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