MEDFORD MAIL TRIBUNE. MEDFORD. OREGON
WEDNESDAY. JUNE 13. 1962
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Today & Tomorrow
By Walter Lippmann
(c New York Herald Tribune Syndicate
CUTS RIBBON Miss Marty Wyatl, Jack
sonville, recently crowned Miss Rogue Val
ley, cuts ribbon at opening ceremonies Sun
day at Hawthorne Convalescent and Re-
habilitation Center. William Brooks, presi
dent of developing firm, (right) and State
Representative John Dcllenback, were
among those attending.
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HNSTOH
Soon To Be at the Medford Shopping Center
Still at 112 South Riverside Q
JO
STORES
TO GET THE ECONOMY
MOVING
While there is wide agree
ment that a tax cut is needed,
there is an important differ
ence of opin
ion on when
it should be
put into ef
fect. The Ad
ministration 's
position is
that a tax cut
should be vot
ed in the next
session of
Lippmann
Congress, if possible early in
1963. If this is done, the ef
fects of the cut will not at
best be felt until some ten
months from now.
There are others who think
that it is Imprudent to wait so
long, that what the economy
needs is the stimulation of ad
ditional demand in the near
future. This could be had by
action in this session of Con
gress to cut by a few percent
age points the withholding
from payrolls for taxes, as
well as the instalment pay
ments in September and Jan
uary for incomes and corpo
rations.
Eighty per cent of personal
income tax is paid in the form
of withheld wages and sala-
ries. The economic effect of an
income tax cut on income and
spending would be felt by the
beginning of the month after
it was enacted.
npHE argument for waiting
until next year rests on
the idea that if taxes are cut
before the tax structure is
reformed (as proposed by the
Administration), Congress is
likely to lose interest in tax
reform. The Administration's
current view is that for the
i long run lax reiorm is very
important and that it should
not be sidetracked by the
popularity of a tax cut. On
the contraryt the unpopular
features of tax reform should
be made more palatable by
the tax cut.
This may be a correct esti
mate of Congressional psy
chology. The question is
whether the prospects of the
economy today do not require
a decision to stimulate and
prolong the recovery and
avert a recession.
Tax reform may be more
difficult if the recovery is
promoted and sustained by a
tax cut. But everything vill
be more difficult if the re
covery is aborted before it
has been achieved.
rpHERE is ground for think
1 ing that the underlying
trend is not towards a full
recovery. I myself believe that
this is the determining cause
of the bear market in stocks
which has heen in existence
since December. It is true that
consumer buying is good, in
eluding automobiles and
houses, but against this we
find that inventories are be
ing kept extremely low; that
while hours of work have
been steady, unemployment
remains high.
Most disturbing and most
significant is the fact that
plans to purchase plants and
equipmcnt-which is the back
bone of full employment and
a high rate of growth-are
disappointingly small.
Early in January the Ad
ministration was hoping for
a rise of 14 per cent above the
! 1961 capital investment level.
I Today, the figures for May
( show that current business
. plans indicate a rise of only
j about 8 per cent, which is no
more than it was back in
February. If this continues,
the chances are that the Ken
nedy recovery, like the Eisen
; hower recovery of 1960, will
grind to a halt,
i . . .
I TT is no explanation of the
situation to say that busi
nessmen do not like Kennedy
and the Democrats and are
therefore afraid to invest.
They did not like Truman in
1950 but they did invest. They
liked and trusted Eisenhower
in 1960 but they did not do
anything to save the I960 Ei
senhower recovery from being
aborted. The truth Is that the
great movements of tile busi
ness cycle are not caused by
incidents, personalities, or
political parties, but by con
tinental and global tides of
supply and demand.
It is no accident that the
Kennedy recovery of 1962 has
become throttled down as the
true budget of income and
product accounts has been
coming into balance. The
truth is that the American
economy, far from being in
flationary, is in fact being
pressed down by strong de
flationary pressure. Many do
not see this because they are
confused by the administra
tive budget which does not
tell the true story. In that
budget there is a deficit. But
in the really significant bud
get - the income accounts -there
Is a premature balance
achieved before recovery has
been completed. In an econo
my with large unemployment
and low utilization of plant
capacity this balance of the
income accounts is deflation
ary. The reason why a tax cut
is desirable Is that it will
relieve the deflationary pres
sure. TT is to the problem of our
A throttled recovery that the
Administration ought, I think
to address itself primarily. I
A 5
do not say that tax reform is i GOOD TO LAST GROUND
not important and desirable.
But recovery is more im
portant and recovery should
not be jeopardized by the leg
islative prospects for tax re
form. As foor the reforms them
selves, I must confess at once
that I do not understand the
proposals well enough yet to
write about them at all. I
feel reasonably certain, how
ever, that the controversial
items which are holding up
the 1962 tax reform bill are
not big enough to be of such
crucial importance that they
must have first priority.
The President's first prior
ity is to get the economy
moving.
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C. M. Lltwiller
aiMassk.aaelBiJ
Mrs. Lltwiller
Ashland's Leading Funeral Director Since 1935
Englishman Finds
Americans Much
Like Other People
Ashland Americans are
pretty much the same as peo
ple in the other parts of
world, a visitor from Britain
has concluded after nine
months in the United Slates.
William Royston of the Uni
versity of Bristol, England, in
the United States on a Rotary
fellowship, told of his impres
sions of America and its peo
ple in a talk Tuesday for the
Ashland Chamber of Commerce.
Royston is In Ashland as a
member of the Oregon Shake
spearean Festival acting com
pany for the current season,
He has spent the year at the
University of Georgia under
a program sponsored by the
Rotary clubs of Georgia which
brings close to 50 students a
year over from other coun
tries. What He Expected
Before he came to the Unit
ed States, Royston said he
imagined this country to be
place characterized by big
cars, big highways, big hotels
and rich residents, preoccu
pied with materialism.
When he first arrived, he
felt his idea of what the coun
try would be like had been
somewhat confirmed. But
after getting to know the peo
ple better, Royston said, he
came to the conclusion that
Americans were pretty much
like people everywhere.
It was a comforting realiz
ation," the visitor added.
Royston had words of praise
for the Oregon landscape,
calling it the most beautiful
part of the country he had
seen and more like the land
scape of Britain than any
other part of the United
States.
Royston engaged In numer
ous drama activities at me
University of Bristol and the
University of Georgia. He
called it "quite a challenge"
to learn in a short while the
four "fairly sizeable" parts
he will play during the
Shakespearean Festival this
year.
Two Arrested on
Shoplifting Charges
A 19-year-old Medford
woman and a 14-year-old girl
were arrested Monday morn
ing by Medford city police at
J. C. Penney company, 106
North Central ave., on charg
es of shoplifting.
The woman, Millie Dale
Bell, route 4, box 432, Cole
man creek, Medford, was
lodged in the county jail
charged with petty larceny.
shoplifting. The girl was re
leased to her parents with fu
ture action to be taken by the
county juvenile department.
According to police, the
two attempted to leave the
store wearing parts of two
swimming suits and with a
third in their purses.
Bey Scouts
Den 3
Cave Junction - Cub Scout
Den 3 fimshfd the year with
a trip to the Woodland Deer
park. Furnishing cars and
overseeing the boys on their
trip were Dm Mothers Mrs.
Josephine Peters and Mrs.
Joe Meyers.
Shell
dealers suggest
15 ways to make
your car last longer
Shell scientists dedicate their working lives to the
care and feeding of automobiles.
They can offer dozens of tips on prolonging the
life of what is probably your second biggest invest
ment. Here are some useful samples:
1. Learn to read (ail pipe smoke signals.
Blue smoke means too much oil is getting
into the combustion chambers. Your piston
rings may be worn.
Black smoke is an indication of too
much gasoline in the air-fuel mixture.
Your carburetor may need an adjustment.
Wliiie smoke is mostly water vapor.
Don't worry about it.
2. Check wheel alignment at least twice
a year. An out-of-line wheel can increase
tire wear as much as 50 percent. Also,
keep your wheels balanced. An unbal
anced wheel pounds the tire against the
pavement, wearing the tread unevenly.
3. Rotate tires every 6,000 miles. Be sure
to include your spare. This helps tires
wear evenly, last longer. Your Shell dealer
can take care of this for you.
4. Avoid high speeds and save your tires.
High speeds increase tire wear drastically
by as much as 80 over normal wear.
5. Use your engine to save your brake
linings. Try to avoid hard, sudden brak
ing. When you sec you'll have to slow
down, take your foot off the accelerator
early and let the engine's compression do
some of the job.
6. Warm up slowly. Racing an engine to
warm it up ages it fast. A short warm-up
at moderate speed is good for your car
even in summer. But never race your cold
engine to warm up. It may damage criti
cal working parts before lubrication can
be fully established.
7. Have your engine's spark timing set
to proper specifications. Spark timing
determines whether your plugs fire at the
right instant. With incorrect timing, you
can lose power and mileage. Also, your
car may knock. And chronic knocking can
damage your engine.
8. Use a gasoline that controls knock.
If your engine persists in knocking, you
may need a gasoline with more anti-knock
components, for a higher octane rating.
Super Shell contains all of the anti
knock ingredients required to help your
car deliver knock-free performance.
9. Have your oil checked whenever you
fill up with gasoline. Oil docs not wear
out. But it can be lost through leaks or
burning. And it does get dirty. Worse yet,
oil can become contaminated by combus
tion by-products including acid.
Suggestion: use new Shell X-lOO Pre
mium Motor Oil. It fights engine acid
and four other troubles that can shorten
engine life.
10. Change your oil filter clement regu
larly. The filter is designed to catch and
hold foreign particles so they can't get
into your engine. Replacing the filter ele
ment at regular intervals helps your en
gine last longer.
11. Have your car's cooling system
checked in spring and fall. Cooling sys
tem rust inhibitors can wear out. Rust,
corrosion and sediment may then start to
form. In'the spring, let your Shell deffer
inspect your entire cooling system. When
he drains and refills, he'll add a special
Cooling System Protector.
In the fall, you get a free cooling sys
tem inspection when you have Shellzone
anti-freeze put in by your Shell dealer.
12. Get a lubrication job regularly. Dirt
and moisture can work into chassis joints
and bushings, causing friction and wear.
Grease can also eventually pound out,
leaving the parts unprotected.
Shcllubrication at regular intervals
helps protect those vital parts.
13. Keep door and body panel drain 1
holes clear to foil rust. There are little
drain holes at the bottom of body panels
and doors. They can get clogged so that
the panels actually hold water. Result:
Rust forms more easily, can eat through
the metal. Make sure drain holes are clear.
14. "Bandage" minor scratches in your
car's finish. Until you can have the
scratches refinished, keep rust from form
ing with a coat of touch-up paint or a
strip of cellulose tape.
15. Let your Shell dealer help your car
last longer. Your car may have cost you
thousands of dollars. Treat it carefully.
Feed it well. Let your Shell dealer help
you on both counts. You will sav money
and increase your driving pleasure, too.
(shell)