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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Feb. 11, 1957)
Salem, Oregon, Monday, February 11, 1957 THE CAPITAL JOURNAE Section 2 Pare 3 Restoration Includes Custodian Cottage FURTHER PROGRESS Restoring Doc Newell Home, DAR Project Restoration of the Robert "Doc" Newell home, a Daugh- , ters of the American Revolution propect at Champoeg, Is now complete except for exterior and interior paint ing. A neat, four-room custodian's cottage, now under construction, is a part of the project along with landscap ing. Dedication date has been tentatively set for this spring. (Capital Journal Photo) TIGHT MONEY: WHAT FUSS IS ABOUT Major Battle Shaping Up in Congress, Over Federal Reserve Board's Monetary Policy By ROGER GREENE WASHINGTON Ml - A major battle over two little words "tight money" is shaping up in Congress and its reverberations will be heard across the land. mnnrv scarce in hnnni times? Board the indonondent federal icics arc vital lo cncck Inflation. What are its nnssihle effects nn acencv sometimes described as an Sen. Fulbright (D-Ark). chair- the nation's economy? Is tight "automatic pilot" which regulates man of the Senate Banking Corn- money necessary? Why? the flow of credit and money mitt agrees that the Reserve Phirmn William tloCltnennip enve (he hrtarH'c hnrH.mnnPV rrfll- . . ' " - f Board s hold-the-line tactics are T M0j POU.A8S CONSUMER . CWWT S "" 30 ..ifekflT BANK LOANS . ::(eOMMSSCIAk :: INPUerttAi. AM. r.AlMCULTUiAL) 20 H 55 0ILUOM OA MORTGAGE ctsr OUTSTANDING J I I l L L NRSONAL X AVINOS 154 . 55 1 561 THE PRICE OF BORROWING RISES 25 J tEMBll mstRvi 2Jn DISCOUNT RATI r(HY,W. tt.tANK) .5 54 55 1 1 Ji Truman to Expound Mid-East Views in Florida Talk Tuesday ISLAMORADA, Fla. UV-Former President Harry Truman, visiting this Florida Keys hamlet for a working vacation, is expected to give his views ot the touchy Mid die East situation in a speech to morrow night. But he is keep ing mum at the moment. Truman will be the principal speaker at a combined Jewish Ap peal fund-raising dinner at Miami Beach, first ot four addresses he is scheduled to make during his three-week visit in this area. Tiie former President declined to discuss the Middle East situa tion with reporters when he ar rived in Miami by train yesterday. Earlier he said "no price is too hiqh for peace" in answer to a query about President Eisenhow er's record peacetime defense budget. "It is a lot cheaper than the price of a third world war," he said. He also indicated approval of the Eisenhower Doctrine for mili tary and economic aid to the Mid dle East should it be necessary to halt Communist aggression there. At a stopover in Jacksonville, reporters asked him if he thought Southern members of Congress were justified in their attitude to ward civil rights. He retorted: "They certainly .are not justi fied. I. for one. Ie never been opposed to civil rights. Those Southern congressmen know it too." The Trumans were given a po lice escort from Miami to Islamo rada, a 70-mile drive down the Overseas Highway. Truman's "Little White House" was at the Key West naval base during his presidential days. Truman is scheduled for speech es in Key West Feb. 23 and in Miami Beach Feb. 25 to raise funds for the Truman Memorial Library, now under construction in Independence, Mo., his home Saturday night he is to address an Israel bond rally dinner, which will launch a 75-million-dol- iar bond campaign. probably the best way" to pre vent "another boom-and-bust era But Rep. Patman D-Tex), chairman of a House banking sub committee which will conduct a broad probe of the government's monetary system, says tight money may wreck the economy. He wants the federal board to take its foot off the brakes. And Sen. McNamara (D-Mich) contends that the Eisenhower ad ministration's curbs on credit have "hit the economy like a hy drogen bomb." What It Means Broadly speaking, tight money means there is a dearth of cheap casy-to-gct money or credit What causes tight money? Ex perts cite four main factors: 1. Industrial expansion, spurred by the mushrooming population. multi-billion-dollar road building programs, new schools, etc. All these make a huge demand on the available money supply. 2. Heavy consumer buying on credit. 8. Federal (and state) money requirement. Government bonds become due, so the Treasury pays off the old bonds and reborrows That takes money off the market which otherwise might be used to finance the buying of new homes, cars, TV sets. 4. Failure of porsoal savings to rise fast enough to keep the normal "available money" pipe lines filled. How It's Controlled Economists say the Federal Re serve Board can case or tighten the supply of money almost on a push-button basis. All the board has to do to relax the money pinch is to buy back By BEN MAXWELL Capital Journal Writer Another step in the program of the Daughters of the Amer ican Revolution for the restora tion of the Robert "Doc" Newell home near Champoeg state park is now under way in construction of neat, four room home for the site's custodian and grading and landscaping of the premises. Doc Newell, Rocky Mountain trapper who has the distinction of taking the first wagon from Ft. Hall to Walla Walla and on ward into the Willamette valley in 1841, was prominent in the or ganization of Oregon's provisional government. He was instrumental also in founding the Oregon Spectator, the territory's first newspaper. He was called "Doc" not because of any medical training but simp ly because he had a reassuring bedside manner. Platted in 1853 Newell engaged in early trans portation on the Willamette and platted Champoeg Jan. 19, 1853. He built his residence above the town during , the mid-1850s and Champoeg Masonic Lodge No. 2 was conducted in upper rooms of his dwelling. He also opened store at Champoeg during the early 1850s. The flood that swooshed through the Willamette valley in 1861, destroyed all of Newell s valuable enterprises in Champoeg and only spared his home because it was on higher ground. Pres ently Newell went to Idaho and became, in the late 1860s, an In dian agent at Lapwai. He died of heart disease on Nov. 27, 1869, and is buried at Lewiston. DAR acquired the Newell homesite from Henry Zorn. His original dwelling had so com pletely deteriorated that the old structure was razed except for remnants of fireplaces and work on restoration began with laying of the cornerstone by Grand Mas ter Leslie M. Scott, Aug. 13, 1955. Present for the ceremony was Secretary of the Interior Douglas McKay, Mrs. Alfred Powers, state regent of Oregon DAR; Mrs. John Y. Richardson, chairman of the Newell House restoration com mittee, and the public. Cost $30,000 Cost of the Newell house res toration, now complete except for exterior and interior finishing, has been approximately $30,000. Cost of landscaping and construc tion of the custodian's home is additional. All construction has been accomplished by Walter Bernard, St. Paul builder. Upper floors of the restored Newell home will be furnished as the lodge hall of Champoeg's Masonic Lodge No. 2 appeared in the 1850s, according to DAR plans. Lower rooms will be furn ished with period pieces. No definite date has been set for dedication of the restored land mark but tentative plans have set the time for spring of 1957. Cryotrons Replace Tubes and Transistors Tj Lasso Snares Balky Cycle SAN FRANCISCO 11 - Patrol man Jack Miller's motorcycle cranked up with an explosion and then started burning. A Miller jumped off, the blaz ing machine toppled under an au tomobile, fn rnrie oatrolman Ed Lawson. whose mount is a horse caned Chief, to take quick charge of a hot situation. With a lariat. Law son lassoed the burning motorcy cle and pulled it from beneath the "when the firemen he called had smothered the fire, Lawson re marked to Miller, with some satis faction: This should teach you not to sell horses short." Durante Turns 61 MIAMI BEACH. Fla. - Co Bidian Jimmy Durante received a four-fool-hich Win birthday coke voteniv, Irrdi l.lf citizens (t Lakeland 4 Cyprea Gwdms, Fla. pto y CAMBRIDGE, Mass. The use of Incred ibly tiny "Cryotrons" in place of tubes and transistors, in computnr research was an nounced by Massachusetts Institute of Technology, as a major contribution In electronics. Research engineer Dudley A, Buck, 29, who worked on the project for three years, holds the equivalent of the forty odd tubes shown In the background, In the palm of his hand. Ruck said today's computers fill whole rooms, hut now a large-scale digital computer can he con densed to i cubic foot. (AP Wlrcrlhot.) Extra Day on Flight Puzzles DENVER W When time hangs heavy and you want to enliven a group discussion, try this one: If a man flies around the world in 45 hours and 19 minutes, yet watches the sun rise and set three times in that period, is he two or three days older? Maj. Gen. Archie J. Old Jr.. Air Force commander, con fesses that's got him a little puz zled. And he has reason to mull it over because he led the three Air Force B52 jet bombers mak ing a nonstop flight around the globe last month. He was here to tell Air Force Academy cadets about the flight yesterday. The oldest civil engineering proj ect which is still being used is in the Shomiram aqueduct in Turkey. It was built in tiie 81 li century, B. C. Billion Postal Deficit Faced WASHINGTON Itf-The Post Of fice Department Is asking Con gress to require a 5-cent stamp on letter mail to avoid a deficit it said could reach a billion dol lars a year. That estimate came from Mau rice H. Stans, deputy postmaster general, in testimony which the House Appropriations Committee made public yesterday. Stans said the Eisenhower ad ministration will ask a 5-cent let ter rate. He said "we cannot face up to" the deficit problem otherwise. The House last year approved a 1-ccnt increase in first-class rates, but the Senate took no action. President Eisenhower said in his budget message last month that lie would ask for 654 million dol lars in annual postal rate boosts. Congress is expected to be asked to increase air mail rates from to 8 cents an ounce, and t boost rates on second-class (news paper and magazine) matter, and on third-class (advertising) mail. In his testimony last month. Stans said at present rates a defi cit next year of 651 million dollars is indicated. That could pise to 754 millions if rialroads are allowed to boost mail hauling charges, ha said. Philippine Budget Up MANILA I President Ramon Magsaysay sent to the Philippine Congress today a record 1957-58 budget of $606,262,700, an increass of more than 45 million over last year. OIL TO HEAT YOUR HOME CAlt - Geo. Cadwell Oil Co. We Hurry! Phone EM 2-7431 its federal bonds from the banks, thus converting a bank's securi ties into cash. Each dollar the banks get in cash means they can loan $5 because they are only re quired to have a 20 per cent cash reserve. Many banks are now "loaned out" to the limit. To get more cash, they have to borrow from the Federal Reserve and when the federal agency thinks too much loose money is pushing prices too nigh, it raises inter est rates .as an anti-inflationary measure. Since the banks have to pay higher interest on the money they borrow from the Federal Reserve, in turn they have to charge high er interest rates on money Ihey loan to the public. Thus the cost of "hired" money, as Calvin Coolidge used to call a loan, goes up. With the aim of holding down inflation, the board has raised its rates six times in the last two years. What It Does As a concrete example of what tight money" means to the aver age U. S. consumer, we'll soy you want to buy a new car. A couple of years ago, the bank or otner lending agency gave you $1,940 when you took out a $2,000 loan for a new car. It charged you only $60 or 3 per cent for borrowing the money. Todav you 11 probably nave to pay 4 per cent or $80 on the same $2,000 loan. It costs you an extra $20. Similarly, you may now nave to nav 5 or 5V4 per cent on a $io.- 000 first mortgage loan for a new home instead ot the 4 or 414 per cent which prevailed a few years a co. Some economists say mat in me flush of prosperity we are going too far. too fast in Dorrowing, spending Snd expanding. Consum er debt is at an alltime high, so is business debt. . And to make matters worse there's a rush to borrow, spend and expand now before tight money sends Interest rates higher than ever. WEIGHTED fa j ui nt jui Bin - E', Cotnp Sdonlifk Imp pfcrtt bov pFOY4 f fctiv lo WKitrf hi biovi Ihty ar icUnflflcollr tignid olorg qao tomicfll Hfwt. If yei rtqwlrt supporting gorntnt for gancral m, Ihtt werld-foatetii gar fit! nay bt Hm a twor to your figvrt problcn. If In doubt, m your doctor and etk hia ebout Comp Support!. Thiy'r odtrattly prlcod. 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