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About La Grande observer. (La Grande, Or.) 1959-1968 | View Entire Issue (Oct. 22, 1959)
He's Worn Out All His War Horses M J NEA Snic, Ina. EDITORIAL PAGE ! LA GRANDE OBSERVER I Thursday, October 22, 1959 "Without or with friend or foe, we print your daily world as it goes" Byron. RILEY ALLEN, publisher Grady Pannell, managing editor George Challis, advertising director ' Tom Humes, circulation manager Can't Eat Cake . Inflation la the grout evil of today. ; What is its cause? j If there ever could Im ni;roeinent on '. the answer to that question, then the I task of combatting' inflation would Ik? j much simplified. One of the common misconceptions is t that inflation is duo almost solely to the continuing demand of labor unions for , higher wages. If higher wages makes things cost more, prices rise, and that seems like a logical explanation of in ) flat ion.. J Actually it is not that simple. The j best expiation we have seen on the basic cause of inflation was offered recently by Dale Brozen, professor of economics at the Graduate .School of lUisincss, University of Chicago. First of all he reviewed the recent history of inflation. From January 1!I7 to December 1952 when President Tru man was in office the Consumer Trice Index rose by 21.1 per cent. From January 1953 to December 10oS, with President Eisenhower in office, the rise was only one-third as large amounting to an 8.6 per cent increase. This would make it appear that politics have a great deal to do with inflationary forces, and actually that is so. That is because the actual supply of money in circulation is regulated by the Federal Reserve Board. But, isn't the Federal Reserve Board supposed to be outside politics? Members are appointed for 11 year overlapping terms so that no ma jority on the board will ever bo answer able to the party in power. That is true, but here is what hap pened : During World War II the government needed vast sums of money to pay the war bills. Savings bonds were offered to the people but the interest rates were so low that not enough of, these bonds by any means were sold to pay the war bills. So the administration went to the Federal Reserve Board and asked it to buy government ' bonds and to provide banks with additional money so that the banks could .As a patriotic duty, as much as anything else, the Federal Reserve Board complied. As a consequence the stock of money increased from ."!) billion dollars in 1940 to 91 billion dollars in 1945. At the end of the war, says Professor Brozen, the treasury had become so accustomed to selling bonds at low in terest rates, that it did not want to raise interest rates and thereby be able to sell bonds to the general public. So more pressure was exerted by the Truman ad ministration on the Federal Reserve to keep buying bonds and to keep, in effect, manufacturing the money for banks to buy bonds. Consequently the quantity of money continued to increase and went up to $110 dollars in 1950, and that was the worst inflationary period of all. - Marrincr Ecles, former chairman of , . Have It, Too the Reserve Board of Governors, who once explained this matter, finally re belled and told Truman the trend was gcring to have to stop. Eccles, who had been brought into public life originally by Franklin Roosevelt, and Truman fell out. completely and Kccles was cam paigning for Eisenhower in '52. By 1952 when the country changed Presidents, the Federal Reserve was back on its old policy and keeping hands off the govern ment bond market. Thus, since inflation since 1951 has proceeded at a moderate pace, it becomes apparent that Federal Reserve Board policy does have a marked effect on inflationary tendencies. W hat is the moral of this experience? Professor Brozen says it is this: Infla tion is not posible and will not occur w ithout an increasing quantity of money. Secondly, the quantity of money will not increase unless the Federal Reserve either provides extra money, or makes it possible for the banks to increase the stock of money by providing them with mote reesrves or by cutting required ratios. Thirdly, the Federal Reserve in crease the stock of money primarily as a result of the pressures exerted on it to assist in financing government deficits and secondarily to assist the treasury in refinancing maturing debts when the de mand for funds is strong and the treas ury would have to offer more attractive interest rates to got the money from non inflationary sources. Incidentally, that is exactly what the government is doing now, offering bonds at high interest rates to the general public, and the public is snapping them spending? By stop demanding of govern rather than put money into circulation, because money comes from the reserves of the people, rather than from the banks and the Federal Reserve. The way to control inflation, then, is to keep the government from engaging' in deficit spending. For if it does not do that, it will not be pressuring the Federal Reserve to engage in manipulations that in turn cause inflation. It all sounds quite complicated, but actually it is not. And how do we keep the government from engaging in deficit up. This takes money out of circulation, ment an ever increasing amount of .ex pensive services. That is difficult to do w hen there are so many men in Congress who believe the only way they can keep on getting votes is by promising more and more, Barbs A man may be smart enough to read bis wife like a book, but can he shut her up? DREW PEARSON SAYS: Soviet Success In Firing Dogs In Space Shakes U.S WASHINGTON' The penta gon has now received positive evidence that Russia has been bringing dogs back alive from outer space preliminary to shoot ing the first man into space. As a result our experts are re dgiicd to the fact lhat Russia will beat the United States into space with the first human ex plorer. They expect this historic rocket ride to be timed Just be fore President Eisenhower's vis it to Russia next spring, Meanwhile, Russian rocketmen have been firing dogs out of the earth's atmospere and recovering them without mishap. Medical tests have shown that they arc none tlie worse for their trip out of this world. The undeniable results of Rus sia's dog shots have stirred con fidential warnings inside the Pentagon that Russia will score another psychological and propa ganda triumph with the first man in space. Dr. T. Keith Glennan, the na tion's civilian space chief, has also warned privately that the United States is not closing the rocket gap with the Soviet Uni on. Some of his subordinates even claim the gap is widening. Note 1 - The Defense Depart ment has put off the next moon shot until late November - Des pite the fact that we have sev eral rockets on hand capable of reaching the moon. The Pentagon wants to double check past fail ures to make sure the next shot won't be wasted. This will save money but will also delay the American space program. Mean while, the Russians are reaping propaganda rewards all over the world for hitting the moon first. In West Germany Chancellor Ad- nauer confided to diplomats that his faith in American technologi cal supremacy has been shaken by the latest Soviet rocket achiev-ments. Note 2 - Two years ago admin- stration leaders from the Presi dent down scoffed at the first Soviet Fputnik and promised that Russia's rocket lead would be cut down in a year or so. Ike declared that the Sputnik didn't have "one iota of military signi ficance." This is two years and two weeks after the first Sputnik, and the Soviet lead has not been narrowed an inch. ' Mario Lanza's Troubles When Golden-voiced Mario Lan za died in Rome the other day a secret held only by him and a tew government confidants died with him. It was the manner in which underworld figures tried to muscle in to manage his ca reer. The chief muscler was Thomas Luchese, known in the New York underworld as "Three-Fingered Brown. The experience was re counted by Lanza to some federal men who were trying to help him. Lanza was living in Los Angeles in 1955, in precarous financial straits, when he got a call from a Los Angeles sports promoter. Lanza had been introduced to him by Rocky Marciano, the heavyweight boxing champ, and some days after their introduc tion, Marciano and Lanza were sitting in the latter's home when their mutual friend walked in ac companieu ny Lucnese and a third party who was never identi fied. They proceeded to discuss the opera singer's financial conditi on, and proposed that if Lanza would work for Luchese all his problems would be solved. They named another famous singer who had been in bad shape fin ancialy and ponted to his come back. When Lanza said he wasn't in terested, one of his callers be came nasty. The group claimed it had an interest in a film cor poration with which they could star Laaza. He still refused. One of the callers then called him a "damn Dago," at which Lanza hit him in the stomach. "That's a good way to get your self killed," warned Marciano, who packs a lot of weight behind hs own punch. Apologies followed. In the end, a total of $150,000 was offered Lanza for a 10 per cent interest in his future. Again this was re loved, and the callers left, Marciano told his friend after ward that he was wise, that it was a lousy business, and that he had once been required to turn over 50 per cent of his earnings to get rid of a deal one of his managers had made with an underworld syndicate. "Mr. Mafia" Thrtatans Later, when Lanza moved to It aly, he told a federal agent of a call ne receiveu irom an Italian in Naples sometimes known as Mr Mafia," who wanted him to sing in Naples on Saint Gennaro Day. Lanza had come to Italy to start work on "The Seven Hills of Rome," jointly filmed by MGM and Titanus, an Italian com pany, and he told "Mr. Mafia" he was not permitted under his con tract to accept outside engage ments. He was then told that the newspaper publici had already been released and he would have to sing. Finally the "Mr. Mafia" serv ed an ultimatum on Goffredo Lombardo, owner of Titanus films: "You own 15 movie houses in Naples. I don't think you would like to see them lose money." Lombardo gave his consent, and Lanza sang in Naples. In describing this incident to government agents Lanza said that he had received many offers from such night-club owners as Frankie Costello, Willie Fischetti and Tony Accardo to sing for under-the-table payments which would escape taxes. He said he accepted none of them. Vice President Nixon has urg ed President Eisenhower to at tend a salute-to-Eisenhower din ner in Los Angeles on January 27. Nixon pleaded that Ike's per sonal appearance is needed to offset the Democratic national convention which will also be held in Los Angeles next year. He urged the President to give special attention to California to save the state from going Demo cratic in the 1960 presidential elections. (Also, Nixon's presence with Ike at the dinner would help counteract the current Rocke feller tour to California.) COST OF DYING UP ST. LOUIS i UPI The cost of dying is rising nearly as fast as the cost of living, a business counselor told the National Funer al Directors Assn. Monday. Hot Lake Women Take Trip To Idaho To Visit Relatives Mrs. Crystal Laughry and Mrs. Helen Yardstrom drove to Idaho Saturday evening. Mrs. Yard strom stopped at Payette to visit relatives, and Mrs. Laughry con tinued on to Emmett to attend a birthday party given in honor of her grandmother who celebrated her 85th birthday. Mrs. Herb Casteel from Enter prise visited her parents, Mr. and Mrs. George Green, on Friday. Mrs. Annie Salisbury received a visit from her son and his wife, Mr. and Mrs. Grant Salisbury from Bend on Monday. REMEMBER WHEN . . 25 years ago, more than $4,057,000 was reported as spent in building construction in La Grande over the 16-year period prior to 1934. According to J. E. Starns, city recorder-treasurer, 1927 was the peak year in build ing, with 1932 the off year. Eastern Oregon Normal beat Whitworth College 26 to 0 for the Mountaineers third football win in four starts during the sea son. Keith Hibbart, 15, local high school student, bagged a 150 pound bruin in Hunter's canyon above Mt. Glenn. S "Pretty Boy Floyd," notorious hoodlum of the prohibition era. was felled in Ohio by bullets fired by federal agents. . ... 15 years ago. Pvt. Willanl E. Hall, La Grande, was identified as one of 83 U.S. soldiers res cued from a Japanese prisoner df war camp. Hall was the son of John Hall, formerly of La Grande He was a basketball athlete at ta Grande High School. . The Art Research Society met at the home of Mrs Frank Jasper. Officers elected were Mrs. B. B Johnson, president Mrs. John Speckhart, secretary. Mrs. C. A Kopp was outgoing president. Damage from an invasion of grasshoppers earlier in the year in the county was tabulated at $136,250 by Price Schrocder, as sistant county agent. Mr. and Mrs. Alvm Kennison from Cove entertained at a birth day dinner honoring their daugh ter, Betty, Tuesday evening last week. Attending from here were the following nurses. Mrs. John Roberts, Mrs. Helen Yardstrom and Mrs. Evelyn Knapp; Mrs. Aide Davis from Cove, Mrs. Crystal Laughry and Mrs. Laurel McElvain from La Grande, and Mrs. Frances Hooker from Union. Mrs. Jo Hasselblad drove to Pendleton Tuesday and spent the day with Mr. and Mrs. Sam Cum mings from Newberg, who are hunting in Eastern Oregon. Vance Orchard, roving reporter from the Walla Walla Union Bulle tin was a weekend visitor. On Saturday afternoon a concert of "old favorites" was given in the nursing home. Mr. Eldredge from La Grande, brought out his Ham mond organ and provided music for an entertainment. Huffman's cousin, Mrs. Rowea Davis, is a nursing home resident. Dr. A. J. Roth returned home from Chicago Sunday with other Oregon delegates who have been in attendance at the five day con vention of American Nursing Homes. Inc. Dr. Roth reports that the 19C1 convention is scheduled for Seattle. Delegates will bring reports of the Chicago meeting to the monthly general meeting of Oregon Licensed Nursing Homes, Inc. to be held in Eugene next week. Mr. and Mrs. Percy O'Neill from Marietta visited her mother, Mrs. Susie Kn'pp, this we"k. With the O'Neills were Mrs. Frank Mor ton and Mrs. Ada Keely, who are also from Marietta. Mrs. Stan Smith and Mrs. Rus sell Rode of Baker visited Clarence Wicks on Thursday. While here they also visited Mrs. Orville. Roberts, who is Mrs. Rode's aunt. Richard Roth attended the La Grande-Pend'eton football game held in Pendleton, Friday evening. Patients and guests attended group singing Thursday evening with Gray Lady Belle Paxton from Union at the piano. Other Gray Ladies brought their special kind of good cheer to the bedsides of patients unable to attend. The best way to feel, for the unfortu nate poor people is deep down in your pocket. oc.2 DAYS Oftl o ?ni W. U ? fw . 1 cot oiaMaown, WSTlA I kni' ,ayonJ--I fft "" Wk. I ?J. , 1 aLn. M 7V "m ! or,lip,(.r WthX fll P0"""- -' IOa '"'"ka.fcalf&S! raatm.32-4a w v rife piiiews, a ! " -. vV ki) ! whii.,io,.. j A tf mM-. ySSSsi1 ::444 M77e i" ffpl mmK J tongil..v. coN fftVfl! 1 Bl'Til-l "-Tl'llll . , '" J ly, llim-le?(V 'Arl I Ion Bann.l.6-1. V'tW' W tV t? VTT' '' M V AT"? l I ,oddl niii., I I 94 jF j jgg j qN """1S "i l :22S3 a'Boolccase bed and if if"" 1 J dim double dresser I pio.dflonn.1 7:pp"tnll I ' JlJL O O ' Wa'd price! Bed includes foot- il i :zZiBfy ' cnoicS-M-L MxfSk' I n VJM rail,. 2 rich finlshei, Walnut or fl (l 1. Kri' ' SeaMul. Chesf ...36.88 Stand.., 5.83 ; 4 I KSgall V - " -T:7rr.V"-r , - - , J "OacTportablil JfOQ I 1 Yy I IU1 .iiMM JT i w.;9h.ihorpi . 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