THE WEEK IN CALIFORNIA
MEDFORD MAIL TRIBUNE. MEDFORD, OREGON
MONDAY. JANUARY 28. 1963
Republican Central Committee
In High Spirits Over Victory
A 5
7j w
Uniled Presa International
The Republican State Cen
tral committee gathered in
San Francisco last week end
in high spirits to debate future
party strategy.
The Republicans were hap
py because their candidate,
Del Norte County Supervisor
Donald H. Clausen, had won
a decisive victory in the spe
cial election held in the First
Congressional district to fill
the seat held by the late Clem
Miller.
Clausen received 79.340
votes to 65,317 for William
Grader, the officially en
dorsed Democratic candidate,
in the unofficial returns. An
independent Democrat who
lived outside the six-county
district, John C. Stuart of Au
burn, got 1.651 votes.
Republicans pointed out
that Democrats held a regis
tration edge in the district
and that Democrat Miller had
carried it a montn auer ne
was killed in a campaign 1
plane crash. Caspar W. Wein-1
berger. Republican state I
chairman, hailed Clausen's
triumph aa a "clear indica
tion" that a man (Grader) who
ran on President Kennedy's
coatails alone could nut be
elected. However, Democrats
rejected this thesis.
Meanwhile, it was an-
Your Money's
Worth
By SYLVIA PORTER
Copyright, Hall Syndicate, Inc.
HOW DEFICIT IS FINANCED IS KEY POINT
The key point about the $98.8 billion budget President
Kennedy has submitted for the year to start July 1 is not
that it's in the red. lD64's historic budget is billions in the
red, this is fact and nothing Congress is going to do will
change this fact.
Rather, the key point to the health of our economy and
our dollar is how this deficit is financed.
The method of financing the deficit can (1) lay the base
for another inflationary upsurge and weaken our dollar's
value at home and abroad. Or it can (2) have some stim
ulating impact on our economy, just because the government
is putting more money into our pockets than it is taking out
in taxes, but not dangerously flood the business stream with
extra money, not set off another speculative spiral, not
undermine our dollar's value here or abroad.
This is the crucial point, yet it is so much in the sphere
of technical high finance that only a woefully small minority
in or out of Washington grasps what it means.
To underline the enormous importance of it, consider
what is happening to this year's budget deficit.
We are in this fiscal year to end June 30 running a
budget deficit now estimated at $8.8 billion. Most of the
money to cover this deficit already has been borrowed by
the Treasury.
How has it been borrowed? Almost entirely outside
the banking system which is the heart of the whole
matter.
U.S. corporations have bought large amounts of the
Treasury's short-term securities, have put their extra cash
into Treasury I.O.U.s instead of spending it. Foreign investors
and foreign central banks have bought big chunks of the
Treasury's I.O.U.s, have been investing their extra cash in
stead of spending it. There is nothing inflationary about these
operations at this time.
Had the Treasury borrowed the money from the U.S.
banking system, though, the picture could be drastically
different. For when banks buy the Treasury's securities,
they simply place a deposit in the Treasury's name on their
books; they put up only a fraction of their own cash. When
these deposits in the Treasury's name are on the books of
the banks, the Treasury has the money to spend.
As the Treasury spends the money for goods and services,
the extra cash goes into the hands of the public in the form
of profits and paychecks. This means Americans across the
nation have more buying power and unless the supply of
goods and services also rises, the base for potentially in
flationary price increases is established.
Today, there are no shortages of goods and services
in our land quite the contrary. Today, the supply of
money and credit is ample, but it is not flooding the busi
ness stream. The Treasury has managed its borrowing in
a primarily non-inflationary way. The Federal Reserve
System has kept its control over the money supply. The
result is that price inflation is hardly our problem now.
What about next year's mammonth budget? It must be
financed mainly out of savings not out of bank-created
money, insists Federal Reserve Board chairman Martin. Pres
ident Kennedy has said flatly and publicy that he agrees
with this. Treasury Secretary Dillon and Treasury Under
secretary Roosa go along with this too. So does the Presi
dent's chief economic adviser, Dr. Walter Heller. None of
these men and they are the key policymakers in the money
field is kidding.
Interest rates will be kept high enough to attract non
bank investors to U.S. Government securities.
A rise in the rate paid on U.S. savings bonds from the
present maximum of 3:,4 per cent to. say, 4 per cent would be
a reasonable move to appeal to little individual investors.
When and as big tax cuts go into effect, the Federal Reserve
will assume a defensive role meaning it will keep a lid
on the money supply.
This year's SB. 8 billion deficit is not causing inflation.
Next year's deficit, no matter what its size, need not do so
either. It all depends on how the deficit is financed --and
that, I repeat, is the heart of the matter.
nounced that Clausen would
be appointed to the House
Public Works committee.
Elsewhere, there were these
developments:
Legislative: The Legislature
completed its third week as it
did its first-with a spate of
bill introducing. Under the
ules, the first 30 days are
given over almost entirely to
introduction of bills, except
for matters of "urgency." The
Assembly and Senate met
each day for short periods, but
the members were in their of
fices for long periods, consult
ing on possible legislation and
getting acquainted. In the as-
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if v
N3 ?S.w.
WORDS (hat COMFORT
For the Lord thy God
bringeth thee
into a good land,
a land of
brooks of water...
DEUTERONOMY 8:7
PERL
FUNERAL HOME!
II CORNER SIXTH AND OAKDALE
Spacious Parking lot
SfRMf l I
p, sot n
SjV GO0
S4i Ml 1Y
A mi
VJ. OOIDP
M e promptly rev
pond to ell caUtf
Juy or night.
MEMBER BY INVITATION
sembly this year 34 of the 80
members arc in the legisla-1
ture for the first time. j
Eisenhower: Former Presi
dent Eisenhower, in an article i
in the Saturday Evening Post,
said Richard M. Nixon, "did
have a point" in his attacks
against the press following the ,
recent California gubcrnator-1
ial campaign. Eisenhower said
that throughout Nixon's ca-!
reer "it seemed that a consid
erable segment of the press
was on his back."
Braceros: It was reported
that the U. S. Department of
Labor has been conducting in
vestigations into the conduct
of the Mexican Bracero pro
gram in the Imperial valley.
The report came in the midst
of indications that federal ac
tion may be taken to curtail
the program, which has been
an important factor in the
California farm-labor picture.
Movies: A labor - manage
ment committee on foreign
movie production met with
Secretary of Labor W. Willard
Wirtz to seek aid in eliminat
ing trade conditions that let
Americans make films abroad.
Pat Somerset, president of the
Hollywood Film Council, said
that subsidies given film op
erations by certain foreign
governments had reduced the
number of films made in the
United States and specifically
in California.
Smog: F o u-r Russian re
searchers on smog visited Los
Angeles, and the city gave
them a good exhibition of one
of its most famous commod
ities. The bluish haze limited
visibility to about ?.iths of a
mile. The Russians told their
hosts there was no smog in
Russia, but were hard put
then to explain why they were
known as smog researchers.
Shelter: Twenty-four Liver
more families submitted them
selves to a week end survival
test in a privately built under
ground shelter. The 36-hour
test included shutting off ven
tilation from the outside for a
nine-hour period. Dr. Arthur
Hudgins, a nuclear physicist
and a director of Survival As
sociates Inc., pronounced the
experiment a complete suc
cess. Mamie: Mamie Eisenhower
recovered from a virus infec
tion at the Eisenhowers' win
ter home near Palm Springs.
Sources said she became ill
shortly after arriving in Cali
fornia Jan. 7. But by the end
of last week she had resumed
a normal schedule of activ
ities. Business: The California
Public Utilities Commission
staff said the Pacific Tele
phone and Telegraph com
pany was earning $32 million
a year more than its author
ized income for business in
the state, but a company offi
cial disputed the statement.
Pacific Telephone's Counsel
asserted that the staff compu
tations contained numerous
errors. Elsewhere, it was dis
closed that the FMC Corpora
tion of San Jose had agreed
to purchase the American Vis
1 cose Corporation of Philadel
phia for $116 million in cash.
Bentley: James A. Bentlcy,
I 27, was executed in the San
Quentin prison gas chamber
for the fatal shooting of a
Fresno liquor store owner.
Bentlcy had to be hospitalized
for a nervous condition scv
; oral days before his execu
tion and was transferred the
day before it to the small
holding cell near the gas
chamber.
i- Jf -V;
President To Be
Here With Choir
Loyed R. Simmons, presi
dent of California Baptist col
lege, Riverside, Calif., will ac
company the college choir to
Medford when they sing to
night at the Southern Baptist
church, 764 Lozier lane.
The 40-voice choir, under
the direction of James H.
Walker, will present a con
cert of sacred music which
will include selections by the
Lcs Chanteries, the girls a
cappella choir.
The concert, open to the
public, will begin at 7 o'clock.
Prior to it members of the
choir will be guests of the
congregation at a potluck din
ner at 6 o'clock at the church
SUSPEND PUBLICATION
Phoenix, Ariz. - 'IPi - The
Arizona Journal, faced with
a public auction to satisfy
$175. QUO in unpaid taxes, has
suspended publication until
Monday.
FOR THE COLD - Cold weather has again hit the Pittsburgh,
Pa., area. Richard Kicr, 17, shows a novel way of keeping
his ears and nose warm. (UPI)
The Family Council
Kdltor'i note: Thf? Family Council consists of a JudRr, a
phvrhtatrist, three rlereymell, Ulree editors and a women's editor.
Kat'h article is a summary of a family disagreement presented to the
Council. The Council deals with problems, major and minor,
encountered nv KUidanee counselors and social wurkers. Edited by
Mrs. Alma Denny. U'i'pyrlEht by General Features Corp.)
Mrs. L. B. She shouldn't
leave the baby in Gary's care.
Mrs. M. A. - Why not? He
adores having a baby sister.
Mrs. L. B. - I've been a
close friend of Mrs. A. for
many years. That's why I'm
presenting this matter to the
Council. She won't listen to
me.
She was divorced from her
first husband, and has a 10-year-old
son. Two years ago
she remarried and has just
given birth to a lovely daugn
ter. She doesn't seem to see
all the problems this brings
up in her son's life. But oth
ers do. I've noticed him put
ling his hands to his ears
when people gush over the
new baby. If possible, he runs
out of the room.
Nevertheless, Mrs. A. in
sists that Gary is wild about
the baby and she plans to use
him as a baby sitter. Even
with no divorce in the back
ground, there's some jealousy.
In Gary's case, his parents
seem blind.
Mrs. M. A. Gary awaited
the arrival of little Nina as
eagerly as my husband and
I did. We let him in on the
secret ahead of time, and from
then on it was hardly a se
cret. He couldn't contain his
joy and told everyone who
would listen that "we" were
getting a new baby. He really
feels like a partner in re
sponsibility for his little sis
ter. 1 know Mrs. B. is trying
to warn me about jealousy.
But how can a boy be jealous
of a baby who adds to his
own pleasure and doesn't take
anything away from him?
Gary is still the only son we
have, and he still gets plenty
of love and attention from me.
When he "acts up" in Mrs. B.'s
presence it's because he hales
to hear the usual lady-talk
about babies. He says it
sounds so silly. Alone with
Nina, he's very gentle and
tender.
The Council: Mrs. A. must
realize that her 10-year-old
son wouldn't be normal if he
didn't feel some resentment
toward the cuddly pink bun
dle which joins him in the
right to call her Mother. The
trouble is he can't show or
reveal it as readily as he can
his pride and joy, which are
just as normal. All Mrs. B.
is trying to get across to her
friend is that saying it isn't
so doesn't mean it isn't so,
and that it's a better idea to
expect, even encourage, Gary
to feel bad about Nina at
times and to own up to it.
If his true, and justifiable,
feelings are never permitted
to be brought to the surface,
due to the mindless mouthings
about Gary simply idolizing
his half-sister, he'll find hid
den ways to "gel back at"
her and his mother for t h e
"crime" of displacing him. A
kiss may turn into a bite. A
squeeze may include a painful
pinch, or a wham that isn't
a love-pat. These possibilities
aren't cited to frighten Mrs.
A., but to suggest that she
allow her son to get his rival
rous emotions out of his sys
tem in open ways, through
talk. He must be assured that
no loss of love, no punish
ment, will follow his frank
unburdening, because us
Harry Golden would put it
-he's "entitle."
Especially with a child who
has for so long held the Juve
nile spotlight in his mother's
life, some patient explaining
and listening arc in order. His
acceptance of what must be
a competitor cannot be taken
for granted, no matter how
delighted he appears.
This is not to imply that
Gary isn't genuinely tickled
with the "something" that has
been added. She's someone to
show off, someone to talk
about, and later to talk to
and nluv with A A ,.l...-
8 a.m. with the program atari- km. Uul hc n(,cds help , ,m
ins : at 9 30 a m. I jn , ncw emptiness , ,,is
Discussion will include ; ncart aboul ni, ,acc , hc
bush and weed control, di-; homo. IIe can't figure it out
ease problems in trees, the i aiP
effect of weather and nutri-i
Three Hurt as Car
Hits Log on Road
Three persons were injured
last night when their car
struck a log across Agate rd.
at White City, state police re
ported this morning.
Daryl Dee Moore, 18, of 905
South Central ave., the driver,
and a passenger, Ronald Wil
liam Moore, 15, same address,
were treated at Sacred Heart
hospital for minor injuries
and released. Donald L. De
Rushe, 21, of 332 Mary St.,
Medford, another passenger,
was reported in fair condition
this morning while being
treated for a possible concus
sion, bruises and abrasions.
All three persons were taken
to the hospital by Medford
Ambulance service.
The log apparently had
dropped from a load being
moved across the road, state
police said. The car turned
over landing on its top after
hitting the log.
A second one car accident
yesterday occurred on Ihe
Sams Valley highway near
Trcsham lane. No injuries
were reported, state police
said. The ear, driven by Harry
Allen Hunt, 62, Tillicum, Ore.
was going cast on the high
way when the rear axle
broke. The car went out of
control and into a ditch on
one side of the road where it
struck and cut off a power
pole.
Christmas Tree
Growing Course Set
Oregon State unicersity is
offering a short course on
Christmas tree growing ac
cording to Earlc Jossy, Jack
son county extension agent.
The meeting will be held Feb.
5 in room 208 of the Memo
rial Union building on the
campus in Corvallis.
Registration will begin at
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tion to tree growth and insect
problems in trees.
The public is invited to this
meting. There will be a $2
registration fee to cover expenses.
! REAPPOINTED
Eugene -'VPr- Dr. Arthur S.
I Flrmming, president of the
! University of Oregon,, has
been reappointed a nicmoiT
of tin International Civil
Service Advisory board by U
Thant. .sreretary general of
I the United Nations.
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Hot Chocolate Swiss Miss-Just add water. .Mb. 59'
SALMON Bonfire Pink No. 1 tin 69'
BAKED BEANS B&M Brand 28-oz. tins 29'
BROWN BREAD B&M Brand 25'
CHILI BEANS Riviera 40-oz. tin 39'
DETERGENT Trend Liquid 32-oz. 59'
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