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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (July 21, 1958)
o o Q o e Federal Reserve Bank To Buy U.S. Bonds to Help Market MAIL TRIBUNE, MctforJ, Oregon, Monday, July l, f By ELMER C. WALZER TJ&I Financial Editor Treasury opens its books today for a refunding opera tion involving $16,300,000,000 And the New York . Federal Re serve Bank is .-fi i i tjt in me iiminei xu i t h nracti- cally unlimit ed resources to keep the govern ment bonds strong enough to stand the shock of the offer ing. It is only a refunding deal, but the market is shaky. It got into a mess on Friday and the Federal Reserve Bank of New York indicated that it would purchase long-term as well as short-term govern ment securities to stabilize the market. The government needs a 3 Elmer Walzer strong market because it has a lot of real financing to do. Within three weeks it will seek some $3 billion in new money. Deficit In October, there'll be still more new money sought be cause the treaury ia running a deficit this fiscal year end ing next June. 30 of at least $10 billion. This $10 billion could be swelled greatly if the Middle East situation develops into another Korea. Getting the new money out of investors is the big problem just now with inflation the watchword and people more stock than bond minded. Even refunding Is difficult, according to the experts. Hence the treasury elected to make its new issue for re funding and the one for the $3 billion new money one year issues. The refunding Wheat Destroyed In Pendleton Area Pendleton (UPD Another wheat fire Saturday after noon struck the harrassed wheat and barley ranching area northwest of Pendleton. Some 70 acres of standing wheat were destroyed on the Ernest French in the Stage Gulch area The fire was the first to result in injury to a fire fight er in the current rash of blazes. Tractor driver Harley Sallee was burned about the face and arms when a wind change whipped flames over the tractor as he was attempt ing to get a fire line around the blaze. Allowable Timber Cut Upped by O&C Portland (UPD The Bureau of Land Management an nounced Sunday that the an nual allowable cut of timber on Oregon and California rail road grant lands in Western Oregon has been increased by 77.1 million board feet. The increase, which boosts the cut to 769,300,000 M board feet, was based on recently- Franklin Pangborn, Actor, Succumbs Santa Monica, Calif. (UPD Character actor Franklin Pangborn, a veteran of more than 21 years before movie and television cameras, died Sunday at St. Johns hospital. Pangborn, 59, underwent surgery for a chronic intes tinal ailment Saturday. His illness had forced curtailment of his professional appear ances in recent months. The veteran actor, a bluster ing, confused room clerk, floorwalker, o r indignant passerby in most of his por trayals, was a native of New ark, N. J., and a veteran of World War One when he served as a Corporal, was wounded and gassed. . Funeral services will be conducted Wednesday at For est Lawn. completed new inventories, the Bureau said. The new allowable cut "is the presently estimated capac ity of the lands to produce timber crops," according to Virgil T. Heath, Oregon State BLM supervisor. Three units, Suislaw, South Umpqua and Josephine, account for the total current increase. will involve certificates bear ing 15i per cent interest. In one more year 'this means the government will have to refund the more than $16 billion this financing in volves now. But that's only a tiny drop in the big govern ment bond puddle. First Na tional City Bank of New York sums up that situation as follows: Bonds Mature I Out of the total U.S. debt of $277 billion, no less than $120 billion" of public issues including $52 billion of sav ings bonds are due or payable within one year and all but $58 billion within five years. "The accumulation results from failure to act energeti cally to lengthen maturities earlier in the post-war period. "Since July 30, 1946, the treasury has issued, apart from treasury bill offerings, no less than $488 billion of marketable securities." The treasury had a bad time in its June financing when it tried to issue a few long term bonds. It had to bale out the speculators by buying back 5600 million of the issues it had sold. That operation apparently gave the treasury a profit, the specula tors a loss, and unsettled the market. Needed a Rest The treasury in announcing its financing admitted,, the market was congested and needed a rest. However, treasury officials said they would renew their efforts later to stretch out the debt into longer term issues. Meantime, studies are being made to divert government is sues away from commercial banks to the hands of invest ors which would include in stitutions, pension funds, in surance companies, and sav ings banks. Selling governments to commercial banks is seen as highly inflationary in that the process involves possible monetization of the debt, a process often compared to the German operations before the mark evaporated in wild in flation. In our current inflation, the tendency is to steer away from the fixed income obli gations and dive into the stock market. j : 1 j m h ' ' J 601 E. Hain U. ( 11 Free Parkina iakt A a flT ji ( the Do V" ' Whites are whiter Colors brighter when Mu-Way does my smart summer cottons "Don't try to wash these lovely things yourself" is the earnest advice of both those who design and those who sell today's fabulous high-style summer cottons. Be safe Be Sure Trust your lovely cottons to our Sanitone Cotton Clinic. Not only are they returned spotlessly clean, but the special mill finish which gives fine cotton cloth its tissue-crisp freshness, is completely restored every time. Colors and pat terns regain their like-new sparkle, too . . . both the look and feel of newness are amazingly renewed. So, why not call on us for Service, today? .' Phone SP 2-9169 Your Charge Plate Store . . . H. D. CHRISTENSEN jTi BIG FREE A PARKING ZJ L . LOTS I I IN BACK OF STORE (KIBODCDIETriEHn Sixth and CC3 is. 7Day e vacation n-sr 2 ma The Lake Wolderness Lodge "--kfi 2 JfifflrmsfBGISX s Magnificent Vacationland 19 Miles Southeast of Seattle TWO 6 - DAY VACATIONS for two people each ... ABSOLUTELY FREE! Tickets freely given to anyone over 1 8 years of age . . . just get them at our checking counter. First Drawing-9:30 a.m. Saturday, July 26th Second Drawing-9:30 a.m. Saturday,' August 2nd You Need Not Be Present to Win! ' IKS WWMM S4 II i 11 1 n Think of it -TWO BIG TRIPS, EACH ONE FOR TWO Pf OftE to this delightful resort . . . enjoy SWIMMING, TROUT FISHING, GOLFING, HORSEBACK RIDING and DINNER DANCING in the evening movies, all kinds of outdoor games and water sports. Lots of fun for the children. This modern Swiss Alpine lodge is built around a colorful tree high totem pole. Rooms are up-to-the-minute and attractive, the dining room overlooks a beautiful lake and mojestie Mt. Rainier. For a little added cost you can take along the children if you wish. SWIMMINQ BOATING FISHING GOLFING RIDING , DANCING GAMES FUN! all this PLUS S3S ffor gas and oiB for your car! You Can Live Better for Less with GROCETERIA FRESH PRODUCE . Check These Everyday Prices- Local Sweet Corn Delivered Fresh Daily . Aw DOZEN "Chompin' Good" fancy SLICING CUCUMBERS 2 lbs. w sweet BELL PEPPERS Plump Brittle 2 lb.. S 29 Cantaloupes Sweet Thick Meated 1 (o) c '25 i C2- Ik - BUNDLE Fresh Dill IF YOU'RE NOT SHOPPING AT THE GROCETERIA YOU'RE PAYING TOO MUCH Carnation mum mm Plain or Chocolate Flavor Or y.u may win a 4-Piece, Easy P.ur FIRI KINWS Mixing lewl ' let Y.u av a goJ chance re k of the lucky winners of a Fire King Mixing Bawl Set if you don't get the free trip to Beautiful Lake Wilder- nest Resort! 12 Sets te be given away 0 each drawing. I 1 3 A Q c r Jar INSTANT NESTEA One jar makes 2 gallons (or you can make it in the cup). Frozen Simple Simon Fruit Pics TRY 'EM -THEY'RE GOOD! Apple, Cherry Boysenberry A BIG 9-INCH PIE Chock-full ct fresl frozen fruits and berries. 89 EACH J 1 S-H49 far 1 BEST QUALITY BROOMS Made by jr79 the Blind 11 In Oregon U EA. ALL NYLON O MOP HEADS 69 Groceteria's own BAKERY Assorted Cup Cakes Nice for Lunch Boxes At the Lunch Counter HOT WEATHER SUGGESTIONS FRUIT Plate 7 CRAB LOUIE Cold Meat Plate I ICE COLD I Watermelon i SLICE 5' O ROGUE GOLD BRAND - Vacuum Sealed O CHEDDAR 2 .POUNn BLOCKv CUT i - Each You Save 20 52S PORK STEAK ib. Center Cut Shoulder
