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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Nov. 2, 1956)
r O O 0) O O GO O - o. o 0 O " 0 o o o o o O 0 G TWTtVE MEDFORD (OFEGON) MAIL TRIBUNE Frldsr. November 2. 195 Controversy Over Tight Money Not To Stop After Election Day By RICHARD E. MOONEY Business developments after tries to hold the growth of bor- United Press Correspondent the election will determine ! rowing down to a rate it con- Washington (U.Ri The con-; ...... nnpv horn tiehter troversy over tight money will not stop on ekction day. Neith er will the tightness. Money is tight because, there is more demand for loans today than there is money to fill that demand. When there Is more demand than supply, the price the interest rate a borrower pays for a loan goes up. Today's situation, with interst rates at their hiaist level In more than 20 years, reflects rec ord borrowing xn on hand and Federal Reserve credit restraints on the other. Rssarr System Accused Critics accuse the Federal Re ftrve System of strangling the business boom,' and. 'particularly of putting a crimp in housing and small business. Defenders maintain that-without credit restraint ,the boom could blow up like a baloon and the burst. " . Survey Shows Many factors for Induslry Portland Oregon's attractive eommunfties constitute one -of its most frnDortant drawing card? for industries seeking wfes for new plaats. 'a recent study by the Oregon develop ment commission, revealed. OtHer factors thaf play, a itrorrg part in "influencing the locationQ o new,, plants in the. ratate are, the availabihty of low cost flower, piant sites and build-'. O ina. process water and good truck service. D Th- survey, which went to. 800O business firms which have either come into Oregon 'since or undertaken substantial expansion, asko$Pwhat ihey c'on- 8iered tl mot .important fac tors in determining tiw location of new plantsand hiw. Oregorr compares with other aeas by sS&iese yardstick, . Ss!l of the study'are sum arizd in the October; issue af the DC cf?cial "publicataoa "Progress jrPOgon." T!: majority o replies to the f(uestionnaire regard the work S ttitifdes findivfdual workers, ljftSr age rat?, property taxes, mejrness to major Jnarkets and Ijgfid truck service as the most imporaA plgt location factor. or stays as it is for a while long er. Hep. Wright Patman. (D-Tex ), . an outspoken foe of the federal Reserves' credit policies, will give- them e public airing, at hearings in- December. The Controversy What's the controversy about? Never- before' has there been such borrowing. Consumer cred it, business borrowing from banks, -business '.borrowing .through the bond market, state and municipal borrowing all are breaking records. Other kinds of borrowing-also are high. The Federal Reserve System can make more' or less" money vailable .for lending. When business sags and bor rowing drops.'as, in the 1953-54 recession, the Fedejal Reserve tries- to stimulate.' recovery by making it easier and cheaper to borrow. But when things are booming, as now, the system siders reasonable. This is to keep business from over-expanding and collapsing from inability to keep up the pace. The Federal Reserve exercises its control by three devices: The discount rate, which is the interest rate it charges for mopey it lends to regular banks which belong to the system. Reserve requirements, which say how much money these banks must keep in reserve, and thus how much they are free to lend. Purchase and sale of U.S. gov ernment securities, which raise and lower the reserves of mem ber bank?. The major objections to the Federal Reserve's type of credit control is that it hits on huch tougher for businesses in a weak position as well as those who may be over-expanding. The average individual is like ly to feel the pinch of tight money if he is trying to negoti ate a home mortgage. Tight money has a smaller effect on the interest rates for automo biles. Everyone is supposed to bene fit, however, if tight money has the effect of keeping prices from skyrocketing. No one , denies that prices are. rising, but sup porters of. current monetary policy say prices would be even higher if it were not tor credit restraint. The argument for tight money in these times is that if people and businesses had even more money to spend borrowed mon ey ft would only increase their already high incomes and their record, demands for goods and services, but it would not im mediately provide the things for which to spend the money. This lack would force prices up. Money Supply Greater Loan funds are not non-existent today. The supply of money is greater than it was ' a year ago, but the demand for it-has grown even more. Sowhen you ask a bank for S15.000 to buy a house, or $23.- 000 or $1 mUlion to expand. your . business, you- will find credit is not so easy as it was before. You will probably have to pay more for the money, you may not get all you want, and you may get none at'ali;' A TALL ONE ' Boylston, Mass. UK Mrs0; Robert J. Brown of West Bolya- , ton. grew a 4',2-foot-high gera nium. A horficuKurist says gera niums usually, grow onlv two feet . in the New.. England clij, mate. . o o a when you drive the . '57 PLYMOUTH suddenly it's I960 PICTURE TUBES REJUVENATES Is your picrur tub dull and wgk? Most picture tabes can b restored to' original brightness at &nly a fraction of the cost f replacement. For further information CALL Electronic Servici. lg. N. GRAPE ,PH. 3-1971. WRpoONE cYOTER? DIAL O O DO IT NOW! rfd. Adv. bS fitlnlyre Wr o(ftcilmaff Committee Us? TribunfPWant Ad ATOMIC DIVIDEND. Pierre, S.D. U.P.) South- Da kota has realized its iirst divi dends from the atomic -age. The school and public lands depart ment has received a check for S87.15, the first royalty ever re ceived by the. state for the min ing of uranium ores from school land. ' lit Court Records pm.irp! rriL'RT Glenn B. Jones, no operator's ,cene. S3. Clifford L. Eckel-, violation of basic rle. S15. Janice Lodise FraRheich, disobeyed traffic signal, S5. .. tfettie Gould Fry. violation of basic rule. S10. - - -Renins Tyler. Adams, violation ot basic rule. $10. Ralph David. Marlatt, disobeyed traffic sienal, $5. 1MJTRICT COURT William J. Rightmeier. overload, Eli Thomas BurdeU. passing with insufficient clearance. $15 'Merrill Nathan Bliss, killfng deer In closed season.' $80. Jimmv Mitchall, violation.-of basic rule. $17.50. ' Danny Allen Kirkpiitrick, Inade quate mufflr. $10? , Aloah Pearl Hubbard, failure to dim .headlights, Sli. Eari Hart Johnson, defective clear ance, lights. $10. .-William -Bryan Fisher, failure to stop at stop sagn. $ro. CIRCUIT COURT 'Goldie Mae Slattef v ter. .iivtorce complaint. Leland Slat- ' SSSSSSBSSSSSSMBMsiiBMSSBtaSBSSSSISSSSB e e -- . iti "v 0 oo 0:S Q G3 e Viarkl For jlcv Industry Nw Voyrolls Thru Growth -Of Mining indutry In . Oregon: :. HERE ARE THE FACTS: fact: . 5 - v v. 1 Co3 Conoressmon Harris EHsorth ond me late WiMtnr q r WcNary in 1 94 J fought for ond secured1 the .locotioo o the Bureau Q M Mines ."LaboratOfV at Albany Oreocn. Frf. O 1 Ui. TV purposed this laborotofy woS ond is o develop new methods of processing ores-to produce metdls.. The Albany Laboratory developed the first process for1 commercial production of zircctom metal vitoJ to the success of the lOtomiC energy program ' ! I . FOCt". Today Afboy W rK woHds second Jorgest" production ..Center for highly strategic nrconium. - Fact: q q oiuu"ujm silicon from- lew grade-o'uminum crei using wood wdste f ' f r t OCT v Uwng tSK rw?w proc?, rh A'rex Mg. Co., a ' new fcrttry, process for productron of was started in Springfield. wWI This laborotory developed titanium metol from titanium sponge FflC The Oregon Metallurgical Corp. is" compUhng o plont ' ot Atbfl'rty,? only Northwest producer" of titanium metal, strategically invor?nt in supersonic orcraft. Fact: THrs lob-natory -developed a process W pmductkw of frlico-maTjjor- from lo grode ores, "which mov provtd future industry - in Oregon usmg local ores. 'assisted tn developing a process for. productive of mckel from low grod ores. Fact: Near Riddle, aooroochina full operation, is a $30,000,000 'Rnig "ond smeiting plant using low grade ' nickel ores. This it . t" only quantity producer of strategic nickel i the United Stotes. FOCt Eflsworth hos worked fflr oooropriatioos on ooerotion 3P stocicciiing progro sar fow grade chrome ore noW being stock- fiile at. Grants Poss. Oregon. - 'J s SOUTHWFSTERN OREGON NOW HAS A GOOD' START IN USINfJ ITS MINERAL RESOURCES. 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