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run (Mi the bank by its depositors. Q. Why is it important to keep the dollar as good as gold by maintaining the $35 gold price? Why not simply cut the dollar loose from gold? A. Because this could severely disrupt international trade and finance - with major repercussions for all free people, including those of the United Stat©. Although no one is wise enough to foresee precisely what would happen if the U.S, either devalued the dollar or cut free from goldB it is clear that the system of stable foreign exchange rates based upon the $35 gold-doilar link would be threatened. If currency values between countries were free tofluctuate, international trade would be severely hampered - and we should not forget that the remarkable trade expansion since World War n has greatly helped us and our free-world friends. AVOIDING BURGLARY Noting that a burglary occurs every 23 seconds in the United States, the Insurance Information Institute says many of these could be avoided if homeowners would lock their windows and doors and take a few other simple precautions. Shmp In MeMmuy PG. 8, - PLAINDEALER - WED., APR., 10, 1968, Gold Rush -- Cause, Cure This is the first of a twopart informational series giving interesting questions and aswers on the current gold rush. Q. What has caused the huge upsurge in gold buying in Europe? A. Loss of confidence in the United States dollar. Many people do not believe that the U.S. Government can continue its 34- year-old policy of holding the price of gold at $35 per ounce. The speculators who are buying gold are betting that the dollar will be devalued, as it was in 1933 and that the dollar price of gold will rise, If so, they will make a tidy profit. Q. Why has confidence in the dollar deteriorated? A. Because, as a nation, we have been spending many more dollars abroad - for goods, investments, military purposes and foreign aid - than other nations have been spending in the United States. This has resulted in a "balance-of-payments" deficit in almost every year since 1949 with the total accumulating to a whopping $35 billion through 1967. Although these deficits played a useful role in the early 1950s by helping friendly foreign nations rebuild their monetary strength which was largely snapped during World War n, the large and per si stent deficits since 1957 have gradually eroded confidence in the willingness of the United State to eliminate the deficit. Q. But if we have sustained almost 20 years of balance-ofpayments deficits, why should there be a sudden collapse of the dollar now? A. It was obvious all along that continued outpourings of dollars ultimately would result in this loss of confidence - the question was when. Hie current difficulties were triggered by devaluation of the British pound last November. They have been aggravated by the unwillingness of Congress „ and the Administration to put our fiscal affairs in order. The situation has also been worsened by the exceedingly narrow margin by which Congress voted to remove the 25 percent gold reserve requirement for Federal Reserve notes, our most important type of paper money. Q. Why does removing the gold backing of our Federal Reserve notes strengthen international confidence in the dollar? Wouldn't people have more faith in a gold-backed dollar than one based mi paper? A. Gold has served no domestic function since 1933. No U.S. citizen can legally hold gold here or abroad. The really important function of our gold reserve is to help assure the foreign governments, central banks, businesses and individuals who hold over $30 billion in shortterm claims against us that the dollar is indeed "as good as golcf'.This can be done effectively only if we stand willing and able to convert such claims into gold at the $35 price. The gold reserve requirement was actually tying down gold which, if clearly available for international purposes, would help sustain confidence by helping convince our foreign creditors that the dollar is as good as gold. WHAT OTHER DEDUCTIONS CAN I TAKE? In additional to medical, contributions and taxes that can be deducted on form 1040, interest expense is a big item for many people who have home mortgages or installment loans. Interest to be deductible must be for a debt for which you are legally liable. Of course, interest on loans used for business purposes would be deducted on schedule C even though the loan itself might be secured by personal assets. Interest on a home mortgage should be substantiated by statements from the mortgage holder showing the interest paid during the year 1967 as opposed to principal or escrow payments for taxes and insurance. Lenders charges made in connection with the loan sometimes called "points" are not interest nor are they considered a part of the cost of the property. When a residence is partially used for business purposes or rented^ the interest attributable to that portion would be deducted on part 2 of schedule B or on schedule C in that case of a business. A payment made for the privilege of prepaying the mortgage is also deductible as interest. These payments are sometimes known as "penalties." Interest on installment payments may be in an amount called carrying charge. In this case you may deduct as interest the lesser of 6 percent of the average unpaid balance of your installment contract or the portion of the total carrying charge allocable to the year 1967. Interest on a note which is subtracted from the face, amount of the note and then you receive only the bstlance can be deducted as the repayments are made. No interest deduction is allowed for a loan secured to purchase tax exempt securities or US obligations. Many loan payments are under an agreement to repay the principal first, so no interest deductions would be allowed until after the amount actually borrowed has been paid. In no case can more interest be deducted than theamount of the total payments made during 1967. That is, if you only paid $25 on a $500 loan you could not deduct interest in excess of the $25 paid. A space for miscellaneous deductions is provided on page 2 of form 1040, and hereyou could enter items such as casualty and theft losses over $100. The amount is measured by the difference between the fair market value before and after the loss less any insurance settlement. An example given is the theft of a painting, which cost $5,030 but had a fair market value of $10,000 and for which the insurance company paid $7,500. There would be no theft loss deduction bat rather a gain to be reported as a capital gain on schedule D. Theft could also include larceny, robbery or embezzlement but not mere disappearance of money or property nor will a loss due to a seller's misrepresentation. A casualty is complete or partial destruction of property resulting from an identifiable event of a sudden, unexpected or unusual' nature such as damage from a hurricane, tornado, flood, storm, shipwreck, fire or accident, mine cave-in sonic boom or vandalism. Loss from the antics ofthefairulypet are not casualties nor are losses from disease, fungus, beetles, insects, worms, termites or moths. Accidents are casualties and any damages to the taxpayers property are deductible if they were not caused by the willful act or willful negligence of the taxpayer, and are allowed to the extent that they exceed $100 per accident and are not reimbursed by insurance. To prove the loss, you shouldbeable to show the value before and after the casualty which would take into consideration the cost of the property plus its improvements less any depreciation and less any insurance recovery. Photographs of the proparty before the loss, immediately after the loss, and after it was repaired would be helpful proof. Amounts paid under insurance policies for living expenses da not reduce the casualty loss, but such amounts must be included in your gross income. Amounts received from disaster relief agencies reduce the amount of the casualty loss only if you are specifically directed to how to use the money. In other words, cash, gifts, food medical supplies, received from a disaster agency have no effect on your casualty loss deduction, nor are they taxable income. If a husband and wife file a joint return, they are entitled to take only one $100 limitation, but if they file separately, each would have to take the $100 limitation when figuring the casualty loss for Q. With the gold reserve requirement removed, how long can our $11% billion gold stock last? A. More than a hundred years if we do the right things. Less than 100 days if we do not. The important point to understand is that our reanrninggold stock, although less than half of the peak level in 1949 is fully adequate to back 19 the dollar in the international monetary system - but only if we move rapidly and forcefully to restore confidence, which is the backbone of the system. Q. You refer to our foreign creditors. Don't we have a lot more claims against foreigners than they have against us? A. Yes, but our clains are largely long term and many of them are in real assets - such as oil in the ground, factories, real estate, et cetera - which are not readily marketable. In other words, our international balance sheet reflects great strength. It is our liquidity position - our liquid assets such as gold compared with short-term clains against us - which is weak. The situation is mach like that of a bank that is fully solvent, with assets greatly in excess of liabilities, but which doesn't have enough cash to meet the claims depositors are pressing against it. In one sense, the UJS. is acting as banker for the free world - a banker confronted with a crisis of confidence and with that threatens to be a VISCOUNT Cor Wash ONE DAY ONLY Thursday, April 119 19-68 a.m. to 10:00 p.m. VEt M Wash Wax 25< additional All proceeds from the day are to benefit the Viscount Drum & Bugle Corps. Get your car spruced up for Easter and help a community organization at the same time at Car Wash Center in Lakeland Park located between Rudy's Drive Inn and Art's "66" Station either separately or jointly owned property. The loss to ornamental trees and shrubs by wind or storm ordinarily is figured by analyzing the total expenditure for removing the trees, priming and replanting expense to restore the property to its approximate value before the casualty subject to the $100 lim'tation. Business losses are not subject to the $100 lim'tation and would be reported as a capital loss on schedule D. mm POLUTION CONFERENCE Gov. Otto Kerner, in a letter mailed to Sec. Stewart L. Udall of the Department of the Interior, praised the Four-State Lake Michigan Pollution conference recently held in Chicago as a singular success. He said Illinois would continue its efforts to prevent and control the pollution of Lake Michigan. "I am told that this (the conference) is recognized as one of the finest examples in this country of the states and the federal government cooperating on such as vast prpgram. Each day, UNICEF vehicles travel roughly foilr times the distance to the moon. LEGAL NOTICE IN THE CIRCUIT COURT OF THE 19TH JUDICIAL CIRCUIT, McHENRY COUNTY^ ILLINOIS, PROBATE DIVISION ESTATE OF JAMES A. WEINAND Deceased, FILE NO. 68- P-29. Notice is hereby given pursuant to Section 194 of the Probate Act, of the death of the above named decedent and that letters TESTAMENTARY were Issued on March 25,1968 to Mc- Henry State Bank , McHenry, Illinois, whose attorney of record is Looze & Kinne, 3431 W. Elm street, McHenry, Illinois, and that the first Monday in the month of May, 19680 is the claim date for the estate. Claims against said estate should be filed in the Probate Office of the Clerk of said Court, County Court House, Woodstock, Illinois, and copies thereof mailed or delivered to said legal representative and to said attorney. MARGARET CNEIL Clerk of the Court (Pub. April 3, 10,17, 1968) YOUTHFUL DRIVERS In 1966, drivers under the s^e of 25 represented 19 percent of the total driving population, but were involved in 32 percent of all highway accidents according to the Insurance Information Institute. ___________ Each day, UNICEF vehicles travel roughly the distance of 35 times around the world. Relax and Enjoy Our Superb Food Our Modest Prices Phone for reservations 338-9892 2028 Rte„ 120 McHenry 4, HOUDAY LIQUORS 12 W. [g@UTE 12© Phone 385-3200 McHEN I I I STORE HOURS FRIDAY, SAT AM 11 PM UNDAY ® 1 I I I I I I I I Gaiis'M - i&k PRAFT or REG. 12-12 oz. cans THURS. 1/ 10 PM _ =l PEP! 8-16 oz. bottles plus dep. Southern C@jxfort 100 proof Liqueur fifth A mellow red table wine W SCHLITZ BEER 24-12 oz. bottles 3 plus dep. Imported LIGHT OR DARK RUM 2" California Brut, Pink or sparkling Burgundy 1 69 large bottle Imported Tal ines RED or ROSE 98 fifth 8 year old Kentucky Straight Bourbon 86 proof 98 Fifth Filitiff Tapper 3 69 plus dep I I I CIGARETTES 289 King Filter or regular Your Choice Carton I I I |I 8 year old BLENDED WHISKEY Popular