TT'KSDAY. NDVKMBER 1S. in."iR
HERALD AND NEWS. KLAMATH FALLS. OREGON
PAG6 NINE
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ADJACENT to the commander s unit at Kmgsley Field s homing proect ii
bedroom single unit known as Type 5. It stands on North B Avenue.
P.T.A.NEYS
KENO I
"Adequate laws (or the care and
orotoction of youth is the aim ot
the PTA in our Oregon State Leg-
ilature and Federal Legislature."
said John Kerns, vice president
of the Keno PTA. at their Novem
ber meeting. Kerns pointed out in
his report that just as other or
ganizations nave loooies in inc
legislatures, so also does the PTA.
and in no doing, strives for the
hettcrment or children and schools.
For the most propitious results,
suggested laws and ideas from
local units of PTA should work
first through state channels to our
federal government, thereby be
coming more effective.
Mrs. Herbert Riggs. president,
announced that the annual PTA
rummage and cooked foods sale
would be held November 11 and 22
Federal Reserve Bank
ianf Money Storehouse
Crews Work
On New Span
By CLYDE II. FARNSWORTH
NEW YORK iL'Pl) The na
tion's super bank the Federal
Reserve System is a gigantic
storage tank for money.
Dollars flow into the bank be
cause of a law forcing commercial
banks to put a part of your de
posits into the super bank for stor
age. The rest is theirs to lend.
Originally the storage tank was
designed to give a bank cash re
serves in case a lot of depositors
wanted their money back at once
and all at the same time. With
funds on reserve it could meet
this demand without calling loans
back for repayment.
But the tank later worked into
p. handy tool for controlling the
amount of funds a bank could
lend. Here's how:
If the reserve level in the tank
drops for any reason then a bank
niust scramble to secure funds
elsewhere to bring its reserves
back to the required level. This
nuts the squeeze on the bank. It
micht have to refuse loans per
haps call back some for repay
ment.
The Inol is even more powerful
because these reserves are a very
special type of money. Kach re
serve dollar can be ballooned into
six actual dollars because of the
ability of banks to create the mon
ey by making loans.
The super bank has at its dis
posal certain other machinery en
abling it to increase or lessen the
stora'ce tank level.
Probably the most important of
these involves open market oper
ations the actions of a com
mittee .silting at Federal Reserve
headquarters in Washington.
What they do is buy and -sell
government bonds -(except savings
bonds and certain special issues
to dealers. These dealers are just
like the comer grocer who buys
a can of tomatoes hoping to make
a profit. They buy from and sell
to not only the Federal Reserve
but also to banks, insurance com
panies and large corporations.
When the open market commit
te feels it's necessary to increase
reserves, it buys government se
curities, paying dealers with a Fed
eral Reserve check.
When a dealer's bank sends the
check to the Federal Reserve Bank
of its district to ho collected, the
reserve hank in effect creates the
nionev bv crediting that bank s ac
count. Since reserves already had
to be at the required level, the
tank spills over, giving the bank
the excess to lend.
When securities arc sold, the
process works in reverse, wiping
out that much in reserves.
But banks also may borrow
from the super bank for brief
periods to keep their storage tank
money at the required level. This
acts as a safely value so hanks
aren't forced into calling loans
when they are unexpectedly short
In the tank.
A loan of this tvpe is called a
discount. The fee or rate the super
bank charges on this type of loan
is the discount rate.
In the early stages of the sys
tem when the Federal Reserve
wanted to discourage loans of this
fort, it raised the fee and when
U wanted to stimulate loans it low
prod the fee. Now. however, t
change in the rate is a signal to
the nation that the Federal Re-
'nerve is loosening or tightening its
reins on credit.
For example in mid-August the
ystem started to raise the dis
count rate from Vt to 2 per cent,
signalling that money would be a
little tighter than it had been at
the bottom of the recession. Before
the recession set in, the discount
rate had been at 3'i per cent.
Probablv the most powerful ma
chinery ot the super bank is its
ability to change storage tank re
quirements itself.
Currently these requirements av
erage about 16 per cent of check
ing deposits. A change of one per
centage point in these require
ments means a change of about
$1 billion in bank reserves, mon
ey which can be blown up or con
traded roughly six times.
This machinery is not often used.
largely because it is so powerful.
When it is used, the Federal Re
serve tempers its impact with its
other tools.
Some other factors affect re
serves but are not controlled direct
ly by the super bank. These are
such things as currency and coin in
circulation, or gold stocks.
An increase in currency in cir
culation occurs around holiday pe
riods. After Thanksgiving, for ex
ample, people trek to their banks
for an additional $500 million or
more in folding money for Christ
mas shopping. After Christmas the
money returns to the bank.
Since banks always have to have
a certain amount of cash on hand,
they get the extra money to cover
hhe public's withdrawals from their
reserves at the Federal Reserve
The U.S. has gold, more than
$20 billion worth, salted away
as. backing for the currency, you
can t buy gold, but loreign coun
tries can. And when they do it
also affects reserves.
The reason is simply that for
eign countries have to pay for the
gold in dollars drawn out of their
accounts in U.S. banks. Their cnecK
to the Treasury is sent to the Fed
eral Reserve for collection. The
super bank then lowers the storage
'ank account ol the bank on wnicn
the check is drawn and credits
the treasury's account.
LAKEV1EW - C. C. Ketcham,
Fremont National Forest engineer,
has announced that Forest Serv
ice crews are working on a new
bridge on the Silver Lake Ranger
District. Ihis bridge is being con
structed across Jack Creek near
Davis Flat.
Two bridges will be constructed
by Forest Service crews at sepa
rate points on Camas Creek on the
Warner Ranger District. These
three permanent type treated lim
ber bridges are planned for com
pletion within the next two months
at an estimated total cost of $22,000.
The bridge across Jack Creek is
on the Rock Creek Road which
traverses 34 miles of the northern
and western portion of the Silver
Lake Ranger District. Originally
constructed to harvest several mil
lion board feet of Ponderosa pine
timber, this road is again planned
for heavy use in the removal of
many thousands of cords of lodge
pole pine timber for processing into
lumber or wood pulp products,
The bridges which are planned
lor construction across Camas
Creek are both on timber access
roads which provide the primary
route of travel to the entire south
ern part of the Warner Ranger
District. .
Couple Aided
By Governor
FRANKFORT. Ky. (API A
Detroit couple will be able to
spend Thanksgiving with their 75
"adopted'' children in Kentucky
thanks to two round-trip bus tick
ets sent by Gov. A. B. Chandler.
Mr. and Mrs. Otis Tabor, in
their 70s. have given food, cloth
ing and other items to children at
the Bethany Children's Home in
Wolfe County for four years.
They have not been able to save
enough money for a trip to Kentucky.
After reading an article about
the Tabors, a Detroit woman
wrote Chandler he could do a good
deed by enabling them to visit the
Kentucky children.
The governor wrote the tabors:
"Your generosity has brought
happiness to many children. . . I
am sending two round-trip tickets
in recognition of the service which
you have given to Kentucky chil
dren in need."
Tabor tends his, orchards and
gardens while his wife cans fruit
and vegetables. Their daughter
does missionary work in eastern
Kentucky.
Hunting deer with long bow and
arrows is now legal in West Vir
ginia.
.. .. I
n tne Neno gymnasium. Every
mt was urged to bring articles
for this sale. Mrs. Sloan is chair-
nan of the project, and assisting
her will he Mrs. Don Peterson
and Mrs. Ted Buckingham.
The polio clinic will be at Keno
School Thursday, November 20. at
7:30 p.m. for adults who have yet
to receive their third shot. Those
who have not received their first
or second shots mav get them at
this time, however, this is the last
time the clinic will be at the
school.
It was voted upon by the group
to order pamphlets to be distrib
uted to the Keno children. The
pamphlet. "Beware the Stranger,"
points out saleguards for children
to take when confronted with
strangers on foot and in cars.
Mrs. Riggs urged Keno PTA
members to give blood at the Na
tional Guard Armory in the after
noon or evening of December 3.
An award will be given to the
PTA unit with the highest percen
tage of blood donors.
Under the direction of Mrs. John
Kerns. Glenn Howard. Joe Kerns.
Iris Sloan, and Cheryl Thurman
presented a panel discussion on
what parents can rightfully expect
of their children, what children
should expect of their parents, and
factors that students liked about
school, and improvements they felt
would be beneficial.
Glenn Howard proposed the Boy
Scout motto as a suitable guide
for both children and parents to
lollow, and paying heed to its
words would lead to a happy home-
life. The panel further brought out
the need for a fire department
in the community of Keno.
Refreshments were served fol
lowing the meeting.
'VV
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TAX FIGURES
LAKEVIEW Figures released
by William Castle, district manag
er for the West Coast Telephone
Company, show that the ad valor
em taxes paid by the company in
Lake County for 1958-1959 amount
ed to $12,290.19, and in Klamath
County, $4,132.18. Corresponding
taxes for the state of Oregon paid
by the company for the current
tax vcar are $530,320.00. as com
pared with $449,825 for 1957-1958,
Castle reports.
WOMEN'S
Sweatees
ir w
AIRMAN Ralph E. Hopper,
son of Mr: and Mrs. David
Hopper, Route 3 Box 1070,
has been assigned to a unit
of the Air Defense Com
mand at McCh'ord Air Force
Bate, Washington, for duty
and training as a photog
rapher in the photo map
ping division. Hopper, a
graduate of Klamath Union
High School, spent a leave
at home en route to Mc
Chord, upon completing his
basic military training at
Lackland Air Force Base,
Texas.
Home Extension
BONANZA
BONANZA The Bonanza Home
Extension Unit met at the library
on November 11 for an all day
meeting.
.Mrs. Bob Scaler and Mrs. Jack
Lynch of Langell Valley made and
used a color wheel in the dem
onstration of harmonizing colors
used in clothing and homes.
The members decided to send
pies, jelly and other foods to the
Gospel Mission in Klamath Falli
for Thanksgiving dinner. They alio
voted to invite the Langelt Valley
Extension Unit to their Chrlstmu
party on December 18.
A potluck luncheon was served
at noon to seven members and
two guests.
CARD PARTY
The last card party in the first
series sponsored by the Lost Riv
er Grange was held Friday night,
November 14, in the Olcne Grange
Hall. Ladies and men's high, re
spectively, .n the series were
won by lva Campbell and Leon
Crapo. The next card party given
by the grange will be November
28 in the grange hall.
Men0ldat50or60!
Recharge Body's Batteries
- Feel Younger Fast!
Thoimndt who il wk, worn-out at 49,
SO, 60 Mama radina vigor oa pmnfttuM
asking. The real cause nay bt tn lack M
ins iterating iron and Vitamin Bt, naarfad to
ttcharaa the body's batterifi. ThoutuMii trm
amaed at wv pntrnt, Dw And improved
Ottrrx Tonic 'Tablets pep op blood. Mill,
nrsnf. In a (indie day, Ostrei auppliM iro
equivalent to 11 dnren raw oyttm, or 4
Ihi. of lier. or 1ft Iht, nf bf. Oafrtx aljo
contain therapeutic 6m itanunBi to atdy
nerve, innea energy, vigor, vitality. 3-eljf
" art-acquainted" rue mijy 69. Or g( feoa
iny ure and save $1.67. All dnictniU.
LETTER APPROVED
DORR1S The Siskiyou County
Board of Supervisors last week
approved a letter drafted by Sher
iff Al Cottar to the justice court
judges asking their cooperation in
controlling juvenile vandalism
rampant in recent months in Sis
kiyou County.
Stops Constipation
Due to "Aging Colon"
New laxative discovery re-creates 3 essentials
for normal regularity.
Aft you jtow older, the internal mus
cles of your colon wall also age, lose
the strength that propels waste from
the body. Stagnant bowel contents be
come so dry and shrunken that they
fail to stimulate the urge to purge.
Relief, doctors say, lies in a new
laxative principle. Old-style bulks and
moisteners may create gas, lake 3 or
4 days for relief. Old-style salts and
drugs cramp and gripe the entire
system. Of all laxatives, only new
Colonaid gives you its special 3-way
relief that works only on the lower
-Cdlon (area of constipation).
(U Colonaid moisturizes dry.
hardened waste for easy patsage with
out pain or strain. (2 Colon aid's
unequalled rebulking action helps re
tone flabby colon muscles. (3) And
Colonaid acts gently, on the nerve
reflexes that stimulate the vital "mass
movement" of your lower colon.
Colon a id relieves even chronic
constipation overnight; is so gentle it
was hospital proved safe even for ex
pectant mothers. And CoLONAtowon't
interfere with absorption of vitamins
or other food nutrients.Get Colonaid
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