Marketplace

MARKETPLACE
NEWSLETTER
PAGE 8, AUGUST 30, 1973
What Price
the DOLLAR?
We've used this headline, and unfortunately so, many times in many pa.st issues of
"Marketplace" as galloping inflation pounded down the purchasing power value of the U.S.
Dollar. As is well known to every person who reads a newspaper and who listens to radio
and television newscasters, the U.S.Dollar has been taking the worst beating in history
in all overseas money markets.
In addition, both European and Asiatic banks are loaded with billions of U.S.Dollars.
For example, Japanese banks are reported to hold over 20 billion U.S.Dollars. Certainly,
this alone, has tremendously cut the value of the U.S.Dollar. Has brought Japan's indus-
trialists into this country to set up factories with these greatly devalued Dollars,
ranging from soy sauce to steel. Doing so at over an et:Jf, discount on the original value
of the U.S.Dollar.
'
Europeans, in addition to heavily investing in top U.S. common stocks, bonds and
other securities with heavily discounted U.S.Dollars, are also buying up outstanding
U.S. firms. For example, Gimbel's Department Stores, which includes Saks Fifth Avenue
stores, are now British owned. ~18.ny large hotels are now British and Japanese owned.
It's a new immigration era. This time, immigrants with huge wads of U.S.Dollars are
flooding into this country and taking over dollar weakened businesses. There is no
doubt whatever that all this will, eventually, lead to prosperity. Also to a long era
of peace. Who wants to hurt his investments? Even the Russians are now smiling and
proposing top business with the U.S.
Most important, then, what is the value of the U.S.Dollar as far as this industry
of cash flow coinage is concenied as inflation gallops along at a runaway rate? No
longer do we need to go back to the money economists' basic year of 1939 when the U.S.
Dollar fell to 100 cents in purchasing power value. Because the U.S.Dollar is worth
even less in the world's money marts. The U.S.Dollar is, today, worth just about 20¢
in purchasing power value.
Here's what the coinage you're collecting is worth in purchasing power value this
year of 1973. It may be worth even less in the year just ahead.
The
The
The
The
The
Half-Dollar is worth ••••• 10¢
Quarter is worth ••••••••• 5¢
Dime is worth •••••••••••• 2¢
Nickel is worth •••••••••• 1¢
Penny is worth ••• 1/5th of 1¢
(Don't you agree "1-Play 2-Bits" plus a "service charge" of at the very least $10
off the top of the gross collection and the more equitable 70/30 commission basis may
help you to survive in business?)