, --- -it*-.." iin,
Deflating Depression
-x
John M. Grant, President of l
Transamerica Corporation in a1
recent interview is quoted as
follows:
“The depression of today ex
ists only when compared witn
yesterday. What we are witness
ing today is deflation, not de
pression.
“If this depression has taught
us just this one lesson—that
only by the sweat of our brows
can we make a living, then
thank God for the depression.
Going back over the past few
years comes a picture to mind.
Stocks were way up out of sight;
wages of the ordinary laborer
were plenty high and the cost of
living in proportion—not only
high cost of living but cost of
high living. And this was not re
stricted to any class. Those who
had any amount of capital in
vested in stocks, spent their
money as fast and faster than
they made it—then came the
accounting—application of the
old rule that there is a law of
compensation.
In Alaska we look over the
back pages and see that during
a spell of years the canning in
dustry made money like a mint.
One canner during one season
put up 75,000 cases of salmon
with one line of machinery and
to avoid paying his income tax,
he reinvested a large proportion
of his profits in new machinery
and equipment. Others invested
i n expensive homes—$25,000,
$40,000 and $50,000 homes. One
canner’s wife did not like the
furniture of her less fortunate
days and had it all junked and
replaced with an outfit that
stood the old man off $20,000
The canners began to play the
markets—wash sales and fliers
on margin. A turn of the pen
and their profits—mostly on
paper counted in to the millions.
Some cashed in but most con
tinued spreading their splurges
in a wild orgy of gambling. They
reinvested nothing in t h e i. r
business in Alaska—they let the
banks carry them from year to
year—it was easy to borrow from
the banks—and easier to spend j
their profits. The rule was “eat, j
drink and be merry for tomor- j
row the market goes up.”
Then in 1929 the market on
stocks began to drop off. Yea, as
much as 30 points and official
Washington said: “Whatever
you do, gentlemen, don’t reduce
wages.” *Keep up the purchas
ing power of the people.” A
spirit of optimism prevailed for
it could not be possible that the
market would drop any further.
United Steel, (did you take a
flier in that) went oelow 150—
an impossible, preposterous
thing—and it was bound to go
up—that was where the little
suckers came in to fatten up the
big fellows who were steering
the markets. Passed 1930 and
the markets still remained low
and still no possibility of re
couping losses. Comes 1931 with
promises from official Washing
ton and Babcock the wonderful
st atistician and other economists
I
that “prosperity was just around
the corner.” Comes 1932 with the
promise that the worst was over
and if this is the worst, heaven
help the country when it does
get worse next winter.
The gambling in stocks, the
orgy of spending more than was
earned, the failure to plant the
savings for just such a depres
sion took away from industry,
the necessary capital to prevent
the industrial ships from going
on the rocks of depression. Cur- j
tail expenses, cut wages—any
thing to permit continuation of
the payment of dividends. Wages,
were cut faster than was cut!
cost of production and cost of
living commodities. Those who
had nothing soon felt the
squeeze and more and more fol
lowed—having nothing to buy
they went on credit and as the |
hundreds and thousands of little
business men were unable to >
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meet their obligations they went
bankrupt and in turn drove the
wholesalers and bankers on the
rocks.
We started to point out some
of the ills in Alaska and have
rather spread out over the page
in a general way—but the un
derlying causes are the same in
Alaska, in the United States or
Timbuctoo. Capitalism cannot
continue indefinitely its orgy of
bioated inflation through stock
manipulations and useless gam
bling.
Alaska can never have a solid,
stable fishing industry so long
as its leaders fail to provide for
the future by building up a fin
ancial reserve as any other in
dustry. The day of building up a
cannery at a cost of $150,000
and clearing original expense
and still declaring a profit out
of the first year is over. The
canners who remain must win
their way to the fore by clear
business thinking and by re
taining the friendship and in
terest of the country in which
they operate.
-x
Environment
Bezrae Boyd is an Eskimo girl
and the adopted daughter of
Mrs. R. S. Boyd of Longview.
Probably no mention would ever
have been made of her had she
remained in the Arctic Circle. ■
But she was adopted by MrsJ
Boyd and given a chance at an
educational opportunity. In a
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recent regional declamatory con
test sponsored by the Grange at
Olympia, she was declared win-'
ner with her declamation on
j"Washington.” She was to take'
part in the contest in Tacoma—
a statewide contest. Bezrae is 11 j
years of age and a junior in the
R. A. Long high school.
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Some of Your Money
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It will not be long now till
the Hoover moratorium of Eu
rope’s debts to the United States
will expire and those debtor na
tions will be demanding further
moratoriums or cancellation of
the debts.
In death and other casualties,
America paid dearly for siding
in with the Allies and yet:
She loaned France $2,662,000.
000 when Germany was making
her drive on Paris and then fol
lowing the war she loaned an
other $1,569,000,000 to France.
$2,000,000,000 worth of property
left in France was sold to that
nation for $400,000,000.
This entire debt was cancelled
and the burden placed upon the
American tax payers. France
was asked to pay two and one
sixth per cent interest on this
debt for sixty-two years and
then the books would be cleaned
of the obligation.
We gathered a contingent of
almost five million men, sent
over over four million and saved
France from Germany, paid off
her debt, all but a small interest
and then are called “Shylocks”
for demanding that France pay
her after-war obligations.
BIIIIM
The French debt alone, if pro
perly handled would repay the
Dough Boys their compensation
in full without any obligation
placed upon this government or *
its people.
This nation had millions fori
the stricken of China and Jap
an, for Belgium, for the debtor
nations—it hears the call of the1
starving of other nations and it
is a bit incongruous that it can
not hear the wailful pleas of its
own hungry.
--—x
A Happy Man
A millionaire who denies him
self the luxuries of life but who
has furnished money for 97,411
meals for hundreds of poor Chi
cago school children protested
that his philanthropy was
“nothing.”
William E. Turner, 78-year-old
bachelor, who wears inexpensive
old-fashioned clothes, rides in a
1924 model automobile and takes
a day coach when he goes to his
v/mter home in Foley, Ala., be
cause he “can’t afford” a Pull
man, says the philanthropist.
“I’m not doing anything,” he
said. “I just told C. Edgar John
son I would furnish the money.
He’s really handling the whole
thing.”
Johnson, who is assistant
cashier of the First Union Trust!
& Savings Bank, revealed that;
Mr. Turner had been feeding j
hundreds of pupils in eight j
North side elementary schools j
since last winter, and that liej
was “ready to keep it up as long
[•s necessary.” ;
Banana Oil
-x
Taken from the Republican
"Campaign Text Book” of 1923
and reprinted with a feeling that
ali, maybe, is not well.
"America’s industrial prosperi
ty under Republican policies is
such as to challenge the atten
tion of every industrial nation
in the world.”—page 330.
"The industrial peace, stability
and prosperity which character
ize the United States today are
the result of the legislative ad
ministrative qualities of the
Republican party.”—Page 332.
“Our Republican administra
tion by hard work and sound,
constructive economic policies,
has built up a job for every
man.”—President Hoover, quot
ed on page 332.
"By the terms of the debt set
tlements the American taxpay
er has been fully protected.”—
page 279.
"We know of no authority
which would permit public offi
cials, acting as trustees, to shift
the burden of the war from the
shoulders of foreign taxpayers
to those of our own people.”—
page 278.
U. of W. Faculty Pay
Cut 10 Per Cent
-x
Rejecting recommendations
for salary reductions made at
a recent meeting in Tacoma of
officers of the state’s institutions
of higher learning as not being
sufficient, the University of
Washington Board of Regents
directed a straight 10 per cent
cut in pay of all faculty mem
bers, including that of President
M. Lyle Spencer, effective July 1.
The board further ordered that
where salaries have been adjust
ed since September 1, 1931, there
be a further trimming so that
the total cuts in each college,
school, division and nonacadem
ic department shall amount to
not less than 10 per cent. The
board’s executive committee was
authorized to pass upon the
changes made in all depart
ments.
Reserving the right to make
even further salary reductions
as may be required, the regents
requested President Spencer to
present at the July meeting a
program for additional econo
mies. The University bureau for
placing teachers was ordered
discontinued, its necessary func
tions to be taken over by the
School of Education.
-x
FOREIGNERS LOSE
JOBS IN TURKEY
■-x
Ten thousand foreigners living
in Turkey lost- their jobs as a re
sult of a law adopted by parlia
ment.
The measure reserves exclu
sively for Turkish citizens a
long list of occupations, affect
ing barbers, waiters, chauffeurs,
grocers, musicians and cabaret
dancers, as well as numerous
others.
Only two Americans were hit,
a grocer and a chauffeur. About
100 British subjects, most of
them Maltese, were affected.
Plavent you
noticed it
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Chesterfield Rodio Program ^
MON. & THUR. TUES. & HU. WED. & SAT.
Boswell Alex RUTH
Sisters Gray ETTING
Nat Shiucret and Norman Brokenshire
At 6 p. m., Pacific Tims
every night but Sunday
s, COLUMBIA NETWORK _T^'
1932, Liggett * Mrats Tobacco Co.
And here’s the Reason Whyi
THEY'RE MADE of ripe, sweet, mellow
tobacco a.
These tobaccos are blended and cross
blended ... "welded” together in such
a way as to bring out the best in
kind of tobacco.
CilLSTERritlLDS are getmonm! with just
The Cigarette that’s
MILDER . .
The Cigarette that
TASTES BETTER
the right amount of fine aromaticTorkish
tobacco. Not too much, but just enough.
CHESTERFIELDS are made right—the
right size—to give a cool and smooth
smoke. They’re mild—yet not flat.They’re
not oversweet—but sweet enough.
They’re as pure as the water you drink.
esteriield