THURSDAY, MAY 10. 19B2
MEDFORD MAIL TRIBunE, MEDFORD. OREGON
(-r
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f i illiiil id
Your Money's
Worth
By SYLVIA PORTER
Copyright, HaN Syndicate, Inc.
IT'S NOT GOOD ENOUGH
It's good but not good enough.
This is the story of the American economy in this mid
May of 1962, the 15th month of the 1961-82 business upturn.
And this central fact carries some grim implications to
every one of us which are now increasingly worrying both
liberal and conservative economists in and out of government
a well as thoughtful businessmen, labor leaders, investors
in stocks.
We're on the way up and we're going to continue up. As
conditions snape up now, the current mild, mlddlin advance
which begin in February, 1961, will last at least through
1962. We've never been so big in economy. Our Gross Na
tional Product - meaning the total of all the goods and
services we turn out - already is well above the half-trillion
mark. At an annual rate of $549 billion, GNP is a solid 10
pei cent higher than it was In early 1961 and it's climbing
steadily.
Still this is not good enough. For if wt don't grow at a
faster rati thin wi havi bun growing, this is what's
ahead.
(1) Unemployment will not fall to the 4 per cent rate
considered tolerable in our country. It will remain well above
that rate, with all this implies to the millions of workers
who won't be able to find Jobs, to their families, to their
communities.
(2) Bankruptcies, particularly among small businessmen
will continue to soar. This fiercely competitive era is mur-
' der on marginal businessmen in manufacturing, wholesaling,
retailing.
(3) Profits will not be fat enough to finance the invest
ment in modern plants and equipment which is imperative
if our industries are to be able to expand their sales in the
world's markets.
(4) Our Federal budget again will sink billions in the
red. We will pile .up a major deficit in fiscal year 1963
slated to begin this July-on top of the major deficit with
which we re ending fiscal 1962.
(5) With a deficit in our Federal budget at home and
deficit in our financial accounts abroad, the threat to our
dollar could become very real. For years, we have been
spending more abroad than we've been earning abroad (the
technical term is "a deficit in the U.S. balance of payments).
As a result, our foreign creditors have built up enormous
claims against us. If they ever decide to withdraw these bal
ances on a massive scale because they distrust the stability,
of our dollar, our entire economic structure would be under
mined.
Yes, there are some exceedingly bright spots in our econ
omy. It cannot be overemphasized that we are in an upturn
and it is sure to last for quite a while. Retail sales in gen
eral and auto sales in particular are booming. Economists
are taking heart from the sharp spurt In bulding of houses
in March to an annual rate of 1,409,000 units after the Feb
ruary rate had sunk to the lowest in 13 months. The new
McGraw-Hill estimate for business investment in plants and
equipment hikes the rise In this crucial spending to 11 per
cent against earlier government estimates of an 8 per cent
increase. But at the same time, Industrial production is
leveling. Especially unsettling was the 3 per cent drop in
new orders for durable goods in March, for this indicator is
assigned significant weight as a signal of future trends. Con
sumers are now spending at so liberal a pace that our spend
ing can't be expected to go on gaining at this pace. The fed
eral government isn't going to increase its spending in fu
ture months at the rale ol increase in past months.
This, thin, li thi picluri - an iconomy moving up but
not at ihi spud or on thi icale niential if thi grim im
plications summarized above an not to be realized.
The heart of ihi problem it speeding up our growth.
This is the challenge to which leaders in every sphere
are turning witn mounting anxiety.
This Is why in and out of the administration, among both
conservatives and liberals, talk is becoming serious of real
tax cuts - for individuals across-the-board and corporations
across-the-board too. We well may be needing this most
'.powerful of all stimulants in coming months.
Spacecraft in
Works To Detect
Life on Mars
Seattle 0IPI1 Detection of
possible life on Mars may be
accomplished with the devel
opment of nn advanced space
craft called Mariner B. to be
launched In 1964, the second
National Conference on the
Peaceful Uses of Space has
been told.
Edgar M. Cortright, deputy
director of the National Aero
nautics and Space Adminis
tration's Office of Space Sci
ences, said the new craft
would be powered with an
Atlas-Centaur rocket and
would be designed for flight
to Mars.
A landing capsule would
be guided toward the planet
by the basic spacecraft which
will then fly by the planet,
he explained. While the cap
sule enters the atmosphere
and lands, the spacecraft will
perform scanning- expert
menls. Another spacecraft, known
as Mariner R, is being de
signed to land on Venus.
May Be First Proof
"With the capsule on the
surface of Mars may well
come the first proof of extra
terrestrial life," he said.
Cortright was one of seven
space scientists reading pa
pers at tile conference.
He was preceded to the
stage in the Opera House of
the Seattle World's Fair
grounds by Dr. Homer E.
Newell, director of the Office
of Space Sciences, who de
scribed an orbiting astronomi
cal observatory under devel
opment by the Grumman
Aircraft Engineering Corp,
Bcthpagc, N.Y.
He said the OAO would be
the largest of the scientific
satellite observatories about
10 feel In length and weigh
ing about 'i tons and
would be guided'so accurate
ly it could approach 0.1 sec
ond of arc.
"This is about equivalent to
the accuracy required to use
a telescope located In Balti
more to pick out either the
right or left eye of an indlvi
4-H NEWS
Crazy Stitchers
The Eight Crazy Stitchers
4-11 club meeting was held re
cently in Mrs. Goodwin's
home. The meeting was called
to order by Sharon Hugdahl,
secretary. The minutes were
read and approved and roll
call was given. Eight were
present and three were ab
sent. There was one guest,
Mrs. Goodwin.
In our discussion, w e
brought up the 4-11 summer
school and camp.
Katliy Vandngrill,
Reporter.
Steel To Become
Issue in Campaign
Chicago -illPli- Sen. Barry
Goldwater (R-Ariz.) has vow
ed to make the steel price
dispute a leading campaign
issue in this year's congres
sional elections.
"While 1 am not up (or re
election mywlf. I will cam
paign vigorously on the Issue
o( whether President Ken
nedy may dictate to 'Ameri
can business ." Goldwater told
a news conference.
He said the President "has
nothing to say about what
prices U.S. Steel can charge."
"1( he wants that power, I
suggest he get the Constitu
tion amended," Goldwater
said.
"I don't like the President
of the United Stales calling
U.S. Steel Co. officials of
and 1 don't think the Presi
dent's father would like it,"
lie said.
Elephant Purchase
Fund Hits $28,474
Portland - (WH - The (und
to buy elephants Belle and
Packy (or the Portland 200
has reached $28,474, Just $1.
52fi short of the needed $H0,
0110. Members of the committer
said Hi.' hope the goal will
be rcac,sil by the end of the
week.
The I01me.it annual migra
tion of any bird is the 22,(1(10
dual in Washington. D. C, foimlles some iuctivtdurl Arctic
detailed study as to Its color terns fly fronPthe ArUic to
TO '
MOTHER
WITH
LOVE'
ATmW
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