14 MAIL TRIBUNC, Mdfort, Ofaw, Friday, Jinuiry 16, 1959 '
Post-Recession Recovery Seen
Continuing Through
New York -(CPD- The year
1959 is expected to be a very
good one for the nation's re
surgent economy.
Leading economists see no
boom developing in 1959, but'
they are confident the post--"cession
recovery which be
in 1958 will continue
through the new year.
The consensus is that high
er personal income, increased
government, business, and
consumer spending, a record
level of construction and a
shift back to inventory accu
mulation will exercise power
ful forces for expansion.
Many economists also be
lieve that inflation will be
arrested in 1959, making most
of the anticipated gains in
economic activity real rather
than illusionary.
Problems Seen
Although the economy will
rise steadily through 1959,
the new year will not be with
out its problems.
Competition for the con
sumer's dollar will be keen
and industry will be faced
with a continuing profit-
squeeze. The level of unem
ployment is expected to de
cline slowly and the Federal
Reserve Board's tight money
policy which makes it more
expensive to borrow money-
may have some effect on
housing starts, later in the
year.
Despite these problems,
economists surveyed by
United Press International are
convinced 1959 will witness
"a sound business recovery
along a broad front.'
The gross national product,
the dollar value of all goods
and services purchased in the
nation, is slated to rise around
eight per cent in 1959 to a
new all-time high of $472 bil
lion. Some economists look
for an even greater increase.
In 1958, reflecting the re
cession which stalled industry
In the first six months, the
GNP declined to $436 billion,
about four billion dollars be-
low 1957.
The biggest gains in 1959
are looked for in industries
hardest hit by the recession,
including automotive,' rubber,
steel, copper, aluminum, ap
pliances and railroad.
Construction Better
The construction industry,
which countered the industry
trend in 1958 by operating at
record levels, will do even
better in 1959. The volume of
new construction in 1959 may
rise another three billion dol
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A Wettem Company
Owned ani Operated by VC'cstem People
lars to a new peak of almost
53 billions.
The auto industry, which
accounts directly and indi
rectly for one out of every
seven jobs in the country, is
highly optimistic that its 1959
model cars will sell well.
The anticipated improve
ment in auto sales from 4,
500,000 units in 1958 to 5,
500,000 or more - will benefit
a long list of supplier indus
tries, including tires, paint,
textile, glass and steel.
Sparking the growth of the
economy in the coming year
will be the nation's 175 mil
lion consumers, who account
for almost two -thirds of all
the goods and services sold
each year.
Economists anticipate . that
consumers will spend close to
$307 billion in 1959 for every
thing from automobiles to
haircuts. That would be a gain
of about $17 billion over 1958.
Income Increase
The groundwork for this in
crease in consumer spending
will be laid by an estimated
5.7 per cent increase in per
sonal income, reflecting high
er wages and salaries, longer
hours at the job and rising
employment
Disposable income, what
consumers have left after pay
ing their taxes, also will rise
5.7 per cent to a new peak of
$328 billion, which will mean
consumers will have almost
Unseen Mites May
Be Clue to Need for
Doctor, Pest Man
Washington-(Science Serv-ice)-Mites
that bite, but can
not be found, may mean there
is need for a psychiatrist, in
addition to the physician and
the pest control operator.
Discussing insect phobias
that people have, Charles
Pomerantz told the Entomolo
gical Society of Washington
meeting here that actually the
three specialists may have to
cooperate.
The pest control operator is
often called because the pa
tient believes that his doctor
has no knowledge of insects.
Also, Pomerantz, who is head
of research for the Bell Ex
terminating Co., New York
City, explained that many
persons complain "their physi-
New Year
$18 billion more to spend in
1959 than in 1958.
Consumers are expected to
add about one billion dollars
to their savings in the new
year.
Also brightening the pic
ture is the belief that indus
try's expenditures for new
plant and equipment will be
gin rising later in the year.
This, coupled with the rever
sal of inventory policies from
liquidation to accumulation,
will be definite upward fac
tors in the economy.
Excesses Eliminated
The economy came through
the recssion in good shape.
Some excesses were elimi
nated and a sound foundation
was laid for the business re
covery that now is picking up
speed,
The high level of consumer
spending and government ex
penditures in 1958 prevented
the business decline from be
coming a more serious eco
nomic dislocation.
A key factor behind the
optimism surrounding 1959
is the great improvement that
has been noted in consumer
confidence since the recession
hit its peak in the spring of
1958. When consumers are op
timistic about their economic
future, they are willing to
spend a greater portion of
their incomes on those goods
and services which raise their
living standards.
cian has no "patience."
Dermatologist Consulted
After making a thorough
investigation of the individu
al's home or office, the pest
control operator is often able
to convince the bite sufferer
that there is no scientific ba
sis for his complaints. At this
stage the pest control opera
tor may recommend that hte
customer see a psychiatrist or
dermatologist.
Sometimes, Pomerantz said,
merely spraying the home or
office with an evil-smelling;
nontoxic mixture will con
vince the individual bitten by
the "ghost" insect that the in
sects are really gone. Other
times, recommending a move
to a new home may end the
phobia.
In reciting numerous case
histories of persons afflicted
with insect phobias, Pomer
antz emphasized the need for
a combination of scientific
knowledge with a "fatherly
approach and compassion and
understanding of the patient's
problem."
Many Ills Suspected
When he has demonstrated
the difference between real
insects and mites and imagin
ary specimens consisting of
dust, lint and dirt particles,
or even mis-weaves in bed lin
ens and napkins, the pest con
trol operator has the respon
sibility of advising the phobia
sufferer to visit his doctor or
dermatologist.
Many ills, such as circula
tory conditions, food allergies
and contact dermatitis may
simulate and be diagnosed as
insect or mite bites, Pomer
antz said. So in some instances
the physician might call in
the pest control operator for
advice, he suggested. Several
cases diagnosed as allergies
or hives were subsequently
found to be the result of bed
bug bites, Pomerantz pointed
out as an example.
However, while many per
sons suffer from insect pho
bias, the pest control operator
must always be alert to the
possibility that a previously
unknown insect is the actual
source of the patient's trou
bles, or that , a real insect or
mite may be there. As an il
lustration of the need for sci
entific care, Pomerantz stress
ed the importance of the der
matologist's studies.
Nurserymen Return
From Convention
Representatives of the Cas
cade chapter of Oregon Asso
ciation of Nurserymen recent
ly returned from a convention
in Eugene.
Attending ' f r o m Medford
were Mr. and Mrs. J. Vernon
Marshall, Mr. and Mrs. El
wood Stansfield and Mr. and
Mrs. Willard Herzburg;
The Cascade Chapter con
sists of the area from Suther
lin south to the state line.
Also representing the chap
ter at the convention' were
Mr. and Mrs. Myron Lehne
of Roseburg. Lehne is presi
dent of the chapter.
SET INAUGURATION DATE
Caracas, Venezuela - (UPD -Leaders
of Venezuela's politi
cal parties have agreed on
Feb. 12 as the date of Presi
dent elect Romulo Betan
court's inauguration. -
Turncoat Still
Feels Socialism
Most Advanced
Honolulu -UPD-Korean War
turncoat Richard C. Corden
told reporters here he is glad
to be returning to "the high
standard of living in Amer
ica," but that he still feels
socialism "is the most ad
vanced system in the world."
The dapper-looking Corden,
formerly of Providence, R.I.,
is coming home after almost
nine years in China. He has
been identified by other pris
oners as the ringleader and
spokesman for the 23 Ameri
cans who chose to go to Bed
China after they were cap
tured. Not To Disembark
He had his first view of
American soil in nine years
Wednesday when the liner
President Cleveland arrived
here from Hong Kong. He
was interviewed on deck after
he told reporters that he had
been told by the American
consul's office in Hong Kong
not to disembark until the
liner reached San Francisco
next Monday.
The mustachioed Corden,
31, answered questions dis
passionately, although they
dealt with such subjects as
treason and charges of in
forming. He said he "had never in
tended to remain in China."
- "I like a good standard of
living," he explained.
He called socialism "the
most advanced system in the
world," but added that he
considered it only a step to
wards communism. He did
admit Chinese methods "may
be a little extreme."
Reporting in Duties
When the term "brainwash
ing" was mentioned, Corden
corrected it to "political in
doctrination." He answered charges of in
forming on his fellow charges
by stating that his duties as
"squad leader, monitor and
club officer" naturally includ
ed reporting the comments
and opinions of his fellow
prisoners to the Chinese offi
cials. He called .the American
soldier "soft." He lives good
so when he runs up against
a tough situation he just
gives up."
Representative for
Firm Named Here
H. D. (Danny) Christian-
son has become a registered
representative of the Medford
office of Zilka, Smither and
company, investment securi
ties firm James H. Zilka,
president of the company, has
announced.
Christianson joins Richard
Watson, vice president of the
company, in Medford, to ex
tend service to investors in
this area. Christianson was in
the investment department of
the First National Bank of
Oregon for two years and was
cashier with Zilka, Smith
er and company for eight
years in Portland.
He plans to move to Med
ford when adequate housing
is available..
Zilka, Smither and com
pany has had an office in Med
ford for 25 years. The office is
located at 14 South Central
ave. They are members of the
Pacific Coast Stock exchange
with direct wires to Portland
arid other financial centers.
The average American sees
his doctor about five times a
year.
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Inflationary Pressures Lacking
In 1959; Lower Food Costs Due
Washington -(DPI) Old man
inflation is settling down for
a long winter's nap. He may
even sleep through most of
1959.
So say high government
economists interviewed by
United Press International.
They expect the economy to
be relatively free from infla
tionary pressures in the com
ing months.
One Dut it this way: "The
cost of living has already lev
elled off these past few
months. If things go the way
we think they will, prices
should continue for a while
about where they are now.
Some might go up a bit but
others, especially food costs,
are going to slide.
May Go Upward
Another high official
pointed out, however, that "if
consumers and businessmen
take off on a spending binge.
the cost of living may start
upward again.
For the most part, though,
the experts are confident that
the value of the dollar will
hold steady in the immediate
future. They point to the ad
ministration's announced in
tention of resisting excessive
government spending and tne
Federal Reserve Board's read
iess to prevent excessive use
of credit.
As for the long run - and
ppnnomists are chary of mak
ing long-run predictions-the
outlook is not quite so rosy.
Prices could well continue to
nursue their historical path
upward. But the rise would
be more gentle than it nas
been. I
A lot would depend on gov:
ernment policies, the state of
business and the internation
al situation.
Over-All Stability
In 1959, the cost of living
may climb one month and
slip back the next, but it is
likely to show over-all stabil
ity. Government economists
offer the following reasons
for this:
-There is a good deal of un
used manufacturing capacity
in the economy. Hence, de
mand for man ufactured
goods is not likely to outstrip
supply.
The Laohokow peasants of
the Yangtse province of Hu
pen have founded a new in-dustry-the
breeding of scorr
pions, which are valued for
their poisons, which have
medical uses.
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-Businessmen have been
pursuing a conservative in
ventory policy. Economists
emphasize that businessmen
do not expect prices to rise
sharply or they would have
begun stockpiling to beat the
price hikes.
-Business has also been
modest in spending for new
factories, lathes, presses and
other production equipment.
Like defense spending, capi
tal expansion outlays have
some inflationary impact be
cause no consumer goods re
sult, at least initially.
Not Aggressive
-With full employment of
men and resources not yet
achieved, both labor and bus
iness aren't likely to be very
aggressive in their wage and
price policies.
-The Federal government's
budget will be much closer
to balance in the 1960 fiscal
year starting next July than
it is in the current fiscal year,
when the deficit is expected
to hit $12,200,000,000. In fis
cal 1960, the red-ink margin
will be half that large-per-haps
less, depending on rev
enues, policy decisions and
the pleasure of Congress.
Fiscal experts here feel that
the Treasury will be able to
do most of its new borrowing
from non-bank lenders, there
by eliminating the biggest in
flationary hazard associated
with a deficit budget. (When
commercial banks lend, they
create credit. When anyone
else lends, it is with already
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In sum, the economists see
business in 1959 moving at a
brisk, prosperous pace but
with enough restraint to
avoid any strong pressure on
prices.
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SECOND FLOOR
Judge Kelly Speaks 1
At Lions Meeting
Jackson County Circuit
Court Judge Edward Kelly
discussed child delinquency
at a meeting of the Crater
Lions club at Ping's Gardens
this week.
Gene Barlow was chairman
of the program. In addition to
Judge Kelly, other visitors in
cluded Jack Preston, Clyde
Wheaton and Rudy Teatru.
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WHAT'S THE BUSH? r
London -4DPB-: Sculptor Ja
cob Epstein said "I resent be
ing hurried" when he turned
down a $5,600 job for. a shop
ping center decorative panel.
The center had given him the
commission three and one
half years ago and recently
asked to see at least a sketch.
The next meeting will be Jan.
20, at Ping's.
AS A SPIN
OPEN MONDAY NIGHT
TIL 9:00 P.M.
i