THE KUSKO TIMES
G. V. Rosandor, Publisher, Owner,
nr.d tor.
13. J. Boyd, AssT'nnt Editor.
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Tatcysd «s ses-'rid-ch»s matter
A gnat 2Cf>h, 2923, at the postoffie*
a Tr-kctna, Alaska, u*4er the Aet
oi March 3rd, 1ST9.
Takotna, Alaska, Dec. 22, 1934..
THE DOLL.Ml’S WORTH
faking a dollar, out of yaur pocket,
it a yours.—you can do- anything
y. a like with it. But you can't buy
a dfcuur's worth of conn, jdi ies or
S-. rv ices.
iht reason for that is that about
2b per cent of your dollar has to
go to the government.. If you use
it to buy iheartre- rickets, gasoline,,
ci.arets, electricity, clothing, or. any
th.ng else, 25 per cent of the cost
01. the average will represent taxes.
I he main reason we have allowed
the tax problem to glow so- grave
ii. this country is that millions of
pi .pie haven’t realized that -such a
problem exists! Their incomes are
biiow the level touched by the in
come $ax. •'They, refit homes. They
do not own aifausiness, but work for
someone else,, have larger- incomes,
and possess, property, pay. all the
taxes.
There aren’t enough large income
people in the country to make.' a
dent in meeting the cost of govern
ment. The great bulk of taxes r
token from' the * ordinary perSorv^
and it is taken indirectly. Instead
of writing the tax collector a check,
most of our citizens pay their taxes
unknowningly during the course of.
daily living. ' Rent is higher than it
would be, because the landlord must
pay taxes. Salaries are smaller,
because the employer is heavily tax*
ed. Food is more costly because
the farmer, .the processor, the trans
porter and the final seller are all
taxed. So it goes, through every-1
thing we need and use.
Don’t be- fooled. Everyone pays
taxes—every one is in danger of be
ing forced to- pay more. A reduc
tion in taxation, through less tax
spending is essential—Tacoma. Pro
gress.
AN RFC LESSON
The letter of the Chairman of tre
RFC, urging or-' more liberal lending
policy toward industrial borrowers,
“even though the applicant has been
operating at a loss during the past
few yetys,” appeared on the same
day as the announcement that the
RFC was suing to recover what it
can of the $60,000,000' unpaid bal
ance on a very liberal loan, indeed,
that it made in 1332.
The RFC’s loan to ther‘ Central
Republic Trust Companp of Chicago
—the “Dawes • bank—amounted to
$90,000,000. The very size of it was
enough to indicate its essential un
soundness. That total deposits of the
Dawes bank were then only $95,000,
000, and an additional $5,000,000
loan was made by a group of Chi
cago banks. A bank that is compell
ed toVborrow. the entire amount of
itb deposits in-order to meet a run
db o me thing.. more . than merely
‘illiquid.”
The extraordinary nature of the
< an from a business point, of view
us recognized by those who made
it was tele, however, that if the
,un.. had been allowed to close its
ioorse ic would have ptreipitated a
,encral bark panic. As it happened,
.it bank panic was advened omy for
,.c ihue b.ing, nor is there any cer
...muy una, it would have developed
. June oi 1032 if the. Central Re
public Trust Company had been sl
ewed to go. **
No uoubt there will still be those
m defend the wisdom of the loan,
.d even today the RFC is officially
,.eful. Though it is suing the
..ojC stockholders for the $14,000,000
theoretically collectible under their
liability,” the Chicago agent
. the corporation is quoted as say
.g that this action is not to be
v ns trued-, as a definite expression
opinion that the collateral sec
. L-uig the unpaid balance will event
i-iove- insufficient for payment, but
s taken merely to preserve the right
t recourse “in case.” Chairman
Hits has expressed the hope that
_t .he e itl of “five or ten. years” the
,o'C may be able to pull out by
disposing of its collateral with iittle
no mss; but when one considers
hat on Jan. 6, 1933, the principal
,,1 a.c loan had been reduced to
$66,423,000 -while in the nearly two
j' mrs since then it has only been re
duced $9,316,000 more, even this
sounds optimistic.
As a general policy, at all events, |
\ is now recognized that it was one
thing iov .the- RFC .to extend loans
or the purpose of making illiquid
tanks liquid, and another to try to
bolster up banks that were actually
solvent. The. .same principle must
be applied in direct loans to indus
o. y. Vvhere they are made, to sound
going businesses tor long-term .work
ing capital- that* it is not- ttae-function
ax' commercial banks to supply, the
RFC may ^advance them with com
parative safety, but when the com
mercial- banks are obliged to turn
•-town loans not merely on the ground
that they are illiquid but that they,
represent a bad risk, the RFC .will
usually be well advised to keep away
also. The New York Times.
I Would That Wars Should Cease
I would, that wars should cease,
I wduld-the globe from end to end
Might sow and reap in peace,
And some new spirit o’erbear the old,
Or trade refrain' the Powers
From, war and kindly links of gold,
Or Love with wreaths of flowers.
Slav, Teuton, Kelt, I count them all
My friends and brothers souls,
With all the peoples, great and small,
That wheel between the poles.
But since our mortal shadow, 111,
To waste this earth began—
Perchance of some abuse qf .Will
In worlds before the man
Involving ours—he needs must fight
To make true peace his own,
He needs must combat might with
might,
Or Might would rule alone.
—Alfred Tennyson.
No man.was ever endowed with a
judgement so correct and judicious,
in regulating his life, hut that cir
cumstances, time and experience
would teach him something new, and
apprise him that of. those things with
which he thought himself best ac
quainted, he knew nothing; and that
those ideas, which in theory appear
ed the most advantages, were .found,
when brought into practice, to be
altogether inapplicable.—Terrence.
t m I- II-1
NEW LIBERAL REGULATIONS
REGARDING HOME MODERNIZA- j
TION LOANS.
JUNEAU, Dec. 11.—Important lib
ralization regulations respecting the
home modernization program being
carried forward under the National
Housing Act, were announced today
by John E. Pegues,. Territorial Dir
ector lor the Federal Housing Ad
ministration.
Under the revised regulations it
will be possible to obtain funds from
financial institutions approved by the
Federal Housing Administration, for ,
construction of buildings on property (
upon which no building or other im
provements now exist.
Previously it was necessary to
make improvements to property up
on which a building was already
located. By means of this modifi
cation it will be possible, for ins
tance, to construct a summer cottage
at a vacation 'resort or uny other
selected place. The restriction that
not more than $2,000 may be obtain
ed for one building is still ia effect
“Another important modification,”
Mr. Pegues declared, “is that notes ■
may now have a final maturity date
of five instead of thr^c years.”'
Until the revised regulations were
issued it was not possible to. obtain
r. modernization loan for property
having outstanding against it del
inquent taxes or assements, except
under quite rigid eondtions. Now
i.Exu or assesments or interest on
mortgages n ay he delinquent and the
loan may still be obtained if the
bank to which the application is
made, is satisfied with the credit
risk.
person. whose income has not now
reached the required figure of five
times the annual payments, on the
loan to -improve his property,
“The liberalization witr respect to ,
this feature,” said Mr. Pegues,
“makes it possible for a bank to
make a modernization, loan to an in
dividual who has not now an income
five times the amount of what his
annual payments would be, but whose
prospects for future increase in in
come are sufficiently good to induce
the bank to believe that the credit
risk would he a good one.”
The original regulations . provided
that an individual or a company
could not secure insured loans ajpt
more than five pieces of property
without a >-special ruling from the
Administrator. The revision does
away with that restriction. Now
one person may improve under the
plan as may pieces of property as
he cares to so long as not more than
$2,000 is expended upon any single
pi operty.
“These changes,” declared Mr. Pe
gues, “are certain to accelerate the
demand for home modernization
loans . throughout the Territory.
This is probably.especially true with
reference to c. provisions which will
make it . possible- to erect summer;
cottages or similiar types of build- ■
ings with modernization loans. We
all know that building of this, char
acter has increased very rapidly
during the last few years, and now
there is a means provided for the
erection of low cost summer homes
with payment for them to be made
in nominal monthly installments over
a period of years.”
DaRand’s Cafe .
s_ '
(
Good Cldan Food.,
Everybody Welcome.
FLAT, ALASKA
i
b I ■ ■ .... ■■ I!
ADAMS HOUSE
When In Flat, atop at ADAM! HOUSE. We arrottnml
all hours. Do&bains In connection.
Thru Adams House, jos can obtain Ontslda
Liquors,V all kinds, Wines, and Beer*
CIGARS CIGARETTES
L. B. ADAMS
FLIT ALASKA
NEW STOCK! NEW PRICES!
The Famous Reliance Brand Canned
Goods Exclusively
Swift’s Oveniaed Hams avC Bacon
V. W. CARLSON : MB ;
TAKQTNA ROADHOUSE
Best of Mealsdand.Rooras
Whore Everything ti Homelike end
Where Ton an Cordially Welcomed
A Modern Bet-air Heating System
Supplies Warmth to Stay Kama.
GOOD DOGJPOUSBS. BATS
Mrs. Charlie O’Halloran - Prop.
—,/sya^, inn rmrisiMMnKisaaMaHMsanntoMsagBasaBasMi
Kwkokwim'.j^
Complete Stock of
^•Khendi*#.
McGrath