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.
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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