanc
' es in world price.
GABE OLSON INJURED
IN TRAM ACCIDENT
Caught by the whipping end
of a cable on the United Em
pire tramway last Sunday af
ternoon, Gabe Olson, well
known Stewart resident, suf
fered a narrow escape from
dreadful maiming or death and
is now in the Stewart hospital
suffering from three broken
ribs and severe contusions
which will probably keep him
conlfined for a considerable
period.
Reports of the accident indi
cate that Olson waSs struck
when the cable slipped from a
clamp and snapped back like
a whip-lash on being released
from the high .tension strain.
But for the fortunate fact
that the heavy wire rope
struck Olson lengthwise of his
back he would probably have
been cut in two. He is under
the care of Dr.J.W. Vosburgh..
-o
Trollers Resume Fishing
Trailers of southeastern Alas
ka resumed fishing last Mon
day for the first time since op
erations were discontinued ear
ly in June because of the ma
rine strikes stopping shipments
of supplies, according to the
Ketchikan Chronicle.
Fishing at that time had been
in progress 10 days. Price cuts
demanded later by buyers kept
the fishermen from the fishing
grounds.
A co-operative marketing as
sociation set up within the
A 1 as k a Trollers association
now offers one market for the
fishermen and independent
buyers are in the market for
the catches of the unaffiliated
trollers. Approximately 1000
fishermen are affected by the
resumption of operations, 600
of them being affiliated wj.h
the marketing association.
-o
Red Salmon Pack To
Be Record Breaker
The Alaska red salmon pack
this summer will be a record
breaker, with a run second only
to that c!f 1918, according to an
announcement by., bureau., of
fisheries officials in Juneau
this week.
U:p! to July 28 the pack of
reds amounted to 2,48/,875
cases, only 71,184 cases less
than in 1918. Some of the Bris
tol Bay canneries were com
pelled to close down by lack of
cans while the run was still
heavy.
-o
F. E. Webster was a passen
ger on the Catala for Stewart.
Silver Rising Steadily
Continued advances in the
market price of silver during
the past week brought the. met
al to a new high of 49% cents
an ounce on Friday.
This was the highest point
reached by the white metal
since the beginnig of the sen
sational decline cf 1930, and is
only 5 cents lower than the av
erage market price in 1929,
Whether the upward trend
is attributable to Treasury pur
chase; under fhe silver purch
ase act or is merely a normal
reaction from the forced depre
dation caused by the dumping
of Indian silver, now suspended
under the recent world confer
ence agreements, is undeter
mined. Speculative buying
may be the important factor in
the advance.
Reports indicate that Treas
ury purchases are continuing
steadily in moderate amounts.
LOCAL NOTLS
Frank Reichenback left this
morning on a business trip to
the south.
W. K. Spaulding, well-known
Ketchikan business man and
junior member of the firm of
Talbot and Spaulding in the
First City, arrived on the mail
boat Thursday to look after his
local mining interests.
Stavely Mellon former Stew
art resident, attached to the
Digby Island radio station near
Prince Rupert, arrived Monday
evening on a vacation visit.
Mrs. E. D. Haddon and C. B.
Hager were the. winners of the
progressive whist tournament
at the Womens Club-Pioneers
card social, held in Pioneer
Hall last Saturday evening.
Mose Seguin of the Premier
tram crew left Thursday on a
business trip to Ketchikan.
E. M. Reynold? started today
the clearing, of his property on
International Way in prepar
! ation for the construction of a
! new store and residence build
i ing to replace the structure de
I stroyed in the recent fire.
The Hyder oawm'.ll contin
' ued operation during the pres
ent week, providing a high
ly beneficial payroll for a num
ber of community workers.
E. C. (Ted) Morris of the
Salmon Gold company re
turned Monday from a business
trip to Vancouver.
FARM COLONIZATION
FAVORED BY D1MOND
Possibilities of establishing in
Alaska a small agricultural
area with farmers from the
drought-stricken areas of the
middle west are viewed with
favor by Alaska Delegate A. J.
Dimond, who said in a recent
public statement that he had
discussed the possibility of de
veloping such a farming colony
in the Anchorage district with
the federal emergency relief
administration.
Such a program would of ne
cessity be on a small scale at
first and the person?; moved
there by the relief administrat
ion would be selected with ut
most care, for the reason that
they would be forced to bear
the burdens of a pioner life for
a time, the delegate said.
-o
Repairing Fish Creek Trail
A Forest Service trail bureau
crew composed of B. B. Smith,
A] Phillips and Sidney Ander
son is engaged in repairing the
Fish Creek trail as far as the
M'ountainview iproperty under
the supervision of T. H. Evans,
local representative of the Bu
reau of Public Roads.
The work includes (the re
newal of bridges and culverts,
removal of timber debris, and
general repair;
Trees and timber debris
brought down by snowslides
during the past winter com
pletely blockaded the trail at
several points while washouts
had rendered it impassable at
other:. The past winter is said
to have been a severe one for
local trails.
The Cantu irail from the Tex
as creek road to Cantu Mount
ain is also being improved un
der Forest trail bureau author
ization.
-o
Another New Marshal Named
Walter G. Hellen, former
Juneau business man, has been
named Deputy United States
Marshal by Marshal William
T. Mahoney, according to Jun
eau report;.
Hellen succeeds Frank Booth,
who was an appointee of for
mer Marshal Albert White and
resigned recently. Booth will
be stationed in the Juneau of
fice.
-o
Drilling operations are re
ported under way on the Sal
mon Gold property in the up
per Salmon river basin, now
under development by the Con
solidated Mining and Smelting
; Company.