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
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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
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