The Omaha guide., 1933-11-25
ECONOMIC IGHLIGHT

Happenings That Affect the Din
ner Pals, Dividend Checks and Tax Bills
Of Every Individual. National and Inter
national Problems Inseparable From Lo-
cal Welfare.
Strangely enough, there's no eco
nomic subject the average citizen knows
less about than money. He uses it daily,
but the tokens with which he barters.
aren't really money at all. Their only
value lies in the credit Of the government
issuing them. Real money is seldom seen
1t is gold and is jealousy boarded by
t~raSuries.
AS a result, the average citizen was
pretty we'll puzzled when the u. S. Gov
eminent announced that it had started a
world gold buying campaign in an effort
to raise commodity prices. He couldn't
see the connection. AS a matter of fact,
the connection is simple enough if Simply
explained it's very much like an auct-
ion. The more people you get to bid for
an object, the more valuable it becomes.
That's true Of gold. When the United
States went into the market there was
another important bidder for the yellow
metal, and it's price rose accordingly. At
the same time, the value of the dollar,
which has a definite gold backing, declin-
ed, and commodity went up. Briefly de-
scribd, the dollar has been ~cheapened.
and it is worth less wheat, clothing or
gasoline than it was a while ago.
At the moment, the worlds free gold
supply, if melted down, would amount to
a tenfoot cube, worth about 100000 900.
Since 1892, when Columbus discovered
the new world, all the gold mined would
amount to only a 4O-foot cube and over
half OF that has VANISHED, either through
being sunk In ships, made into ieWelrv.
or boarded.
Most important foe of the U. S. gold
policy is the British Empire. London is
the worlds largest gold market, and any
buying campaign will naturally center
there. Dollars are exchanged for pounds.
IN order to buy in the English market.
thus increasing the international supply
OF American currency and increasing
the demand for English currency. 4
more expensive pound must follow. dis
couraging Britain's foreign trade. Mat
tiers are at a deadlock. It's going to bp a
monetary battle Of the giants, with the
TWO greatest financial powers of the
world opposed.
Criticism of Administration policies
when was practically nonresident q few
months ago, has been gradually appear
ing, becoming more widespread. There
IS a definite feeling Of
mostly on the part Of large scale bust
ness men. Their theme o is "Indiyid-
uallsm, Where art Thou?n and the villain
IN the piece is the fact that the govern
-ment is steadily assuming more strino-
n control over all phases Of business.
showing no signs that it will relax this
policy. '
These business men cheered the re-
coVery plan recently presented bv Ger
ara SWope, General Electric's able. far
sighted president. Briefly stated. the
SWope Elan proposes the setting I'D of an
organization very similar to the N. R. A.
with this essential difference - control
would be IN the hands Of boards Of bust
ness men instead Of government Off
Gals. Not pleased by it at all were labor
leaders who doubted that the boards of
Dig corporation executives would pro-
tect workers.
Prohibition repeal means the end Of
a number OF the socalled nuisance" tax
es. Ihese are: The 5 per cent tax paid bv
stockholders on dividends received: the
one tenth of n per tax paid by corpra-
lions on income in excess of 1918 per
cent of declared value of capital stock.
n ~ cent federal gas tax will be re-
duced to l cent. It's likely that other tax
such as that on bank checks will 60.