MEDFORD (OREGON) MAIL TRIBUNE FIVE
Moover Commission Recommen
lishing Government Lending Agencies
Monday, March 14, 1955
Should Be Forced
To Support Selves
By Free Enierprise
"Washington (U.R) The
Hoover Commission recommend
ed today that many of the gov
ernment's 104 lending and insur
mg agencies be abolished or
forced to support themselves un
der the free enterprise system.
These and other proposed ac
tions, the commission said, would
result eventually in return to the
Treasury of capital funds total
ing $6,217,743,000. And, it add
ed, they would forestall possible
future Treasury investments
totaling $1,114,000,000.
In addition to such "reductions
in the national debit," its overall
recommendations ultimately, the
commission saving of some $200,
000,000. The 12-man commission, head
ed by former President Herbert
Hoover, made its recommenda
tion in another of a series of re-
ports to Congress on government
reorganization. This one covered
all federal agencies making or
guaranteeing loans.
Controversy Looms
It said lending or guarantee
ing loans "is a function which
the "government should under
take only when private enter-
, prise cannot or will not perform
the function, and then only in
furtherance of a justifiable gov
ernmental purpose."
Five members of the commis
sion dissented from certain parts
of the report, which appeared
certain to stir up much contro
versy. Many of the majority's
recommendations would affect
directly government programs
involving housing, farmers, vet
erans, and small business.
The report said the number of
government lending, insuring,
and guaranteeing" agencies had
grown in 42 years from none to
104.
It said federal loans, guaran
tees, and commitments such as
mortgage and bank deposit in
surance totaled $244,272,515,000
last June 30, not counting hidden
subsidies which the commission
said should be disclosed.
Lists Federal Aids
The commission broke its
$244,272,515,000 figure down
this way:
1. Aids to housing, $55,786,
358,000. 2. Aids to agriculture, $8,643,
092,000. 3. Aids to business, $2,875,
710,000. 4. Aids to foreign govern
ments, $26,360,443,000.
5. Veterans life insurance,
$44,097,912,000.
6. Insurance of bank deposits,
$106,509,000,000.
Rep. Chet Holifield (D.-Calif.)
a commission member, said the
majority proposals "point in the
direction of a slowing down of
housing construction, restrictions
on the rural electrification pro
gram, and limitations on other
direct or indirect aids provided
by the federal government."
No Longer Needed
The commission specifically
recommended liquidation of pro
grams involving 12 production
credit corporations, the agricul
tural marketing act revolving
fund, the Federal Farm Mort
gage Corp., and loans for college
housing.
It said these agencies have
served their purpose and are no
longer needed.
It recommended self-supporting
status for the Federal Hous
ing administration, federal in
termediate credit banks, banks
for cooperatives, Federal Nation
al Mortgage association, and the
Rural Electrification administra
tion. It said these agencies should
be reorganized to assure better
management and merge them
into the private enterprise sys
tem. Higher Interest Rates
In the interest of administra
tive efficiency and economy, the
commission urged that the REA,
the Small Business administra
tion, Veterans Life Insurance,
and the Housing and Home Fi
nance agency be brought under
the government corporation con
trol act.
It also recommended that the
Export-Import bank be restrict
ed to making long-term export
loans for the development of
foreign resources and that
changes be made in the farm
price support program to cut
down the cost to the govern
ment. The report said federal sav
ings of $200,000,000 a year
would result ultimately from
requiring agencies to pay their
administrative expenses by in
creasing interest rates to bor
rowers. It , said the Treasury
would recover another $297,
751,000 from the liquidation of
certain agencies.
Canada's Province of Ontario
is larger than France and Spain
together. Its north-south reach of
more than a thousand miles
spans climates favorable to both
polar bears and peaches. East
and west it shares an interna
tional border from New York
State to Minnesota.
V 7 A
BATTLES ASSASSIN In
dia's Prime Minister Jawa
jarlal Nehru, 65, personally
fought off a would-be assassin
at Nagp-ir, India. He
wrenched a knife from his
attacker's hand in struggle on
running board of an open
auto. Police arrested the knife
wielder, a rickshaw puiler.
Winched, NY Paper
Settle Lawsuit
Over Statement
New York (U.R) The New
York Daily Mirror published a
statement today announcing set
tlement of $1,525,000 in libel
suits filed by the New York Post
and its editor, James A. Wechs-
ler.
The statement, authorized by
Walter Winchell, said the col
umnist never said nor meant to
say that the New York Post, its
publisher or editor are Commu
nists or are sympathetic to Communism.
False Impression Charged
The New York. Post had sued
for $750,000 damages and Wechs
ler S775.000 on charges that Win
chell had sought to create the
false impression they were dis
loyal to the United States.
The lengthy controversy had
been on file since Dec. 17, 1952.
The stipulation reached by attor
neys for both sides called for a
statement to be published in to
day's New York Daily Mirror
editions and for an announce
ment on Winchell's radio and
television shows last night.
The suits were discontinued
with the publication of the state
ment and payment of $30,000 in
counsel fees and costs to the
Post and Wechsler. .
Publishing Agreed
The agreement provided that
the statement should be pub
lished in other Hearst news
papers also and that either Hearst
or King Features, which dis
tributes the Winchell column,
request other newspapers pub
lishing the column to carry the
statement.
Winchell also disclosed last
night that he is leaving the ABC
network because of a dispute
over an insurance policy cover
ing him for libel.
The columnist, who will leave
the network Dec. 25 after 25
years, said he was paid $10,000
weekly 52 weeks a year under
the contract signed with ABC
seven years ago.
Unsoyii
Federal Reserve
Chairman Cautions
On Preoccupation
Washington (U.R) Federal
Reserve Chairman Williams Mc-
Chesney Martin Jr. cautioned
today against the public becom
ing "unduly preoccupied with
stock markets" because it may
lead to "ursound speculative
psychology."
, He also said margin i equip
ments the amount cf cash need
ed for stock purchases are not
"cure-alls for stock market ex
cesses or abuses."
Martin made the comments in
testimony prepared for a hear
ing in the Senate Banking Com
mittee's "friendly" investigation
of the stock market boom during
the last 18 months.
Big Market Drop
He testified only a few hours
after one committee member
Sen. Homer E. Capehart (R-Ind.)
had told reporters he is
"afraid" the inquiry caused a
$7,000,000,000 droD in stock val
ues last week, the worst in the
New York Stock Exchange in 15
years.
Chairman J. William Ful-
bright (D-Ark.) had said pre
viously that if stock prices fell
because of the inquiry then the
market must be very weak.
Martin, who was called to tes
tify largely on credit, said "reg
ulation can restrain the use of
credit for stock market purposes,
but it cannot serve as a guar
antee against all speculative
abuses."
Avoids Margin Question
The Federal Reserve Board
chairman did not comment di
rectly on suggestions by other
witnesses last week that the
riresent margin requirment of
60 per cent be increased, per-j
hans to 75 or 100 per cent. The
latter would mean that the buyer
would have to put up all the
money in cash when he buys
stocks.
Martin said. "It is difficult to
define what constitutes 'exces
sive use of credit' in stock markets."
However, he said, "So far as
stock, markets are concerned,
it seems to me that there are
certain siens or symptoms of
unhealthy tendencies when busi
nessmen or the public gener
ally become unduly preoccupied
with stock markets and stock
prices."
"An unsound speculative psy
chology may then develop that
can have adverse effects through
out the economy," he added.
ii
sychoBogy Seen in Market
Nehru's Attitude
Worry To Officials
New Delhi, India (U.R)
Security officials worried today
over Jawaharlal Nehru's ten
dency to minimize a possible
assassination attempt and took
steps to increase protection over
the Prime Minister.
Their alarm was heightened
when they discovered the knife
wielding rickshaw man who
rushed at Nehru Saturday in
Nagpur came from the same dis
trict as the assassin of Mohandes
K. Gandhi.
The officials recalled that
Gandhi also disregarded an at
tempt on his life a few days be
fore an assassin shot him to
death.
Nagpur police announced they
will charge the riskshawman,
Babu Rao, 26, with attempted
murder despite his plea that he
did not want to harm the prime
minister.
Use Mail Tribune Want Ads
Dead line for Sunday Classitied
at noon Saturday.
Daily's U-Drive
Medford Airport
Picnic Lunch on Raff
Nearly Becomes Voyage
New York U.R) Four teen
aged boys decided to eat their
picnic lunch aboard an old, aban
doned raft they found tied to a
Manhattan beach pier in Brook
lyn Sunday, but the picnic near
ly turned into an ocean voyage.
The roDe broke and winds
blew the. raft more than a half-
mile off shore before a police
helicopter spotted the frantically-waving
lads.
A police launch rescued them.
Portland Manufacturing
Plant Leveled by Fire
Portland U.R) Fire destroy
ed the Reedway Manufacturing
company plant here last night
with loss estimated at $20,000.
The plant, owned by John P.
Domme of Portland, manufac
tured wooden plugs for paper
rolls and bungs for barrels.
QD
Try the train
and avoid the strain
Enjoy a good night's sleep
on our smooth, diesel-pow-ered
train to Portland. It's
the easy, safe and time
saving way to go.
Comfortable Pullman car
with berths, bedrooms
(new low rates) and draw
ing room. Snack lounge.
Chair car, with sponge
rubber seats, at very low
fares.
For tickets, information,
Pullman reservations call
any S.P. ticket office.
Southern
Pacific
F. G. MORRIS, Agent
Phone 2-2846 f
FIRE LADDIES TO THE RESCUE Virginia Deaten finds
that chivalry isn't dead yet as she is carried through flood
water on a Cincinnati street by fireman Jim Morganroth
to rescue boat manned by fireman Gene Downing. At the
time the Ohio River reached above 60 feet at CincinnatL
Blimp Being Built To Hunt Submarines
Akron, 'O. (U.R) A new
type blimp, to be used by the
U.S. Navy for hunting submar
ines, is being built here.
The Goodyear Aircraft Corp.
is not very talkative about the
slimmer-than-conventional light-er-than-air
craft that has been
seen floatinng around here, but
it does admit that it contains
a lot of unique equipment.
One feature that can't be hid
den is its three tails instead of
the conventional four.
The firm, which built that
World War II sub-hunting stal
wart, the K-ship, did say the
new 2G-1, as it's designated, is
"equipped with latest develop
ments adaptable to such aircraft
Subscribers
To report improper or non-delivery
of the Mail Tribune phone
2-6141 before 6:45 pjn. daily and
10:30 a.m. Sunday.
If regular delivery arrives short
ly after you call please notify of
fice thus eliminating special mes
senger service.
to enable it to detect, . locate
and attack enemy submarines
in the event of war ... (and to)
refuel in flight from surface
craft and can reballast by a wa
ter pickup system."
Buy
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