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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Jan. 1, 1958)
Economy Expected To Dip in First Half; Rally Sharply at End of Year By ROBERT G. SHORTAL United Press Financial Writer New York 0? Top eccon omists expect the nation's economy to decline in the first half of 1958, reverse the trend in the third quarter and then rslly smartly in the final three months of the year. The Federal Reserve Board's easier money policy and increased spending for defense, new homes, roads and other goods and services are being counted upon to shore up the economy in the coming year. The new year will be a pe riod of rolling adjustment for industry in general, with some industries doing better than in 1957 and others worse. The big question as 1957 came to an end was: "how long would the business de cline last?" Surveys conducted late in 1957 showed that most fore casters looked for the decline to run its course by mid-1958 They felt the second half up surge would leave the econ omy a little higher on balance by the year-end. Consumer Holding Key The consumer was singled out as the key to the 1958 eco nomic picture. If he continued to spend money at a record cliD. the decline would be mild. Consumer spending ac counts for about two-thirds of all the goods and services sold in the nation However, if the consumer decided to play it cautiously, and tightened his purse strings, the decline might be come nrolonged, economists said. There are three legs to the economic tripod govern ment, business and consumer spending. Of these, only busi ness spending is expected to decline in 1958. Experts hope that gains in the other two areas will take up the slack In this respect, the Russians may have inadvertently help ed the economy when they launched their two earth sat ellites. Russia's scientific ad vances have touched off de mands for increased defense spending in this country, that will help to maintain econ omic activity on a high plat eau. Unfortunately, all this has produced one casualty about which neither businessmen or consumers are too happy; the chances of a tax cut in 1958 have been all but eliminated. Grots National Product Up Economists pointed put that consumers proved a great source of strength in the eco-j nomic downturns of 1949 and 1953-54, when they received a major boost from the Gov ernment in the form of low er taxes. The decline now underway has been termed by many ec onomists as a sort of blessing in disguise. They noted that It will permit the or.derly ad justment of excesses, forestal ling dangerous imbalances and a real depression from developing later on. Despite the fact that the postwar boom leveled off and then declined in 1957, many key dollar indicators of econ omic activity showed big gain over 1956. This was mislead ing, because higher prices and not increased unit volume) accounted for most of the gains. The Gross National Pro duct the value of all goods and services produc ed in the nation, rose around 2Q billion dollars in 1957 to a new peak of S435 billion. Since industrial production was little chang ed from 1956. inflation ac counted for almost all of the gain. Economists anticipate a more stable price level in 1958, which means that gains recorded in the new year may be "real" rather than an in flationary illusion. Rise Anticipated in i 958 The consensus among ec onomists at the 1957 year end was that the GNP in 1958 would run between S435 billion and S450 bil lion. Consumer spending was expected to rise around S10 billion to S290 billion. Spending at all levels of government federal, state and local also was ex pected to show increases. Business expenditures for new plant and equipment, however, were slated to fall 10 per cent below the 1957 level of more than $37 bil lion. The economy in 1957 also received some impetus from a mild buildup of inventories. Economists anticipate a per iod of inventory liquidation extending beyond mid-1958. This means inventories will be a minus factor in the ec onomy during most of the coming year. Looking at individual indus tries, auto sales got off to a good start in the Fall of 1957 but turned sluggish later in the year. The feeling now is that the auto industry in 1958 will not match 1957's volume of 6.200,000 cars. Increase Seen in Housing What happens in the auto industry is felt all through the economy steel, rubber, glass, metals and textiles. The steel industry had a dis appointing year in 1957. When 1957 began most steel leaders were predicting a record year, possibly 120 million tons. Ac tual output was around 113 million tons and for 1958 the outlook is closer to 103 mil lion. Construction is. a bright spot. The roadbuilding pro gram is expected to pick up momentum in 1958. The two year decline, in housing starts came to end in 1957, and a small increase is looked for in 1958. America's 20 billion dollar export market has been a bed rock for industry in recent years. However, in 1958 econ omists predict some slacken ing in foreign trade a minus sign in the picture. Industry in general looks for higher dollar sales in 1958,, but lower earnings, as the price squeeze continues. They also look for more strikes in 1958 as wage nego tiations take place in many key lines, including auto. With the easing of inflation ary pressures in 1957, and softness in economic activity, the Federal Reserve cuthe discount rate, ending two and one-half years of tight money. New Boom Visualized ' A further easing of credit is looked for in 1958, which will be a boon to many indus tries and consumers. It will take time for this easier credit policy to filter down through the conomy, . but when it does the economy will have a new stimulant. Inflation is still the major concern of the monetary au thorities. Easier credit policies and the outlook for an unbal anced budget stemming from increased defense spending both are inflationary in na ture. While the short-term out look is somewhat cloudy and cautious, the long-range forecasts are just the op posite. Businessmen look for an unprecedented boom in the what they call Ihe "Golden 1960's." Businessmen are cutting back their capital expendi tures but increasing money for research, which should lead to a host of new products that will stimulate consumer MEN'S. LADIE- Vffm&i WW I $49s ,7JEWEL WrLM I 6?" t WRISI mmfm 69 Z ana iWmSZKTL 3!- 1XW?W 17, tfUKKV I W&Y 1 M V W r Jf 1 ' Electric FRYPAN ffg WTO DETACHABLE I ImTtfyX PSiw HEAT CONTROL UNIT Vp j NO MONEY DOWN 2 VfcL If ONLY 50c A WEEK T The pan that does everything fcSi TsS kjv bakes. st.. Iri., -rifc A T V ' Y 9'" fy woman will treasure. fe? VnJSp 5S demand. This; coupled with a booming population and ris ing per capita income, should trigger an economic upsurge in the 1960's dwarfing any thing in the past. RETIRED JUDGE DIES San Francisco (IP) Isa dore L. Harris, retired supe rior judge and veteran of nearly three decades on the bench in San Francisco, was found dead Tuesday, appar ently the victim of a heart attack. He was 85. DRASTIC PRICE REDUCTIONS Medford Tribune MEDFORD, OREGON, WEDNESDAY, JANUARY 1, Quotes From the flews By UNITED PRESS Chicago The. National Safety council, warning motorists of weather hazards in a special New Year's Eve statement: "Nature has stacked the cards against the drivers on this New Year's Eve and the best safety device on earth is intel ligence." ' , Belgrade. Yugoslavia President Tito, commenting thai scientific achievements of 1957 had brought the world to its "eleventh hour": "The new atomic era and the first intimations of man's penetration into outer space, instead of filling man with im measurable pride and joy in this triumph over nature, cause peoples lo fear these achievements of the human genius." Indianapolis, Ind. Dr. Laurence H. Snyder, president of the American Association for the Advancement of Science, on the need for financial aid to the nation's universities: "I think that if Congress would supply money to the uni versities with no strings attached, they would find the best way to train scientists and improve science." . . Hollywood Leona Gage, ousted Miss USA of last year's Miss Universe contest, on combining an engagement in a Las Vegas hotel with establishing residence for a divorce: "I've got to make a living and this engagement ... gave me a chance lo become a Nevada resident so I jumped at the chance." Chicago Adlai Stevenson, saying the United States must learn to live with its allies as well as its enemies: "And it is well to remind ourselves of the lessons of the satellites that we are part of the human farriily"and must learn to live not only with our allies but our adversaries." Washington Howard T. Orville, President Eisenhower's special weather adviser, on control of the weather: "If an unfriendly nation solves the problem of weather control and gels into the position to control the large-scale weather patterns before we can, lhe results could be even more disastrous than nuclear, warfare. 1958 J REGULAR $ 9.95 Copper CHAFING DISH $115.00 98-Pc. Noirtake China $ 59.95 China Service for 8 $ 24.95 Men's Luggage (Just a few left) $ 28.50 Ronson Shaver with trade . $ 5.95 Asstd. Watch Bands Ladies and Gents $ 24.95 Westinghouse Radio . $88 $3g88 $2788 $1288 $995 88 95 $17 39.95 Emerson Portable Kadio 4-Speed Hi Fi mono 89.95 4-Speed Hi Fi Port. Phono, leather case 10.50 Seth Thomas Electric Alarms 24.95 Toastmaster Skillet 9.95 16-Pc. Starter Set Pottery BUY ON WEISFIELD'S EASY TERMS DEBUNKS A-WAR CLAIMS Representative Charles 0 Porter (D., Ore.),.at a Wash ington press conference said that reports that a single bomber crew carrying nu clear weapons on training 01 patrol flights could start an atomic war, are groundless The planes must land before the highly complex activa tion of the weapons can be performed, he explained. BRILLIANT CLEAN BEAUTY "Miss Simplicity EpDA&Kli 4 3S First American steel was produced in Connecticut in 1728. RETIRED FLIER DIES London (IP Retired Air Chief Marshal Sir John Nel son Boothman, onetime hold er of an air speed record, died last Sunday at the age of 56. Sir John, as a flight lieuten ant, averaged 342.9 miles an hour over a 31.7-mile triangu lar course in seven encircle ments in 1931. For setting this record he received the Air Force Cross from King George V at Buckingham Palace. 113 Students from Medford At OSC Corvallis A total of 113 students from Medford are enrolled this year at "Oregon State college, according to a report issued by the regis trar's office at the college. Others included in the 174 total for Jackson county in clude 17 students from Cen tral Point, seven from Eagle Point, eight from Gold Hill, two each from Jacksonville and Prospect, and one each from Applegate and Talent. The 174 total is an increase from 127 last year. All of Oregon's 36 counties, 37 states, all U. S. territories and 37 other counties are re presented this year in the record 7676 student group at OSC. This year's enrollment is nearly 200 above the old record set in 1947 when the peak was recorded in the en rollment of World War II veterans. RETIRES EARLY Sleepy Eye, Minn. (IT) How does New Year, 65, a re tired carpenter, celebrate New Year's eve in Sleepy Eye? By going to bed early, of course. MM m raw Jotest trans rstof SonotoM hidden m attractive glasses smoflerf bearing aid vorfd, wmr All AT TH EAR NOTHING WORN ON B0DY1 NO CORD DOWN NECK NO "BUTTON" IN EAR) at fcoff-otmct $ model worn in iety of styles S0N0T0NE Happy New Year from the Officers, Directors and Staff - Savins lt io (p. put Come In, Phone or Write Free Demonstration No Obligation SONOTONE of MEDFORD C R. ADAMSON, Manager 839 E. Jackson Ph. SP 2-S904 SAVINGS 126 East Main Medford A strikingly beautiful diamond solitaire design with one sparkling diamond mounted in a carved 14 karat gold mounting. A ring of style, warmth and simplicity. SAME STYLE BUT WITH LARGER DIAMOND 8950 10000 12500 NO MONEY DOWN PAY NEXT YEAR MORE MONEY SAVING SPECIALS PRICED FOR CLEARANCE REGULAR $ 49.95 Universal Upright Vacuum $ 32.95 Toastmaster Waffle with Grill . ,.' $19 88 $ 14.95 G-E Skillet $ 27.95 Toastmaster Toaster $ 24.95 Sunbeam Drillmaster . $ 19.95 G-E Steam Spray and Dry Iron LOAN ASSOC Sine ISO ATION "Where You Are Paid To Save" $ 24.95 Sleeping Bag $ 7.95 Full Size Blankets, 2Vi lb. size 14.95 Coffee Tables and Step Tables J . $ 49.95 Johnson Waxer-. $ 19.95 Arvin Heater $2788 $Q88 $2388 $12 88 $1688 $1488 $495 $388 $3988 $12 88 ELECTRIC AUTOMATIC A is $229.00 21" Emerson TV Console. 49.95 3-Pc. Luagage, 26" Pullman, .21" Weekender and Train Case.. $ 2.49 Bone China Cups $ 2.49 Ice Bucket $17900 $3488 $129 88 2-SLICE TOASTER Reg. 12.95 083 Pop-up toaster with light and dark toasting selector. Crumb tray opens for easy cleaning. NO MONEY DOWN A 25c WEEK vvVV 122 E. Main Street EASY CREDIT TERMS Medford Store Hours: 9:30 a.m. to 5:30 p.m. OPEN MONDAY EVENINGS UNTIL 9 Phone SP 3-5348 P.M.
