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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Jan. 14, 1959)
Volumes in Market Continues Higher Despite Margin Boost By ELMER C. WALZER UPI Financial Editor New York -4tPD- The stock market has been rising steadi ly on heavy volume since f m"i" the Federal Reserve Board raised margins to 90 per cent on fM Oct. 16. " ''A This bears out what Wall Street said at the time of the rise EUner Waizcr namely that this was a cash market any how and that it would pay little if any heed to higher margins. Now there is talk that mar gins will be boosted to 100 per cent. This, of course, is pure Wall Street gossip be cause the Federal Reserve doesn't give out any advance warnings of what is to come. If there is a rise, it proba bly will be considered a mere token of the Federal Reserve in its fight on inflation a move probably aimed at dis couraging use of corporation or other funds in the call money market even to pro vide a trifling amount of credit. The f RB has been in charge of margins since the Securities Act of 1934 became effective on Oct. 1 of that year. Sliding Seal The first margins were a sliding scale from 25 per cent to 45 per cent. On Feb. 1, 1936 the scale was raised to 25 to 55 per cent, and on April 1, 1936 it was made a flat 55 per cent. Since then margins have ranged from 40 per cent in the period from Nov. 1, 1937 to Feb. 5, 1945, and 100 per cent, which is no margin at all. The 100 per cent rate was effective on Jan. 21, 1946 and held until Feb. 1, 1947 when it was cut to 75 per cent. Just about a year ago - on Jan. 16, 1958 - the margin rate was cut from 70 per cent to 50 per cent. That was a time of reces sion for business and it was believed the move was made to generate strength in stocks and thus encourage business to recover. Business hit its low in April and rose rapidly - but not as rapidly as the market. Credit Tightened ' With the market rising and using more credit though Quotes From the News Br UNITED PRESS INTERNATIONAL Bonn, Germany-West German Chancellor Konrad Ade nauer, on the possibility of Russia starting a war over the German problem: "They (the Russians) want lo control the world, not a dead world, but ... power over a living world. For this reason, the question facing them is how to come closer lo their goal by means of the cold war." West Point, N.Y.-Army football coach Earl (Red) Blaik, on resigning after 18 years as head coach:' "It is with a deep sense of personal regret that I leave the military academy. I have concluded, however, that this is the proper time for me to withdraw from college sports." Washington-Rep. Paul A. Fina (R.-N.Y.) on plans to rein troduce his federal lottery bill: 'This painless form of taxation will bring into the coffers of our government over S10 billion a year in added revenue which can be used for tax cuts and part payments towards our tremendous ever-increasing national debt." Springfield, Mass.-Mrs. Charles Papineau, on the myste rious breaking of 36 panes of glass in her house during the past seven days: "You're standing in front of a window and all of a sud den it breaks in front of you. It's awful to sit here and have windows break all around you-without any visible explanation." Jackson, Miss-Mrs. Rubel Burleson, on the task of iden tifying her 20 children- "It's hard to keep them straight. Sixteen of the children still live at home." not much overall - the Fed eral Reserve tightened credit all around, including a rise to 70 per cent in margins on Aug. 5. On Oct. 16, the pres ent rate of 90 per cent was set. Low margins are supposed to aid volume and high mar gins to cut volume. But ex perience has proved the mar ket goes its merry way with high or low margins. Last year when margins were raised activity increased to a four-million share day rate. And 1958 was the big gest year in volume since 1930. Margin is the amount one must put up in buying a stock on credit. At 90 per cent, a trader must put up S90 to buy $100 of stock. He can borrow the other S10 This is a contrast with cred it for home purchases. The buyer of a house needs only put up S10 to borrow $100 of mortgage money. The Stock Exchange has de fended margin trading, al though it has held that this type of operation is more for the experienced trader than the novice President Keith Funston of the exchange says the new, unsophisticated investor should be encouraged to buy only for cash And the exchange also holds that margin trading is not -necessary speculation. In a survey it found 75 per cent of margin trades by public individuals were investments rather than speculations. And even if it were specu lation it wouldn't necessarily be evil, say exchange spokes men. They point out that spec ulation by those with experi ence, knowledge and finances, helps to broaden the market generally. Errol Flynn Sued Over Dog's Attack Los Angeles (CPD Errol Flynn and his wife were sued Tuesday by a former model who charges the couple's pet terrier dog caused her to fall and sustain serious injuries. Zori Jannings said the Flynns dog was threatening her chUdren recently and she stumbled over it when she attempted to "rescue" the youngsters. Also named in the Superior Court suit was Ir win O. Brettauer, operator of apartment bungalows where both the Flynns and Jannings live. AT GATES SEE THESE DOLLAR-STRETCHING VALUES!! CS C t , 5 -.it-1 ''i it- 'j. 23 Hi See Our Window Display For THIS WEEK'S SPECIAL! Personalized Credit We Carry Our Own Accounts Phone SP 2-4158 341 N. Central firajrimfiilTjnire Ashland Medford brants fass Steelmakers See Production Higher in 1959 Pittsburgh (CPD Steel makers look for production to rise as much as 30 per cent in the U.S. in 1959 reflecting: -Continued economic recov ery; -A need to replenish in ventories; -The possibility of a strike and a subsequent price in crease. Top steelmen place 1959 output somewhere between 105 million and 115 million tons, against 85 million in recession-pitted 1958. They told United Press In ternational they have been encouraged by the gains re corded in the last three months of 1958 and look for ward to continued operations at about 75 per cent of ca pacity. Inventories Liquidated The accumulation of inven tories, liquidated drastically during the recession is ex pected to add some five mil lion tons to the first-half pro duction total. This is apart from what will be required to meet immediate demand for products ranging from pins to new cars. Steelmen say that if a sup ply pinch develops at all dur ing 1959 it will come during the second quarter. That's when steel users will be build ing up inventories as a hedge against a possible strike when the three-year steel labor con tracts expire June 30. Experts figure that the mid-year negotiations will be rough and that a strike will be a distinct possibility. United Steelworkers Presi dent David J. McDonald con-, tends that steel firms can boost wages . substantially without hiking prices. But company officials say any in crease in wage costs must be met by higher productivity per worker or covered by price increases. Where will the 1959 steel demand come from? The biggest customer is the construction industry and construction officials are look ing for their 1959 volume to run about five per cent over 1958. Another big customer is the auto industry. (About 1.7 tons of steel goes into the average car.) And auto mak ers look for their production to rise about 30 per cent over the sharply depressed level of 1958. Appliance Industry Gain Analyzing other markets, experts predict: -A 10 per cent gain in the appliance industry reflecting a rise in personal income, em ployment and housing starts. -Normal annual growth in the container industry, one of the few bright spots in the 1958 steel record. -Farm equipment will hold at the 1958 level with pur chases coming early in the year. -Railroads will increase their use of steel for rails and trackwork by 45 per cent, but continue their drastic cur tailment of freight car pur chases with output falling to 33,000 cars compared with 99,000 in 1957. , -Steel consumption by the shipbuilding industry to drop 30 per cent with demand for new oil tankers gone com pletely. -Small gains to be regis tered in steel use by oil and gas drillers and the mining industry. -National defense expendi tures to boost the demand for aircraft and ordnance steel. MAIL TRIBUNE, Medford, Ore., Wednesday, January 14, 15 I ROK Policeman Fired for Actions Seoul (DPD The South Korean government today fired a policeman who barged into the U. S. Embassy here Tuesday during a clash over the controversial security bill. Vice Foreign Minister Kim Dong Jo expressed his "sin cere regret" over the inci dent, which he said resulted from "ignorance" on the part of the patrolman, Suh Dae Won. The government took its action after Sam Gilstrap, counsellor of the U. S. Em bassy, lodged a formal protest with Kim. Eyewitnesses said the po liceman dashed into the em bassy and tried to drag out a United States Information cameraman who had photo graphed a clash between sev eral hundred policemen and about 500 demonstrators over the new security bill. MAKE CONVENTION BID Philadelphia - (UPD - The Pennsylvania delegation will make a bid in excess of $700,- 000 to bring the 1960 Repub lican National Convention here, it was announced Tues day. The bid will be presented to the GOP Site Committee meeting in Des Moines, Iowa, on Monday. H UNDREDS OF BARGAINS WE SHOW ONLY A FEW Drapery Sale STRIPED and SOLID GANNON TOWELS What a value! Package of two thick, famous Cannon turkish towels at a never-before low price. Choose solid colors in pretty pastels: pink blue, yellow, turquoise or rose ... or you can have smart striped Cannon towels at same low Newberry price. 2 for $00 pair Fortunate purchase from fa mous West Coast manufacturer. REG. $6.95 READY-MADE DRAPES Pinch pleated, ready to hang. All guaranteed fast colors. Wash able. 4 patterns. Choice of 5 colors. Sizes 52x84 and 48x84. Save dollars. Super-Absorbent Terry , Kitchen Towels Only 3M ea. Lint free, fast colors. Assort, colors in stripes with fringe edges. You would expect to pay 59c for this quality. Automatic Electric Corn Poppers Sale Price $098 Watch it pop thru the crystal clear glass. Reg. $3.49 val. May be used for warming foods. Yardage Special 37V Wash and Wear asst. Drip Dri. Everglaze prints. Embossed prints and solids. Wash 'n wear broadcloths. Wash 'n wear combed lawn. Asst. florals, sol ids, etc. Remnants if full bolts would be 59c to 79c yd. JANUARY SALE JEWELRY Special close out, stone and metal items, necklaces, bracelets and ear rings. Beautiful assorted colors and styles. Famous name brands. Values to $1.98. ea. 59 or 2 for 1 plus tax IMPORTED 30-INCH SILK SQUARES 13: Fabulous pure silk prints with hand rolled deges. Unusually lovely color combinations. Many unique designs, each outstanding for its delicate beauty. Superb values! Fabulous Bargain! EMBOSSED COTTON DUSTERS $ 77 Some of the prettiest dusters we've ever seen for such a low price. Big exciting collection of ."Criskay" Everglaze and textured embossed cot tons, beautifully styled, with Peter Pan or Man darin collar, short sleeves. Wrinkle and soil resistant Charming patterns, fashion colors. S,M,L,XL. Newberry's 9x12 LAKEWOOD RUGS Reg. $39.95 $7Q88 Sale Price LO Pre-shrunk and washable. Made of long-wearing crafted carpet yarns, each tuft tightly woven for lasting beauty and appearance. Moth free. Rubber coated backs for skid resistance. 9x12 RUG PADS Reg. $6.95 $ fl95 Sale Price 4 A Newberry waffled, embossed rug pad will add life to your rug. Buy now and save. Save over $13 on RUG AND PAD! Both for $ 33 00 WROUGHT IROn TABLES, CHAIRS $1177 And up to $C98 33 3f Famous make t or all blade in Graceful, useful 3f Famous make brass-trimmed thm group t pieces . , . 3-tier tables; racks for magazines, books; bedside, end, telephone, or planter tables; vanity chairs; patio or TV stack tables! V LADIES RAYON ACETATE PANTIES 4 pair $100 I Elastic leg and' waist. Pink, maize, blue. Sizes 5, 6, 7. Reg. 39c pr. Sale price. BOYS' WHITE T SHIRTS 27 ea. Milsan nylonized for added beauty and strength. Sizes 4 to 14. Reg. 39c ea. Boys' Nylon Stretch SOCKS a pair 97' Fit all sizes 9 to 11. Blazer stripes and novelty patterns. All colors. All nylon. Reg. 39c pr. Men's White Dress SHIRTS $033 ea. High count Imp. fabric. Preci sion tailored. Unbreakable pearl ized buttons. Sanforized. 14V2 32 to 16 14-35. Plain and French cuffs. Reg. $2.98. SCATTER RUGS Tweed rugs, 34x50, in washable cotton ... or velvety cut-pile cot ton 30x50", with non-skid latex backs. Red, rose, sandalwood, green, black-and-white, grey, blue, white, pink, aqua, gold, hunter. Reg. SI. 98 SPECIAL $4 67 1 ea. SPECIAL 12" DOILY Spanish lace; cotton edged with eyelet or lace ruffles; nylon angel lace. 23 ALL CORN BROOM Imported from Mexico. Red or gold metallic painted wood handle. Buy now, save. 88' cCtcft. r7 7 SIXTH AND CENTRAL MEDFORD'S BARGAIN CORNER J- i
