TOUH MEDTORD (OREGON) MAIL TRIBUNE
"Zveryone In Southern Oregon
Heads The Mail Tribune"
Published Daily Exceot Saturday by
MEDFORD PRINTING CO
Jir2Ngthrir St. Phone 2-ST41
ROBERT W RUHU Editor
HERB GREY Advertising Marnier
GERALD LATHAM Business Manaier
ERIC ALUN JR. Managing Editor
IARL H ADAMS Cltr Editor
HARRY CHIPMAN, Telegraph Editor
RICHARD JXWETT Soorta Editor
OLIVE ST ARCHER Society Editor
PALE ERICKSON, Circulation Mgr.
An Independent Newspaper
Entered aa second class matter at
Medford Oregon under Act of
Marrh 3. 1837
SUBSCRIPTION RATES
By Mail Id Advance: Per Copt 10c.
Daily and Sunday One year $.15.00
Dally and Sunday Six montha a 00
Dally and Sunday Three moa 4.-23
Sunday Only One year 94.20
By Carrier In Advance Medford.
Ashland Central Point. Eaft! Point,
Jacksonville. Gold Hill. Phoenix
Shady Cove Roirue River. Talent
and on motor routes:
Daily and Sunday One year sis 00
Da!Jy and Sunday One month 1.30
i-arrier and Dealers 10c per copy
AU Terms Cash In Advance
Official Paper of the City of Medford
Official Paper of Jackson County
I'nit-d Press Full leased Wire
MEMBER or AUDIT BUREAU
OF CIRCULATION
Advertising Representative:
WEST-HOUDA Y COMPANY. INC
Offices in New York Chicago, de
troit, San Franeisr-o. Los Angeles
Seattle. Portland St. Louis Atlanta
Vancouver B C.
NATIONAL EDITORlAi
I assocFation
uumu
rrV NEWS PA r I R
PUtllSHEIS
ASSOCIATION
Flight o' Time
Medford and Jackson Count;
History from the tiles of The
Mail Tribune 10. 20, 30, 40
and SO years ago.
: 10 YEARS AGO
: Jan. 11. 1947 (Saturday)
: O. H. Bengston, Jackson coun-
l ty representative in the state
1 legislature, urges state detention
? home for pre-delinquent boys.
From Arthur Perrey's Ye
; Smudge Pot column: Dewey Hill,
; the Prospect hired man, towned
; Fri., whooping at friends, and
t attending to business.
j .
; 20 YEARS AGO
Jan. 11. 1937 (Monday)
t In 1936, in Jackson county,
1,379 bounties were collected on
hides of animals.
v Harry E. Ransom, national
, commander of the 40 and 8,
; entertaianed at luncheon by val-
I ley members.
I 30 YEARS AGO
Jan. 11, 1927 (Tuesday)
About 76,000 feet of pipe has
been laid on the city's new pipe
line from Big Butte springs to
; the city, according to City Water
Engineer F. C. Dillard.
! The monthly child welfare
I clinic will be held by the Jack
son County Health Unit Friday
at the YMCA.
J 40 YEARS AGO
' Jan. 11, 1917 (Thursday)
f Stockholders of the Jackson
county bank elect C. W. Mc-
j Donald president of board of
directors.
5 A local teachers' institute will
be held in the commercial room
i at Medford High schor" Satur
day.
What's Your I.Q.?
Vine or ten correct is superior: sev
en or eight is excellent; five
six U rood. m
1. Did the U. S. first manu
faeture of demask table-covers
. by power loom occur in Rhode
Island or Pennsylvania?
. 2. Was Ireland formerly
known as the "Holy Island" or
"Sacred Island?"
3. Are there any references
fo immortality in the Old Testa
ment?
4. Who served as food admin
. istrator during World War I?
; 5. Did the earth always have
. its present climate?
6. John Quincy Adams was
born in Massachusetts. Was
John Adams also born there?
I 7. What does "ad valorem'
: mean?
8. Is Munda on an Atlantic
; Pacific, or Caribbean island?
9. Is "ally" a different spell-
- ing of allev or allay?
10. "Where ignorance is bliss,
; 'Tis folly to be" what?
- Answers: 1. Penntyvania
-(1842). 2. Yes. Both names: 3.
:i: 4. Herbert HooYer: s. No;
II. Yes; 7. According to the
-ralue: 8. Pacific. New Georgia:
;. No; 10. "Wise." Gray.
M-H Club News
Ruch Dairy Club
; The Ruch 4-H Dairy club met
tat Mary Anne Cantrall's Thurs-
-dav. Jan. 3. Games and enter
tainmcnt were discussed. Those
rtakine electricity met at " the
Caame time with Jerome Peter
"son, their junior leader, and
the group talked about experi-
rmenls and demonstrations.
JMary Anne served refreshments
? The next meeting will be at
Robert Ziegler's home Feb. 7.
Robert Ziegler,
Reporter.
Effective Means
For the second successive year, Jackson county
people will have an opportunity to participate in a
"Great Decisions" discussion of foreign policy.
Because of the recent developments in the Mid
East and in Hungary, there is.probably more popular
interest in foreign policy today than at any time in
the past few years since the end of the Korean war
anyway.
This interest, coupled with an expanded and im
proved organization gives promise that the project
will be even more successful than last year when it
was one of only three or four in the senate. This year,
most areas of Oregon will have programs.
TN a democracy, it is important for everyone to know
- something about the "great decisions" to be made
in the foreign field, for the ultimate power of govern
ment rests with the people, even though it may seem,
at times, to be far away. But the force of public
opinion can and does force leaders of government
to change their plans. .
Only if public opinion is based on intelligent un
derstanding of facts can it be exercised for the best
good of the country.
TPHE eight discussion topics to be presented this
year have been' prepared by top experts in the
foreign policy field, and are designed to give back
ground to the overriding question: "How can we
reshape over-all U.S. foreign policy to meet this
strangely new 4.957 world?"
They come under three logical headings, "Where
are the areas of conflict?" "What are the policy
dilemmas?" and "Can we measure up?"
The first" asks, "How should the U.S. compete
with Russia?" It is pointed out that Russia is our
most powerful competitor, both in world power and
influence, and for the friendship of uncommitted
peoples. Areas to be considered include the questions :
How strong is the competition: How deep are the
cracks in the satellite bloc? Where are the danger
spots Europe? 'Asia? Middle East?
"WHAT U.S. Policy for Europe?" is the second
topic. Western Europe, it is declared, is
the "hinge of the free world alliance." How strong
is this partnership in 1957? How permanent are
the cracks between the U.S. and Britain and France?
How do we compete with Russia in Europe? Is
divided Germany the key? hat are our hopes and
plans for 1957?
The next is "What are
East?" where the newest threat of war is seen.
How is Russia playing off the conflicts Arab nation
alism, Arab-Israeli hatreds, the free world's oil and
the Suez canal to build its, own influence? What
can the United Nations do
for the United States?
"Should the U.S. deal
next broad question. Russia's partner in the struggle
to win the uncommitted peoples is Red China, a
government the U.S. does not recognize. Where
do we stand in this contest? Why do the "neutral
ists such as India and Indonesia deal with Red
China? Can we block this or should we reconsider
U.S. policy?
TTHE policy dilemmas which must be resolved are
outlined under the headings, "U.S. for or
against 'Colonialism'?" and "Are 'Neutralists' against
the U.S.?"
Some of the factors involved: In 1957 the un
committed nations count in the United Nations for
the balance of world power. But most of them are
former colonies, suspicious of U.S. alliances with
European colonial powers. What about the policy
of the uncommitted nations? Can any countiy stand
on the sidelines in wrhat amounts to a global straggle?
Many neutralists deal w-ith Russia and Red China
now. Have we aiready lost the uncommitted nations?
TTHE final section "Can we measure up?" is divided
into the questions of U.S. military strategy inthe
nuclear age, and of trade and aid.
The "odds" in world competition are considered
here, as is the question of whether or not we are
willing to pay the costs of an adequate military
establishment If we are, what weapons and "tools"
do we need for survival? How much military power
and of what kind? What kind of war can we fight
or prevent?
In the trade vs. aid field, the questions involve
what kind of economic strategy we need. Is foreign
aid still necessary, and where and how much? Can
trade win the "war on want" and help stop commu
nism? And what can we do, in aid and trade, through
the United Nations?
THE general outline above was prepared for the
Foreign Policy association, the non-partisan, non
profit organization which is one of the co-sponsors
of the Great Decisions program.
Viewed in the light of our day-to-day preoccu
pations, these questions may seem to be far off and
difficult.
They certainly are difficult, but they're not far
away. They are close to each of us, and immediate,
for in each of them we are personally involved, in
our soldier-sons, in our tax payments, in our economic
well-being and, ultimately, even in our survival..
For this reason it is the obligation of intelligent,
thinking citizens to study these complicated situa
tions, to make up their minds, and then to make their
thinking known to our government, through our rep
resentatives. The "Great Decisions . . . 1957" program offers
probably the most effective means ever offered by
which this can be done. E.A..
Friday. Jinuiry II. 1957
U.b. stakes in the Middle
: And what are the risks
with Red China?" is the
Eden's Resignation Tops News
In Foreign Field During Week
By CHARLES M. McCANN
United Press Correspondent
The week's good and bad
news on the international
balance sheet.
Anthony Eden, victim of his
own invasion of the Suez Canal
zone, resigned as prime minister
of Great Britain. He was suc
ceeded by his friend Harold
Macmillan, who had served him
as chancellor of the exchequer
and who supported his Suez
policy in a split cabinet.
President Eisenhower sought
quick congressional approval of
his plan the Eisenhower Doc
trine to use American forces
in event of armed Communist
aggression against a Middle East
ern country.
Soviet Russia and its puppet
leaders in Eastern Europe hard
ened their policy in an attempt
to stop the trend toward "in
dependent Communism."
Eden
Eden's resignation after a
distinguished parliamentary ca
reer of more than 30 years was
a personal tragedy. He cited bad:
Babson Sees Too Many
Lawyers in Congress
By ROGER W. BABSON
Babson Park, Mass. Now
that the Senators and Repre
sentatives have become organ
ized, we are
able to make
a rough analy
sis of their
ability and
training. It ap
pears that
about three
quart ers of
both branches
of Cong r e s s
are lawyers. At
aoger
first glance, this seems reason
able, as their job is to make
laws; this, however, should be
the work of professional clerks.
The Congressmen should con
fine their efforts to questions
of policies. Lawyers, by train
ing, are in a poor position to
determine basic policies. Law
yers are trained to win cases,
whether the defendant or prose
cutor is right or wring. The very
fact that there "are two parties
to each suit though only one
party can win, and that both
sides are represented by aitor
neys, is definite evidence that
half of the attorneys are wrong;
In the eyes of a statistician, this
is a very poor record. If one half
of the bridges built by engineers
collapsed, something would be
done about it.
Legislation Economic
Ninety per cent of the legis
lation today is economic. This
applies to agriculture, to manu
facturing, to general business,
and even to pensions for indi
viduals. There should be no
gambling connected with such
legislation. A table for multipli
cation, division, or addition al
lows for no compromises. It is
the same with policies; they are
either right or wrong. They
should not be settled out of court
or in cloak rooms.
All this means that three quar
ters of the Senators, and Repre
sentatives should be nationally
recognized economists. They
should be qualifield either to
legislate according to economic
principles or else not to legis
late at all. This principle should
have been adopted when the
nation was on the Gold Stand
ard; but now that we are on
the Political Standard, it is im
perative. Some claim that more
businessmen, bankers, manufac
turers, and labor leaders should
take the place of these lawyers.
The real need, however, is for
trained and practical economists
and engineers who know what
is best for the nation and have
the courage to vote accordingly.
Sues Canal Rumpus
Probably the Suez difficulty
is due to many causes, but it
was primarily a matter of poli
tics. President Nasser of Egypt,
was playing politics to get the
good will , of his people while
raising money to build the great
Aswan Dam. Prime Minister
Eden was playing politics to
hold his position and not be
thrown out by the Labor Party.
Other countries involved possi
bly including the United States
were considering their heavy
investments in oil. Basically,
however, the Suez difficulty is
an economic problem. It is not
the votes involved which should
be considered, but rather the
tankage, distances, freight rates
and other important problems of
international trade. Probably
the final solution will reflect
a mixture of politics, statistical
facts, and world economics. This
means that the solution of the
problem will not be permanent,
but will be a mere stopgap. This
shows that courageous econo
mists are needed in international
affairs as well as in domestic
affairs.
The custom of selecting our
Ambassadors according to their
wealth or their contributions to
campaign funds is absolutely
wicked. Such a policy may have
been largely responsible for the
fact' that England and France
acted without the knowledge of
the United States or the United
Nations. Ambassadors should be
IMP
i TS
W. Babsoo
health as the reason. But there
was no doubt that it also was
due to . the British-French at
tack on Suez. This action anger
ed President Eisenhower and
Secretary of State John Foster
Dulles. It brought British-American
relations to the lowest point
in many years. It brought the
condemnation of the United Na
tions. It split the British -cabinet.
In addition, the military op
eration itself was a failure. The
British-French ' hope of unseat
ing President Gamal Abdel
Nasser of Egypt backfired. Nas
ser was strengthened, not weak
ened. The closing of the -canal
when Nasser scuttled ships in it
-was a severe blow to British
economy.
Mollet
French Premier Guy Mollet,
who joined Eden in the Suez
attack, was not effected. Nas
ser's open support of the na
tionalist rebels in Algeria, as
well as his seizure of the Suez
Canal, had made him France's
enemy No. 1.
Doctrine
The Eisenhower Doctrine was
trained economists, which prob
ably means career men. Repre
sentatives to the United Nations
should be selected according to
their knowledge of economics
and their experience in deciding
economic problems.
Sanctity of Contracts
Individual, national, and inter
national prosperity depends
upon the recognition of the sane-
tity of contracts. No individual,
corporation, or nation can pros
per in the long run without an
earnest endeavor to carry out
its contracts. This is a funda
mental matter in connection
with the oil companies using the
Suez Canal. Furthermore, a man
does. not need legal training in
order to recognize the Ten Com
mandments. Honesty is not only
the best policy but it is the only
policy upon which a reputation,
or a business, or a nation can
prosper and survive. No one na
tion should be allowed to inter
fere with the international trade
vitally affecting all nations. A
great need today is confidence.
Of course, in discussing the
sanctity of a contract, an indi
vidual, corporation, or nation
is justified in knowing that the
contract was not obtained dis
honestly by misrepresentation,
coercion, or hribery. It is possi
ble that some contracts for drill
ing oil were obtained under
rather unsavory conditions, but
no such claims have been made
in connection with the high-
grade oil companies now suffer
ing from the Suez dispute. Pos
sibly it would have been better
to have the Suez Canal contract,
when originally drawn, made
subject to renegotiations similar
to the renegotiations that the
oil companies have already gone
through. These Suez renegotia
tions could have been under the
jurisdiction of a committee of
accountants and economists ap
proved by the World Court The
committee could employ an in
ternational and impartial law
yer, upon whom all parties
would agree. Their decisions,
however, should strengthen the
importance of the sanctity of
contracts and not undermine or
impair same.
In closing, let me say that my
appeal in this column may not
do any good but, as Congress
is now organizing and as the
Suez negotiations are in full op
eration. I do want my mil
lions of readers to be thinking
over this message.
Production of B52s
Slated for Cutback
Washington U.R) The De
fense department is preparing to
cut planned production rates for
B52 hydrogen bombers direct
ly reversing action taken in the
heat of the 1956 Senate air pow
er investigation.
Defense Secretary Charles E.
Wilson raised the goal from 17
to 20 a month during the 1956
controversy over relative Amer
ican and Russian air strength.
Before Senate critics, he person
ally took credit for pushing the
big jet bomber program "faster
than the Air Force."
The 20-a-month goal for the
S8 million "bombers was to be
reached in late 1957. However, I
instead of rising to that level !
now combined production at ;
Boeing's Wichita, Kan., and Se
attle. Wash., plants may be flat
tened out at the previous goal
of 17 a month possibly fewer.
A final decision is expected in
April.
LOVERS' QUARREL
Mount Holly, N.J. (U.R) Earl
Franks, 25, of Vincentown, was
charged with disorderly con
duct and reckless driving today
after, police said, he got into a
quarrel with his girl friend,
threw a brick through her win- :
dow, then led police on a 15-mile j
high speed chase which ended
when his car overturned. He ;
was not hurt.
the outgrowth of the Suez situa
tion, including Russia's deter
mined attempt to penetrate the
Middle East. Nasser tloes not
like the Eisenhower plan. By
soliciting Russian arms which
he can not afford, he is mortgag
ing his country's future. But in
his fanatical hatred of British
French "imperialism" Nasser
does not seem to mind the dan
ger he runs of becoming a Rus
sian puppet.
SoTiat Russia
Russian and East German
Communist leaders conferred in
Moscow. Their talks resulted in
decision to maintain a harsh
Stalinist rule in that splinter
country in hope of suppressing
opposition. In Hungary, puppet
Premier Janos Kadar steadily
hardened his policy in an at
tempt to prevent a new outbreak
of revolt.
Communications
Letters to the Editor must bear
the name and address of the writer
although under certain., circum
stances the use of a pen name or
initial for publication is permis
sible. The Mail Tribune reserves
the right to edit sll letters with an
eye to clarification and condensa
tion Letters submitted for publica
tion must not exceed 400 words.
Some Reminiscences
To the Editor: Having receiv
ed several letters of appreciation
from known and also unknown
readers, on the short stories in
the Medford Tribune commuiii-
cations the past several months
or so, we now deem it a courtesy
to thank the editor also, even
though he has a bushel of them,
as the humorist says."
We were living on a mountain
homestead about a mile from
our mail box. A neighbor living
only Vi mile below our cabin
had a few plymouth rock hens
that fed on the open field. One
day I stopped on the way down
the road to greet my neighbor,
when suddenly an eagle
swooped down only 50 yards
away and plucked a big fat hen.
I never will forget my neigh
bor's sad words: "There goes
my old hen!"
For some reason the old eagle
tried a vertical take-off. After
reaching an altitude of 100 feet,
all talons let go, and the old
hen, minus a hunk of feathers.
drifted and safely landed,
though almost frightened to
death by its captor.
Sometime later, having coyote
traps set in the winter season,
a. golden eagle with a wing
spread of seven feet was caught
only by-one -lone toe; on one
foot he also had a te missing.
We kept the eagle in captivity
three weeks, fed on rabbits, and
when the rabbits were gone the
eagle was given it's freedom,
only to be trapped again about
a year later where the big bird
had gone to a sheep ranch on
the river where it was attracted
by the early born spring lambs,
P.S.: Almost forgot to say It
took two people to release the
captive eagle from the double
spring trap it had sprung for
us around 1913.
s Bert Kissinger,
520 Boardman
Medford, Ore.
Word to the Wise
To the Editor: In your com
munications I have read several
comments on the Middle East
situation, including the one
"God Save America."
Has God not told us about all
these things,, when he said that
the last war would be fought
over the riches in the land in the
middle east (oil) and that he
would make Israel a burden to
all the world? And when this
time come, would they not know
it? (It appears not.) When Jesus
was asked for signs of His com
ing, one of His answers was,
when, you see Jerusalem com
passed with armies then know
that the End is not by and by
(compassed means to be encir
cled or surrounded) as it has
been for about a year now, and
that all would be fulfilled in
this generation. How long is a
generatjon, 20 to 30 years?
Consider the ways of this na
tiOn, and read Revelation chap
ters 17 and 18, very closely. Also
read Revelation chapters 13 and
14, note verse 10 of chapter 13
Patience endureth all things
Those that be wise shall instruct
many. Seek and you shall find.
A word to the wise is sufficient.
Subscriber
(Name on file)
; I
I -E2F I
fgy j
hr-xx -"1 III
Ioccr ntAM I '"xr" I I ' m
. I rime at I n r a ct I da .mvi I
I or TONGUE 1AUMV3C MVM.1I bji
Ike's Message Hints
Bad News To Come
No Tax Cuts Possible
By LYLE C. WILSON
United Press Correspondent
Washington (U.R) Presi
dent Eisenhower's message to
Congress on the state of the
fmjii naai in,, union suggests
mm. 1 fh riari newa
to come in
next week's
budget mess
age. The bad
news: No tax
cut possible
now or soon.
The most
emphatic para-
Eisenhower'i
graphs of Mr.
State of the Union message
dealt with the dangers of infla
tion. The administration evident
ly senses those dangers just
around the corner.
Every argument Mr. Eisen
hower used against inflation
would apply equally against a
tax cut. Tax reductions are,
themselves, inflationary. Tax
cuts are the kind of economic
medicine suitable to correct in
flation. Deflation vs. Inflation
Deflation describes a situa
tion in which the value of a
dollar increases in terms of the
commodities it buys. Inflation
is the opposite in which the dol
lar shrinks in terms of what it
can purchase.
For example, the 1957 dollar
will buy one 1939 50-cent cigar.
That is considerable ' inflation,
sufficient to arouse real anxiety
such as Mr. Eisenhower indicat
ed in Thursday's message.
Even so much inflation is bad.
especially for persons on fixed
incomes pensions and such. It
is not a patch, however, on the
kind of all-out catastrophic in
flation which could overwhelm
the United States if the trend of
the past 25 years continues.
If that trend does continue,
1957's teen-agers will be skimp
ing along on $100-a-week spend
ing money and taxicabs will be
charging S25 for the first half
mile. It could" be -worse than
that, of course, and well may be
if the government continues the
practice which distinguished the
Roosevelt terms and most of the
Truman years of spending-an
nually a lot more money than
the Treasury collects.
Makes No Promises
Mr. Eisenhower did not bear
down hard on promises that the
budget would be always bal
anced during his second term
But that, obviously, is his ob
jective. The President's anxiety
over the possibility of inflation
ary catastrophe was so evident
that a tax increase might be sus
pected if only the nation s .econ
omy were mvuivcu.
Politics, however, is a major
factor in Mr. Eisenhowers fiscal
policies as politics must be in
the policies of .any president.
Taxes will be increased in the
sense that scheduled reductions
Coast Employment
In Slight Decline
San Francisco U.R) Wage
and salary employment in the
three Pacific Coast states drop
ped slightly between October
and November last year, but still
was 5.4 per cent higher than in
November, 1955, according to
the U.S. Department of Labor.
Max D. Kossoris, regional di
rector of the Bureau , of Labor
Statistics, said seasonal layoffs
of 44,700 were well below the
.normal of 75,000 between the
two months.
His report excluded domestic
and agricultural workers.
The principal cutbacks, he
said, were in the food processing
and canning industries where
43,400 workers, mostly tempo
rary, were laid off. Construction
and lumber production also
dropped. The declines were off
set partially by expansions in
aircraft and retail trade.
Kossoris said 5,750,000 per
sons were employed at mid-November,
an increase of 290,000
over the previous year. Califor
nia employment totaled 4.465,
600, Oregon 494,600, and Wash
ington, 790,400.
LOGGER KILLED -
Waldport U.R) A 24-year-old
logging company employee,
Howard V. Schroll, was killed
near here Tuesday when struck
by a log. ..
W ,i.nT..JJ
? M FAST SIXTH ST. i 1
will not be honored. But the
levy of new taxes seems not yet
to. be in the works.
Brake On Inflation
Higher taxes would be a brake
on inflation. Higher taxes also
might disrupt the national econ
omy and spin the nation into a
deflationary spiral, accompanied
by unemployment and what an
older generation came to know
as a depression.
Government knows more now
than in the 1930's about adjust
ing the national economy to
overcome depression and unem
ployment. It is well that some
more knowledge has been
gained. The depression of the
early 1930 s prevailed through
the Roosevelt years until the
national economy was sparked
by the explosion of World War
II. War, however, is strong,
deadly and costly medicine for
depression, even when it cures.
n the Day's News
By FRANK JENKINS
In a new publication just is
sued, the department of agricul
ture says the price of pork is
going up first the price on the"
hoof and later, in the normal se
quence of events, the price on
the table.
How come?
The answer is simple.
PRODUCTION of hogs has
been dropping. As the amount of
pork available for sale and con
sumption decreases the price in
creases. That is the result or
what the economists call the lav
of supply and demand.
WHY has production of hogs
' ' heen droODine?
That also is a result of natural
forces. As hog prices drop, the
possibility of profit from the pro
duction of hogs decreases. So
farmers in the big corn-hog areas
tend to produce fewer hogs.
When that happens, the supply
of pork declines and pork prices
tend to rise.
Rising prices stimulate pork
production.
And so on.
FOR years, the politicians
seeking to harvest a bumper
crop of farm votes have been
tinkereing with the law of sup
ply and demand.
As a result, what we call the
"farm problem" has been cre
ated. THAT brings up something else.
The federal home loan
board estimates this week that
savings accounts in all savings
and loan associations in the
United States rose a record FIVE
BILLION dollars last year.
It adds that home mortgage
loans by these associations were
seven per cent LESS in 1956 than
in 1955.
UfHY?
If
Again the answer is sim-
pie.
Money is a commodity just
like hogs. As the price of money
(represented by interest rates)
rises, people tend to PRODUCE
MORE MONEY. They produce
money (meaning money for in
vestment) by the simple process
of saving more of it and spending
less of it.
Then
In time
The supply of money for In
vestment increases. As the sup
ply of investment money In
creases the PRICE of money (rep
resented by interest rates) tends
to drop. When that happens, peo
ple spend more and save less.
This happens because of this
same old law of supply antl de
mand. THIS Is the point:
As money becomes scarcer
and more costly, fewer houses
arse built. As fewer houses are
built, the building materials in
dustry suffers.
Then
The politicians ever alert
for votes begin -to howl bloody
murder for the government to
start the printing presses and
MANUFACTURE MORE MON
EY. THAT amounts to MORE TINK
ERING with the law of sup
ply and demand.
If this tinkenering is permitted
to happen, the building industry
will eventually find itself in the
same fix the farmers are in now.
That's the situation in a nut
a