Nationalists In .
China Gradually
Reversing Tide
HONG KONG, March 90 UP)
The "turncoat" business, which
profited the Chinese Communist!
enormously when Uiey were win
Bins; the mainland, has hit i slump.
The coats being turned nowadays
are being turned mostly (or the
Nationalists. Even some of those
who switched to the Communists,
few pilots for instance, are re
Joining the Nationalists.
Consider this week's Communist
raid on Hainan island, the big Na
tionalist bastion off the South China
coast.
The Reds may have been trying
to supply their guerrillas there.
But they also may have been trying
to establish a beachhead, hoping
that the usual national defections
would do the rest.
Defections did not occur and the
Reds seem to have lost most of
what they staked in the raid, 4,000
men and their equipment.
Things were quite different at
this time last year. Nearly every
time Communist soldiers entered
an area the Nationalist defense
crumbeled and Nationalist armies
went over to the Reds.
Take Formosa. The Communists
plainly have their operatives there
trying to swing Formosa over with
out an expensive, and dangerous
amphibious attack. Nobody impor
tant has defected and nobody shows
any sign of turning his coat.
Last March the loyalty of the
Nationalist air force was wavering.
Several pilots flew over to the
Communists with their planes.
They aren't doing that now. In
fact, some of the turncoat pilots
made their way out of Red China
and are back with the Nationalists
Take the Nationalist navy. Its
defection point was so low lust
year it lost its flagship cruiser
Cungking, which steamed off to
Red China. A gunboat and some
other small craft also turned coats.
Now the navy has stiffened. That's
the main reason for its new effec
tiveness. The reason for .this change in
feeling seems to lie more with
what is happening in Red China
than with the Nationalist resur
gence. At first the turncoats felt the
Nationalists were a washed up, de
feated crowd who brought disaster
on themselves through ineptitude
and corruption. The turncoats
didn't like the Reds, but they fig
ured they were the best of a bad
choice.
Things are going badly In Red
China now. There is famine. There
is unemployment. There is unrest.
There are Nationalist guerrillas.
The turncoats seem to have de
cided that the Reds have even les
to offer than the Nationalists, and
maybe they'd better get back into
the Nationalist camp.
$20 Million For Corn,
Whtat Buying Approved
WASHINGTON, March 30. - UP,
Purchases of more than $20,000.
000 worth of American wheat and
corn under the Marshall plan were
approved Tuesday.
The Economic Cooperation ad
ministration granted $8,583,000 to
Austria, $3,482,000 to Portugal and
$5,117,000 to western Germany to
buy wheat. '
Ireland received $3,000,000 to buy
corn.
The allocations accounted for the
bulk of $2,574,000 in New Mar
shall plan aid approved Tuesday
for nine western European' coun
tries. .
In addition to the grant for
wheat, western Germany also was
given $662,000 to buy rye in this
country.
."" uiuuih WW
commitments for European re
covery to $8,652,866,000.
OFF-AND-ON SHOW
TOKYO, March SO. UP Five
dancing girls in Tokyo's "new look
strip show" simultaneously "lost"
their brassieres. The next night
they played to a packed house.
But fans were disappointed.. Po
lice warned that accidents don't
happen twice in the same five
places.
Orango Rol RoquotrtiJ '
For Whit. Houso Lawn
COVTNA, Calif.. March 30. -UP)
Kermit Wilson wants to change
an old White House tradition. He
said he has sent this telegram to
Sea. Knowland (R-Calif):
"Respectfully request you inter
cede with President and suggest
rolling of oranges on White House
lawn this Easter instead of eggs.
This would be in line with govern
ment's recommended crop rotation
principles and obviously a fair deal
for all. Also. :t will help Uke spot
light off administration's embar
rassing egg surplus. . . .'
Wilson is the owner of 40-acre
citrus grove.
News-Review classified ads bring
results. Phono 100.
Interest Payment On Purchasing HomeClg Factor' In Housing Eli Discussion
By CLARKE BEACH
AP Writer
WASHINGTON bow much In
terest should you pay when you
borrow money to buy a home?
How much should you expect to
receive if you lend money to a
home-owner? These are two sides
of a tough economic question, as
the members of the Senate learned
when they wrangled over the pro
posed middle-income bousing bill.
Much of the debate hinged on this
point.
Proponents of the bill said they
had found a way to provide cheap
er bousing for the middle-income
group. It wouldn't involve govern
ment subsidy, they said it would
all be done through private enter,
prise. The most striking feature
of the plsn was the method of
reducing financing charges from
the usual 4 per cent, charged oo
loans insured by the Federal Hous
ing administration (FHA), to about
3 per cent.
- A new government corporation
would lend money to owners of
cooperative housing projects at this
rate. The corporation would obtain
the money by borrowing from pri
vate sources. It would get the
money at a cheap rate, possibly
about 2tt per cent. That's the
main reason why it could lend so
cheaply.
But why could the corporation
get lenders to invest money at such
a low rate? Because, say the
backers of the plan (1) Like FHA
mortgages, the loans would be In
sured by the government. The
lender couldn't possibly lose money
aa long as the U. S. government
credit was good.
(2) The Tenders would not be
purchasing mortgages; they would
be buying debentures. FHA mort
gages, or any other mortgages,
cost the lender a considerable sum
in service charges. The senate
banking committee was told by
various insurance companies that
when they received an interest rate
of 4 per cent from mortgages,
they only cleared a net of about
3 per cent. The difference was
made up by administrative costs
and the cost of procuring and ser
vicing the loans. Interest from
debentures could be collected at
practically no cost.
Opponents Foresee Wreck
This lowering of interest rates
would undermine the whole home
mortgage credit field in the opinion
of opponents of the bill. What
-would be the effect on persons
now paying 414 per cent particul
arly the great multitude of per
sons who borrowed under the FHA
and Veterans Administration
plana? They would demand th a t
Congress find a way to -reduce
their interest payments, say oppon
ents. Then would Congress be forc
ed to revise the whole program of
home financing through govern
ment help, probably with heavy
losses to the government?
Thus Mar. 30. 150 The) Nwt-trlw, RoMburg, Or. 9
What of the effect on banks,
insurance companies and savings
and loan assoviationa, now charg
ing the higher rate of interest?
Already the government has effect
ively reduced the income from
mortgage interest on which such
Institutions depend. Before FHA
was created, persons who borrow
ed on their homes paid from 6
to T per cent interest. When FHA
was set up, with its 44 per cent
interest rste, it was arranged that
persons who hsd been paying the
old, higher rates of interest on ex
isting homes could refinance
through FHA. Then all mortgage
interest rates tended to go down
to the FHA level
"But what is so sacred about a
4H per cent Interest rate?" asked
Senator Douglas (D-Ill). "Might it
not be In the public interest to
replace it with a collective deben
ture, guaranteed? Wits I per
cent interest rate?"
"If that is good, why lent it
better to have no interest at all?"
inquired Senator F u I b r I g k t
(D-Ark.). .
Son, 80, DIm At Ftinorai
OfMoriMtr, llOYoflnOtf
0f Mrs'. Theoni ' Karamolengou
aiea ruesaay. boo waa officially
listed as 110 years old. Her son, (0,
died of a heart Hi-k mftmr th
'funeral. '
It's fht Best
you'v over tasted!
Star Heun:
Weekdays. to I
Sender. to 7
Grocery Specials
fri.. Set., Sea.
Meat A Produce
Fri. Set.
mm
mm
Absolutely no
sales to dealers
We re servo
th right to
limit quantities
)jr No.' 303 Con fcL
f DEL MONTE l
f CREAM CORN
I 10c i
Jr No. 303 Con s
W Libby's Early Garden ' , i
I PEAS B
Do it the easy way . . . rent our Johnson
ELECTRIC FLOOR POLISHER
Per day 50c
Full Mb. Bar
FARMINGT0N CHOCOLATE . . 39c
S-oi. Fkg. French's
INSTANT POTATOES . 29c
No. 1 can Smith's
SPAGHETTI 10c
Sunshine
SHREDDED WHEAT . . . 15c
Picket Enriched ,
J53-Ib. can
f JEWEL
I SHORTENING J
25-lb.
Bag
HARD WHEAT FLOUR
I 1.75 lot 3.29
,)r IO'i-oi. Can ' k
W RANCHO J
f TOMATO SOUP I)
ASs. 6Lor 35c '
22-ox. Glass Fail Sunny Jim
PEANUT BUTTER .
57c
jT HERSHEY'S
I COCOA
V
I
JT Vi Tin Conner's Sl
f KIPPERED
li SNACKS V
1- lb. Jar Hunt's Furo
STRAWBERRY PRESERVES . . 29c
Chef Boy-Ar-Dea Complete
SPAGHETTI DINNER 39c
2- lb. Can Our Mother's , (
COCOA.. :. .. 59c
Buffet Tin Crown Point
PEARS 11c
Quart Jar Rosedal
DILL PICKLES 29c
Thrift Six Economy Package
BORENE SOAP. .. 53c
Spaas Cider
VINEGAR, pts. 11c; qts.. . .l9c
No. 2 Con'Creswell
CUT GREEN BEANS. 15c
46-os. Can Vitality
ORANGEADE 27c
6-Boi Carton Diamond
MATCHES.. . 39c
Regular 25c New Dial
TOILET SOAP 2 for 37c
lb! Jar Dal Mont I
W Pineapple, Boysenberry u
PRESERVES J
4ytf Sav 11c Ttf
y7 10c Package
LA FRANCE J
kt3M
For something different and deliclsss
SMOKED PORK LOINS
Half or VIP
Whole, lb... .... .
Tender, tasty steer beef
RIB STEAKS
LB. 65c
Fancy, young
COLORED FRYERS
LB. 49c
Eastern, mild-cured
PICNIC HAMS
LB. 37c
Al( Pork
LINK SAUSAGE
LB. 35c
50 lb. Sack
U.S. No. 2
POTATOES
$1119
u
TENDER, GREEN
ASPARAGUS . . . 2 lb. 25c
FIRM, CRISP
CARROTS. ....... 2 bun. 13c
WHITE, FRESH
CAULIFLOWER ....... each 18c
CRISP HEARTS OF CELERY
CELERY HEARTS . :. , each 19c
U. S. No. 1
YELLOW ONIONS 10 lbs. 29c
JUICY ARIZONA
GRAPEFRUIT ... . .. .6 for 39c
Q"v Vvv WTViys j I I for
rVL 11 UT Vfl 35c J
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