MEDFORD 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
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i EMM eai m m i a
KlHatiM
30Q0E
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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
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I