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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Jan. 24, 1957)
FIGHT MEDTORD (OREGON) MAIL TRIBUNE Tfcurday, January 24, 1937 Trying To Do Too Much Too Fast Blamed For Present-Day Monetary Situation Kdilor not: The following U th fir of two ditpatehei. one by a tup ; banker and the other by a leader in ; the home construction Industry, giving argument for and against the "tight uuucj policy By HENRY C. ALEXANDER Chairman J. P. Morgan Ic Co. Inc. WriUan For Uniud Prwi New York '.U.PJ The basic fact about our monetary situa tion today is that we have been trying, in our economy, to do too much too fast and on too ; much credit. We have been build- ' ing plants, consuming goods and ! piling up debt faster than we j have been forming capital by the j process of saving. i This has created the situation j called '"tight money" which we j are reading and hearing so much I about. With virtually all parts of the economy straining to buy more or build more and conse quently to borrow more the pressure of credit demand upon the available supply is heavy and constant. As a result, many would-be borrowers find loans not so easy to obtain as at some times in the past, and the price of borrowing is higher than at some times in the past. However, it is important to re member that credit has not been choked off. Not by any means. The commercial banks alone in creased their total of loans out standing by more than $7 billion during the first 11 months of 1956. This was on top of a $12 billion increase during 1955. Meanwhile, longer-term borrow ing in the bond market was at or near record levels, and con sumers were having their credit demand satisfied to a point where the total of this type of debt reached and passed the $40 billion level. We often hear it said that the Federal Reserve System has made money "tight" and made it "dear." Actually, it hasn't done either, in the sense of taking the initiative to bring such results about. What it has done is to let the money market feel the nat ural effects of a demand that is very heavy in relation to the available supply. Permanent Capital Needad In the period of great expan sion of physical plant and pro ductive capacity, the economy's primary need is for longer-term credit and for permanent capital in the form of equity money. The Federal Reserve "wisely has re fused to meet this need by pump ing up short-term bank credit. The economy's need for long term funds can be soundly met only by growth of the nation's savings. This takes both time and effort. There is no way to print capital. It has to be earned and saved. To increase the incentive for saving, and also to help restrain the growth of debt, the monetary authorities have allowed interest rates to respond to the market forces of supply and demand. As would be expected, rates have risen. But they still are not high in comparison with other periods in our own history, or with cur rent rates in most other parts of the free world. Probably the best comment on present in terest rates is that they don't seem to be discouraging the de sire to borrow. Critics of the Federal Reserve hold that it should be taking steps to make credit easier and cheaper to obtain, in spite of everything the economy itself is doing to make money tight and dear. The Federal Reserve, it is true, could create more money. But to do so when the basic shortage is one of goods and manpower, would not contribute to genuine growth. It would merely provide more dollars without increasing the supply of things those dollars can buy. That is the formula for infla tion higher prices and a more furious shuttling back and fortn of goods in speculative, non-productive trading. Too much money, too cheap, like the love of money, can be the root of much evil. Change of Authority A number of those who don't agree with the Federal Reserve's policy have come forward with various proposals for changing its role in the economy. However piously those proposals may be worded, they all seem to be aimed at taking authority away from the Federal Reserve and giving it to other agencies more attuned to political considera tions. The ''Fed" should never be in politics; it should never become a member of the "team" of any administration. The moment it does, it will lose its independence and its effectiveness. The country has been down that road, with the reserve slavishly bound to the treasury, and we must not do it again. The Federal Reserve's policy in the recent past, nourishing prosperity and yet attempting to hold it to a sustainable rate of growth has succeeded remark ably, even brilliantly. It has sup ported growth, not prevented it. if permitted, would destroy not It has been our principal defense only our prosperity but our very against rampant inflation which, substance. EOYOH BOND'S IT REALLY GOES FARTHER.TOOI JACKSONVILLE Family Returns From Trip Sunnyside, Mrs. Jim Winning ham and Mrs. Dorothy Hibbs oi Ruch on a pleasure trip to Portland leaving here last Sun day. Enroute home they will visit friends and relatives in Salem and Corvallis. By MRS. C. S. HOSKINS Jacksonville Mr. and Mrs. Rasmussen and daughter, Beat rice, returned last week from a 2'i week winter vacation trip in California. They visited their daughters and their fam ilies, Mr. and Mrs. Paul Beck at Salinas, and Mr. and Mrs. Marvin Jordon at Bakersfield At the home of Mrs. Rasmus sen's brother, Oliver Severson, at Whittier, a family reunion was held with 64 relatives present. Mrs. Rasmussen's par ents. Mr. rr of Whittier, Other interesting events of their trip were a visit to Disneyland. Sequoia National park and at tending a Cinerama picture. Mr. and Mrs. Arthur Davies returned this week from a weeks' vacation in Carmel. Calif. They also visited Davies' aunt and uncle. Mr. and Mrs. J. V. Moan, in San Francisco. "er. a,rso wrpS. j Fuf ure Teachers Tell Reasons for Choice Three families from California are new Jacksonville resident, living in the two houses at the end of Oak st. They are E. O. Fox, G. B. Golden and Earl C. Tipler. They' have purchased the property and plan to find employment here. Some new patients at the Mitchell's Sanitarium are Mrs. Turpin of Phoenix and a resi dent of this area for more than 77 years, and two old timers from Gold Hill. Jesse Freden burg and Ben Grove. Recently leaving the sani tarium to go home were Miss Mary Hurst, a well-known form er resident here. Her home ad dress is 416 Western ave., Med-ford. Interment services were held In Jacksonville cemetery Mon day for Bill James, 82-year-old former Medford resident, who died in Greenview, Calif., Jan. 15. Funeral services were held last Saturday in Yreka at Gird ner's Funeral home. Returning to his home last week was Billy Cody, grandson of the late Barney and Georgia Cody. Cody has been discharged from the Veterans hospital in St. Louis, Mo. After making a trip to San Francisco this week, he plans to return and make his home in Jacksonville. While here he has been visiting at the John Hamaker home. Los Angeles (U.R) Why do people become teachers? According to a poll of 230 fu ture teachers enrolled in an in troduction course the three most important reasons given were: 1. Exposure to an inspirational teacher. 2. Encouragement from friends and relatives. 3. Newspaper accounts of teach er shortages. Of the future teachers inter viewed, 50 per cent said they decided on a teaching career while still in high school. Of the group, 18.2 per cent had one or more parents who were teachers. Other reasons for the decision were: The opportunity and challenge of working with youngsters; a chance to make a contribution to democratic living and work in a profession that permits continu ous growth while in service. Men rated salary at 14th, while women rated it 12th. 4-H Club News Mr. and Mrs. Fred Edens re ported they have procured an FHA loan and their new home will soon be under construction by Rogue Valley Construction company. Mr. and Mrs. Simon Johnson have named their new daughter born, Jan. 10, Betty June. Tractor Club The meeting of the Rubber Burners of Tractor club was held at Henry Scott's house. He i showed some of the first year members care of the tractor. Charles Swingle and Mr. Carter talked and did a demonstration on transmission. The meeting was adjourned ajid refreshments were served by Mrs. Scott. Girls are encouraged to join. Dianne Carter, Reporter. Mrs. Helen Roberts reports that the Jacksonville Library recently added 150 new volumes to the collection. Old books were g.ven in exchange to the Med for Public Library. The Jack sonville library is still remain ing open Monday evenings from 7 to 9 p.m. in addition to reg ular day-time hours Mondays and Thursdays. PFC Jimmy L. Smith, son of Nate H. Smith and Mrs. Andy DeGraff, who is stationed in Hawaii, is now taking a course in psychology. He graduated with the class of 1954 at Jack ville high school. He expects to be out of the service in June. He has been in the islands two years. Mrs. Ted Green, formerly of Jacksonville, is visiting this week at the Everett Ravenor home. Mrs. Greene who now lives in Blue Lake. Calif., was accompanied here by her daugh-ther-in-law. Mrs. Don Greene, daughter, Patty, and Mrs Don Greene's mother. Mrs. Burnett Bishop, who are visiting rela tives in this area. Court Records mtniciil roiRT Vivian S. Colhns, violation of basic ruiv m Dirk Cloved Peterson, failure stop at red light, and no drivers license Sin Joanna I,. WinkJteld. violation ot baste rule. Sin. Helen E. McFadden, failure to top at red linht s,V Vaughn Willard Clark, drag racing. S25. Avery Lloyd Caiebolt, defective equipment. $10. James Rodney Mc Kinney, violation of basic rule. $10, Muriel Lorraine Burns, violation of basic rule. Sin Rov E. Miller, violation of basic rule. S10. Robert Eugene Curtis, four people in front seat, $2 n Arthur Neil McElroy, violation of basic rule, S10. DISTRICT COURT Garv Dean Schleman, everlenjrth. SIS. bail forfeited Ellis Elmer Hoden, failure to stop at stop sijm $10. Donald Edward Slavton. failure to display license on trailer, $5. CIRCUIT COt RT Barbara Geraldine Osborne vs Ralph EJdon Osborne, divorce com plaint Frank R Grim vs. Lucille Grimm, divorce complaint. MRRIGF TICENSK APPLICATION' Gerald Earl Laffoon. tin Movie ave.. Yakima, Wash., and Barbara Jean White. Yakima. Wash. Mrs. Lois Fretwell and daugh ter Joan will move back into j their home on South Oregon st this week end. They have been ying w ilh Mr. and Mrs. Paul Alego while their home was being painted and cleaned up j after a Christmas night flu fire damaged it considerably. j Mrs. Pearl Whitney accompa nied Mrs. Chet McDonouih oL Daily's U-Drive Medford Airport Carnation Instant Non-Fat Dry Milk TASTEWELL rOnl Sirioin STEAI Package (Makes 8 Qts.) T- f TP 1 1 Pic?' S4 00 ' . . WHITE HOUSE Vacuum Packed CHOPPED MUSHROOMS NALLEY'S CHILI cCARNE BROKEN STYLE 1-IRIAft JUMBO MA KT r 30-OZ. j8l TIN Zyl JJ 5-OZ TIN OREGON GROWN g" 22 T,n Purple Plums 5 $1 00 WE WILL REDEEM ALL SWIFT'S COUPONS (SEE YOUR CURRENT "LIFE," "LOOK" or "LADIES HOME JOURNAL") Ad Prices Good Thursday 3 P.M. Through Saturday Evening EOV ats sttllxlUBttS vriaiiBIK EVERY WEEK DAY AT OUR MARKET - Shop at Your Locally-Owned Quality Market Where TOP QUALITY and COURTEOUS SERVICE is a Must PLUS an ABSOLUTE GUARANTEE With Every Purchase. MM PHONE 2-7137 222 WEST MAIN NEXT TO COPCO "MEDFORD'S FINEST MEATS SINCE 1940" BONELESS FANCY WELL EASTERN BEEF AGED "CHOICE" Well Trimmed $1129 FANCY AGED "CHOICE" EASTERN BEEF Well Trimmed 1 1 U lb. PICNIC "SWIFT'S PREMIUM" Fully Cooked Shou'der Picnic Hams HAM LOAF GROUND SMOKED HAM With VEAL LAMB PATTIES GROUND "CHOICE" LAMB Boneless Pork Loin Roast "CHOICE" Eastern Choice Pork Solid lean Meat Fresh Fillet OF Red Snapper OCEAN FRESH NO WASTE CHICKEN THIGHS AND Drumsticks FRESH FROZEN "BLUE STAR" BRAND From Cornfed Young Tender FRYERS BUY SEVERAL AT THIS LOW LOW PRICE! POUND PKG. No Limit As Long As They Last Ground BEEF THE FINEST FRESH GROUND STEER BEEF Always Good At Our Market NO CEREAL Pounds $100 THE FRESHEST FRUITS & VEGETABLES BUNCHES MOCCQH ea-BV Tomatoes -19c SUNKIST NAVEL - 144 SIZE Jl Oranges 3 DOZEN $00 aids in irrigation will be told by ' day. Questions md answers arc tend the meetings.
