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Show THE RICH COUNTY REAPER. RANDOLPH. UTAH Frock Well Named Love of a Dress O' PATTERN 2170 and they. In turn, will Issue federal reserve notes against the gold certificates, to redeem the national bank notes. The Treasury department estimates that It will take about a year for the government to acquire all the outstanding national bank notes. These, of course, will simply disappear entire--1 ly from the national ledger. e Public Debt to Be Reduced $675,000,000 in Move by AccordingwilltonotUndersecretary In any way change this the government's policy toward gold or Treasury That Is Unprecedented in Annals gold certificates, but would merely inof Federal Financing. crease the number of such certificates, held by federal reserve banks." Thej total outstanding amount of currency, of federal bonds which they had al- will not By WILLIAM C. UTLEY be altered at all. Federal reSAM has reached into ready bought, and which were desig- serve notes will simply take the place1 for the first time to nated as having the circulation privi- of the national bank notes. The counIn any large way, the lege. The comptroller then Issued to try will be freed of all the bank national bank notes up to the money. . gold profit" resulting from the faildevaluation of the dollar. By August par value of the bonds. In case of The only real inflationary aspect of ure of the bank the government would 1 the government will have retired two thd movement has been largely redeem the notes out of the bonds defedissues of 2 per cent by Morgenthau and Coolidge. eral bonds, reducing the now stagger- posited by the bank. The issuing of This aspect Is the power of the federal the notes was, in effect, circulation of reserve banks to issue more federal ing public debt by almost $675,000,000 federal bonds. reserve notes, using the gold certifiand easing the carrying charge of the was for a This the business profitable a national debt by $13,500,000 year. cates as a base, than- is necessary to In effecting the move, the Treasury banks, for in addition, to the interest retire the national bank notes. Federal earned on national bank notes reserve notes need only a 40 per cent department will cause the withdrawal they out or invested, they also reloaned iscircufrom notes bank national of all gold base; therefore they may be on the bonds deposited sued in amount two and a half times ceived interest lation, further concentrating control of the currency under the federal that of the gold represented by the ment The act, which is hailed as the gold certificates. In this case the fedmost important financial one of Frankeral reserve banks technically could IsIs and $1,687,500,000 sue administration lin D. Roosevelts approximately Notably certificates. the without precedent in the annals of fedgold against eral financing, is In no way inflationsharing this view was Senator Elmer Thomas (Dem.), of Oklahoma, one of ary, according to leading bankers, as well as Henry W. Morgenthau, secrethe most ardent advocates of inflation ; he has advocated all along the issutary of the treasury, and Thomas Jefwho ferson Coolidge, ance of currency against certificates made the announcement It does, howwhich do not bear Interest r The financial world was Inclined to ever, create some potential opportunity for inflation. minimize the possibilities of actual inof the gold About $2,000,000,000 flation. It took the stand that no inIn the to remain will continue flation will take place because one profits stabilization fund. The fund so far angle of the operation will offset the has been called upon for the larger other. part only for support of the dollar on Using the gold to retire the bonds, the government will be, increasing the exchange markets. reserves of the national banks. This Keeping such a profit on ice was looked upon as a waste of resources by in itself would be inflationary, for it the treasury. The department found would expand the credit base. But the that it could put some of these resame banks that receive these additionsources to work, and at the same" time al funds will have to put up cash for concentrate federal control of the curthe retirement of the nation! bank notes , which they had Issued against rency, which has been one of the obthe bonds deposited with the treasury. jectives of the banking bill before conThis will mean a loss of reserves for gress, by retiring bonds which carry the circulation privilege." These are the banks, effecting an actual balance bonds which the national banks depos- Henry Morgenthau, Jr., Secretary of and leaving them with no more rethe Trea8ury.: it as collateral when they issue naserve than they had before. tional bank notes. Standing in the way . as an obstacle in with the the Treasury department; The government will, as opportunity to retirement of national bank notes in case of the bonds now to be retired, offers, substitute federal reserve , notes years has been the fact that the past for national bank notes, of which there the interest was 2 per cent banks made an extra 2 per cent profit Until July 22, 1932, the only bonds are $657,937,080, outstanding. This will using the notes, for they received inleave only three kinds of currency in with the circulation privilege were terest on the bonds deposited in adcirculation silver certificates, United those about to be retired August 1. On dition to the Interest earned by the States notes and Federal Reserve that date a provision of the Federal money in loan or Investment There is Home Loan Bank act allowed other notes. but little protest expected against the bonds, totaling approximately action at the present time, however, Relic of Civil War Finance. the circulation privilege until much more The national bank note 4s a relic of July 22, 1935. Quoting directly from becauseon the banks have can hand funds than profitably they the financing of the Civil war. Before the report. of the treasury: the or lend last two Invest During 1863. virtually all banks were issuing Retires the Bonds. been retiring have years actually they be"circulating notes, whose value, At that time the banks with circu- their circulation rapidly of their own cause no law made all currency Internotes outstanding under this accord. The two largest banks in the lating changeable at par, as it is now, varied Chase National and the in inverse ratio to the geographical temporary, authorization will have to country, the now serving as se- National City, both of New York, had the bonds, replace distance of the notes from the banks no bank notes outstanding at all at the which issued them. A note Issued by curity, with lawful money to retire close of 1934. secured. notes their thus outstanding a bank in Springfield, 111., was good for follows then, that retiring national It Stimulate Bond Market its face value in Springfield, where bank notes In reality, retiring the is, was It thought that the retirement everybody and his brother, knew the of the bonds might stimulate the govbank. But in Cleveland, Ohio, it was bonds which secure them. A little over a year ago the federal ernment bond market worth less, and in Trenton, N. J still by creating a dedecided to revalue the mand for new Issues of the national government less... With the need for more money press- dollar. Under the Gold Reserve act of banks to replace the retired bonds. January 31, 1934, the Treasury depart- About the only direct harm that could ing during Civil war time, the government issued a new kind of currency ment acquired all the gold in the Unit- come from the move was thought to be called United States notes, which their ed States. This metal was then val- a misunderstanding of the procedure both home and abroad. Especially forcolor soon earned the name green- ued at $20.67 an ounce. The governbacks. In addition, to the banks ment revalued it at $35 an ounce. Thus, eign markets might jump to the conwhich purchased war bonds, it granted there was still the same amount of clusion that this was inflation. Ac- the privilege of Issuing another form gold in the country; but there were of currency, national bank notes. more dollars for a given amount of PROLIFIC SOW Worcestershire; England, claims to have the worlds greatest porcine mother in a sow which, it is claimed, produced 385 youngsters in 11 years, 65 being born in three litters in one year. Will Use Gold Profit" to Retire Bond Issues Weeks Supply of Postum Free Cool-Idg- UNCLE bond-secure- Read the offer made by the Postum Company in another part of this paper. They will send a full weeks supply of health giving Postum free t Adv. anyone who writes for it Not in His Quiver Cupid has absolutely no intellectual equipment d pooh-pooh- ed long-standin- The g . . . it ENDS bowel worries - for many people This is a test that tells you whether the system needs a cathartic change. If you have constant sluggish spells or Bilious attacks, and laxatives seem to make things worse, it would be wise to try this: Stop all use of any laxative that does not encourage variation from a fixed dose (which may be entirely too large a dose for your individual need). Use instead, a liquid laxative that you can measure and regulate as to dose. As necessary to repeat, take smaller doses, less and less often, until the bowels are moving without any help at fill. Doctors use liquid laxatives, and a properly prepared liquid laxative, containing natural laxative agents like senna and cascara is a joy and a comfort; a real help in establishing regularity. Ask your doctor about this I (Doctors use liquid laxatives.) You can get Dr. Caldwells Syrup Pepsin, which is a most dependable liquid laxative, at any drug store. under-secretar- . Here you are the soft, wearable, french-lookin- g afternoon Which fashionable women dress tor are search- ing exclusive shops. Yours for only a few yards of material and a few honrs of enjoyable time. The de sign Is perfect combining a slick yoke and trim skirt with the softness of gathered bodice and flowing sleeves, which may button below the elbow or be cut short Dedcate colorings or subdued prints fit into the mood of the dress, but if youre a striking type you may select vivid tones. Any soft silk crepe or triple sheer material will adapt Itself to the design. Pattern 2170 Is available in sizes 12, 14, 10, 18, 20, 30, 32, 34, 36, 38. 40 and 42. Size 16 takes 3 yards 89 Inch fabric. Illustrated p sewing Instructions Included. Send FIFTEEN CENTS (15c) in coins or stamps (coins preferred) for step-by-ste- this pattern. Write plainly name, address and style number. BE SURE TO STATE SIZE. Address orders to Sewing Circle Pattern Department, 243 West Sev- enteenth street. New York City. TELLING "Do you believe in fortune telling? "No, answered Miss Cayenne. "I Inherited a fortune sufficiently large to make me dislike to tell it so that the tax collector might hear it. Cut It Down "Whats this big item on your expense account? "Oh, thats my hotel bill." "Well, dont buy any more hotels." Vancouver Province. . Of Courts Dub Im going to marry a gill who can take a joke. Kay Dont worry; thats the on!y kind of a girl you will get ', liquid test A SYRUP PEPSIN Succinct Teacher Name three articles containing starch. Pupil A shirt and two collars. $150,-000,00- 0, YOUR NEIGHBORS WILL ENVY Dont take a back seat when it comes to grow- ing flowers. Plant Ferry s Purebred Flower . Seeds and your garden ... gold. will be the envy of everyone in your neighborhood, They are pure- -, In process of revaluing gold and in that way revaluing the dollar at 59.60 cents in gold the nation real- ized a technical profit of $2,812,000,000. Two billion dollars was placed in the stabilization fund, and out of (he remainder congress appropriated to the Federal Reserve banks for loans to Industry ; of this total, has been used for the purpose. An indefinite sum was appropriated by congress for the melting of gold coins estimated at $8,000,000, and another $23,000,000 was appropriated for the Philippine currency fund, leaving This will be used to retire some of the national debt The difference between the $642,000,000 and the $675,000,000 necessary to retire the bonds will be made up out of a special treasury fund, it is believed. The bonds which will be retired in the move are the 2 per cent consols "consolidated refunding bonds of 1930, which have been called for redemption July 1, and the 2 per cent Panama Canal loan bonds of and which have been called for redemption August L The former Issue totals $599,724,050 and the latter $74,901,580. Even the retirement of this sizeable total 'represents only a small fraction of the public debt which, stood at $28,554,642,325, in as compared with $26,052,598,596 a year earlier. bred seeds the off- spring of generations of perfect plants. $139,-000,0- $13,-500,0- $642,-000.00- I lqi .) !:ithi 0. pit IK a M 71 n cu : iKi! DYCMB I ) WG..o anywhere on the body also burning irritated . and helped by. Thomas Jefferson Coolidge, Undersecretary of the Treasury.; There are still some of the greencordingly, the government was read backs in circulation today, and nathe day after the move was announced tional bank notes now make up about to guard the dollar on all markets with 10 per cent of our currency, the additional gold profits in the staThe latter step had the double adbilization fund. vantage of selling more war bonds and The governments plan was an indiunifying the currency. It may easily on the part confidence of real cation be seen that unifying the currency, to handle of the Treasury department making bank notes the same value in bond accordthe future, financing the was nation, throughout actually a O. M. W. Sprague, former Dr. to ing vital step in unification of the country executive assistant to the secretary of Itself, at a time when the Union was the treasury.' I bad supposed the gold ' Based on Gold Profit" in vital need of hanging together. Before issuing national bank notes, The treasury will retire the bonds by profit would be held for government banks had to deliver to the comptroller issuing gold certificates, based on the bonds In case they were weak, h of the currency collateral in the form gold profit, to federal reserve banks. said. , Westers Newspaper Union. skin-so- othed Resinol 1916-193- 6 1918-193- 8, mid-Marc- h, - . WNU W 13-- 85 ARE YOU RUNDOWN? Ufcs. L. 521 Post U. Forbuah of Lalos St, Salt Utah, City, aayi : I had no strength at all, was so weak I could hardly move and had frequent fainting Kells. I used Dr. Pierces Golden Medical Discovery and it rid me of the trots ble. All druggists. New size, tablets 50 eta., liquid $L00. or liquid, 41.35. tabs, size, Large Write Dr. Pierces CUnic, Buffalo N. Y-- for fas medical advice. . |