THE NENANA DAILY NEWS
Application made April 1, 1918, at the postoffice at Nenana, Alaska,
for eniry 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. SOUTHWORTH ARTHUR G. BEI/L
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BEFORE SIX.
MEMBER OF THE ASSOCIATED PRESS
The Associated Press is exclusively entitled to the use for re-publi
ration of all news dispatches credited to it or not otherwise credited in
this paper and also all the local news published herein.
THE FLUCTUATING DOLLAR.
(The World’s Work.)
About a hundred and fifty years
ago, at the time the American col
onies were starting' their armed pro
test against taxation without repre
sentation, Adam Smith, the father
of modern economists, in his
"Wealth of Nations," wrote: “Gold
and silver, like every other com
modity, vary in their value, are
sometimes cheaper and sometimes
dearer, sometimes of easier and
sometimes of more difficult pur
chase. The quantity of labor which
any particular quantity of them
can purchase or command, or the j
quantity of other goods which it
will exchange for, depends always
upon the fertility or barrenness of
the mines which happen to be known
about the time when such exchanges
are made. The discovery of the
abundant mines of America re- j
duccd, in the sixteenth century, the
value of gold and silver in Europe
to about a third of what it had
been before. As it cost less labor
to bring those metals from the
mine to the market, so when they I
are brought thither they could pur
chase or command less labor; and •
this revolution in their value, j
though perhaps the greatest, is by i
no means the only one of which [
history gives some account.
The widow with four children, J
whose husband left her $30,000 of j
Pennsylvania railroad stock, is today
aware of a revolution in the value j
of her income which equals that I
of the sixteenth century about which j
Adam Smith wrote. The $l,H00j
that she gets in dividends will buy |
only half as much of the neccssi- j
ties of life as it would before the |
war. This is the situation in which '
everyone who saved money and in
vested it before the wrar now finds!
himself. But this latest revolution
in the purchasing power of money!
has not been due to an increase in
the gold supply. The war’s insatia
ble demand-'for supplies and the in
crease in the purchasing media due
to currency and credit inflation
throughout the world account for it.
It came, however, right at the end
of a period of increased gold pro
duction, and its 100 percent addi
tion to prices is harder to bear be
cause it followed a f«0 percent ad
vance since 1890 that can possibly
he traced to increased gold produc
tion.
Since Adam Smith's time there
have been five major movements in
thepurchasing power of gold, or in
the price of commodities, as we
more frequently consider it. For
twenty years preceding 1809 there
was %n upward movement of prices j
which wras entirely wiped out by \
the decline in the succeeding forty
years following the Napoleonic wars.
Then began the upward movement,
coincident with the discovery of
gold in California. This movement
culminated after the sharp Civil war
advances in this country. Then
from the early seventies to 1896
there was a gradual downward
movement which resulted in the '
free silver agitation of that time, i
After 1896, gold production began 1
to increase rapidly, due to the com- !
mercia) application of the cyanide;
process for its extraction and to
the discovery of Hold in South Af
rica, Colorado, and Alaska. This j
was the latest period of advancing!
prices, the one with which the pres
ent generation has had the most
experience. It seems to have cul
minated in the revolution of prices
due to the war.
Since ID15 gold production thru
out the world has fallen off. This
would seem to hold out hope that
a period of declining prices is in
order, now that the potent influ
ence of the war is removed. In
1915 the world’s gold production
was $470,329,527; in 1918 it was
only $384,576,700. The cost of
mining is now so high that many
mines cannot be operated at a profit.
As the yellow metal brings only a
fixed price at the mint, there is no
way to pass the increased cost of
its production on to the consumer.
Thus does the decrease in the pur
chasing power of gold tend to cor
rect itself by restricting production.
And the increased use of gold in
the art at the time of high prices,
which is usually a period of ex
travagance, also helps to bring
prices back to normal. For as long
as gold can be purchased at the
mint at the fixed price and con
verted into jewelry there will be a
demand for it at such times that
will reduce the supply of money
gold, and ultimately affect prices.
Professor Irving Fisher, of Yale,
has for many years advocated a
plan for stabilizing prices based
upon the accentuation of these two
influences, by indirectly regulating
the production of gold and by stim
ulating the flow of it into the arts.
A resolution was recently intro
duced in Congress providing for the
appointment of a committee to con
sider this and other plans for sta
bilizing the purchasing power of the I
dollar. Professor Fisher’s plan pro
vide.-, for increasing or decreasing
the weight of the gold dollar is
commodity prices increase or de
crease. If the index figure for
commodity prices advances 1 per
cent, the theoretical weight of the
gold dollar would be increased t
percent. The miner would then
have to bring t percent more gold
to the mint to get the same amount)
of gold certificates as formerly;
and the manufacturing jeweler
would get 1 percent more gold in
exchange for his certificates. There
would he a small difference between
the buying and selling prices to
prevent speculation in gold. In oth
er words, under this plan the price
variation would take place in the
dollar, and, according to the theory,
its purchasing power would remain
practically the same. While this
plan would likely offset the gradual
price changes that are due to the
fluctuations in the production of
gold, economists are not agreed as i
to its effectiveness in meeting such- -
changes as have taken place in the
past few years due to the war. It 1
depends for its effectiveness on tho i
free redemption of gold certificates
and probably no government would I
Nave adhered to such a policy during ;
the war. If the plan had been
adopted in this country in 1913, for
j example, and due to Che price
changes caused by the war the gold
dollar now contained twice as much
metal as it does, then the jeweler
could pet twice as much in exchange
for his gold certificates. Long be
fore this, however, there would like
ly have been such a reduction in the
supply of money gold at the mint
that the plan would have been aban
doned, in order not to interfere with
the financing of the war. In such
times gold has an added value for
governments as reserve to support
expanding paper currencies and
credits.
And to put such a plan in effect
now, with a view to stabilizing
prices at their present level, would
work an injustice to investors, for
it would continue the unsatisfactory
situation that now bears so heavily
on them. The purchasing power of
the widow’s income would continue
only half what it was before the
war. It might protect us against
| further advances, but the record of
the past does not seem to indicate
that we need such protection. In
fact, the evidence points the other
way. And if some scheme to sta
bilize the purchasing power of tho
dollar is to be tried it will be
fairer to those who have saved mon
ey and invested it to wait for prices
to swing back to more nearly nor
mal before it is put into effect.
There can be no question about
the value of an effective scheme of j
this character. It would give a j
stable basis for all contracts where j
the element of time enters in, and
where the gradual changes in price
levels have in the pust brought un
foreseen hardship to one side or j
the other. In a period of advancing •
prices the creditor is the one who j
suffers, for the debtor can pay him |
in money that has declined in j
value, or purchasing power. In a j
period of declining prices it is the ,
debtor who suffers, for he must j
pay in money that is worth more j
than it was when he agreed to make
the payment. But it is not likely
that any plan to correct this will
be adopted unless the demand for j
it becomes more general than it
now' is.
From the investor’s standpoint, if
we are entering a period of declin
ing prices—-which would seem to be
the case unless new, rich gold tields
are discovered, or war-time cur
rency and credit inflation grows !
greater—now is the time of oppor
tunity for investment in lixed in
come-bearing securities and those
which will be paid off at a time
when the dollar is likely to be
worth more than it is today. Not
since the years following the Civil
war have conditions looked so fa
vorable for those who will save
money and invest it in this class of
security. The most favorable op
portunity for making the permanent
investment designed to bear fruit
during a downward trend of prices
may come a little later (it some
times follows after the change in
the commodity price trend), but
according to the general outlook ;
there will not he as good a time as
this to save money again in a gen
eration.
JAPS PUT BAN ON
COTTON SHIPMENT
TOKIO.—'The Japanese govern
ment has decided to prohibit the
exportation of cotton yarns and
cotton tissues in order to cheek the
advance of prices. Owing to the
shortage of supply against the ever
increasing demand, the price of raw
cotton has gone up 197 percent.
It is alleged that this is in part
due also to speculative dealings of
cotton yam brokers, who have taken
full advantage of the buoyant mar
ket and the fast falling supply to
deal in futures.
The government has decided also
to exempt from customs duty cotton
yam and cotton tissues imported
WANT ADS
WANTED — Woman for laundry
work; one experienced at mangle
work preferred. Nenana Steam
Laundry.
. FOR RENT—Suite of three room?,
I suitable for light housekeeping,
with heat and light and hot and
cold water in connection. Also
\ office rooms, at The Arctic.
I„j__
'FOR SALE — Furnished two-room
I
i cabin. Assessments all paid. Phone
j Kcdlum’s. tf
FOR SALE — Large second-hand
I |
heater, good as new. Cheap. In- ]
quire News office. k22 |
FOR SALE—Two-room house, part-|
ly furnished, with lot. Desirable ;
locality. Inquire News office. tf j
■FOR RENT—Cascade laundry. Fully I
equipped and with established in -,
come. No cash* required. Inquire
at Arctic.
WANTED—Position as cook, town :
or camp, or hour work of any
l kind in private homes, cooking,
[ housework, or taking care of chil
dren. Inquire at the Arctic.
ll.OST—Pair of glasses in black case.
Reward for return to News office.
___ _
from abroad. Several large spin
ners in Osaka and elsewhere have
ordered cotton yarns from the Unit- j
ed States and China and many Jap- <
anese cotton mills will augment |
their manufacturing capacity with ;
spindles and other machines import- !
ed from the United States.
I
ARIZONA MINE FI j
IS 10 BE DUG OUT!
JEROME, Am.—The fire which!
for more than twenty years has
burned in the upper levels of the j
United Verde copper mine here is j
about to be eliminated by a drastic j
process of lowering the entire sur- I
face of the property to a 400-foot j
level. All attempts to extinguish j
it have failed.
It is the general opinion that the
fire was started by a slip in the j
rock producing sufficient friction
heat to ignite the ores ri£h in sul
phur. It has burned its way thru
veins of copper, gold, and sulphur, i
The process of suppressing the i
fire involves the removal of 14,000,-1
000 cubic yards of material. The j
area to be evacuated is roughly es
timated at 400 by 800 feet. Mon
ster steam shovels are to be em-1
ployed in the work.
It is expected that, the task of
removing the entire top of the mine,
and to extinguish the fire, will oc
cupy several years.
Nenana—The Gateway to McKinley
national Park.
Dr. J. R. 80WEN
I
DENTIST
Prices Mott Reasonable
THE BOWEN BUILDING
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Printing
Of Quality
The Nenana News i
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FRESH STOCK
Groceries, Clothing and Footwear
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All Necessities for Trail and Camp
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FOWLER & MORRIS
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EVERYTHING THE BEST
Tavern Cafe and Bakery
WM. RODICKE1T
Propria tor
-4 Thoroughly Modern Hotel
NENANA HOUSE
Just Come in and Sit Down and Look Out.
MRS. A. B. EASTERLY, Prop riot res*.
DR. R. R. MYERS
DENTIST
ARCTIC HOTEL
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.
Department of tho Interior
Alaakan Engineering Commimioa
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 4X5 (North Nenana).
Tickets will be on sale at any
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 ou Wednesdays
i and Saturdays at it a. m., and from
Camp 416 (North Nenana), for
Fairbanks, Tuesdays and Fridays, at
1 p. m.
The following is the schedule be
tween North Nenana and Fairbanks,
subject to change without notice:
Leave Fairbanks at 7:00 a. m.:
| arrive North Nenana, 11:30 a. ra.
I Leave North Nenana 1:00 p. ra.;
j arrive Fairbanks, 5:30 p. m.
No tickets will be sold crossing
the river. Those intending to trav
el to Fairbanks must make their
• own arrangements for reaching
I North 'Nenana.
1
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
States for furs made to order enables us to turn our stock quickly
at a reasonable profit, but we must have fur, for whioh 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