1
MONDAY; SEPTEMBER 21. 1953
HERALD AND NEWS. KLAMATH FALLS. OREGON
page rri
Easing Of Herd Money Policy
Assured If Recession Comes
By STERLING F. GREEN '.' i
" WASHINGTON ( He ' "hard I
dollar" policy of the Eisenhower
administration will be eased
promptly i( a business recession
looms, a leading banker told Uie
American Bankers Assn (ABA)
today.
' Roy L. Reierson, vice president
of the Bankers Trust Co.; New
Tork, assured the group's TOth
convention here the government
will stick to lis "mildly restric
tive" credit policy while, business
booms. . ' - .
i But the Federal Reserve Board's
quick corrective action this spring,
when swiftly rising inteiest rates
and a credit squeeze "distressed
and disorganized" the financial
markets, proved the alertness of
the money managers in Washing
ton, Reierson said. He. added:
. r "In an economic downturn, the
authorities- will almost certainly
shift rapidly toward a pronounced
easing of credit."
. .- Reierson suggested that Interest
rates have reached theii peak but
show no sign of early decline. He
said credit may be n.oderately
tighter the rest of this year, but
"a business downturn would accen
tuate the seasonal easing of credit
In early 1M4."
. Few of the 7,000 delegates
seemed to expect more than a
mild and brief readjustment in the
wake- of the 'mobilisation boom.
Most of those Interviewed avoided
even the word "recession". To a
man they approved the "sound
money" policy of the Republican
administration.
Assn. President W. Haiold Bren
ton, in an Interview, described the
economy as ?very healthy." He
suggested that business ' activity
has reached a high plateau "where
It will remain for several months."
; Brenton. president of the State
Bank of Des Moines, said some
shipping is to be expected on the
basis ox current trends In autos
and farm machinery. But he add
ed: "I believe the long run. trend
of the economy will be up."
Relerson's address was prepared
for a meeting (0 a.m., EST) of
the savings and mortgage division,
one of the four major units which
make up tba organisation, of 16,873
banks and branches. The other
divisions state banks, national
banks, and trust scheduled sepa
rate sessions. '
Reierson told the bankers "no
significantly damaging effects"
were noticeable from last spring's
credit crisis. It was eased when
the Federal Reserve lowered the
reserve requirements of its mem
ber banks by about a billion dol
lars, thereby boosting their lending
power by about six billions. .
But the money shortage and
some misinterpretation of official
statements, he said,(caused "in
creasing anxiety regarding the
future and contributed to - the
evaporation of market confi
dence." ...
1 M
ADMIRING THE NEW truck at Stewart Lennox Volunteer Firs Department are Fir Chief
Rodney Mathers and Assistant Fir Chief Albert Loomii. The GMC truck is equipped, with a
Dean high pressure pump, around 240 gallon booster tank, and has a 200 toot hoje on each
reel. So far the truck has been on on run - - to a house - from its location at 3519 Emerald.
Man Claiming To Be Beria
Sought By McCarthy Group
WASHINGTON Wl-Sen. McCar
. thy's Investigations subcommittee
hopes to know within a tew days,
an informed source said today,
whether a mysterious figure who
claims to be Lavrenty Berfa really
Is the deposed Kremlin police boss.
The Wisconsin Republican has
refused to be quoted on the matter
at all.
A person familiar with the Sen
ate group's operations said, how
ever, that Investigators are con
vinced Beria has 'scaped from
Russia and Is hiding, In terror ot
his life, in a neutral European
country. ,
Other government sources, also
asking not to be quoted by name,
were skeptical, saying the chances
of Beria's having escaped from
behind the Iron Curtain were "one
in a million."
The Senate source said today
"a new man has gone over who
will know him if it is Beria," and
thai a report from this person can
be expected within a few days.
. This source said the man who
calls himself Beria had been con
tacted by agents of McCarthy's
subcommittee and had sougnt
apolitical asylum In the United
States In exchange for' disclosure
of Russian secrets. .
Officials In the executive branch
of the government said they knew
nothing which would lead thenv-to
believe Beria, former head of the
Russian secret police, has man
aged to get out of Russia. At the
same time, it was made clear this
government would be glad to re
ceive any man who knows as many
of the Kremlin's secrets as Beria
does.
So firr as is known in the West,
Beria was last seen In public in
Moscow on May 1. Soviet Premier
Malenkov denounced him as a
traitor July 9 and ousted him from
his posts as home minister and
first deputy chairman of the Coun
cil of Ministers.
His name has not been men
tioned in the Russian press or radio
In recent weeks, and there has
been no recent mention of any
trial, nils has led to some specu
lation here that he may already
have been executed.
The Senate source said an agent
of McCarthy's subcommittee had
flown to a "neutral, non-Commu
nist country" in Europe and, after
talking with the purported Beria,
reported he is convinced the man
is who he says he is. It was then,
he said, that another agent who
could identify Beria was sent.
This source predicted that the
State Department would issue a
statement about the whole matter
shortly. But a department spokes,
man said he did not know any
thing about the Beria' case.
' The Senate source said the man
representing himself as Beria said
he had escaped with three aides
in an airplane and that, u given
refuge in the United States, will
talk only with McCarthy or Vice
President Nixon. The source said
McCarthy's agents have been In
touch with him about a month.
The source added that, unless the
story proves to be a hoax, there is
a good chance the man will be
brought to tnis country.
In Baltimore. Col. UUus L.
L, Am oss, head of the International
Services of Information, a private
espionage outfit, said he had been
contacted In Europe this summer
by persons whoi said Beria had
escaped from Russia.
Red China Rule
Gets Shake-Up
; HONG KONG Wl Red China
ousted its finance minister and the
secretary-general of the central
government's administration coun
cil in a weekend shakeup which ob
servers here feel was ordered be
cause the nation Is lagging in the
first year of its five-year. plan.
The official Red New China News
Agency reported that Radio Peip
lng made the announcements dur
ing tne zstn meeting ot uie uenirai
People's Government Council.
In the reshuffle affecting 13 gov
ernment bureaus. Li Wei-Han, sec
retary general of the administra
tive council, was replaced by Hsi
Chung-Hsun, a - vice chairman of
the cultural and education com
mittee. . i
Po Yi-Po, minister of finance.
was replaced by Teng Hsiao-Ping,
a vice premier of the government
council.
Other shifts were made in tne
ministries of -post offices, foods,
light industry, forests, labor, cul
ture, banks and state planning
council. '
Bans Norland
m Pine St,
Ante , Insurance,
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MAfffBALL
'U. S. Puts Money
Ahead of Security'
ALBANY. N.Y. Wl Sen. Sym
ington (D.-Mo.) holds that if Amer
icans knew "the truth" about their
military strength, "there would be
far less' Interest in tax reduction
and tar more" in national defense.
Symington, secretary of the Air
Force In the Truman administra
tion declared Sunday the United
States was putting "money ahead
of security" to the "delight of the
Communist conspirators."
He told an estimated 10.000 per.
sons at "I Am An American Day"
ceremonies here that "today or
tomorrow. America is facet! with
. . auperior military strength on
the part of an enemy who has
repeatedly declared his determina
tion to destroy us."
miEiiMsntmmrii
Quality!
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St DAY FREE TRIAL,
pricei pine 20 Fed. Tai.
WenOBjOlfv aflrwIOT iff
Walter Ziemba, now stalling his
11th season as assistant grid coach
at Notre Dame, was the regular
center on the 1041 and 1WJ Irish
teams.
Hughes Discloses
Damage to Big Plane
SAN PEDRO, Calif. (Pi Howard
Hughes has disclosed that a break
of an earth dike at the harbor has
caused damage of more than five
million dollars to his gigantic
wooden flying boat, the world's
largest airplane. - i
The flying boat has been under
experimental construction more
tnan 10 years under a government
contract. It has a wing span of 320
feet and is 31 feet long. The plane
weighs more than 300 tons and Its
tall is as tall as a two-story build
ing. It Is designed for a passenger
capacity of TOO.
The earth dike had been con
structed by a dredging company
to retain material pumped from
the harbor bottom.
The hangar ot the eight-engine
Plane was flooded with thousands
of tons of mud, silt and water,
Trade Fall-Off
Farm III Cause '
WASHINGTON utt The Agri
culture . Department says farm
prices are down and farm
surpluses are up because of s big
postwar decline in the amount of
V.S. farm goods sold abroad.
The department reported Sunday
that farm exports during the year
which ended July 1 totaled W.SOO,-
000,000 in value 30 per cent
below the preceding year and 20
per cent below the average of. the
past five years.
Tne report said tne export de
cline came while domestic consum
ption was high and production was
a record level. Reduced export, it
to fall and larger stocks of our
said, "caused agricultural prices
principal farm products to ac
cumulate." . '
TO MOSCOW
TAIPEH, Formosa 11 The of
ficial news agency of Nationalist
China's Interior ministry said Mon
day Red Chinese premier Chou En-
Lai went secretly to Moscow Sept.
S with proposals for strengthening
Communism In East Asia.
The Ta Tao agency said its in
formation came from reliable
sources In Pelping. However, such
Nationalist reports often prove erroneous.
ALL TYPES OF
CLOTHING
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AMBUS
MANILA Ul Six persons war
killed Monday in an ambush by
Communist-led Huk outlaws off aba
main national highway about H
miles north of Manila.
Philippine News Berrien said the
dead were four civilian guards rid
ing in a jeep and two women kflled
by atray bullets.
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