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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Dec. 8, 1958)
16 MAIL TRIBUNE. McdforJ, Oregon, Monday, December 8, 1958 4 t LA 7 S A r 4 4 PRISON RIOT Convicts at Arizona State Prison, Flor ence, AriL, lie flat in the prison yard after their hour-and-a-half riot Warden Frank Eyman (in checked coat) stands in center, backed by armed guards. Oblique white lines are strands of barbed wire on top of the prison wall, from where this picture was taken. Treasury Exerts Tremendous Power on Handling of Money (Editor's note: Following is the last of six dispatches on the subject of money. ; SAC Group Used To Keep Flying Crews on Toes March Air Force Base, Calif. -UPD Just the mention of the initials "SSG" around a Strategic Air Command base compels SAC flyers to stand up straight and start thinking. "SSG" stands for Strategic Standardization group. This unit of 400 highly trained specialists, based at Barksdale Air Force Base in Louisiana, is charged with the task of keeping the fly ing crews on their toes. The recent SAC Bombing and Navigation; Competition at March AFB, Merced, Calif, and at Castle AFB, Merced, Calif., was set up and "po liced" by SSG to test the crews under simulated com bat conditions and make sure they are ready for the "big payoff." Establishes Standards SSG is commanded by Col. I D. P. Wood, himself a form- I er deputy SAC wing com mander. The group was set ,up Jan. 1, 1958, to replace the older "Strategic Evalua tion Squadron" whose unher alded and admittedly rough inspections had put many a SAC outfit "in a flap." As explained by Maj. "Wal lace D. Horton, chief of the "stanboard" standardization board for B-47 crews, the ultimate mission of SSG is to "establish standards SAC wide" and "make sure they are followed." "For one thing, we intend to make it possible-in this era of complicated aircraft and weapons systems for a crew member to be able to fit into any crew at any base at any time," Horton said. This is done by publishing a detailed manual used at all SAC installations "so everyone will be flying under the same rules." Each base continually schools its per sonnel in standardized proced ure. Checks On Work In addition to the base work and a continuous stand ardization school at Barks dale, the SSG checks on its work by sending units with out advance warning to fly with the crews, check on their procedures and rate the officers and men. "Does this 'shake up the j crews? Yes, it does," Horton ; admitted, "but it helps a wing commander find any weak- j nesses and points out how j they can be corrected." Unlike the old SES, the SSG does not try to intimi date the crews. Instead, Hor-; ton insisted, "we do it by get- j ting their cooperation." i ."Our crews are mature now real professionals," he . explained. "They appreciate the suggestions we make be- j cause they know how vital i their job is." By CLYDE FARNSWORTH UPI Correspondent New York (UPD The Treas ury the nation's financial housekeeper exerts a tre mendous power on the buying and selling of money. To see this influence in action, take a look at some key figures. The best guess is that the Federal governmnt will spend $79 billion in the year ending next June 30. But revenues, largely from corporate apd personal income taxes, are ex pected to come to only $67 billion, leaving a deficit of around 812 billion. In addition, more than $40 billion of government bonds are coming due in the next seven months. This means the Treasury must find a way to get the holders of these bonds FOOD FOR THOUGHT Iowa City, Iowa-(UPD-Coffee alone at a coffee break isn't enough, according to a pro fessor of physiology. The boss should serve doughnuts too. Iowa State University's Dr. Steven M. Horvath told a group of management experts here recently: "Food during the coffee break is essential in keeping up a worker's efficiency." to buy new bonds instead of turning old ones in for cash. The First National City bank of New York says the Treasury will have "all its talents tested to invent secur ities that people will buy" and at the same time not to pay too much in interest rates for the money. . Like any housekeeper, the Treasury is cost conscious. Big Effect The kind of securities the Treasury will offer and the reception investors accord them will have a big effect on interest rates throughout the nation. If these is demand for the government bonds, -the price of the bonds will rise on the market place and their yields will fall. Conversely, if de mand is weak, prices will fall and the yields will rise. Interest rates on many kinds of investments through out the country generally hinge on government bond yields. Since government debt is about as safe as a debt can be, it becomes a bench mark for all other debt. Secured Aid of Bank In its refunding Aug. 1, the Treasury had to secure the aid of the nation's super bank or Federal Reserve System to support the market for gov ernment s e c u rities. This meant the super bank had to buy many of the securities it self. The severe drop in govern ments had occurred largely because speculators, expect ing prices to rise, had borrow ed heavily to buy the bonds. What they forgot about was the rapid recovery in busi ness. With the recovery, they realized that borrowing would work toward pushing up in terest rates and pushing up bond prices. So everyone wanted to sell. In addition, some investors, anticipating inflation as well as recovery, drew their mon ey out of government bonds and bought common stocks. Economists expect that the Treasury probably will offer a large number of short-term securities those with a life lasting no longer than a year - to meet its coming financial needs. These economists say in vestors probably will not be willing either to buy (or swap for maturing securities) long term bonds except at interest rates higher than the Treas ury can pay. The Treasury, which has to compete with other big bor rowers for money, faces on the one hand a business re covery pushing up the de mand for credit all around, and on the other hand an in terest rate limit of 44 per cent on securities it offers of more than five years' matur ity. Swelling of Reserves But large offerings of short term securities cause a swell ing of bank reserves which in turn can bring about an in crease in the money supply faster than goods and services are produced. The result is in flation. The reason for the increase in bank reserves is that com mercial banks are one of the few groups willing to -buy short-term securities which usually bear low interest rat es. The Federal Reserve is ex pected to supply the banks with the reserves temporarily so that they can make, the purchases. But this poses a dilemma for the Federal Reserve. It arises because the main tool the super bank uses to fight inflation is to restrict bank reserves and thus check bor rowing. Supplying reserves, even temporarily, works at cross purposes with this tool. 11 Distributor "The GDiD to tarn" "Best In The West" S & H Green Stamps Too MEDFORD FUEL CO. Tel. 2-2111 Court & McAndrews The reason that banks will buy short term securities is that in an expanding econ omy other investors find they can channel their funds more profitably into areas where interest rates are higher. Banks, however, find their daily needs for cash always are fluctuating, hence they re quire securities easily con verted into cash at little or no loss. We Give GREEN STAMPS CENTRAL REXALL DRUG Main and Central AE3i3)iie Reg. 2.25 FIREPLACE GRATE 1.48 Bar-steel wood grate. 19-in Open ends. Black. Other front, 16-in. stock. back. sizes in OPEN TONIGHT 'TIL 9 Almost one-third of all U.S. imports come from South America, more than from any other part of the world. Can ada is second, followed by Western Europe and Britain. PROTECT Your Furniture with Rl Glass Table Tops 1! WJw Uliirysler 0 inica For 2 years, Chrysler Corporation conducted a top secret, world-wide search. Hundreds of engineers tested scores of cars. Took them apart. Evaluated, and re-evaluated. Finally, just weeks ago, a decision was made. Here are the facts... the inside facts behind the story... Why Chrysler Corporation Chose Simca!- SIMCA DELUXE 4-DOOR SEDAN ' UK: SIMCA CHATELAINE STATION WAGON SIMCA OCEAN E SPORTS CONVERTIBLE SIMCA SUPER DELUXE 4-OOOPt SEDAN CIMCA PLEIN CIEL HARDTOP 1 Because America wanted it. There's a new kind of car buyer in America today . . . the kind that wants to know. The kind that lifts the hood to get at the facts, and carefully checks the comparison charts. SIMCA is made for that kind of person. A real automobile, with a real engine (up front, where . the safety experts say it belongs!). A car that's solid as a rock, and just plain sweetness to drive. 2 Because SIMCA gives you more for your money than any other car in the world. Mechanix Illustrated Magazine said it: "BEST IMPORT BUY IS. . . SIMCA"! Just look at all the stand ard equipment you get at no extra cost, on the Super DeLuxe Sedan: reclining seats, trip mileage indicator, 4 speeds forward transmission, heater, defroster, electric windshield wipers, unitized con struction, 12-volt key-tum ignition, and even 2 roomy glove compartments. 3 Because SIMCA makes the cars you want. Terrific 4-door sedans, with gorgeous sound proofed interiors. Station wagons, with regular extended-load tailgates. Even sports convertibles and hardtops. But most important, SIMCA makes the new car that can save you hundreds of dollars a year in gasoline alone. And you don't sacrifice a thing for it. Yova new SIMCA is the world's most luxurious economy automobile. See for your self. Get inside one, and look around. 4 Because SIMCA was planned with safety in mind. Rugged 1-piece unit construction, with perfect 50-50 balance. Distortion-free safety-plate windshield, safe front-engine design, and extra large brakes. Doors are hinged at the front, and the man-size pedals are wide apart. Additional features include a big trunk for all your luggage, ' and, in most of the models, reclining seats. 5 Because SIMCA is one of the world's greatest rerforming cars. Holder of the world's endurance record, driving 62,137 consecutive miles at an average speed of 70.02 MPH. 14 all-time perform ance records in alL And after their exhaustive tests, Sports Cars Illustrated Magazine said, "SIMCA OUTPERFORMS ANYTHING IN ITS PRICE CLASS." And they tested them alL as did the Chrysler Corporation engineers. 6 Because SIMCA is the Economy King. Out standing high mileage performance no matter how you drive. Officially scored 42.6 MPG of lowest priced gasoline. And the economy story goes fur ther than that! "You save because of SIMCA'g amazing stamina and functional design. For in stance, when you need spark plugs, you buy only 4. And because of SIMCA's perfect 50-50 balance, tires last twice as long as you'd ordinarily expect IMGA See today's great new SIMCA. Get in, and take the family for a spin in the real car of economy cars. Soon as you nudge that pedal down ... and that plush seat slaps your back with power, you'll know the truth. That of all the world's economy cars, Chrysler Corporation has brought you the finest. Why Dick Knieht Co. Chose Simca Prior to the time Chrysler Corporation took over the distribu tion of SIMCA in the United States, we had repeatedly refused sr to handle any imported car because of the uncertainties of parts supply. But with replacement parts now being handled by Chrysler through their regular distribution centers, and with our shop specially equipped and trained, we, as an authorized SIMCA Dealer, are now prepared to offer you the same high quality of service that you have enjoyed with Plymouth and DeSoto! To acquaint you with our newest line of quality automobiles, and while our initial shipment lasts, we are proud to present this ... INTRODUCTORY OFFER Brand New AACA DELUXE 4-DOOR SEDAN with full line of factory equipment including: Heater and Defroster Turn Signals Dual-tone Horns PLUS these extras ... Whitewall Tires Washable, all-vinyl interiors Oil Filter Electric Swipes Windshield Washers Anti-Freeze JUST Delivered in Medford 1 Includes Finance TRY SIMCA NOW! DICK KNIGHT CO. a inrisimas uui a For the Home Phone SP 3-3613 SELBY Gs 303 North Bartlett ABT atlMMCI TMDMISIMVT AMIK4A 33 S. RIVERSIDE SP 3-6247
