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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Jan. 11, 1957)
MEDFORD (OREGON) MAIL TRIBUNE THHE8 State of Union Message Sets Stage for Congressional Battle on Interest Friday. January 11, 1957 Recommendation For Investigation Touches Off Debate Washington U.R) Presi dent Eisenhower's State of the Union mesage set the stage to day for a major congressional battle over high interest rates. It was touched off by his rec orrunendation Thursday that Congress authorize a citizens' commission to conduct a sweep ing investigation of the nation's financial system and its credit policies. The administration's so-called "tight money" policy, under which lenders are charging the highest interest rates in 20 years was certain to be a central issue in such an investigation. Congressional Democrats, mostly in the House, immediate ly served notice that they want Congress itself and not a presi dential commission to make the investigation. Boils Down Inui Rep. Wright Patman (D.-Tex.) said the issue boiled down to this: Congressman who favor con tinuance of the Federal Reserve board's "hard money, high in terest" policy, which it says is aimed at combating inflation, will favor the idea of a presiden tial commission. Those concerned about the "damage" that "tight money" is doing to home builders, small businessmen and farmers, who are finding it difficult to obtain credit, will want the Democrat ic-controlled Congress to do the job. Patman already has proposed such an inquiry by the House banking subcommittee which he heads. His resolution drew sup port from Speaker Sam Ray- burn (D.-Tex.) indicating that it might be called up for an early House vote. Patman said a presidential commission would be composed of "biased" banking and big business interests. Martin Backs Iks But Republican Leader Joseph W. .Martin Jr. (Mass.) said the GOP would overwhelmingly back the President's proposal and oppose Patman's inquiry. He said the latter "could turn into a witch-hunt." Actually, there was no assur ance that either investigation would be approved. In the Senate, the idea of a citizens' committee got a cool reception from Democrats, even from those who, unlike Patman, favor the current "tight money" policy as a necessary curb on in flation. Joint Probe Suggested But some suggested that the investigation of the eceonomy be carried out by a joint Senate House committee. Others noted that Senate banking subcom mittee headed by Sen. A. Willis Robertson (D.-Va.) already has scheduled public hearings Jan. 28 on a 300-page bill to overhaul federal laws governing banking and other financial institutions. Administration officials said the President's call for an inves tigation of the economy did not mean he thinks there is any thing drastically wrong. They noted that there has been no such broad inquiry into the fi nancial system for at least 30 years and that the last one led to some major reforms. Economists See Line on Wage, Washington (U P) Presi-l the President's formula for hold- dent Eisenhower's plea for bus iness and labor to go easy on price and wage hikes comes at a time when prices have been rising almost steadily for a year and wages are at a reoord level. Government economists said there is contract ing the line against inflation. They were more uncertain on the price outlook. In his his State of the Union Message Thursday Mr. Eisen hower called on business to avoid unnecessary price in- i possibility that wage creases, particularly those induc settlements this year ed solely by high demand and may fall, more or less, within I material shortages. He called on labor to keep in creases in wages and fringe benefits "reasonably related" to increases in productivity. Wage hikes that follow productivity- out-put per worker do not cost management any money. Wholesale Prices Rise In the past year wholesale prices have risen 4.4 per cent Recommendation for Probe of Monetary Policies Gets Praise New York (UP.) Leaden in business and finance today hailed President Eisenhower's recommendation for a complete re-examination of the nation's monetary credit and tax policies. They agreed that such a sweeping inquiry into the ade quacy of the nation's financial position was long overdue, the last one having been made in 1908. The President proposed the study of the fiscal and monetary system in an address before Con gress Thursday. Sentiments for such a study have been growing in recent months, particularly in view of the Federal Reserve System's tight money policy. America's economy has under gone major social and economic changes' in the 50 years since the famous Aldrich Monetary Commission made the last com prehensive study of financial in stitutions. That study led to the creation of the Federal Reserve System. Additional changes followed the Senate Pecora investigation in the early 1930s. That inquiry resulted in the formation of the Securities and Exchange Com mission and other banking re forms. Cyrus Eaton, Cleveland in dustrialist and chairman of the Chesapeake and Ohio Railway, voiced the opinion of many ex perts when he said the banking system has failed to keep pace with the nation's industrial growth. Eaton, concerned that a lack of credit could stifle economic growth, called for a revamping of the banking system, including creation of regional banks cap able of making individual loans ranging up to S100 million dol lars. This is about double the present loan limit for the na tion's biggest commercial banks. Quotes From the News By UNITED PRESS Hollywood Police Chief William H. Parker announcing kid napers of actress Marie McDonald will be charged with violation of the "Lindbergh" act when caught: "If we can prove the Marie McDonald case is a kidnaping and catch the kidnapers, we will ask that they be prosecuted under the Little Lindbergh law which carries the death penalty." New York Garry Davis, who once renounced his U.S. citizen ship, entering this country as a "parolee": This parole would indicate that I am a prisoner. What do I have to do. report to the police every three months. This is my country. I am a resident here." ' Washington An inaugural committee spokesman on an invita tion sent to Sen. Estes Kefauver (D.-Tenn.) "in appreciation of yur efforts" to reelect President Eisenhower and Vice President Nixon: "Apparently somebody goofed." Washington Former Secretary of State Dean Acheion believ ing the British-French-Israeli attack on Egypt never would have occurred if he had still been in office: "If you reach the point when your best friends aren't telling you what they are doing, something's wrong with the works." Canon City, Colo. U.R) John Gilbert Graham's wife on his scheduled execution this week for the time-bombing death of 44 persons aboard an airliner: "I guess pity's the only thing I have left." Washington Sen. Harry F. Byrd (D.-Va.) failing to understand Mr. Eisenhower's proposal for an investigation of the national economy by an independent citizens commission: "We've been studying it year after year." Legislature To Get Proposal on Bondsmen Portland (U.PJ A pro posal calling for state-wide li censing of professional bail bondsmen will be placed before the Legislature next week by the city of Portland. The measure would bring bail brokers under control of the state insurance commissioner, the same as bond and surety companies. City officials here said they believed state-wide li censing would result in uni formity and more stringent con trol to the business. BOLTS MEETING Demo cratic Rep. Wayne L. Hayes of Ohio, member of House foreign affairs committee, stalks from closed-door meeting with Secretary of State John Foster Dulles. Hayes charged the Admin istration was trying to "tie the committee's hands" with confidential information. Ike's Budget To Have Funds tor Dalles Dam Portland (U.R) Sen. Harry M. Jackson (D.-Wash.) said to day the budget which President Eisenhower will present to Con gress next week will include S19 million for The Dalles dam. and $18.5 million for Ice Harbor dam. Jackson, in a telephone call from Washington, D.C., to the Oregon Journal, said that in ad dition the budget would contain recommendations for other ex penditures, including $1,150,000 for the mouth of the Columbia river and SI. 6 million for the upper river fish sanctuary above Bonneville. Congress already has spent about S198 million on The Dalles dam which has a total cost of about $270 million. About S10 million has been spent on Ice Harbor, which will cost about $135 million. improper equipment violation basic rule. Court Records MUNICIPAL COURT Jerald Deemon Couch, left turn. $5: defective iheadhehU. S5. Don V. Hunning, violation basic rule. S10. John Harvey Petersen, excessive noise pipes t. $10. Kosa uawiey, ' 510. Shelva R. Hale, improper left turn. 3. Jim Damian Estremado, violation basic rule. S10. Alan Kurt Balland. disobeyed stop sign. So. jonn rurner. violation Dasic ruie, $10. Georce Hatter Robertson, following too close, sio. John Elliott Strone. disobeyed stoo sign. $5. Cecil Oliver Wilson, violation basic rule. sio. William Leroy Buchaman, disobeyed Stop sign. S3. Ralph Warren Gillaspey, disobeyed traffic signal, S3. DISTRICT COURT Robert William Kimbrell, overload, $45. Donald Francis Sonner, violation basic rule. S12.50. Rube Clay Kinney, no license on motor vehicle, S6. Arthur Leonard Shoemaker, viola tion basic rule. 512.50. Increases and consumer prices 2.4 cent, following several years of relative stability. That stability, however, was due largely to de clining farm prices which offset price rises in other fields. The initial and unofficial re action of labor economists to Mr. Eisenhower's productivity for mula for wage increases was a flat "no." They said he overlook ed labor's fundamental point in bargaining; Where profit mar gins increase, . wages should go up, regardless of productivity. But the fact is that a number of major wage contracts, includ ing those in the so-called wage "pattern-setting" steel and auto mobile industries, are long-term affairs that provide for automa tic wages hikes this year. May Set Pattern The bulk of these "built in" wage hikes run from six to nine per cents an hour and are lower than increases negotiated ' last year. They may set the pattern i for wage negotiations in other i industries in 1957. Government economists said the productivity rise this year, in manufacturing at least, may outstrip the wage boosts or off set them. On the price front, they are more uncertain because of the demand in such basic items as steel and oil. Steel prices have been rising and shortages have developed in steel for highway and other construction. The Suez Canal shut-down set off price rises recently in oil and pro ducts such as household oil and gasoline. In addition, freight rate in creases in may bring price in creases in many different con sumer items. Contractors Equipment For Rent D-4 Cat with Dozer D-8 Cat with Doier Motor Crans Back Hoes Motor Graders Draglines Clamshells Shovel Fronts MACHINE TRENCHING Wpter Sewer Drain Installation or Repair Gas Phone 2-5336 or 2-5897 MEDFORD, OREGON i ' , ': ir r-t' S3 Studebaker'i Supercharged Golden Hawk Cross town or cross country, Studebaker's new engine with its built-in super charger is the best answer to all driving conditions. You get super power whenever you want, and in "stop-and-go" driving, you get real economy, too. It's one of the big differences Craftsmanship makes in these more carefully built Studebakers. Drive one at your dealer's today. Studebaker -Packard CORPORATION De Leigh Motors O 134 S. Riverside O Medford, Ore. SEES NO DISARMAMENT Arthur F. Dean (left), chief . U. S. negotiator in Korea after the armistice, told a spe cial Senate disarmament subcommittee in Washington that he sees no chance now for an effective disarmament agreement with the Soviet bloc. Dean is shown here with Chairman Hubert Humphrey (Dem., Minn.), center, and George Finch, writer and adviser on problems of inter . rational law. . MoMheatJ. DISTRIBUTOR "OIL TO BURN' LET US FILL YOUR TANK TODAY! MEDFORD FUEL CO. Court and McAndrewj Telephone 2-2111 WE GIVE "S&H" GREEN STAMPS hjsieiid WITH NEW P.ICTU UARA BOTES SETTS These are all 17 and 21 inch sets of recent man ufacture. Completely reconditioned in our own television shop. Shop Early for Your Choice 510 Down 510 Month ME YEAR JPIHINISTOM STOICS 112 South Riverside
