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
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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'
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MEDFORD FUEL CO.
Court and McAndrewj Telephone 2-2111
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