MAJ—‘3:— I;

U.S. dollar is still "as good as gold" despite its many troubles. It used than gold. Now there is some question.

Problems Face U.S. Dollar As Gold Reserves Dwincll

By FRANK l‘ORMIER WASHINGTON IAI’I

i-S :- 'o

decade:

to be thought better 1'

at a glance the implications of lworld. Today. US. bullion hold- . the. troubles that have assailedings amount to less than $16.- the U.S. dollar during the last

Ten years government owned . .-. .000 of gold. or_64 per cent of all land Two sets of statistics showed the gold in the non-Communist that could be readily converted

l total $19.2 . lmakes central dollars

. of or resent

. or 38 per cent of the total supply.

2. In 1952. foreigners had 99.- 000.000.000 o .5. bank depostts other liquid investments

the U.S.. $23300 000

ago

into cash. At present. these liq- uid dollar holdings of foreigners 00 000.000. ,

Because the U.S. government 1| seems a standing pledge to sell lpoint, no one can argue against ‘gold to foreign governments and 5the proposition that the danger banks at $35 an ounce, lof a “run” held by foreigners are lcreases as the bullion supply de- ucial importance. They rep— e potential ability of foreigners to buy U.S. In 1952. even if foreigners had exchanged all their dollars for gold. the United States would 1point. have We" .19“ “"m 3141309er To forestall such an eventual- 000 of bullion.

COULD EMPTY IT Today foreigners have more'the gold supply by eliminating

gold.

the entire U.S. gold supply. deficit. . Although such a development

inconceivable at this

Iman enough dollars to buy up I

on U.S. gold in- eigners clines and the dollar holdings of foreigners increase.

If these trends continued long lenough. t h e r e unquestionably l

ments deficit. would be a run on gold at some

' lty. the United States is deter— mined to defend the dollar and

dollars than they

the 0.8. balance of payments

For the last decade. Ameri- cans have been spending. lend- ing. investing and giving away abroad more money have ‘ been lending and investing here. ‘Be- cause the outflow of funds has exceeded the inﬂow. the United States has been running a pay-

DEFICIT HITS DOLLAR This deficit is the direct cause in turn. of the dollar's troubles. It weak- change these dollars for U. . ens‘ it on two ace 1. As foreigners collect more lcorporations cannot do. if the U.S. dollar is weak. for-

States, they take

an for- spending. in greater demand.

dollars for other

i ounts:

care to spend, I

lead or invest in the United their extra dollars to banks and exchange them for other currencies they find more useful. The dollar be- comes less valuable in relation to the other currencies that are

2. When foreigners exchange

(tin-uncles. most of these dollars go intomutomatically the central bank in their parti- cular country. The central bank. has the authority to ex-

igold_somethmg individuals amlipurchases of U.S. gold.

18 The Gnardhn. Charlottetown, Tues. Doc. 11. 1962.

elgn central banks are more 500,000,000 in 1961 from $3.900,- likelyto buy U.S. gold. If it is 000.000 in 1960. 11 is expected to strong. they are more apt‘to in- be about in 1962 vest their dollars in the United‘ The gOVerni-nent's effort :6 tates and earn interest. .wipe out the payments def...“ 'is continuing. AGGRAVATES "03113" - l Since 1960. the United 5:... A large payments deficit tends lhas insisted that countries P! to weaken the I. . . . l‘P‘ - ceivmg foreign aid spend 11. international money 1bulk of the money in the Unite; s .

dollar in . markets. Just as automatically. mate

a large deficit leads to foreign} The Pentagon is spendmg 195! ‘money abroad and urging NATO The U.S. payments deficit allies to buy more military

seems to be declining—to $2, lhardware in the United States.

made by Ski] “"15. “4" capacity “6.1. l l ‘ geared chuck. 2.5 amp. motor. I: S

Regular $21.00. SPECIAL——

15.99 :

i

BENCH SAW

Mitre gauge included: Regular $47.55. SPEClAL-

.. .

Tilting arbor to 45°, 8" blade \vill cut to 2%", 18" x 24" table top.

____ __35-50__

POWER MOWER

l9" DeLuxe Model with the latest improvements and grasscatchers. Finger tip cutting height oon~ trols. Regular $97.50, SPECIAL-—

74.5

LAWN BOY

. . A Wonderland of Gifts at Special Pro-Christmas Prices!

STAINLESS STEEL

' SINK

Single bowl with 8" ledge back. drilled for faucet. Regular $20.95. SPECIAL—

15.98 _

“CHRISTMAS TOY FEATURE

TREE LIGHTS

ently. Regular $3.38. SPECIAL—

EVERYREADY

ELECTRIC LANTERN

Swivel head and weatherproof sthch. Complete

battery. Regular $5.49 SPECIAL—

3.98

.-_l__‘_..__--_ - .. “-

CONVEX MIRRORS

19" size with convex surface. Non-tar- nish decorative English brass frame. An attractive accessory for any living room. Regular $15.95. SPECIAL-—

12.99

Paragon Bone China CUPS and

SAUCERS

Paragon Bone China—3 colors with centre rose and deep tone colors over- laid with gold design—black. green or maroon. Made in England. Reg, $5.90.

v. PRICE

1 29.99

2.39

13 light hidoor set each light burns independ-

store

PERCOLATOR

Guaranteed against heat breakage- from extreme changes of temper- . New modern design with cool bakelite handle. Reg. $12.95.

Corning Ware 6-CUP

white enamelied

Z-BU‘RNER ELECTRIC HOT PLATE

Combination 3 switch have; control. on legs. 1500 watt heating capacity, lair . .

2.49

"BAR MATES"

rubber

popular prices.

19.49 \

With stainless

CHRISTMAS

TREE STAND

with 0 volt

Adjustable for large 01! small treeo. Made of steel. Reg. $119 each. SPECIAL—

‘ 40' - PIECE SILVER CHESTS

melmac and

High Heat

quality resistant

5y Wm. Rogers Regular 929.95. 5

In the new “Silver Mist" pattern. Each set consists of 9 each. teaspoons. des-

39-PIECE MELMAC SETS

dinnerware.

ALUMINUM TEA KETTLES

In heavy quality aluminum. Modern Mayfair design. Cool stationary up- right pints. Regular $7.50,

Each set consists of 6 each 10" plates. 6" plates. cereals. fruits. cups sauc- ers. plus one covered sugar Choice of 4 patterns. Wild Wheat. Dog- wood. Canadian Rose and

and cream.

Bluebell,

19299. _

sort spoons. dessert forks. Salad forks. an. dessert 1:11in, 2 tablespoons and 1 each butter knife and sugar spoon. A regular value of $49.95, SALE—-

Bone China. ations. Regular $2.29 pr.

1.77

Dainty 8129. in Royal Albert assorted ﬂoral

BONE CHINA SALT & PEPPERS

English decor-

SAL pr.

BALL PENS

Sol-into "Bum-t". New filter tip hears ink fresh Assorted colors. Regular $1.69. SALE}-

1.29

Genuine

Boginnm' SCHOOL

BAGS

leather. Adjust- able shouldn- am. Stand- ard size in Brown. Ru. $3.95. SALE—-

2.

SEWING BASKETS

Taffeta lined. Quilted pin- cuahion covu'. sturdy wicker construction. Top carrying handle. Blue and white. Reg. 92.99.

SPECIAL—

2.49

Popular

each—

A

CANDY

Molrs' 1 lb. no!

3x Luxury Chocolates

Regular Price $1.15 Special price

Christmas Candy Satin Mix. sorted ﬂavors. Reg. .890

29° 11.

At

smoother faster ironing.

Wear-Ever

“14.9

HOOVER STEAM OR DRY IRONS

steel sole plate

ing 1100 watt element. Reg ar

Included in the are the following:

Golf Club J iggerl

$5.95

Ice Tango

$1.79

for Fast heat- til

handle. Holds about four

emperature control

Regular $24.95.

6.49 19.4

SUNBEAM HAIR DRYER

New improved bonnet design. t dial. Fo

with all types of curlers or

Electric Mixers

$9.95

-Bar Sets from

$5.95 to $24.95

Cocktail Shakers

$13.50 8: $18.95

Four r use pins.

ESMOND QUALITY

Gift boxed with window illuminated control. Fine quality rayon. cotton and nylon. Nylon satin binding. Double bed size. single control. Choice of 5 beautiful plain pastel shades, Regular $19.95.

f ELECTRIC BLANKETS

Regularly 19.95

6.99

STANFIELDS

YARN

8 oz. sketns. Best known for socks and mitts. Broken colors and dye iota. Regular .799.

i

0

READY-TO-HANG

‘ DRAPES

Popular antique satin, Floral and semi

modemdesigns.SIownhiwtdte.haigeand/ sandalwood backgrmmds. Each pair wll

oovarawmdow‘ uptow'widevsezor

- more pairs fa Inger Window's. All 84"

' long. Result $10.95.

9.99,...

SANTA CLAUS w1u as 1N BOTH sroass DAILY FROM 1.30 PM. T0 3.3;) PM.

Bar equipment for the man of the house. All at

abovo items

smooth

‘ enamel tints em- _ ., housed designs. Brightly plated . hood fittings. Pusher and under- gear in matching finish. Folding hood. vinyl upholstery. Laigth ‘ . Isl/£1 Pusher height 18". 4%" spoke wheels with -rubber-llka I ‘ with . vinyl . , SPECIAL— '

SERVICE STATION

A two storey met- al and plastic garage consisting of m base. garage and upper parking area. ele- vator. 2 ga s pumps. oil air reel, tire jack. plastic ﬁgures. g r e a s o rack. three cars. Sizes length 16%" width 13", height 10%".

Regular 2.98

1.98

TANDEM HAULER

New, heavy steel construction. Detachable trailer. Rear door!

open for loading—High play. value. Sizes height 8", length 29%". width 6V4". Reg. 4.98. I

SPECIAL—

Designed to ‘give .her pleastn'o all year round! Metal body with ‘ and

Reg.

COMBINATION CROKINOLE and CHECKER BOARD

Croldnolo on one side . . - Checkers on tho otha', Regulation also. Plains discs and rule lheets- Hours of fun. Reg. 8.29.

2.99

TABLE. and CHAIR SET K Set ii a! hard. ‘ wood. Mini vl‘nish

Brunt dud-m. - 1o» 17" M 13" Mﬂh. Two chain It” Nth will "I 10%" X 10%". 11" M . F" ‘O 2 --s. ..'",

9.29

CHARLOTTET OWN STORE OPEN. EVERY ‘NIGHT TILL 9900. RM.

/

«m:— ——

gin Both ; Stores Daily - 1:30 am. To 3:30 «pm.