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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (April 26, 1963)
MEDFORD MAIL TRIBUNE. MEDFORD. OREGON FRIDAY. APRIL 21. IMS Your Money's Worth By SYLVIA PORTER Copyright, Hill Syndicift, Inc. UPSURGE IN BUSINESS SPENDING AHEAD The United Slates is on the threshold of an upsurge in business spending for modernization and expansion of our factories, which will guarantee an upsurge in our entire economy. A record 1963 is now in the bag. With consumer spending, business spending and gov ernment spending all heading upward now, the economy can t go anywhere else but up. All-time peaks will be set tills year. The expansion which began in February, 1961, and is now moving into its 27th month is gaining new life and vigor The obvious improvements in business and con sumer confidence recently have been of vital help. The question, therefore, shifts to the outlook for 1964. It could be that 1964 will be another highly prosperous year. It well may be if Congress gives business and con sumer spending additional stimulation through tax reduc tions for corporations and individuals to take effect in 1964. This is what I think is the meaning of the 16th annual survey of business' plans for new plants and equipment by the McGraw-Hill Department of Economics, released today. The results are deeply reassuring, confirm tht gueaa that business has been hiking its plans to invest in ntw factories and equipment since the government turvey in February estimated this type of spending at $39.1 billion in 1963, up 5 per cent over 1962. McGraw-Hill's survey, made in March and early April, raises this esti mate to an all-time high of $40.1 billion, up 1 par cent. Every fraction of a per cent change in this spending is crucially important not only because of the hug sums involved but also because spending on plants has far-reaching impact, on profits, paychecks and jobs in our country. Government spending is rising. Consumer spending is rising. Business spending is rising and the pace is acceler ating in the bellwether durable goods industries particularly. 1963 is in the bag. Significant to all of us as this is, it's not the only sig nificant part of the survey by any means. Most significant also is that business already plans to spend in 1964-65-66 almost as much as this year's record. All previous surveys have indicated that preliminary plans for more than one year ahead are understated, and thus the probability is that business spending will remain at very high levels during the next three years. It will jump to new peaks, finally catch up, if corporations are given new tax incentives to invest and consumers are given tax reductions. Most significant, too, is that for the first time sine the business spending boom of 1957, the survey suggests that companies are starting to think in terms of expand ing their capacity, not merely modernising it as they have been primarily doing during the past five sluggish years. Manufacturers report they plan to expand their capacity by 12 per cent in 1963-66; a year ago they planned only a 10 per cent increase in this period. If the pattern really is starting to shift, this would be of great importance to our overall economy, for as Doug las Greenwald, chief economist of McGraw-Hill's Pub lication Division, puts it, "The biggest lift from capital investment comes when the emphasis is on expansion." Again, most significant is the report from businessmen that over $1 billion of their 1963-64 spending results from Washington's two moves last year to spur their investment. One was the change in the Treasury's depreciation rules in July to permit many companies to write off their equip ment at a more rapid pace than previously. The other was the tax law allowing companies a tax credit of up to 7 per cent of their purchases of new plant and equipment. These two moves are bolstering business spending at a critical time. Now tax cuts for consumers and businessmen would spur our industries to keep up the momentum of their spend ing in 1964 and increase it as well. Stepped-up business spending will not only add to pay checks and profits. It will also raise the government's tax take and thus quite possibly cut into the budget deficit. Good news all around. Duncan Makes Submarine Dive; Visits Guantanamo Installation j5SP0RTANT FACTS YOU SHOULD KNOW ABOUT: GUERNSEY MILK TO PLAN YOUR FAMILY'S HEALTH CAMPAIGN Make sure every member ot your family has all the necessary food elements that modern living requires. Serve nourishing Golden Guernsey Milk ... the milk with more of everything good. It has more protein, natural vitamins, minerals, lactose, and Vitamin A than any other milk sold . . . and a marvelous taste children love. Good health doesn't just happen; it's the result of loving care. Care enough to serve the best milk money can buy . . . Golden Guernsey! CALL TODAY Snider's By A. ROBERT SMITH Mail Tribune Washington Correspondent Washington - (Special) -Rep. Robert B. Duncan (D- Ore.) went to sea recently in a Thre s h e r model atomic I submarine tor a deep dive appa r e nt 1 y similar to the one which doomed the Thresher. The Congressm a n d e c 1 i ncd to down the Scorpion went dur ing a one-day cruise out ot Norfolk, Va. "We went down to test depth - and came up," said Duncan wryly. "It's a first class piece of machinery, with a first class crew and a first class commanding officer." He said he knew of no trouble experienced by the Scorpion on its deep dives. A lieutenant in the Navy's active reserves, Duncan spent the congressional Easter re cess on active duty on a flying trip to Naval and Marine Corps installations at Charles ton, Parris Island, Pensacola and Guantanamo Bay, Cuba. The cruise aboard the sub marine was on a prior week end. Guantanamo Bay has "im posing defense installations," Duncan said, and represents "a pretty substantial beach head." Asked if he regarded it as a necessary base, Duncan re plied affirmatively. "It's one of the most im portant Naval bases we have," he said. Importance Noted He said it was important be cause of the unstable condi tions in the Caribbean and the control it affords over the eastern approaches to the Panama Canal. He said it is also the most satisfactory training base the Navy has for air, surface ships and Marine Corps purposes. One of Duncan's predeces sors, former Rep. Charles O. Porter, three years ago sug gested that America turn over its Cuban base to the Castro government as a gesture of peaceful intentions. Porter said Guantanamo was not es sential to America's military security and might better be converted into a training school for Cuban agricultural workers. Duncan said his visit to Guantanamo was helpful in securing information on the military and shipping situa tion, but that it didn't make him an expert on Cuba who could advocate a new course of action. Must Seek Peaceful World "Most of the people who are demanding action in Cuba still think in terms of Teddy Roosevelt charging up San Juan Hill," Duncan said. "I have seen the devastating capabilities of nuclear war fare, and we must avoid the possible escalation of a nu clear war and attempt, to create a peaceful world. "But we must maintain our defense capability to protect the United States until that day arrives. We hi d a great victory in Cuba last October. I have great confidence in the President, and in the military leaders that American inter ests will not be sacrificed." Congressman Duncan wishes he were as rich as he appeared to be in a recent ! dispatch about the private in-1 folio than he actually reported j vestments of the Oregon con- when he listed his stocks in I grcssional delegation. the Congressional Record. A missing decimal point Duncan s report showed he j gave Duncan a fatter port-1 holds 3.972 B-4 shares of Key- Ill-Tempered Polar Bear Kills Mate Los Angeles - IUPII - Ivan, the terrible tempered Polar bear of Griffith Park Zoo, Thursday turned from lover to killer and mauled his mate of 11 years to death. "He went berserk" when his mate, Lena, sprned his amorous advances, chief keep er Mike Wendt said. Keepers stood by helpless ly as the 850-pound bear si lently killed Lena There were no sounds from either Ivan or his 500-pound mate in the 90-minute struggle. Ivan and Lena have had four cubs. Ivan killed two other bears in separate incidents in fits of jealousy over Lena. He was nearly destroyed, but was granted a last-minute reprieve. "Polar bears are naturally mean, a zoo official said at the time. "Why destroy one that follows his instincts?" Flapjack Feed Set In Jacksonville The Siskiyou Pioneer Sites foundation is sponsoring a Gold Rush Flapjack feed on Sunday, April 28, from 7 a.m. until 1 p.m. at the Jackson-' ville Community hall. All money raised will be used for historic restoration projects in Jacksonville. Flap jacks, fried eggs and ham will be served and there will be a series of short historical presentations during the breakfast. stone Mutual) fund. The pub lished dispatch mistakenly listed it as 3972 shares. As a result of the error, Duncan said an Oregon law yer friend told him: "Now that you're a rich congress man, your children have re tained mc to negotiate for big ger allowances - and Angus (Duncan's teen-age son, a stu dent at Medford High school who drives the Congressman's beaten-up old red convertible) wants a new car." TEACHES P Salem - Ol - A meeasrt te create a professional panel est teacher to Investigate teach er dismissal paaaad too House 41-17 Thursday attar lengthy debate. It General Electric COLOR Capture all the excitement off the spring shows with a color TV set off your own. Priced to sell! See the ultra-color TV and other beautiful models at your HAPCO store. Big, bright, alive color. Wide range speakers, fine furniture styling. See them all at HAPCO. MODEL M940 WMD Priced To Suit Your Budget ENJOY FULLY THE SPECTACULAR WORLD OF COLOR TV! 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