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.