12 The News-Review, Roseburg, Ore.- Wed., July 1J, 194
Deficit Financing Big Task For Federal Government As It Ends Fiscal Year In Red
By SAM DAWtSON
NEW YORK, July 13. P
Uncle Sam is In the red again.
He's spending more than he
takes In he has more relatives
and old friends dependent upon
him than a movie star.
And the U. S. Treasury is now
trying to decide from a number
of suggestions by interested par
tieswhich la the bst way to
raise cash to pay oil', the bills.
It's looking for the way that will
be the least painful for the trea
sury and at the same time be
rofitable for the banks and may
e give business a helping hand,
too.
The treasury calls this deficit
financing. . ' i
Six months ago President Tru
man wanted more taxes to keep
I'he treasury In the black, say
ing that a budget surplus "Is es
sixntlal to sound fiscal policy."
Now he' plumps for deficit financ
ing as the better course at this
time.
H'is economic counsellors say
In i heir midyear retrt that if
we -tut down on foreign aid and
national defense two of the big
gest nems we 11 not uiuy uc lad
ing a serious risk, but will .be
..I f ika flmtr nf foHoi-Sll
CULIIIIK I'l 1 lilt nun v. '
dollars to consumers, and thus
lead to more lay-ous.
Deficit financing will pump
nnnAtr Inln tha apnnnmlf atrpam.
through treasury borrowings
trom oanKS. At ine same umc,
various industries will profit
nm ivinllniiorl rtrwram moVl t hi IV
ing. Subsidies and social security
payments. Accoraing 10 mn
school of thought, this will give
! jii.nr.innn li oat his
second postwar wind and be off
again on ine roaa 10 pruspciuy.
iney coniena inai mji.uwn.K
( n n nnnnlnn nraA)(f in th
buslness world. Great industrial
empires are started on borrowed
money, corporations Dorrow 10
expand, to meet payrolls, to fi
nance Inventories in anticipation
of future sales.
Nothing New to Americans
Certainly the American people
are used to deficit financing by
now. W've been in and out of the
red with Uncle Sam for years.
In the last 30 years rarely In
the middle '20s and again a year
ago nave we useu uiam ."
MasnurhiU .Via foHorill ftht haS
nrouin tn miM-A than 252 billion.
The question businessmen ask is
now mucn nigncr can h aau-ijr
go
lf it's finally decided to go on
spending at the old rate, the
next problem is just now ine
trpasurv should borrow the mon
ey to meet the bills.
Long-term bonds with compara
tively high interest rates will ap
peal to private Investors and insti
tutions, and cost the treasury
most. Banks with money on their
hands just now because business
es loans are falling off are urg
ing medium-term treasury notes
with moderate yields.
When there was more demand
for business loans, which are
much more profitable to a bank,
the treasury s practice of financ
ing its cash needs with short
term certificates with a low yield
gave the banks a chance to keep
idle funds earning a little and
still easily available when a good
Durness risK oame along.
But this week the treasury
sold $900 million of these short
term bills at an average rate
of 0.923 per cent two weeks ago
It had to pay 1.158 per cent. Nat
urally, the banks don't find the
new low rates attractive.
Up to Big Money
The Treasury also raises a lit
tle money, but not enough, by
selling 10-year savings bonds to
individuals. But the Treasury
can't depend upon this source of
revenue in a pinch.
Therefore, the treasury will
have to do its deficit financing
through the banks or insurance
companies. It will have to decide
how to do it fairly soon. The
treasury started its new year
the first of this month with a
deficit of $1,800,000,000. The mid
dle of September it has $1,292,
000,000 of two per cent bonds
coming due. It will decide well
before that Just how these are
to be refunded. Many bankers
hope the treasury will decide
to issue five-year bonds paying
two per cent or better.
This, they say, would find a
ready market, help the banks,
and take some of the pressure
off the treasury for going into
the market at frequent Intervals
to borrow money at whatever
rate is possible at the time.
Whether or not deficit financ
ing will start another, and worse,
Inflation spiral is another question.
The News-Review classified ads
bring best results. Phone 100.
Registered Willamette Vat
ley tred Romneys from im
ported rams. Choice selec
tions now available.
OAKMEAD FARM
Newberg, Oregon
PORTABLE WELDING
Are and acetylene is at your command
anytime, any place. Years of experience
in heavy-duty welding.
HARRY F. DRULINER
PHONE 1198-RX
(Mm
Distributed In Roseburg By Bates Candy Co.
BETWEEN OAK AND CASS STREET ON JACKSON
-J
14
I
-
i
z
o
rui
JL
tin
4
ITU
NOW! SHOP BOTH SIDES OF JACKSON
STREET BETWEEN OAK AND CASS STREETS
FOR THRIFTY THURSDAY SPECIALS
THESE THRIFTY THURSDAY SPECIALS ARE
BONA-FIDE BARGAINS GOOD ON THURSDAY ONLY.
OFFERED BY MERCHANTS ON JACKSON BETWEEN OAK AND
CASS STREETS. WE RESERVE THE RIGHT TO LIMIT QUANTITIES.
NO SALES TO DEALERS.
O ARBUCKLE'SO FULLERTON DRUGS EXCEL SHOPPE O JOE RICHARDS MEN'S STORE JACK FARISS AND SON
SUMMER SPECIAL
By PEGGY SAGE
MANICURE SET
Reg. 1.50 . NOW 85c
PLUS TAX
Set Includes:
Nail Polish
Polish Remover
Polishleldt
CuticL Accessories
FULLERTON'S REXALL STORE
127 N. Jackson
f.TT T
-7 mjcJjuomj
Play Shoes
by
Oomphies
Smartly styled with linen tops
and wedge heels. Accentuate
your costurhe with a white and
multi-color pair or green and
multi-color pair.
Regular 5.9S
INGRAHAM
ALARM CLOCKS
ONE-DAY
ALARM CLOCKS
Regularly 3.50 Each
88
Thursday Only
Buy Yours For ....
1.88
LIMIT ONE PER PERSON
Square Dial
Ivory Case
Dependable
m
m
m
m
I 1A
2.88
Arbuckle's
Right oh Jackson
THURSDAY
ONLY
SHOP FOR
THRIFTY
THURSDAY
SPECIALS
AND
SAVE!
THRIFTY THURSDAY SPECIAL
tfwM
PIN-UP LAMPS
Reg,9S . .. ...NOW 1.7.9,
Prices Good Thursday Only
TROWBRIDGE ELECTRIC
136 N. Jackson
Phone 268
Yil
Ml
1 111
THRIFTY
THURSDAY
SPECIAL
Cotton Batiste
NIGHT GOWNS
Regular 4.95
NOW 3.95
i i e sure n' ne ' nese
I i i i M c sleeping gowns with the
I v' f i eyelet embroidery trim. Col-
s'i H I ors 0 Pe' P'nk' t3lue'
J i maize and green in siies
il 1 1 I ,rom 32 ,0 40- A" this btond
J '; i 1 1 new stock reduced to
you at a saving.
1
f I to 1
give
PRICES GOOD
THURSDAY ONLY
Similar to
Illustration
p4
V7 sliou
dreM
slioppe
3
NECKTIES!
FOR
3 Neckties for the price of 1
Regularly 1.50
THURSDAY ONLY, 3 FOR 1.50
0 Rayons -and
Wools
Bright or
Conservative
MEN'S STORE
LAWSON'S announce the
for America's Favorite Watch Band!
Federal Tax ' 7
tur n ON
IASY CREDIT 71RMS
Prices Include I
Most sensational watch band value we've ever offered! It'a America's
favorite uKreisler'sj nationally-advertised basketweave.Now itV
better made than ever. Make your old watch look like new, and save!
SNDUwrfc kreislea qdalitt in colors of yellowpink or white gold
Come, and ee these great watch band values, nowl
Mail and
Phone Orders
Invited
H
73
o
09
5
m
O
H
2
n
A
124 N. Jackson Phone 565-J
T