G
Current Boom Bears Close Watching, Economists and President Believe
e-
Danger Signs in
Record-Breaking
Pace of Credit
By ROBERT F. MORISON
, United Press Correspondent
Washington (U.Rj Is busi
ness too good for the nation's
own good?
o President Eisenhower thinks
not. So do many economists in
and out of government. But all
feel the current boom bears
cioe watching.
G Economists are concerned
generally with possible danger
rsigns in the record-breaking
;"pace of credit, spending, stock
gj-narket prices and production.
Too much of a boom could carry
'ihe seeds of a future decline.
3 Or as Mr. Eisenhower put it
(S his news conference last
week: The twin dangers of de
ilation and inflation are always
-present. Now is the time to be
cwatchful and Jo take the neces
sary measures to keep the econ
cmy in balance.
The measures taken so far
tiave been curbs on housing
loans and bank credit. Other
actors being watched by the ad
ministration include:
,r, .1 Consumer credit total
(Jtonsumer borrowing, including
nstallment plan purchases,
Amounted to $32,471,000,000 in
cSune, compared to $28,666,000,
4)00 in June 1954.
Inventories Increase
2 Inventories All inven
tories of goods were increased
jiti the second quarter at an an
nual rate of $3,500,000,000. A
government economist described
tfais as "not bad in relation to
sales."
3 Capacity of industry to
produce and the level of em
ployment Employment went
over the 64,000,000 mark in
June and unemployment stood
at 2,679,000 lower than
throughout 1954. Production
pushed the gross national prod
wet the total of goods and
services produced to a record
8383,000,000 annual rate in the
o second quarter. That was again
of about $8,000,000,000 over the
first quarter, one of the greatest
cjuarter-to-quarter increases in
our history.
4 Prices Both overall
wholesale and consumer price
0 lvels have been relatively
stable since 1952. However,
prices received by farmers,
which have been' sliding down:
ward since the postwar high in
1M1 of 302 of the index to 243
ilk mid-June, "do create some
worries." Prices farmers received
were the first to decline before
the onset cf the 1930 depression.
But there was no crop support
ptogram then to put a floor be
neath the farmer's income
(..The credit curbs were mild
ones. The Federal Reserve Sys
tem increased its discount date
the interest it charges mem
ber banks to borrow money. The
Federal Housing Administration
and the Veterans Administration
raised down payments and short
ened repayment time on guar
anteed loans or houses.
Congressional reaction to
tliese steps has been mixed.
3 Sen. Arthur V. Watkins (R
Utah) a member of the Joint
-Congressional Economic Com
mittee, praised the "mild" re
straints. ;"Too much credit is always
(iangerous," said Watkins.
wSen. Joseph C. OMahoney (D
Wyo.), also a member of the
committee, said "credit inflation
is clearly rising beyond safe
limits." He called for further
steps but said he did nqt want
to speculate on the impending
study by subcommittees of the
.ioint Congressional Economic
Committee.
; However, " O Mahoney added
that "with consumer credit ris
e i;;g. with stock market prices at
t tlieir highest level in history,
"ssd with farm prices falling
2fe3dily we have a very danger
. os situation."
;T, O'Mahoney said the "runaway
stock market" is "the conse
quence of the administration
being run by spokesmen of big
business." o
?Sen. Pat McNamara (D-Mich.)
took a different tack. He ac
cused "the Republican bankers"
such as Secretary of the
Treasury George M. Humphrey
and Detroit banker Joseph M.
Codge, former Federal Budget
Director of "saddling new bur
dsns of usury on the millions of
piJople who borrow money." He
said the higher Federal Reserve
discount rates are "playing fast
and loose with our future pros
perity." A government economist said
Medford
Tribune
Second Section MEDFORD, OREGON, TUESDAY, AUGUST 9, 1955 Six Pages
Fly Watcher Learns Secret of How Flies
Manage To Make Landings on Ceilings
By H. D. QUIGG
United Press Correspondent
New York (U.PJ "How does
a fly land on the ceiling?" the
man suddenly asked.
Beats the living daylights out
of us. Is it important?
"Tell you what," the man said.
"I'll bet you know all kinds of
unimportant things. And I'll bet
you have no idea how a fly lands
on a ceiling, which is an extreme
ly important operation to the
fly. at least."
Well, how come?
"A fly," said the man, "obvi
ously can't fly upside down." He
can't? "Of course not. He's not
built for it. Birds can't do it
either. They've got to fly right
side up or they don't fly at all.
So you see the fly has a terrific
problem, coming in for ceiling
landing."
The man refilled his glass with
scotch and water. He took a large
V i ' is
DENIED COMMISSION Eugene Landy, 21, an honor
graduate of the Merchant Marine Academy at Kings Point,
N. Y., works aboard a Sun Oil Co. tanker at Marcus Hook,
Pa., after signing on as an able-bodied seaman. Landy was
denied Naval Reserve commission because of his mother's
past Communist Party affiliations.
Liftrell Paris To
Open in Brookings
Littrell Parts, Medford, will
open a new retail store in Brook
ings, Ore., on about Oct. 1, it was
reported this week.
E. A. Littrell, head of the
firm which now has stores in
Medford and Grants Pass, said a
new building in Brookings has
been leased. He said the rapid
growth of the coastal community,
and a demand for the firm's prod
ucts there, is the reason for the
expansion.
George Pittman, who has been
with the Medford store for about
10 years, will move to Brookings
as manager. Mrs. Margaret To
kar, a Littrell employee for six
years, will also go there as book
keeper. Don Johnson, who has
been a salesman in Brookings
since January, will also work
from the new branch store.
-The complete line handled by
the parts firm will be available,
and the store will be stocked
weekly by truck. Some 38 em
ployees will serve customers of
the three stores.
the government's moves in the
past 10 days to tighten credit
are aimed at "taking the very
top off the boom, before it hits
you. You then remodify any seri
ous slump., that might develop."
Another economist said the
only sense in which he could
consider the present boom . as
"too good" was that it contained
"upward pressures" of costs and
ultimately on prices.
In effect, he said, if consumers
buy too much, businessmen ex
pand and order supplies to satis
fy anticipated future demand. If
this is done too fast faster than
the goods can be supplied
prices go up. However, he said he
saw no evidence at present of
such excesses in buying and
building.
Portland (U.R) Georgia-Pacific
Plywood company has an
nounced the purchase of Feath
er River Pine Mills, Inc., of
Feather Falls, Calif.
Albany, Ore. (U.R) Kenneth
Betz, a Jordan district beef and
sheep raiser, has been named
Linn county Grassman of the
Year.
DR. CORNELL SABO
ANNOUNCES
His Return from Military Service and the
RE-OPENING OF HIS OFFICE
for the practice of
g DENTISTRY
305 Medical Center Bldg Phone 3-3934
Salem (U.R) Cecil M. Sly,
Crook county school superin
tendent, will replace W. E. King,
Pendleton, as text book commis
sioner, Rex Putnam, superin
tendent of public instruction,
has announced.
bite of shrimp salad and sat there
chewing and looking wise. Final
ly he said:
"I used to do a little piloting
myself about 25 years ago, flying
a light plane. Well, here about
six months ago we had a re
union, some of us old guys who
used to fly together. Got talking
about one thing and another, and
the question came up."
The question?
"How does a fly land on the
ceiling?"
Oh. That question.
"One of our group got so in
terested that he decided to do
laboratory research. He went
home, closed the bedroom door,
opened the windows, and got a
lot of flies in the room. Then
he got a pair of binoculars, lay
down flat on his back in bed,
and started making scientific
sightings."
, He collected data, like a man
with a telescope?
"Precisely. Now, here's the
dope. For an ordinary landing,
when a fly is just fooling around
and isn't in a hurry, he does a
half loop. Just at the top of the
loop, his feet touch the ceiling
and he lands. That's the simple
fly landing.
Half Roll Landing
"But if he's going fast being
chased by another fly or some
thing the force is too much for
him to pull into a loop. Too many
G's on his wings. They couldn't
stand it. So ... he simply does a
half roll. At the end of the roll,
he hits the ceiling, runs a little
way, and that's it.".
Is this on the level?
"Certainly. After I got his re
port, I checked it myself. Only
I used opera glasses instead of
binoculars."
Well, it's little-known tales of
achievement like that that leave
you gasping. Here and now,
we're issuing a clarion call for
members in the Midsummer So
ciety of Flywatchers of America.
Somewhere, sometime, some
one might see a fly try a loop
landing at top speed, lose control,
crash, and burst into flames. This,
thing will be bigger than even
the Society of Girl Watchers.
Next week: How flies take off
from the ceiling.
New Chief of Police Named at Myrtle Point
Myrtle Point, Ore. (U.R) Wil
liam T. Tankersley has been
named chief of police here, suc
ceeding Richard E. Vines, -who
was dismissed after being ac
cused of converting bail money
to his own use.
lanKersiey tormerly was a
Reedsport, Ore., police officer,
and was to assume his new post
as soon as he could be released
from those duties.
Vines was free on S2000 bail
awaiting a hearing on the lar
ceny charge.
Pinball Vote Petitions Slated for Circulation
Portland (U.R) Petitions
to bring Portland's latest anti
pinball law to a popular vote
were expected to begin circula
tion today.
Joe Dobbins, used car dealer
who is spearheading the refer
endum move because "it is just
plain horse sense" to license the
devices-as means of raising rev
enue, said City Auditor Will Gib
son had approved referendum,
petition forms.
Deadline for the 12,211 signa
tures needed is 5 p.m., Sept. 3.
SOUTHERN OREGON'S OLDEST AND LARGEST FURNITURE STORE
(3Ifl3g 05 SEE) COQBP GEOE) 306 figggfiKfl 0SQOQ
A. REPEAT OFFER!
BY
POPULAR DEMAND!
SPECIAL! While They Last!
Butterfly LAWN CMAiRS
Wrought Iron, Canvas
Covered Choice of
Eight Colors.
Specials Never Be
fore Of f e red in
Medford at this
Low Price . . .
U
EACH
'SEE OUR WINDOWS!'
CIRCLE
CHAIRS
Same Choice
of Colors
EACH
EASY TERMS NO CARRYING CHARGES OR INTEREST
1
Road tests are taken periodically by
George Greenlaw and other telephone
drivers. These stress safety, alertness,
quick reaction, and rules of the' road. 1
Vision checks with a precision instru
ment are scheduled every two years
another important part of our defensive
driving program.
Your telephone gives you better serv
ice because telephone people are trained
to work safely ...which helps keep skilled
people on the job to serve you.
Meet George Greenlaw a safe driver. An important part
of George Greenlaw's job as a telephone man is driving this installer's
truck safely. And like the thousands of other telephone drivers, he
took a special course in what we call "defensive driving." As a de
fensive driver, it's a habit with George always to expect the unex
pected ... to put his foot on the brake at all intersections, yield the
right-of-way cheerfully, and keep a sharp eye out for pedestrians.
Thanks to this outlook, George Greenlaw and other Pacific Tele
phone drivers covered more than 80 million miles last year without
a single fatal accident. Safety like this pays off for telephone people
and their families, of course. And for you, too. For it helps make
the streets and highways safer for everyone. Pacific Telephone
The telephone people
of Medford
work to make your
telephone a bigger value
everyday
O
o
0