V
BUSINESS TRENDS STUDIED
Observers Believe Wall Street
Betting on U.5. Inflation Ahead
By SAM DAWSON
New York, Dec. 20 tf) Manv nh.n v.iS
Street, Washington and PiUsburgh-and apparently Ma n stee
too are betting on inflation ahead
Brokers report that the public is coming into the stock market
and that there is . noticeable shittfrom bond, ad P Lds to
the buyjng of common stock
both trends usually considered
Indicators of inflation-minded
ness around the country.
Washington is drafting next
year's budget in a financial
atmosphere ruled by deficit fin-
nacing, which means the pump
ing of new money into the busi
ness stream. Washington also
notes that installment credit
Is rising and that the authority
to apply curbs has lapsed. And
low interest rates and easy
money are still prime policy at
the treasury, in spite of federal
reserve criticism. All these are
listed as inflationary.
Pittsburgh sees steel prices go
ing up, and figures that the Ueel
companies wouldn't have taken
that step unless they were bet
ting on sustained steel demand
In the months ahead, and on gen
eral business speed-up such as
accompanies the first phase of a
new inflationary spiral.
Steel being an essential raw
material for about 40 per cent
ot American industry, a price
rise there can only mean higher
production costs all along the
line. Even it competition forces
some absorption of the hike by
steel processors, there seems to
be some price rise to the con
suming public for a multitude of
goods in daily use. And in oth
er cases ,such as autos, where
price declines had been antici
pated in the months just ahead,
the increase of $8 to $10 in the
teel used in making a car, may
halt the planned price cuts for
cars.
Already the appliance makers
are talking of raising their pric
es to meet the increased steel
oharges.
More important, possibly, are
the indications that labor will
use the steel price hike as the
springboard for asking pay
hikes, the United Auto Workers
(CIO) union says it will ask
General Motors for a wage in
crease and for better pension
and health insurance plans than
it got from Ford. Steel workers
seem sure to use the steel price
hike as an excuse for starting
the fifth round of wage-price
boosts next year.
Until inflation gets well un
derway, if it does, the cost of
living will show little of its ef
fects. That is because much of
it is based on farm prices, and
commodities continue to slide
slowly if jerkily down. Rents,
however, seem likely to rise.
The textile market shows some
strength again, so that clothing
prices may not decline as much
as some once hoped.
Retail prices will still be bol
stered in one way or another by
Washington. Farm subsidies
keep food prices from dropping
much. Continued high taxes, the
eoming hike in the minimum
wage, and the talk of Imposing
new general five per cent ex
cise tax on maufacturer's sales
11 would be added in time to
the over-the-counter price you
would pay for goods.
The deflationary side of the
picture? Well, today there are
predictions that the jobless to
tal next year may rise to five
million. Farm Income Is expect
ed to continue to fall. National
income as a whole may be lower
next year than this. Exports
eem certain to slump further.
And the construction industry
looks for more public building
but less industrial and commer
cial building.
Open Highway
Bids, Portland
Portland, Ore.. Dec. 20 (U.R)
The state highway commission
auciosea today that cost of the
right-of-way for Portland's new
Sullivan Gulch highway has
been going up beyond original
estimates.
When the super highway Dro-
ject was first proposed in May,
1948, cost of the right-of-way
was estimated at $3,200,000, but
today it was learned that the
cost will approximate $4,810,-000.
Sullivan Gulch, a freeway
project, is to connect with the
Columbia River highway east of
Portland.
In another action, the com
mission reported that three
miles of right-of-way on the
Coast highway north of Brook
ings has been donated by the
Pacific Coast Borax company.
Proposals on 11 highway pro
jects were opened by the com
mission. Among the low bid
ders: Linn county Mountain
States Power company canal
bridge west of Lebanon on the
Santiam highway; replace ex
isting trestle. Snook Bros., Cor
vallis, $16,808.
Bagley Named
Bank Manager
Amity The appointment of
C. W. Bagley as manager of the
Amity branch United States Na
tional Bank is announced here
by E. C. Sammons of Portland.
Bagley's appointment will be
come effective January 1.
The new manager succeeds H.
W. Torbet, who has served as
manager of the Amity branch
since it was opened, following
the purchase of the Bank of Am
ity by the U. S. National in De
cember 1948.
Torbet, who joined the staff
of the Bank of Amity in 1927,
was president at the time of the
consolidation. He will now en
ter the insurance field in Yam
hill county, with a new office
nearing completion on Fifth
street, just west of the bank
building which will be ready by
January 1. Frank L. Chambers
will continue as assistant man
ager. Bagley is a son of Mr. and
Mrs. George Bagley, Amity. He
plans to move his family to
Amity as soon as possible.
Capital Journal, Salem, Orejfon, Tuesday, Dec. 20, 1949 17
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FHA
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iVifc Real Estate Loans
Farm or City
Personal and Auto Loans
State Finance Co.
153 S. High St. Ur. S-216 - 222
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(Upper Suggestions
FOR THE MAN IN QUESTION
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FROM
TME M A N Hi
Ways to Wish Him
"Merry Christmas"
1. Rabhor Silk Robes
2. Cocktail Jackets, lined rayon
3. Manhattan Formal Shirts 6.50
.12.95 to 19.95
17.95
4. Manhattan White Shirts (all collar styles) 3.25 to 4.50
5. Manhattan Pattern Shirts 3.65 to 4.50
6. Manhattan Sport Shirts 4.95 and more
7. Rogue Palm Springs Shirts 5.95 and more
8. Textron Pajamas (cotton or rayon) 3.95 to 6.95
9. Interwoven Socks, a complete selection 55c to 2.95
10. Interwoven Lounge Socks (leather soles) 2.50
11. Cashmere Slipon Sweaters 17.95
12. Slipon Sweaters, all wool or part cashmere. 7.50 to 10.50
13. Coat Style Sweaters 6.50 to 10.95
14. Slacks, all wool tweeds, gabardines, etc. 10.95 to 22.50
15. Sport Coats, hand imd. tweeds, Shetlands 27.50 and more
16. Scully Glove-Suede Jackets 45.00 and more
17. Monarch Suede and Horsehide Jackets.19.95 and more
18. White Stag Four-Seasons Jackets 10.95 and more
19. Cooper's Jockey Underwear 1.00 to 3.00
20. Textron Boxer Style Shorts . 1.25 to 1.65
21. Daniel Hays Gloves 5.00 to 8.50
22. Hamley Famous Hand-Tooled Belts 4.00 and 4.25
23. Pioneer Belts, Braces . 1.50 to 5.00
24. Beau Brummell and Hollyvogue Ties 1.00 to 3.50
25. Evans Slippers, soft and hard soles 4.95 to 6.95
26. Rest-Rite Wool-Lined Slippers 4.95 to 6.95
27. Manhattan Hankies, plain color, initialed, 35e to 1.00 ea.
28. Swank Jewelry, links, chains, tie clips, etc. 1.00 and more
29. Trouser Hangers and Slack Racks 50c to 2.00
30. Scarves, white or pattern rayon, all wool 1 .75 to 3.50
31. Shoe Trees, hardwood, automatic action 2.45
32. Clothes Brushes, most styles 1.00
ay
Gift
Certificates
FOR
Kuppenheimer Clothes
Dobbs Hats
Nunn-Bush Shoes
1
THE MAN'S
The Store of Style, Quality and Value
MOXLEY & HUNTINGTON
416 State St. Salem, Ore.
OPEN
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'TIL CHRISTMAS
JIM'S SHOE SERVICE
175
N. High
to