The Sidney herald., 1957-08-29

ing policies on the economi
growth of the United States. Hear
ings will be Nov. 10 to 81. Fc
background, the Subcommittee
will seek to obtain IAN historics
perspective or the role of Fed
eral spending in maintainin
economic stability. Also to b
sought will be basic economi
principles and criteria concernin
relations between Federal activi
ties and the detectives of tn
Full Employment Act. In briet
some members hope this hearin,
will clear the road for future Ia,
reduction
August 81, 1857:
WASHINGTON - l was happ,
this week to have helped gain an
proval of Federal employee pay
raise legislation. These are the
workers whose salaries are fixed
by the Classification Act. Many
are residents in Montana. II ap-
proved all the way, the measure
would be effective with the first
pay period in September. If We
toed by the President, there is a
strong possibility Congress NAV
override the veto.
FILA FINALLY ACTS - Lower
down payments on housing final
ly have been instituted by FILA
as directed by Congress, but dis
count controls and higher interest
rates included with the action by
FILA will not prove a major pana-
cea to the housing industry. The
industry thus will continue to
struggle under the retarding eff
fects of the administrations tight
money policy. My hope, which 1
think everyone from workers
through buyers will share, is that
the day will soon come when it
will be possible to lower interest
rates and remove discount con-
trolls with fairness to all.
COST OF LIVING AND IN
TEREST RATES - Blame for the
increasing cost of living is being
aimed at a large proportion of our
population-the farmers and la
bor-which is sort of like blam-
ing the poor for getting too much
while the proposed cure is to give
more to those who get income
without labor. Personal interest
income is up 81 per cent and divi-
dends have increased Al per cent
during the last five years, yet
wages and salaries have increas-
ed only 81 per cent and farmers |
net income has dropped % per /
cent. Meanwhile, higher interest
are advocated for wealthy
men as the only route for curing
initiation" One of the major New
York banks has announced it has
-aised the prime bank rate to Az
per cent. AS a leader in the raising
If interest rates, the banks action
S disturbing for u economy, the
Welfare of small business, for far
ners, homeowners and all those
on modest wages, salar-
es or pensions. This prime bank
ate is interest rate charged to
borrowers of the highest credit
landing, and is paid by such in
Iustrial giants as u. S. Steel and
General Motors. Borrowers of les
er ability must pay progressively
rates. This interest rate
march upward is dangerous. In
947, for example, the prime bank
ate was ~ per cent. Added up,
t means simply this, the rich Will
ct richer, and the poor, poorer.
t means, just as in the FILA rate
lcrease cited above that people
tho are building houses now and j
the future will be paying an adj
itional burden of interest for the |
ntire life of their loans - for {
lany folks with long-term loans
will mean that they will be ,
aging nearly all through their :
dult life. Our cost of living, ;
-hich with only one exception has !,
sen every month for the past II ,
is now at the highest /!
oint in the history of the Nation. l
lassical initiation is supposed to
2 due to competition between
aople with money to buy Tor a {
of products, in other I
ords, by people bidding against '
ach other for these products with
lie result that prices go up. That, |
owever, is not true in the cur
mt situation. It is very clear that {
lie constant rise in the price of J
Ioney is a real and basic cause OF c
hat is happening to us. This :
end towards increased interest
ties was started as a deliberate :
.tion by the Treasury and the
ederal Reserve, a trend which
.,parently they are now helpless I
stop. =
REDUCTION IN MILITARY U
ilitary manpoWec cuts r I'M I
II way. They mean a speed-up !,
inversion to modern weapons q
i'd a shift to highly-trained tech l
cally expert personnel. A strug- y
e may develop between the var
us services as to which will gain II
in the use of these new Il
issiles, but all the services can Il
special techniques for j
cir use. The army's role may c.
in new strength and impor- 81
nee. E%lectronics control and II
mmunication experts may be IL
hong the military heroes of the
ture. ie
e.
IyoI &