THE NENANA DAILY NEWS
' Application made April 1, 1918, at the postoffice at Nenana, Alaska,
for emry as second class mail matter, under the Act of March 3, 1879.
“WHERE RAIL AND RIVER MEET”
Published every afternoon except Sunday, by the Nenana Printing
Company, at First and B Streets, Nenana, Alaska.
Owned and Edited by
R. G. SOUTHWORTHARTHUR G. BELL
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CLUB BACKS PLAN
FOR GOLD BONOS
(Continued from Page One)
The bill prepared by Mr. Lawrie;
and the suggestions of Mr. McDon- i
aid. which he has forwarded to Mr. j
Callbreath, follow:
Tentative Preamble of Bill.
In order to protect the monetary .
gold reserve of the United States, ,
by maintaining the normal produc- j
tion of gold, within the United
States and its possessions, there snail j
be paid to every person producing j
gold from the mines within the i
United States and its possessions,
under the terms and conditions and
in the manner hereinafter set forth, :
SIC per fine ounce of such gold so
mined, and said payments are to
be made out of funds as herein
provided by excise on the use,
manufacture or sale of gold in the
United States lor other than coin-;
age or monetary purposes, and from :
other funds in the treasury not re- !
quired for specified purposes.
While the general nature of th'
proposal for bonus and excise is set
forth in the tentative preamble
above, it will be necessary for the
conference to discuss the many pro
visions which must be clearly pre
sented in detail in the remainder
of the bill. Following are some of
the essential points which are sug
gested for consideration:
1. Amount of Bonus and Excise.
—An excise of 50 cents per penny
weight of fine gold upon all gold
used for other than coinage pur
poses would be equal to $10 pci
fine gold ounce of newly produced
gold. Based upon the estimated
production of new gold and con
sumption of gold in the trades in
1919, the total bonus to be paid
the producers would be one-half of
§55,000,000, or $27,500,000; while
the total excise income would be
one-half of §65,000,000, or $32,
500,000, leaving a balance in favor
of income of §5,000,000. Inasmuch,
however, as there is considerable
foreign jewelry sold in the United
States, the excise income would be
swollen to the extent of that volume
of sales, so that the total excise
income would be large enough to
allow for considerable expansion
over the estimated production in
1919, and the Government would
not be called upon to pay the bonus
from funds other than those derived
from the excise on the use, manu
facture or sale of gold for other
than coinage or monetary purposes.
It has been stated by gold pro
ducers that a bonus of $10 per
ounce svould be no more than suf
ficient to insure the production of
gold to satisfy the anticipated trade
requirements under present econom
ic conditions.
2. Duration of Bonus and Excise.
—During the war, when the bonus
measure was being considered, the
minimum time for which the relief
should be granted was expressed
by the producers as being five years.
It is certain that a period of less
than five years would not be a sat
isfactory basis upon which to in
vest large sums of money in the
development of new ore reserves.
Hence it seems leasonable that five
years should be the time for which
the original bonus and excise shall
be in effect. It may well be stated
that on and after five years from
the date of passage the bonus and
excise will be adjusted in accord
ance with the rise and fall of com
modity prices as compared with the
average for the five-year period;
this readjustment of bonus and ex
cise to be made each year and until
such time as the bonus and excise
can be abandoned on account of the
restoration of the price level, which
will satisfactorily maintain the nor
ma! production of new gold to meet
all industrial requirements of the
arts and trades.
3. Agency of Bonus Payment.—
The treasury department probably
will be the best agency to be stipu
lated for the payment of the bonus
to the producer of newly mined
gold.
4. Manner of Bonus Payment.- —
Upon the presentation to the trea
sury department of a statement
from the United States mint veri
fying the number of ounces of newly
mined gold, and upon the presenta
tion of the statement from some
unbiased agency (such as United
States buYeau of mines), verifying
that the gold was actually produced
as the result of mining and milling
ore, smelting ore, or washing placer
gravel, payment of the bonus of
$10 per ounce shall be made to the
producer thereof. It is certain that
the point will be raised as to the
verification of production on the as
sumption that many producers will
attempt to pad their bullion by the
introduction of old gold, and it.
therefore, becomes necessary to
specify some independent agency to
serve as a check with reference to
the origin of the gold produced. A
severe penalty will have to be pro
vided for persons convicted of salt
ing newly produced gold with old
gold. This procedure will reduce
the possibility of fraud to the min
imum. and at the same time insure
justice to the producer.
5. Agency of Excise Collection.—
The internal revenue department
1 probably would be the best agency
to be stipulated in the bill for col
lection of the excise. The manner
1 •
; in which the excise will be collected
‘will have to be worked out in de
|tail. Probably a die stamped by
the collector upon the jewelry, after
the excise has been paid, would be
'a sufficient safeguard. A penalty
; will have to be provided for persons
who do not conform to the excise
i
provisions of the law.
Change* Suggested.
Following is Mr. McDonald’s let
ter to Secretary Callbreath:
You will observe that mv con
jtention in regard to a gold bonus
ihas been from the star: simply this
and nothing more: If the Govern
ment of the United States found
itself in the position that it coulc
not get along with he decreased pro
ducion it must take some steps tc
increase hat production, and th;
logical inference was that this must
be the payment of a margin over
the cost of production. Being neith
I ...
er versed in the methods of higu
finance nor a lawyer, I left. I be
lieve wisely, the working out of the
scheme for the payment of this mar
gin, or bonus, to those better quali
fied. Now that this scheme has been
so well planned by Mr. H. N. Law
I rie, however, I would like to sug
gest, from the standpoint of a lay
iman, some of the details whereby,
! possibly, his plan rnighe be rounded
out.
|
j In Mr. Lawrie’s plan, in Section
■1 (page 388), the amount of bonus
[and excise suggested appears to
lhave been accurately figured out for
ithc current year, and it may be
jthat “a bonus of $10 per ounce
[will be no more than sufficient to
| insure the production of gold to
I satisfy trade requirements under
| present economic conditions."
In Section 2, however, it is stated
tht “it seems reasonable that five
years should be the time period for
which the original bonus nd excise
shall be in effect,” this based on
the hypothesis that “a period of
less than five years would not be a
satisfactory basis upon which to in
vest large sums of money in the de
velopment of new ore reserves.”
It appears to me that the length
of the period suggested may act as
a deterrent on some members of
Coftgress who may fear that the
Government would have paid, say
in the last two of the five years
suggested, a bonus on a lot of gold
it could not disprse of to the trades.
In the first year the output is esti
mated at $55,000,000 and the trade
consumption at $65,000,000; so the
Government, provided it got the en
tire output, would be in position to
sell $10,000,000 at a fifty percent
profit, this ten million being taken
from the treasury store of bullion.
Also the profit derived by the excise
on importations is taken into ac
count, this probably boosting- the
Government’s profit to 87,000,000
for the first year. In the second
year, however, the bonus would
have so stimulated the output that
the output would be at least as
great as the trade consumption. The
third year, I believe it may reason
ably be assumed, the gold produc
tion would be as great as ever,
probably more than one hundred
millions, while there is no assur
ance that the trade consumption
, would have quite kept up to that
mark. The Government would then
have on hand a surplus of gold for
! which it had paid the bonus and
! no place to sell it without sustain
ing a loss. This condition is, of
course, contemplated in Mr. Law
rie’s plan, for, he states, “the bonus
and excise will be adjusted in ac
cordance with the rise and fall in
I commodity prices as compared with
jthe average for the five-year peri
jod.” I feel impelled to suggest that
jthe period be placed at three in
jstead of five years, thereby fore
stalling, as far as possible, the ac
j cumulation of “commodity” gold by
!the Government.
The plan I would suggest for the
|payment of the bonus is this: T>
keep the expense of administration
| of the plan at a minimum some one
! of the local Government officials
{should be designated as a gold col
lector. The producer would come
to him with his dust or bullion and
in exchnge he would get a receipt.
This would undoubtedly be negotia
ble as security for a sum but little
less than its face value The gold
would then be shipped to the mint
by the gold collector, and there as
sayed. From the mint would go a
certificate to the treasury and a
warrant would be drawn in favor
of the producer. If the latter was
in any especial hurry for his money
he could have it telegraphed to him,
through a United States depositary,
provided he were willing to- assume
this expense. The gold collector
would have no trouble in determin
ing that the placer dust presented
was not salted, the insistence being
made that it He in the form of raw
dust. In the case of bullion from
a mill there would be more trouble
Continued on Page Three)
WANT ADS
TWO TEXTS FOR SALE—One lOx
12, and one 12x14. Inquire News.
THE DWYER HOME FOR SALE.
Terms reasonable. tf
TWO GOOD DOGS for sale. Inquire
for S. E. Gardner, at Cooneys.
WELL-FURNISHED two-room cabin,
with good water and large cache,
for sale cheap. Inquire News
office. tf
WANTED—Position by woman as
cook in camp. Inquire at News
office.
WANTED TO BUY—Two or three
good dogs. Must be cheap. In
quire at Terminal.
FOUND—Runch of keys. Inquire
at Central Cafe.
FOR RENT—Suite of three rooms,
suitable for light housekeeping,
with heat and light and hot and
cold water in connection. Also
office rooms, at The Arctic.
FOR SALE—Two-room house, part
ly furnished, with lot. Desirable
locality. Inquire News office. tf
FOR RENT—Cascade laundry. Fully
equipped and with established in
come. No cash required. Inquire
at Arctic.
NOTICE OF MARSHAL’S SALE.
United States of America, Fourth
Division of Alaska, ss:
Public notice is hereby given, that
by virtue of a writ of Fieri Facias
(or execution), dated February 9th,
A. D. 1920, issued out of the Dis
trict Court of the United States for
the Fourth Division of Alaska, on a
judgment rendered in said Court,
on the 31st day of January, A. D.
1920, in favor of W. H. Gilcher and
against Nenana Labor Union (an un
incorporated society et al. I, I have,
on this 20th day of February, A. D.
1920. levied upon the following de
scribed real estate, situated in the
Nenana Mining and Recording Dis
trict, Fourth Division, Territory of
Alaska, to-wit:
All the right, title and interest of
the above named defendant, Nenana
Labor Union (an unincorporated so
ciety) in and to the following de
scribed real estate, to-wit: All of Lot
No. 4, Block No. 2, and the south fif
teen feet of Lot No. 3, Block No. 2,
land two story-frame building thereon,
jin the Townsite of Nenana, Alaska,
jand that I will, accordingly, offer
said real estate for sale, at public
vendue to the highest and best bid
der, for cash, on the 26th day of
March, A. D. 1920, at two o’clock
P. M., at the front door of the
Marshal’s Office in Nenana, Alaska.
Dated, Nenana, Alaska, February
20th, A. D. 1920.
L. T. ERWIN,
U. S. Marshal, Fourth Division of
Alaska.
By JAMES HAGAN,
JOHN A. CLARK, Deputy.
Plaintiff’s Attorney.
Date of first publication, Febru
ary 21, 1920.
Date of last publication, March
20, 1920.
j Day of publication, Saturday.
Henana. the •ateway to KcXinley
Vatlonal Park.
GARDEN and FLOWER
JUST ARRIVED OVER TRAIL
>ATi
FOWLER & MORRIS
| We Strive to Please
I EVERYTHING THE BEST !
|-----!
| Tavern Cafe and Bakery |
WM. RODIGKEIT
Proprietor
A Thoroughly Modern Hotel
t
The Southern
Tom Smith, Prop.
NENANA HOUSE
Large Barn-In Connection-Dog Kennels
MRS. A. B. EAS TERL.Y, Proprietress.
Dr. J. R. BOWEN
DENTIST
Price* Mott Reasonable
THE BOWEN BUILDING
NENANA LODGE No. 1193
L. 0. 0. M.
MEETS AT MOOSE HALL
Fourth and B Streets
Second and Fourth Mondays
At 8:00 P. M.
ALEX FOWLER M. V. TYLER,
Secretary Dictator.
I .!---- ;
Department of the Interior
Alaskan Engineering Commission
NOTICE
Passengers are required to pur
chase tickets before entering trains.
Tickets can be purchased from •
the station agent, whose office is in
the employment office, on the ground )
floor of the General Office Building,
Alaskan Engineering Commission, or
at Camp 415 (North Xenana).
Tickets will be on sale at ;.ny
time during office hours, and can be
purchased in sufficient time before
the departure of the trains.
Regular trains for the south leave
the foot of A street on Wednesdays
and Saturdays at 8 a. m., and from
Camp 415 (North Xenana), for
Fairbanks, Tuesdays and Fridays, at
1 p. m.
The following is the schedule be
tween North Xenana and Fairbanks,
I subject to change without notice:
Leave Fairbanks at 7:00 a. m.;
arrive North Xenana, 11:30 a. m
Leave North Xenana 1:00 p. m ;
| arrive Fairbanks, 5:30 p. m.
' No tickets will be sold crossing
i the river. Those intending to trav
|el to Fairbanks must make their
jown arrangements for reaching
I North Xenana.
%
Trappers and Traders of Alaska
SELL YOUR FURS TO A HOME INDUSTRY. WE GUARANTEE
YOU HIGHER PRICES THAN OUTSIDE
CONCERNS WILL PAY.
During the last season we conducted an advertising campaign
throughout the North and are prepared to send you the names of
people in all sections of Alaska and the Yukon who will verify our
statements.
Our excellent Eastern connections, and the tremendous amount
of mail order business we are receiving from all parts of the
I States for furs made to order enables us to turn our stock quickly
at a reasonable profit, but we must have fur, for which we guar
antee top prices.
: Make us a trial shipment. If our price does not suit you, the
goods will be returned charges prepaid.
WE MAKE FURS TO ORDER
at more reasonable rates than can be obtained Outside. At present
we are working three operators, and need others. If you are an
operator and finisher, and want a good year-around job, com
municate with us. !
CHAS. GOLDSTEIN & CO.
JUNEAU, ALASKA
*