Price 1 0 Cents
Medford
2nd SECTION
MEDFORD, OREGON, FRIDAY,, SEPTEMBER 11, 1959
Pages 1-10
54th Yea?
ir A T
Can Bull Market Exist Without
i - -
Inflation? Market Experts Ask
KUaer Waher
Br ELMER C. WALZER
UPI Financial Editor
New York-flJTO-Wall Street
is asking if the bull market,
reputedly built on an inflation
premise, can
exist without
inflation.
This ques-
f. tion comes up
at a time when
the prime in
terest rat e
rate for the
best credit
rating borrow
i n g s is at 5
per cent with talk of, an event
ual 6 per cent. ..'
High money " rates " could
bring deflation eventually, the
experts point out. Also it is
noted that so far the adminis
tration has kept a firm hand
on the budget which , many
had thought would be out of
whack. - -," y
High.' money, a balanced
budget, fairly steady prides,
prospect of a non-inflationary
steel settlement, and talk of
a possible cutback in defense
spending all spell deflation.
Rise Without Inflation
Many experts refuse to go
along with the idea that infla
tion has been licked. And
some experts hold that we can
have a rising market without
the aid of inflation. -'
- An advocate of the latter
a rising market without infla
tion is the big mutual fund
sponsor, Distributors Group,
Inc. It has. this to say on the
subject: ; - 7 ' :-,
, "If we accept , inflation as
virtually , the only reason for
-investing in common stocks
market will rise in proportion
to the decline in the value of
the dollar we find a sizeable
increase in common stock
prices still unaccounted for.
Stock Prices Tripled
"According to this idea, the
stock market, during the past
20 years, should have doubled
to offset the halving of the
dollar's buying power and no
more. But the price of com
mon stocks has nearly tripled,
Why the additional apprecia
tion?' ..' .
"This significant 'additional'
appreciation is due to the in
herent dynamic qualities of
common stock."
The firm notes a steady rise
in expenditures for new plant
and equipment and lor re
search, and believes this is a
sound reason for investment
in common stocks today en
tirely aside from inflation.
"Also," it adds, "it is a posi
tive, reason, and a more
thoughtful one than the pure
ly negative desire to "flee the
dollar" by holdiig only mini
mum reserves in such sound
investments as bonds and sav
ings deposits where inflation
erodes the buying power of
principal faster, than interest
can add to it. '
Other Side of Coin
' Now for a look at the other
side of the coin to answer the
question if inflation, has been
licked
The New York Federal Re
serve Bank points out that the
current situation which forces
the Treasury to issue nothing
but short term issues is infla
tionary. "As the debt shortens,
ownership tends to shift from
. and the idea that the stock ''savings-type'- investors to in-
4yli ., tf
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ISP Li-i J
BLAST DAMAGE This Is what remains of the fire
chiefs city-owned station wagon after dynamite explo
sions destroyed it and . two office" buildings in Little
Rock, Ark. The bombs destroyed the Little Rock School
Board office and the mayor's office. There were no injur
ies reported. ' . ' j 1 , -
vestors who hold governments
as a "money substitute,' " says
the bank.
"Thus the Treasury, in ef
fect, borrows funds that would
otherwise be idle and releases
longer term funds that flow
into active use
Incidentally higher rates of
interest being paid by the
Treasury will add to govern
ment outlays. Barron's esti
mates the increase in inter
est payments on the national
debt this year will boost the
budget figure by a half billion
dollars.
Other Additions . ; -
Barron's also sees other ad
ditions to the expenditure side
that will throw the budget out
of whack upward momen
tum of such programs as the
development loan fund, soil
bank, space activities, veter
ans' pensions, and public hous
ing, and works is figured at
$1.5 billion.
Other additions include
$350 million to the postal de
ficit because of failure to raise
postal rates; $100 million for
medical research.
Barron's looks for a $79 bil
lion expenditure in this fiscal
year, against an estimated $77
billion. And sees another $2
billion added for fiscal 1961.
4-H Club News
G. E. Stitchers 4-H Club
The G. E. Stitchers 4-H club
held its final meeting of the
year Sept. 4 at the home of
Mrs. James Edge. The morn
ing was spent with the final
entries and completion of rec
ord books.
. The secretary, Bonnie Gbeh
ring, reported that the club
had completed 18 of the 19
goals it chose at the beginning
of the year. All of the girls
with the exception of one fin
ished and exhibited projects.
AH of them placed giving the
club one champion, Vonnie
Lee Goehring; seven first
places, five second places, and
one third place winner.
All the girls who participat
ed in the style show jreceived
awards,, giving the club two
first and two third place win
ners. The club expressed its
appreciation to "the leaders,
Mrs. Ben Gardener, Mrs. Dick
Wheeler,' anch Mrs. James
Edge. , . -s
Club members had a picnic
lunch and went swimming in
the afternoon with two 4-H
sewing clubs from ShadyXove
as guests. They included Linda
Paulson, Sheri Watson, Linda
Weitman, and Carol Hale of
the Streamline Stitchers,' and
Marilyn Learning, Judy Waltz,
Sandra Paulson, Marilyn Ma
son, Edith Lowery and Donna
Weitman, of the Shady Cove
Cut-Ups.
Janet Burk,
'. Reporter '
Title Insurance Firm
Opens Ashland Branch
The Crater Title Insurance
company, 510 West Sixtn st.,
Medford, has opened a branch
office in Ashland at 362 Lithia
Way, Arthur L. Cook, mana
ger . of . the branch, : has an
nounced. -J ! -; ' ', .
Cook was assistant manager
of the Medford office, which
was opened in April, this year.
He said the purpose of the
Ashland office would be to of
fer direct title insurance fa
cilities to the Ashland area.
Triple Dead Heat
In Talent Portion
Of Bea uty Pageant
" Atlantic City, N. J.-DPD-A
seamstress, a shapely flute
player and a peroxide blonde
night club singer were in the
money today in the first triple
dead heat in the history of the
Miss" America pageant.
The opening round of com
petition in the 32nd running
for the beauty crown, worth
nearly $100,000 to the winner,
made history in several ways.
It marked the first time a
girl had won in the talent di
vision because she could sew.
No one could recall a flute
having figured so prominently
in a beauty contest.
Makes Own Clothes
That's right. Not sing, dance,
play the marimba or recite the
"White Cliffs of Dover," but
design and make her own
clothes.
'There have been twin ties
before in the contest, . but
never have three girls stump
ed the judges so completely
that all were put in first place.
The dead heat was between
a Connecticut milkmaid who
makes all her own clothes; a
Pensylvania s c h o o 1 teacher
who paints, plays the flute and
composes music, and a Wash
ington, D.C., night club singer
whose father, is a policeman.
Miss Pennsylvania, Lois
Piercy, 21, of Springfield, ap
peared in artist's attire to dis
play an oil painting titled
"Night Rain On The City" and
play her own composition on
the flute.
Hot Rendition
Miss District of Columbia,
21-year-old Virginia - Pailes,
who lives in Hyattsville, Md.,
sang a hot rendition of "It All
Depends on You" while wear
ing a shocking pink chiffon
evening gown. 1
The dark horse of the eve
ning was Diana Klug,. of Tor
rington, Conn., 21-year-old
daughter of a dairy farmer.
Miss Klug said she likes to sew
so much that she has been
known to run up a dress just
to relax while cramming foi
college finals. - ;
The first bathing suit judg
ing was won by Miss Washing
ton State, Sharon Vaughn, 21,
of Seattle. She stands 5 feet
7 inches tall, weighs 120
pounds and has measurements
of 36-22-36. She wore a white
bathing suit.
Loyals Recapture
Laos Territory
Vientiane, Laos -(UPD-Loyal
troops have recaptured much
of the territory in northern
Laos taken by the Commu
nists earlier this month, but
Red guerrillas are now active
in southern Laos, it has been
reported.
informed sources said gov
ernment troops, advancing al
most unopposed in northern
Laos, are near the Nanma riv
er, starting line for the Reds'
Aug. 30 offensive.
Some Communist activity,
said to involve both native
Reds and invaders from North
Viet Nam, was reported in
northern Laos. ' .
Tulelake, Calif. (DPD Game
officials have reported that
duck populations in the Na
tional Wildlife refuges in the
Klamath Basin have reached
the half-million mark.
I L S ff W M W m m zMM M W M M M WWW
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