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Salem, Oregon, Monday, July 11, 1949 The Second 'Fair Deal' Announced President Truman in his midyear economic report to congress has by scrapping his demand for higher taxes and a balanced budget and demanding an extensive infla tionary program inaugurated a second "Fair Deal" of deficit spending. Mr. Truman thus followed the example of his predeces sor, Franklin D. Roosevelt, who was elected on a platform calling for rigid economy and a balanced budget (the First New Deal) after a few months in office similarly junked his platform for deficit expenditures that continued through out his three terms (the Second New Deal) and on the same pretext, for fighting unemployment and recession. Repeatedly in the last six months and up to a week ago the president has stood pat for a $4 billion increase in in come taxes and a $2 billion increase in withholding taxes. But now he tells congress flatly that "no major increase in taxes should be undertaken at this time" and advocated deficit expenditures, which only a week ago he viewed with alarm. He continued: "We cannot expect to achieve a budget surplus in a declining national economy. There are economic and social deficits that would be far more serious than a temporary deficit in the federal budget." At the same time, the president emphasized the strength of U.S. economy and recommended an 11-point program aimed at the highest prosperity ever. He set a goal of "well above $300,000,000,000" far above past peacetime records for the national output of goods and services. He said it could be reached in the next few years. But his message will convince not only the people of this country, but the world in general, that a serious economic crisis threatens the nation, though he calls it a "transition period" from post-war inflation. It is hard to see how increasing production, of which there is a surplus already, will help unless the markets for this production is found and the only market in sight is that provided by loans or gifts abroad and subsidies at home. The cost of production is due largely to high wages. Among the president's recommendations is an increase In estate and gift levies, and repeal of transportation taxes, more liberal rules for carryover of corporation losses; an improved program of farm income supports as advo cated by Brennan, the boosting of minimum wages to at least 75 cents an hour with broader coverage but increas ing the amount of unemployment compensation to ?30 for 26 weeks, which will destroy the incentive for work. The second Fair Deal will immensely extend federal control and promote socialism perhaps as a forerunner of bankruptcy and eventual totalitarianism. Here is President Truman's position today on some key policies, placed alongside the views in his economic report of six months ago as listed by the Associated Press : BY BECK. Husbands ( AM I SUPPOSED TO SIT HERE UKE 3&t!Wi I A STATUE, WITH EVERY MOSQUITO WW $l-tt&2. ON THE LAKE MAKING A MEAL V AMWM OUT OF ME, UNTIL SOME k4'Mf WmWm to bite! if thats iWmMm jjliCf your idea of a rMmfmMg WASHINGTON MERRY-GO-ROUND BY GUILD Europe's Currencies Reach Crisis Stage By DREW PEARSON Washington Here are some things to remember about the British monetary maneuverings which amiable Secretary of the Treasury John Snyder is trying to straighten out. The story goes back to war days, but can be summarized chap ter by chapter. " Chapter 1 Bretton Woods: have North Africa. At the Bretton Woods monetary Another basic fact ignored in conference in 1944, Lord Beav- the western European situation Wizard of Odds erbrook and Winston Chur chill argued that Britain could not go back to normal free-trade rela tions after the war, that Brit ain must live by its wits, would have to put across the same cut-throat bar Drew Pcafhb is that you can't keep on in creasing labor pay unless labor produces. And labor costs are rising in England and France with no commensurate rise in production. So we make up the difference by pumping Marshall plan money into Europe every year. Result Today American and Canadian manufactured goods can outsell British goods almost anyplace. Our labor produces more: our methods of manufac- SIPS FOR SUPPER- Miracle? By DON UPJOHN Co-incident with the reported plagues of caterpillars moving onto Lebanon and the Keizer districts come advices from our old friend, Doc Bill Thompson, sage of Riverdale, that a dozen 0 r more gulls have been, hovering about his place, may be only the ad vance guards looking over the s i t u a tion and planning to take up headquarters there for a pos sible projected 1 n v a sion. Re minds us of the old tale of Utah when the grass hoppers threatened to clean up the crops of the early Mormons and providence intervened with the use of sea gulls which clean' s e asMULa La ter agreements such as negoti- ture are more modern. ated by Hitler (and as now sign ed with Argentina). Snyder's Remedy Amiable Roosevelt and Morgenthau John Snyder would remedy all urged that there was not much this by devaluing the pound, use defeating Hitler if the allies This is only another way of re were to adopt his methods af- ducing wages and profits. When terward, and the British finally you can't compete with another came around to the idea of let- country's goods, you have to cut ting trade take its normal chan- costs by cutting both wages and nels provided they got a loan profits. from the USA. Politically, cutting wages is Chapter 2 British Loan: In difficult. So devaluing the 1946, Britain got a post-war $3,- pound accomplishes the same 750,000,000 loan from the USA. thing less painfully without let- This was officially considered a tin8 British labor know it. In numerous bird houses loan, and statements made by 'he end, of course, British labor , TlT. IT'STOIYOU6IRLS HOPE TO fif&l) ( Lib MARRY A MAN WITH MORE EDUCATION W JL WAYERsfoOOS VcM H tA ARE OVERWHELMING sf 4 1 YOU'LL BE HURT ONCE f; M EACH SEASON... r u 5 out of every - Jk 200,000 are killed. MacKENZIE'S COLUMN Japan Looks Like Prime Commie Target By JAMES D. WHITE 4 (SutatltutinK for DeWltt McKenzt, AP Foreign News Analyat) As the cold war moves in on the American occupation of Japan, one of the first big problems is this: Are the Japanese police going to indulge in some good old- fashioned terror before com- Don UpJoha cfrAwn nmtinri In trateffio tiosi- this column that it was actually has to foot part of the bill, be- tions, there's a housing short- a grant were denied. However, cause the pound buys less and age out there. No sooner does " now conceded that the income is reaucea. Thls mefms more WOrkers than one pair of birdies raise a fam- "loan" ' Pretty much forgotten, This is whX Sir Stafford munist agitation is dealt with? j(jbs n means toQ many ily and get them moved out into wlu never be repaid. , PS? 80 5ppsed to devalu- It's all very complicated. working for the government. It circulation than another one une condition ol the loan was , " """ uevaiu- grabs the house and starts a new that Britain would abandon her lng pound ls only a tempor- project. Sorta bird house cooper- "sterling-dollar pool." This was ary st0P8aP ative association, as it were, and an arrangement, necessary dur- icopyrunt ii all moving along in a friendly ing the war, by which British . . , . , spirit. colonies and dominions sent DANGER OF A DEPRESSION? ' meir dollars to London, and For instance, one root of the means a government afraid to problem is the fact that there fire them. are too many people in Japan. FT ti BA Note were tnen permitted to spend ,-,.., , only such dollars as London die County Commissioner Ed Hog- tated In other words gU dol ers, one of the sturdy and stead- iar purchases in the British em fast members of our FT & BA pire were rationed by London. H ,m th grunhnnnsn .avH went over to Silverton Saturday Australia, ior instance, could the crops and probably develop- to a friend chicken feed and had T . y 1 m l"e USA umess explored and prescribed for the nation's economic health. ed the fattest crop ot sea gulls an acc dent. We haven't been Chanter 3 Th. fh,.ii in history. So much did the Mor- ... , .u , , pAf. Marsha" - hi. i.h. "Me to wrangle the particulars Plan: After abolishing the ster- tion they erected a statue to the uul "ear as we can aeauce . " V""1 "me tions I xBAi-v.cin.iib, UlC 1 HSU in 1947, Briefly, Here Is Truman's View of Economic Health Washington, July 11. OI.R) President Truman today reviewed, iplored and prescribed for the nation's economic health. In the main, he found it good, even if in a decline. But he said there are hidden dangers of a depression. Here, briefly, is the president s diagnosis and his recommenda ns: ' TAXES: No general tax in- in lines of agricultural produc- The government also has a lot of pre-war politicians in it, like Premier Yoshida. His cab net, and those of earlier post war premiers, have been told many times to cut expenses, to run a more efficient administration. Last winter occupation offi cials got specific. They said "balance the budget." The government stalled. Fin ally it was told to weed out some of the deadwood among its own employes. It turned to the bloc of gov- ... ,1 1 . . , U i U V.- . TT A ,,,B. 4t..rntf tn maVa ..ucra Kosuu w 1 1 ii 1 1 may uc seen m rrao . J 11 'a a - y - . . , . . , mLrfJl JtfiXSffiFJS? n 8 '""'IS 168 8t tfu,ie Spe6d This wa' Portly before the "ease tand ". g!ne"i J tion wnich encourage an In- ernment workers who are most ST??f. vShm "XTltyL a." -t a timeTLeHdVe.,7nhfr! crease in the total domestic con- highly organized and under .- .. .... :r' wnen the British some errand of mercy but we doubt if it is time yet for folks whose fields are infested to de pend on them to do the trick. If they do, no doubt Doc could build a bird house statue to the seagull at Riverdale. once again appealing for financial middle. Now he has them over were to be scarified, or something, helrj and resealed. One version was if they got help, the British vaa eauiiK ite cream nromiseri. ihmr m,o,,1h nnH ffift tnxpH should be re stored. The three per cent sumption of farm products." transportation tax on goods SOCIAL SECURITY: Raise should be ended. The loss .nw Aimr nrmricinn in Pfimfll'- aga,in ate income tax laws should be survivors insurance system. and the moisture froze under- abolish tne sterling-dollar pool athe "d" Mt corporate aid ttVrtdJtete 'increasing the proposed 160,000 ! ,hh.la,Ving.'h.lm .!"d Accordingly the Marshall lb"afd;' P! e" be an- Pay roll taxes to 1 per cent actually meant thai onl3 JANUARY, 1949 Budget Surplus "Essential to sound fiscal pol icy." Taxes "I recommend legislation to increase (taxes by $4 billion a year." Credit Bank and consumer credit "should be controlled." Price and Wage Controls "I recommend . . . selective price control authority (and power) to limit wage adjust ments." Material Allocation "The need for mandatory con trol still exists." Commodity Trading "I recommend . . . authority to prevent . . . excessive speculation. JULY 11, 1949 "We cannot expect ... a budget surplus In a declin ing national economy. "No major increase in taxes should be undertaken at this time." "Ample credit supplies . . . are favorable to business in vestment." 'The necessary anti-Inflation program was not ad opted. The dangers . , . are now being revealed." Not mentioned. See above. Incidentally, Doc tells us that out at his Eden the birds have been more thickly populated and with more different kinds of birds this year than at any time he can remember. In fact, while office. Not mentioned. See above. bregon Gets 'Daylight' Train Service J The Southern Pacific's "Shasta Daylight" is more than Just another fancy train. It is belated recognition to the Pacific Northwest of this region's growing importance. The train's firBt run was Sunday. California saw the original "Daylight" streamliner in the epring of 1937. This idea of having a first-class train cover the run between San Francisco and Los Angeles during daytime hours proved popular. So a "Noon Day light" was added in 1940. A year later another "Daylight" train was routed down the San Joaquin valley between the two metropolitan areas of California. By the spring of this year, this series of "Daylight" trains had carried their 10 millionth passenger. One of the advantages the Pacific Northwest has in this new "Daylight" service is in improvements that have been made through experience with the special trains in California during these years. Salem, on the "Shasta Daylight" route, welcomes the new train as one offering the people of the area and state a better type of train transportation. Here's That Predicted Predicament Petts Wood, Eng. VP) You've seen a bull fiddle? You know how big a telephone booth IsT A man lost a bull fiddle here In a telephone booth. Stanley Small, manager of the Daylight Inn, found the In strument there the morning after a dance. Assuming It had been mislaid by a member of the band, he waited for the owner to turn up. That was 10 weeks ago. "If anything has happened to the owner," Small said today, "perhaps his relatives might like to take It off my hands." This Guy's Had Streak of Trouble Houston, Texas UP) Think you've got trouble? Early last week wrestler Sterling (Diss) Davis was denied a license to promote wrestling matches. Wednesday a sign shop he owns burned. Friday he woke up choking In smoke. His house was on fire. All of those fancy robes he wore to wrestling matches burned, too. POOR MAN'S PHILOSOPHER A Gal Who Made Good In a World for Men By HAL BOYLE New York WV-Mildred Gainey laughs when she hears mem bers of her sex complain about prejudice against women in Industry. The c o m- plaints amuse her. Because in two years, starting from nothing, she has built up a $250,000 busi ness. And she did it in a man's field the con struction indus try. "Being a wo man was far from a handicap," she smiled. "It has been a pos itive help." She founded her business Gainey's construction newslet ter at the age of 47. Today, headquartering in Boston, she distributes to more than 1,000 customers a 30 to 40-page daily strong leftist influence the railway and communications workers. If it was looking for the benefits in the old age and trouble, it found it. He It was explained that firing workers u .r .u a. r . "..u.uiiigijr me mirinaii . t,rnnn ran ho an- PBy rou taxes io ivi per cent actually meant that only 14U.UUU busting them. A any rate, traf- plan was worked out, and under 5"? L ZX J, M each on employer, and employes would lose their lobs, because years forward "No changes in next Jenuary would provide the the other 20,000 were just fic tho tv laim which would re- money. The present rate is one titlous names on the payroll. It nlt in a lareer net loss in rev- Per cent He repeated his rec- seems this is an old Japanese enues would be justified at this time." PRICES: Businessmen can maintain production and sales voluml bv cutting prices, "even at the cost of temporarily re lic is being held up pending it Britain receives the largest the repair job. grant of all countries. Adding up the Marshall plan, the loan, and Small stack of poker chips other aid, the United States has picked up on the courthouse now poured an average of a Jawn indicated goings on right billion dollars a year into Bri- unaer tne nose of tne snenil s tain since the end of the war. Chapter 4 The Current Cris is: Despite the Marshall nlan in ommendation that aid to the custom so that appropriations needy aged and blind be extend- for government departments can ea to other needy persons. be kept high. PUBLIC WORKS:1 A $9,000,- . 000,000 public works program Naturallv. there was trouble the fiscal years 1950-51-52. with the workers, with the com munists egging them on. is far more important than main- tain tne construction industry at ,uddenly decided to return taining profit margins." a high level of activity and thus thousands of Japanese prison- WAGES: Management should strengthen the whole economy." ... nf war hplri ,in. v Hn not cut wages in order to reduce WORLD PEACE: Defense ex- By now they were thoroughly penditures cannot be reduced Indoctrinated and many joined now. "But as our policy for in the riots and strikes. They peace takes effect, it should be, defied the police, among other possible in future years to re- things, which brines us to the fntorinf i. ? duced profits. Maintaining Coupled with private construe .nu Z?l f?h 8re volume in the present situation tion, he said this should "main. " vAi. All, 9 CI1SU goes for many other western European countries. As a result. Sir Stafford Cripps now threatens to do what Britain promised not to do under prices. "Business cannot be 1 4V.A n.,nV.QD resetorenthagretem,enV?,Ce 7 of" the worker' is restore the sterling-dollar pool. mimIained." The present 40- ed furiher Durchases from the c.ent. Aour l".8 duce tnfse e.Perditur which question of the day-the police. up snouia oe raiseu in io tcuu. now mane sucn neavy demands After Gen MacArthur won- TTMI?lurm.nvMirTrT' Minimum unl u...a ,, .... . . ... . CriDDS has also rlnno what "a.a.aa -- ' "!" aerea aiouo in puDiic on July Beaverbrook "and Churchill t,ro- lederal-state T"'05','"!'1 52-20: Asked that the a whether communists are entitl Beavertjrook and Churchill jpro- benefiu snouid be raised to week lnr week, h.np(j; f .A to ,, st.nriino Ahp w. a phone, a mimeograph ma chine, a typewriter and an of- firp rMihlpl Brpttnn " . " , weeK ior oz weexs oeneut ior ea to legal standing, tnere was "I wasn't umrrirf ,k,. "e n01 10 5 " Bre"n rov de ud to $30 a week for -mi m: u. .i-... ..u, ..i 4v. petlng with big business," she throat barter , I ,rh 26 weeks ?.,r sTf. unemP10y.e to July 25, 1950, with certain Some Japanese and occupation as the recent Argentine meat ri.. iu" L " changes. Such benefits, he said, officials think this would Just Dal B07U saio. i ngured my service would sell wider if it were cheaper, so I cut the cost of my newsletter to about one third the price charged by my com petor. And from the start I con centrated on giving my custom ers personalized service." pact What all this boils down tinnal RVPratTA VlPinL? tiaid IS tO eon Va en'lfl "nmnlp " . ,lvlar5,la" P'an al lne funds are available for this pur- height of its operation, is not really working, despite the fact that the plan has been admin istered with great speed and a Now she has an office staff of reasonable degree of efficiency. 35 full time employes and 75 . . , correspondents scattered across the New England states. They keep a day-to-day check on the progress of the region's $2,000, 000,000 backlog of projects. Facts In the Case In con gress, they blame the British crisis on the labor government and socialism. This ignores the building fact tnat other western Euro pean countries are likewise bad- pose in the trust accounts of most states." While state legis latures are acting, he proposed a federal reinsurance fund to be estimated for those states meet ing the minimum standards to insure that the increased pro tection will not threaten their solvency. He said that "al though unemployment has not risen to the dangerous levels which would call for all-out should not be available to those drive the Reds underground and eligible for unemployment com- make it easier for them to pose pensation under state laws, ex- as matyrs. cept when state benefits are It looks like the occupation used up, or to bring the state of Japan has become a prime level up to the federal. communist target. Her newsletters bers where there tell plum is potential bulletin on building activities work in their area. Architects, throughout New England, "We serve as a kind of infor mation center for the construc tion Industry," she said. So far as she knows, she is the only wo man editor of a construction publication in this country. "Some people say it's an odd field for a woman to be in," she said, "but I don't feel that way. I feel at home In it.' contractors, sub contractors, of fice equipment firms, railroads, furniture dealers. Insurance ly off, also that Britain has made emergency measures," the gov- more heroic economies than ernment must take some action, most. OUTLOOK: "We are now in It also ignores the fundamen- a transition period, in which we tal trouble with England and must work toward conditions western Europe generally, that will promote a more stable namely, that It is eating more and enduring growth in produc- companies all get customer him it is producing; that it has tion, employment and purchas- aer starring as the punchy ing power." "To restrict busi ness investment, curtail produc tion, reduce employment or tips from her bulletins. too high a standard of living for A long acquaintance with !ts weaJth: and that it expects us hunriroH. n ( h- to pension it Off. structlon field is one of Miss cruae way oi puiung slash wages, Decause our econ- Gainey's chief advantages. but " mi8ht be cheaper in the omy has declined somewhat, auiib luu lur ua io urne over would only serve io arag us as a son takes an aged further downward." ujsriuir: Anticipates anoiner NOW IT'S 'MALE CHEESECAKE' Perfect Hollywood Man Put Together by Ryan By BOB THOMAS ' Hollywood, July 11 m Here's the newest thing under the Hollywood sun male cheesecake. Ever since Mack Sennett's bathing girls, Hollywood cheesecake has sold like well, cheesecake. Now it is getting another gender, reports Robert Ryan. Neck Lex Barker. Shoulders Alan Ladd. . Chest Kirk Douglas. Arms Robert Mitchum. . Midsection and hips Sterling , The actor discovered this "Whenever we know of a soe- ttij , a . . . Aiugmnu, ia a sun laites an cific pro ect anyone 1. Interested parent u'nder his J IQ0. in, we give him a personal call," The Bplllon nr. she said. As soon as bids prizefighter in "the set-up." It was his first postwar film in which he showed his naked chest. Since then a vast amount Hayden. of his fan mail asks for his Legs Errol Flynn. photo, specifying he should be Ryan mentioned others with as undraped as possible. good all-around shapes: Bill Wil- And when he tours the coun- Hams, Vic Mature, Donald The British once were afflu- deficit. "In a declining national try, photographers have been O'Connor, Guy Madison, and in 5h. h Zlr. n th. fiPlrl fnr ..kedon SX' Z ent because Xhe were milkln economy," he said, we cannot asking him to do a Gypsy Rose the small, handy-size, Mickey She has been in the field for asked on . building project she Asiatic coIonies MiUions of peo. expect a' ,urplus. Lee before the shutters click. All Rooney. gets the plans and specifications and keeps them on file in her of fice. Subscribers who want to bid can come there and check 11 years. After graduating from high school she went to work in the nflA nf Dndfln mihlicatinn specializing in regional industry lnem ,l their lelsure news. When it was sold In 1945 to a nation-wide firm Miss Gainey in private life Mrs. James William Reardon decid ed it was time to retire. pie in those colonies lived int farm pnT.irv- Arlnnt Kfrro. this amazes big Bob. above the starvation level, while tary of Agriculture Charles F. "Heck, I'm no tarzan," he "Proof of the fact that Holly the British empire wore ermine. Brannan's agriculture plan. It says, adding with a canny eye wood men are in good shape," But with a social revolution in wnnlri authorize direct nrorinc- in hnsiness "hut if thn' nrhnt ne added, "is the fact that many Asia, the British have to live tion payments to farmers on they want. I'll Eive it to 'em." o tne 50-year-old men can still "But I quickly became bor ed," she said. "I had too much time on my hands. I didn't know what to do with myself. And old customers of the firm I worked for kept phoning and urging me to go into business for myself. So I decided to try." Miss Gainey, whose business on their own crowded island, certain goods to make up the with little help from the grown- difference between support up and Independent dominions, prices and those received on the The same is true of the Dutch, open market. "It is desirable to also affluent at one time from recognize clearly that the ob- milking Asia, but now in des- jective of farm support prices is perate straits: and, to a lesser to maintain an adequate level of Is increasing steadily, is optim istic about the future. "There is a boom ahead in public building and highway construction," she said. pass the cheesecake test.' . . , , , , , . Ryan, who is now playing a Ryan hinted the male cheese- fully-clothed role in "Bed of cake trend might come from a Roses," recalled the controversy belief that male stars wear a decade ago over whether Rob- falsies, too. ert Taylor had hair on his chest "I think the public has an "That's no test of rugeedness." A pleasant, blue-eyed woman of 49, Miss Gainey still does all her own housework and likes it. What ls the biggest asset of women in industry? "Friendliness," she said. "That extent, the French, who still farm income and promote shifts idea were blown UP with air," said Ryan, who has a fair-sized he said. "Actually, film actors stubble on his chest. "The She began in April, 1947, with will overcome any handicap." Claims Title of Oldest Baby Sitter St. Louis (U.PJ Mrs. Johannah Joeckel, 80, claims title to the oldest professional baby sitter in the area. "I wouldn't be satisfied just sitting around doing nothing," she says, although her job sometimes keeps her out until Z i.m. have better builds than the aver- greatest specimen of a man I age American male. They have ever saw was Max Baer in his to; it's part of their business." fighting prime. And his chest To prove his theory, Ryan of- was hairless." . fered the perfect Hollywood But some film stars take no male, composed of the best parti chances. There is still a market of the community: here for chest toupees.