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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Sept. 25, 1942)
PAGE SEVEN Air Thriller On Rialto Screen Tarkington Picture Here Sunday f What About Interest Rates? Babson Advises Short Term Investment MEDFORD MAIL TRIBUNE, MEDFORD. OREGON, FRIDAY, SEPTEMBER 25, 1942 . m m im' Babson Park, Mass., Sept. 25. An interest rate is a money fee paid bv those who have less than they need of money, to those who liave more than they can use. The rate at which money will be lent during the coming inflation will depend upon the relative status of two elements: (1) the eagerness of those who have insufficient money to have or do things which require money; (2) the eagerness of those who nave ample funds to loan money for an interest revenue. How Inflation Works On Interest Rates Inflation means that there is plenty of money of a kind. In some cases, inflation takes on the characteristic of an apparent shortage of purchasing power. In Germany in the 20's since the huge increase in the supply of money was placed to the t benefit of a small clique, the ', rest of the nation suffered a severe shortage of money. Prices would go up faster than this flood of money would reach the public and most business men. This advance was caused both by a decreasing desire to hold onto money and by an in creasing demand for tangible goods. If inflation should take the shape of a huge expansion of currency, or a sudden increase in the use of currency, there might be greater assurance that interest rates would go up dur ing inflation. In this country, however, inflation is taking the form of slow bank deposit infla tion. So many people use checks to spend their bank deposits that we are, pot immediately threatened with radical currency inflation. Government Mow Controls Rates Inasmuch as the government now controls the Federal Re serve board, the interest rates which are accompanying the present slow inflation are a mat ter of government policy. One must not forget that ever since the banking system was in vented, the supply of monetary funds, whether as credit or cur rency, depended upon govern ment legislation rather than on gold or silver. Today most of the money lies in the coffers of the banks and big corporations. The willing ness with which they have been lending money to the govern ment is because they want to hang onto the privilege of lend ing. They especially fear com petition from the government which has shown its readiness to assure a large supply of lend able funds if banks are not will ing to do so. Money Rates During the War Recent statements emanatina from government quarters indi cate that the comptroller of the currency, when examining banks, will tend to consider the government bond portfolio of such banks as a non-risk ele ment in the bank's earning as sets. On this basis, banks may be permitted to continue the purchase of government bonds regardless of their financial statement. Consequently, banks are engaged in the wholesale purchasing of government bonds. During the war, we should continue to witness low interest rates. Deposits, however, will so increase that, notwithstand ing low rates, banks should be able to earn dividends during the war. If allowed to make higher service charges, they may even accept a lower rate of interest on their- government bonds. The deposits of the average bank increase to about 79 pr cent of its increase of gov ernment bond holdings. Money Rates After the War In the post-war period, there will develop a resumption of in ternational trade which should cause a renewed demand for funds for the purpose of re habilitating devastated regions and inventories. This will come Just at the time when in dividuals and businesses will be subjected to most severe income taxes which they may not have the money to pay. Due to in creased wholesale prices much more capital will be required to carry adequate Inventories. Hence, many must go to the banks to borrow. Individuals will then want to cash. In their war savings bonds so that the government mty also have to borrow from the banks to get the money to pay them. This cashing In of government securities held by Individuals will not be sufficient to replen ish the coffers of such individu als or business firms. It is likely, therefore, that despite the inflation of the post-war period, much of the money sup ply will be frozen. Banks will experience a rather, heavy de mand for loans, thus permitting them to charge higher Interest rates than can be thought of today. Furthermore, from fear of a decreasing value of money due to inflation, lenders will An Important Announcement ...TO OUR LAUNDRY AND DRY CLEANING PATRONS! In cooperation with the national rubber conservation program we have eliminated houie-to-hous pick-up and delivery service, coniining delivery to commercial accounts only. To take the place of this regular service we hav established a convenient down-town office. DROP IN SERVICE WILL BE MAINTAINED AT THE STAR CLEANERS 102 EAST MAIN From 8 a. m. to 7 p. m. Daily fl Th same hiqh quality laundry and dry cleaning service will be provided from this convenient aown-iown neaaqueriers. CRYSTAL WHITE LAUNDRY "Wings and the Woman", air thriller which opens a four-day run today at the Rialto Theatre, brings to the screen the first story of the women who ferry the flying fortresses to the men who drop bombs on Hitler and his lot. Anna Neagle and Robert Newton star. Frankenstein Show At Holly i" "ha J i to vj s 1 AlT 7 VY - -ri , , - ..V., . ,i,.',...ml mMlM Th most amazing screen dra ma in years comes to the Cra terian Theatre Sunday for a three day engagement with "The Magnificent Ambersons", Booth Tarkington's best-selling novel produced by Orson Welles, the man who made "Citizen Kane". Dolores Costello, Richard Ben nett (matinee idol of yesteryear), Joseph Cotton, Anne Baxter and Tim Holt have starring roles in this strange story of a woman who loved too hard. 10 years when they probably then can be exchanged for a better security paying a higher rate of interest. The original Panama City, founded in 1319, was destroyed by Morgan the buccaneer In 1671. Saturday Special All Kinds of Cookies With the opening of school why not have on hand a goodly supply of our delicious cookies? Sugar, Oatmeal, Peanut, Cocoanut, and Others. 15c a Dozen. For Fin Cake and Pastries Frankenstein comes back from the dead to haunt the liv ing in "The Ghost of Franken stein", opening a three-day show ing Sunday at the Holly Thea tre. Lon Chaney, Jr., replaces Boris Karlotf In the horrorfu. role of the monster. "Sunday Punch", featuring Jean Rogers and Guy Kibbee, will play as the companion fea ture. want a higher Interest rate due to the increased risk Involved. Housing and Commercial Loans When we come to housing loans, it Is likely that the pre sent low interest rates may be a permanent feature; but for loans to merchants, we must visualize a situation when the lend-lease policy , may have drained our huge surplus of most goods, not only foods. It is well to remember that the need for commercial loans arises prim arily from the creation of goods and crops. When commercial loans shift from productive acti vity to inventory-holding it Is usually about the end of the business boom. Therefore, lend lease is an instrument which, in the post-war period, might cause a renewed, industrial boom at high prices when most firms find their cash resources de pleted. The outlook for banks is prob ably more hopeful now on such 4 long-term view than it ever has been since 1926. A small increase in interest rates should greatly add to a bank's profits. Of course, politics enter Into the problem. Social , reformers al-, ways enjoy tinkering with some Roxy Hill Billy The Weaver Brothers and El vlry put forth an all-out laugh attack in "Shepherd of the Ozarks", hilarious hill-billy show starring the popular group at the Roxy Theatre for tonight and tomorrow only. "Boot Hill Bandits", featuring the Range Busters, plays as the added Western. intriguing toy which they don't quite understand. We, how ever, have had so much social uplift in the last decade that perhaps voters are getting tired of it. Hence, to bond buyers I say avoid long term, low yield ing corporation bonds but buy bonds maturing within five to AND TALK AI0UT NOURISHMENT! Crisp, golden Honey Maid Grahams are just as vhole tomt as they are flavorful! Get a big green package to morrow! "ONlYTHt IIST MIITt A MOIHIH TISTI" Honey Maid r- n it ti a u n m n m IwIl" CRACKERS BAKED BY NAIISCO NATIONAL BISCUIT COMPANY o D o aoi aoi OE3Q Teph.n. 2239 EjHJ Rfl A Itsf T MINCE MEAT Kerr's Best 2 lbs. for 29c TOMATO JUICE Knights' 3 tins for 25c GRAPE FRUIT Fancy Royal Club 303's 2 tins for 25c Prices Now Til Monday Night Save time, save money . . . Com direct to Lumens' for your foods . . . you will enjoy shopping in this big, daylight store ... Tempting displays of th kinds of foods you delight in serving your family. PUMPKIN Royal Club or Diamond A No. 2'i size tins Each 12c CRACKERS Cascade Brand Sodas or Graham Fresh and Crisp 2 lb box 22c SAVE on HEATS -UiriANS' LUMANS' MEATS SOLD TO YOU FRESH WHEN FLAVOR IS BEST Beef Pot Country Stylo ROASTS cchr lb, 23c Sausage . : : , lb. 23c Shoulder BEEF STEAKS or Veal nrc Short 41c Pork )Ac Roasis, lb. LJ Ribs, lb. II Chops, lb. JU Choice Cuts Fine for Baking Lola Cuts A FINE ASSORTMENT OP LUNCH MEATS, CHEESE AND PICKLES Nice Assortment of Luman R. I. Red and Barred Rock HE IIS a?, lb 28c FRYERS 1 lb 35c LEG O' LAMB, No. 1 grade : lb. 30c Medium Thick Choice Lola or Rib Quality Oflc Pork )Ae Vtsl )Ac Bacon, lb. JU Roasis, lb. JU Steaks, lb. JU Mild Cur Cholc Shoulder Cuts Tender Tasty HOME RENDERED LARD J lbs. 50c Sirloin or T-Bon Steaks, choice, lb 30c Side Pork lb. 23c fresh FLOUR KITCHEN QUEEN 189 491b. Seek Klamath BOUQUET 1 49 41-lb. Sack 1 DRIFTED SNOW O 0 9 Enriched 49-lb.Sack FISHER'S BLEND O09 SS.lh. Sack S fleco CATSUP -.12c SALAD DRESSING or SANDIWICH SPREAD Table Queen Brand Quart Jars 33c lteS 35c Caaa SATURDAY SPECIAL COOKIES FOR THE KIDDIES A good supply of Cookies in the Kiddies' lunch is never amiss. This week-end we feature for their pleasure SUGAR, OATMEAL, PEANUT, COCOANUT AND OTHERS Dozen 15c Fresh Carrots, Bests, Unrips, Csbb:;s LARGE CRISP CELERY SVT.VALEKCIAOnACGES LETTUCE, lg. beds, fresh, did aoE OE330E30 30J i
