Medford mail tribune. (Medford, Or.) 1909-1989, April 10, 1942, Image 9

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Medford mail tribune., April 10, 1942, Page 9, Image 9

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Newspaper Page TextMEDFORD MAIL TRIBUNE, MEDFORD. OREGON, FRIDAY, APRIL 10, 1942. PAGE NINE HeadedFor Bankruptcy? Launch Destroyer at Night Babion Sees No Cause for Alarm """""l WHEA J Babson Parle, Mass., April 10. I have been asked how the government can continue to spend more than it takes in with out going into bankruptcy. The first answer is that the govern ment can issue legal currency. This is not true of individuals or corporations or even of municipalities or states. All these four groups can be "busted;" but this is not necessarily so of fed eral government. Government vs. Private Enterprise The above ir en ainpto of the c o nf u s e d understanding which exists among many people of the operation of government as an enterprise, compared with the operation of private business as an enterprise. The average person has much difficulty in understanding how the govern ment can -continue a financial policy which would be ruinous to an individual or to a business. We should also keep in mind that our government is a separ gmate legal entity and operates on "an accounting basis which is quite separate and apart from that of its people. It is not the government which is short on merchandise and has a well-filled till but rather our businessmen and in vestors. The $70,000,000,000 in bank deposits in the country be long not to the government but to the individuals. The business man is oversold, not the govern ment. We all know that Wash ington has been spending far more money than it has gain- fully received from taxes, rev- enus duties, and other sources. It will take considerable time f to raise sufficient funds to any where near balance expendi tures and income. Hence, our government, but not necessarily our businessmen and investors, will continue operating upon a "tjVieficit basis. Appropriation And Debt Since September, 1939, when World war II got under way, congress has appropriated 170 billion dollars for armament and other purposes. Of course, not all of this has been spent. ' Furthermore, receipts have been secured from tax payments and other sources which have paid about SO per cent of the amounts actually expended so far. In this connection, March income tax receipts permitted the bud get to be balanced temporarily Now, however, greater deficits than heretofore will shortly follow. Our national debt Is crossing the old 63 billion limit. By the end of the calendar year it will probably be 80 billion. The debt will continue to rise and will ultimately reach much higher figures. Many feel that we are headed for financial bankruptcy and ruin. "Why not ultimately write it all off through bankruptcy proceedings and start all over again with a new set of books?"they ask. Government Bonds Safe As Rock There is a vast difference be tween the bankruptcy of an In dividual and that of a govern ment. Many honorable men have been forced into bank ruptcy by causes over which they had no control. Faith among individuals in society is not disturbed under such cir cumstances. It would, however, be very wrong for our people to declare their government bank rupt and wipe out its debt that way. Regardless of the power of the government or the weak ness of the minorities who are Us creditors, this should not be used as a convenient excuse for repudiation. I have no fear that it will be. I continue to be an optimist on the United States and Canada. The procedure which Wash ington and Ottawa has been fol lowing is taking care of our ris ing debt. This includes the low interest rate which the debt bears. It is not necessary for government or an individual to repay a debt when the interest charges are promptly and re peatedly honored. In fact, creditors seldom want repay ment when repayment Is pos sible. They prefer to remain in vested in such sound securities. If the interest rate continues to remain low, the debt can easily be met for years to come. Hence, holders of government securities should not be fearful of the in Q trinsic worth of tneir invest ments. Sales Tax Coming As Fair Method The present rate at which tax payers' money is being spent does not mean tlat the debt can not be reduced after the war ends. Following the close of the war. the budget can be bal anced if the party in power truly desires to do so. My rea son for this is not alone that armament spending will decline. The point is that we will con tinue to be taxed somewhat upon a war basis long after actu al hostilities are over. This means that a surplus should pile up. In time this could equal and surpass the national debt at the beginning of the war. The government will continue during the war to spend much more than it takes in. To horten the deficit period, con O ress is now considering a new tax bill far heavier than any thing we or any other country has ever known. Wahineton is sound A seeking new tax sources, which unlike the In heritance and high income taxes are not destroying our "seed corn." I believe that an honest sales tax is the answer. For a federal or state govern ment to depend wholly on a sales tax would be very unfair to people with small incomes. A sales tax however super-im posed on present income tax payers is not unfair to those who pay no Income taxes. In fact, such a sales tax could be more of a hardship on those who are also paying high incomes taxes in addition. Ottawa, April 10 OF) The customs division of the national revenue department announced today that tourists entering Can ada in automobiles from now on will not be permitted to import any gasoline in excess of what is in the tanks of their cars at the time of entry. A provision whereby tourists had been permitted to bring in with them gasoline sufficient tor 300 miles' travel without payment of duty has been with drawn. The new order was issued in connection with rationing of gasoline in Canada, which went into effect on April 1. 63 Diplomats In Nipponese Hands Tokyo (from Japanese broad casts), April 10. (P) Domei reported today that 63 diplo mats captured at Hongkong, in cluding United States Consul General Addison E. Southard, would be sent home under an exchmge agreement Japan has with the United States and Bri tain. , Forty-nine of the diplomats are Americans, two are Dutch, five Belgians, three Norwegians and four Canadians, Domei said. H life T . hp im la, ARE ESSENTIAL Continuance of a federal price support program for wheat depends entirely on marketing quotas receiving at least two thirds favorable vote at the ref erendum May 2. Fred C. Homes, chairman of the county AAA committee today reminded Jack son county wheat growers. Existence of other price sup port programs and the recent enactment of the price control law has resulted in the false im pression in some circles that a price support program will be continued for wheat regardless of the outcome of th quota ref erendum, the chairman said. No existing legislation pro vides for any form of support to wheat prices except loans, and the law specifically provides that if quotas are rejected, the loan program cannot be contin ued. Homes declared. Under the Steagall amend ment, prices are supported at 85 per cent of parity for those com modities for which increased production is needed in the Food for Freedom program, the chairman explained, adding that wheat is certainly not one of those commodities. The price control law, the chairman added, is strictly a price ceiling meas uure. and does not provide any form of support to the price of wheat or any other commodity. What will happen to wheat prices in event quotas fail and the loan Is withdrawn is any- I one's guess, Homes believes, t "When you consider that the j United States has a surplus of 700 million bushels, and Canadi-1 an and Argentine wheat farmers are getting around 80c bushel, it's not difficult to determine which way U. S. wheat prices will go," he added. Coos Bay Loggers Need More Tires Portland. April 10 jP) Coos Bay lumbermen and loggers are facing an acute shortage of truck tires. J. Arthur Berg, Coos county rationing administrator, said today. Here conferring with state rationing officials, Berg said the situation would be intensified soo.i because new logging opera tions were scheduled to start in that area. Cm ftc.ll Ttlbun. want ads. GLASSES Dr. K. M. Hood, Optometrist tp.ru Bids. Mala ana Rlxrsldi. Mtdlord. Ore Skillful Mrvlre Rmion.hl. mm The Grange Sams Valley Grange Members of Sams Valley Grange are reminded that next regular meeting will be Tues day, April 14. A good attendance Is desired. The saxaphone takes its nam from its Inventor, Adolphe Sax. Dm Mall Tribune want sua. I I 1 W W ataaaBBSSSSsssar ' tJ .1 l wJ WW i EMM eai m m i a KlHatiM 30Q0E aoc OE ONE CALL BUY ALL For Free Delivery Service Dial 2239 It Always Pays to Buy at Lumarut Bearina a hue Victory "V". the 1.700-ton destroyer Endicott was launched at Seattle, Wash., at a niciht ceremony at the Seattle. Tacoma Shipbuilding Corporation yards. WORK LOSS LOW pages in January and February Washington, April 10. (VP) and said this loss constituted WPB Chairman Donald M. Nel- "less than one-fifth of one per son reported today that 101,140 cent of the labor whith went man days of work were lost into war production during these through war production stop- months." SPECIAL! SPECIAL! A I PI T l""-" i. .. I I 1 . U Menus of the Day By Mr. Alexander George Charting For tlealth Dinner For Two Salmon Puffs (calcium. Iron) Mashed Rutabagas (vitamin C) Magic Salad (vitamin A. B) Wholewheat Bread (vitamin 81) Raisin Conserve (calcium. Iron) Ambrosia Dessert (vitamin B, C) Milk (calcium, vitamin A. Bl) Salmon Puffs X cup mashed seasoned potatoes. cup salmon. 14 teaspoon celery salt. 1 teaspoon chopped parsley. 1 egg. beaten. 3 tablespoons butter, melted. Mix Ingredients and beat well. Drop portions Into buttered, muffin pans or Individual baking dishes or custard cups. Bake 20 minutes in moderately hot oven (376.) Remove and sur round with creamed lima beans, celery, mushrooms or cauliflower. Magic Salad cup cubed cooked carrots. cup cubed cooked beets, t teaspoon chopped on Ion a 1 tablespoon chopped parsley. H teaspoon salt. teaspoon pepper. S tablespoons French dressing. H cup cotta?e cheese. Mix vegetablea. seasonings and dressing. Chill Arrange on shredded lettuce and center with cheese. Amhrosla Dessert, Toasted 1 cup sliced oranges. 1 cup sliced bananas. cup maple syrup. 1 tablespoon lemon Juice. S tablespoons butter, melted. Mix fruits, .syrup and Juice. Into shallow baking dish, brush with butter and broil five minute. Pour STANDBY GOLDEN CANS SWEET CORN ONLY 1 CENT WITH THE PURCHASE OF A 49-lb. Sack K DOWN FLOUR (America's Finest) 1 CAN STANDBY GOLDEN For SWEET CORN Only (Cream Style) WITH THE PURCHASE OF A 1 24,2-lb:Sacl(ffiDFLowS (Top Patent) Lntnans' Meals Sold to Yon Fresh When Flavor Best Price Now Til Monday Night The finest of Foods in all de partments and remember It always pays to buy at Lu mens' big daylight store where you get courteous, per sonal service. ILK 4 Tall cans 35c CHOICE STEAKS Cut From Grain Fed Steer.. Lb. 30c Si!' -a M mm Boneleaa Choice Short fTc Ba8f jc Pork 7Q0 Ribs, lb. 1 1 Cub8. bi Li Roasts lb. Ll Fine, lor Baking WM' "" Leg or Lola HAMS, half or whole, lb. 36c; Fine Assortment Lunch Meat, Pickle, ChM No. I Grade Choice Cut Choice Veal OAc Beef ))e Pork 9Ae Sleeks, lb. JU Roasts, lb,W Chops, lb. JU Loin Cut From Oraln Ttd Steer Lola Cut hems S lb 25c I fry Ens as SACON, Extra Fin Quality, lb. 28c PICNICS. Small, Lean, Tender, lb. 29c Veal ROASTS . lb. 23c Choice Shoulder No. 1 Orade Leg of Lamb, 30c Lb MECO GRAPEFRUIT e Packed In Florid No. 2 Tin , 2 tins for 25c ON SALE AT YOUR GROCER'S BUY NOW! . . . SUPPLY LIMITED Dm Mall TrlDun. want atu. DEL MONTE SLICED PINEAPPLE No. 2Vi Size Tin Tin28c Del Rogue SUGAR 10 lb. 65c WHOLE KEMIEL CORK Meco trend Fine Quality 2 tins 25c PORK & BEANS Glen Valley rand No. 2V Siie Tint 2 tins 25c ' IMS 33v5S -v, 1 If !? FiUinyftiiiMgE TOMATO JUICE 3 cans 23c DICED CARROTS 12c LUMANS' FLOUR SPECIALS DRIFTED SNOW AZk $2.09 FISHER'S BLEND, 49-lb. sack ...... S2.C3 KITCHEN QUEEN, 3-lb. sack SI.C3 KLAMATH BOUQUET, 49-lb. sack . . $1.43 Smith'! DELICIOUS FLO No. IVi 81m Tin Each 19c Diamond A No. 2 siie tin. GINGER SNAPS Freeh and Crisp 2 pounds .............. 29c FIG BARS Fresh Fine for the Kiddie 2 lb. 29s Fresh Home Grown CarroU, Beets, Turnips, Cabbage LARGE CRISP CELERY SWEET HAVEL ORANGES LETTUCE, Ig. heads, fresh solid CO! Delicious pie and cake, ban, roll, cookie, naii etc. Shop the fakery Dept. when In the (tore. Saturday Special Honey-Fruit Filled COFFEE CAKE A delidou. whoUMrae Coffee Cake, filled with crushed fruit and flavored with rich, goldmi honey Each 15c ODOl OE OE30E I