Image provided by: University of Oregon Libraries; Eugene, OR
About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (April 10, 1957)
Salem, Oregon, Wednesday, April 10, 1957 THE CAPITAL JOURNAL' Section 1 Page 11 , Home Builder Are Outbid in Money Market NAHB Offidal Would Beef Up Activities , Of Fanny Mae (Editors Note: Thl It 11m ui-nnii In a series of articles on housing .and the lumber Industry.) By WILLIAM DEAN Eugene Register-Guard Writer ' EUGENE Wi One of the big problems of the housing business today is that money is like any other free commodity it goes to the highest bidder. And today the highest bidders arc the businesses and industries, who can borrow for expansion and charge off part of the cost through taxes. House builders are limited on their government-backed finan cing, to a rate which is below the starting bid of most business loans and they are limited by the nature of the market. More Money More Demand This . competition (or money, more than any actual shortage of it, has turned a lot of capital from house construction which will pay Vi to 6 per cent to business loans at 8 per cent or consumer credit financing with interest rates of 12 per cent. Actually, there is more money In circulation now than there was a year ago. It just seems as though there is less money be cause the demand is so great, Hermann N. Mangels, president of the Federal Reserve Bank of San Francisco, told the West Coast Lumbermen's Assn. last week. Mangels said that it would be pos sible for "The Fed" to allow more money to circulate but that if this were done without a corresponding Increase in production, the result would be a pyramiding inflation. Other Credit Unfettered Nels Sevcrin, a vice president of the National Assn. of Home Builders, has been critical of the effect of credit restrictions on home financing at a time when consumer credit and industrial expansion are allowed to run un lettered. "It's absurd to consider our tight money policy as though it stands by itself. Our monetary policy goes off in one direction to curb inflation and causes a de flation in the home building in dustry. On the other hand, our lax policy encourages business spending rather than saving," Severin said. He said that business invest ments in plants and facilities rose '4R per cent during 1956, while the light construction industry, fell off 29 per cent. One way Severin ''would 'take' to channel money into . the housing Industry is to. beef up the activi ties of Fanny Mac. This is form ally known as the Federal Na tional Mortgage Assn. and is part of the Housing and Home Finance Agency of the federal government. It operates as a central mortgage bank, buying mortgages where and when money is scarce and selling them where money is more plentiful. Although Fanny Mae can buy only the GI and FHA guaranteed mortgages (about 40 per cent of the nation's total house-mortgage debt), Severin and others feel that stronger purchases by Fanny could contribute greatly to the health of the house construction Industry. Limited to purchases of GI and FHA mortgages, the organization Parakeet Goes AWOL Often, ThenReturns CAVE JUNCTION Hi A para keet who apparently figures he's a homing pigeon, but doesn't know which home,' is becoming well known as the AWOL bird of Cave Junction. He lives at the C. J. Etherton home on Old Stage Road between forays into the world. Although he regularly puis on a disappearing act. he always, in time, comes home. This return is usually thrniiirh the help of neighbors who have learned to .recognize The yellow green bird and phone to report his location. His latest escapade sent him wandering for three days. Then he hitchhiked into the Dr; A. N. Collman living room on the shoul der of Roy Wells who didn't even know he had a passenger. Japan's Envoy Handed British W on H-Plea LONDON, m Prime Minister Macmillan Wednesday handed Japan's special envoy his reply presumably "no" to Pre mier Nobosuke Kishi's ocrsonal appeal that Britain postpone her forthcoming H-bomb tests in the facilic. The envoy, Dr. Masatoshi Mat sushita, has been here 10 days pressing his government's case. He is to leave for home Thurs day. Macmillan s note was not made $775,061 Tax Bill Owed by 8 in Portland Yellow Cab Operator Must Pay Up More Than $500,000 WASHINGTON Wl-A U.S. tax court judge has ruled that eight Pnrllnnri flrn nrpa racMnntc num the government $775,061 in income! taxes and penalties. A series of decisions in the con-- solidated tax case was reached by Judge Ernest H. Van Fossan in signing computations agreed upon' Dy me parties ana the government f as the result of an earlier ruling by the court last; fall. Largest of .the decisions involves i $533,580 in back taxes and penal-1 tics against Ezra Royce, Portland Yellow Cab operator, for 1944 through 1947. Royce, with his wife Dora, also was held to owe $44,645 for 1948 and 1949. Other decisions with the total tax and penalty include: Fred C. Niederkrome, Portland, $34,288 for 1945: B. Royce, Van couver, Wash., $22,847 for 1945 and 1947; estate of Isabelle H. Royce, wife of B. Royce, $44,134 for 1945, 1946 and 1947; Robert T. and Agnes C. Jacob, Portland, $71,013 tax and penalty for 1945; and Al bert L. and Bertha Schneider. Clackamas County, Ore., $24,553 tax and penalty for 1945, 1948 and 1949. j A major issue in the case in- Doctor Sees No Alcoholic Ills Solution, Save Fewer Drinks Beer is also heavily ing of the American College of , on spirits. taxed. By FRANK CAREY AP Science Reporter Physicians late ytsterday. he of- BOSTON (fl - Cirrhosis of thcjfered those international, statistics liver associated with alcoholism has "practically disappeared" in England presumably because high taxes on booze there ha-'e cut liquor consumption, an Amer ican doctor says. In contrast, said Dr. Robert M. Kark of the University of Illinois School of Medicine, alcoholic ltsijM Le ,?Sn ibut hi Tadded: to support his contention that a cheap and ready supply" of liquor is a major factor influencing the extent of alcoholism and other ail ments associated with it. He said that a generation ago, "Saturday night drunkenness was common in the streets of London, in the past 25 years in France and remains high in United States. Addressing a symposium on al coholism at the 38th annual meet' "Through taxation, the price of hard spirits has become prohibi tively dear, and only the very wealthy can afford to get drunk "Thus the British consume far less liquor than the French, who drink wine and who consume on the average nine gallons of ab solute alcohol. per person per year. . "The British also drink far less than the averge American, who consumes 3.9 gallons of absolute alcohol per person per year." Dr. Kark led up to this discus sion by saying that "over the years I have become more and more pessimistic about our ability to deal effectively with well-developed cirrhosis in the alcoholic, and believe we need to prevent alcoholism rather than treat cirr hosis." And he said he saw no solution to the problem of any of the other diseases associated with alcohol ism "save a reduction in the in cidence of alcoholism." HE'S IN A MUD DLE HOLLYWOOD (UP) - Several movie actresses are anxiously awaiting TV producer Bernard L. Schubert's return from location in Africa with mud. The actresses learned that the African goo Is an excellent mud-pack skin-purifier. Scott McLeod Nominated as Ireland Envoy WASHINGTON m President Eisenhower Tuesday nominated Scott McLeod, State Department security chief, to be ambassador to Ireland. He would succeed Wil liam Howard Taft III. i McLeod, who will be 43 In June, Is administrator of the State De partment's Bureau of Security and Consular Affairs. The White House said Taft, soa of the late Sen. Robert A. Taft ot Ohio, is returning to the United States to become a member of the State Department'! policy plan ning staff. Eisenhower also nominated Miss Francis E. Willis; now ambassa dor to Switzerland, to be ambassa dor to Norway. Miss Willis, 58, a career diplo mat and this country's only wom an ambassador at present, would succeed L. Corrln Strong, who haa resigned. The nomination is sub ject to Senate confirmation. Swiss officials said April 4 their government had approved Henry Taylor, journalist and radio com mentator for the post ot ambassa dor to Switzerland. SAVE FUEL! INSTALL A public, but the prime minister has repeatedly insisted that the tests volved ourchase hv the six mm scheduled in the Christmas Island and L.R. Bentson of Vancouver, area in the Pacifio must go on.! B.C., of 750 outstanding shares of ,"T , I Oregon Motor Stages and the sub- holds about 3 per cent of the 93' sequent retirement in 1945 of the billion dollars invested in such '350 shares held hy Bentson. paper. Last August Fanny was The courl held tnat the stock purchasing about 4,000 mortgages retirement was the equivalent of ' "dividends and therefore taxable. nign point wnicn nas neen sus tained since, purchases were at 18.000 a month, with a value of about 140 million dollars monthly. However, housing's problem is not simply a case of whether Fanny can continue to buy heav ily in the secondary mortgage market. As Paul Akin,. Western manager for Fanny, told . he WFIA, "We can only hope to level but some of the hills and valleys" in mortgage investments. Neither Fanny nor anyone short of Congress can help the home builder compete with expanding industry for money. Congress can help but it would involve, .at least, major changes in govern ment guaranteed loan provisions. Possibly it would involve subsidi zation. And, even that might not solve a basic problem created by a change within the industry it self. . . . ; ( Gas or Oil FURNACE no down payment' A&R Equipment Company 1950 Pringle Road, Salem EM 2-0771 VS. FEDERAL INCOME TAXES, UNDER THE P&KEIfTi HKSI unwcitv INIW,IHEVEAl( 'BENEFICTAl'S' FIRST OFFICE OPENED m-immiM ml THEN, THOUSANDS HAVE MJSL MM FOITAXCC, VOVCAN fcMraiTHO-AIJI) REPAY LATER BY Welike tosay'YBS! THE MONTH. PHONC FOR 1-VlltT LOAN OR COME II.' AND ASK MANAGER f Loans up to $1500 on Auto, Furniture or Salary 105 SOUTH HIGH STREET, SALEM Ground Floor, Oregon Building Phone: 2-2464 OPEN EVENINGS BV APPOINTMENT PHONE FOR EVENING HOURS l.ani .l.d, 4. fttirftnlt ! ill i.rrao.rfinq town " DIRECTORS Charles A. Sprague, Chairman Russell F. Bonesteele R. I. Elfftrom Axel Ericksen Tinkham Gilbert Roy Harland Gardner Knapp Donald B Peterson Ralph W Raines Arthur I Railing Jacob Weil Condensed Statement of the Condition of THE COMMERCIAL BANK OF SALEM SALEM, OREGON at the close of business on March 14, 1957 ASSETS Cash and Due from Banks . . $ 424,739,61 U. S. Gov't. Securities ' . . 1,465,109.41 Municipal Bonds .... Loans and Discounts Net . Bank Premises & Equipment Total 17,241.23 1,825,820.16 141,792.57 $3,874,702.98 LIABILITIES Capital Stock . ' . Surplus . . ... Undivided Profits " Total Capital Accounts . Deposits .... Interest Collected -. Not Earned Reserve for Interest, Taxes, etc. ... Total . $ 250,000.00 100,060.00 13,476.91 363,476.91 3,467,161.15 30,848.74 13,216.18 $3,874,702.98 SdAik OF SALEM CHURCH mi CHEMEKETA STREETS WOODRY'S . . . SO. COM'L. ST. APRIL home furnishings Shop Storewide-Save Up to 50 Means nationally famous brands of furniture floor covering and appliances are on sale throughout the store at "Dream Buy" reduc tions! Here's just three typical examples of the matchless values you can expect. Act now! For whatever your particular needs may be it's a pretty safe bet Woodry's will have it at worthwhile savings! Reg. 119 50 Simmons Foam-Rest "Supreme7 Twin Set on Legs MOMYDOWN - You get both mattress and mat ching box springs at this low price! A Jumbo Value for Sure, Wonderful Springy foam Rubber over famous Simmons Innerspring Construction. Here's a "Sleep Fetch in'! Combination that will "Helax Y6u from Today . . . Prcparo You for Tomorrow" with its buoyant cushion comfort . scien tifically Designed to Rigid Simmons Specifications . . . Covered in Long Wearing Panel Striped Ticking. V Blonde Oak Or , Ribbon Grain Mahogany PLASTIC TOP modern occasional lablei In your choice of popular stylet and finishes-the Mar Proof tops wipe clean, with a damp cloth, yet has all the beauty of select woods. Logs have brass ferrules for added smartness . . a tru- ly "SPECTACULAR" valuel Your Choice Corner-Cocktail or Step Tables $J88 NO MONEY DOWN (M (g.) (.) (b.) Big Savings On YOUR Choice A. Night Table Reg. $19.95 B. Cottage Bed Reg. $29.95 C. Bunk Bed Reg. $59.85 D. Student Desk Reg. $49.95 E. Single Dresser and Mirror ' ' Reg. 89.65 F. Double Dreier and Mirror Reg. $109.45 G. Four-Drawer Chest ... Reg. $44 95 () (d.) (e.) of These Authentically Styled Colonial Pieces $16. $24. $45. $38. $58. $79. $29. Five-Drawer Desk-Chest (Not III.) Reg. $69.95 $55, Panel-Pester Bed (Not III.) Twin or Full Siie Reg. $24.95 $19. Bookcase Bed (Net III.) Twin Size With Foot and Ralls Reg. $49.95 $36. ."Jenny llnd" Bed (Not III.) Full or Twin Siie Reg. $39.95 $29. Trundle Beds (Not III.) Reg. $7t.85 $49. "Pineapple" Poster Bed (Not III.) Twin or Full Siie V Reg. $37.95 $26. The Charm of Early American Design . . . Priced for Modern Budgets! Colonial Bedroom Group 3 Pieces 2 Twin Beds 8-Drawer Double Chest $(o)(o)00 Only No Money Down J-ong, Low, Easy Terms Shop: Fridays and , Mondays Noon 'Til 9 1 1. .1. ;1 1 i ! 11 I 'it m in M :V j-i f i it A I if ' A