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Show THE SAUNA SUN. SAUNA. UTAH HEADED THE SAUNA SUN matter second-clas- s under the Act of Congress of March TOR TROUBLE In spite of this countrys great wealth of men, machines, technical ability and natural resources, we are headed for trouble. The principle reason for the trouble is that in the wake of the war there is a crying need for everybody to work harder and longer than ever before, and perhaps suffer a decline in Heres a real opportunity for the young man who wants living standards to boot, but noa good job with a future. An Army job is a steady job offerbody seems willing to do so. ing good pay, the highest security, every opportunity for The theme song is shorter hours, promotion and a chance to see the world. You get valuable higher wages, lower taxes. training in technical skills, good food, clothing, quarters and medical care free. If you go overseas, you get 20' '0 extra pay. However, unless more work You can retire at half pay after 20 years or retire at and higher production accomvacation pay after 30 years. And you get a panies wage raises, nothing has at full pay every yearl Many other advantages not offered been gained. As Mr. Bernard elsewhere. If you are 18 to 34 and physically fit (or 17 with e Baruch said, To make the parents consent), you can enlist now and qualify for one of worth while, more things these fine jobs in the peacetime Regular Army. You owe it at lower prices must be proto yourself to get all the facts NOW! Apply at duced. That is up to labor more than management. Unless each U. S. ARMY RECRUITING STATION man produces more for what he receives, increases his output, ENTER ST, PROVO, UTAH 108 WEST there will be less for him and all the others. Each one will and therefore in our money their deposits increased, and the receive more money, but have more money became available fewer supply. things. Who gets any adfor current spending and for inholds if goods are not proOur banking system vantage When the banks ran duced faster than wages are adabout 115 billions of govern- vestment. ment bonds, and more than 50 out of free reserves available vanced and money printed? What has been happening in billions of this total were pur- for further investment, they were provided with excess re- the coal marchased by the banks industry gives point to to buy ket. We heard a good deal dur- serves enabling them Baruchs warning. Mine opermore through the purchase by ators, knowing they were bucking the war about the the Federal Reserve Banks of of an irresistible trend, offered government selling ing sirability bonds to the people and their large volumes of government the miners wage increases and bonds previously 'held by the shorter hours in conformity savings institutions, because such commercial banks. used with settlements in the steel and purchasers The Federal Reserve Banks other on the The automotive industries. This was banks, money. 25 now hold approximately before the latest coal strike. The hand, when they purchased government bonds either on sub- billion dollars of government offer would have added between bonds all of which were acquired 100 and 150 million dollars to scription or on the market, from the commercial banks. If the cost of created new money to the extent producing bituminous it had not been for the purchase of their purchases. coal in the course of 12 months, the Federal Reserve Banks of all of which would have been President Sproul of the Fed- by bonds previously added onto the government fuel bill nations eral reserve Bank recently said held by the commercial banks, because the profit margin in that the present inflation of our the latter wp.uld long ago have money supply is the result of a ceased to have funds with which coal can be squeezed no thinner. However, the strike went on for involving the to add to their triple play, holdings of gov- even higher stakes. The union Reserve Federal the Treasury, ernment obligations. now demands a royalty System and the commercial It must be evident that so or excise tax on every ton of banks. The Treasury spent more much money makes the problem coal, which would also have to than its income and had to of control more and more price finance its deficits by the sale of difficult. There is bound to be be paid by the consumer. The The Federal Reserve an bonds. royalty would put fifty million increasing concern over the dollars Board and the Federal Reserve ultimate annually into the hands consequences of con- of the union more money than Banks permitted, encouraged or tinuing or increasing our money required the commercial banks supply, and over the question the bituminous coal industry to buy a large part of the bonds how it can be reduced. Pro- netted after taxes, in 1943, the most recent year for which the issued by the Treasury. The duction alone will not reduce are available. figures more the banks bought, the more the amount of money presently Thus there will probably be available in this country. Procoal at higher price, when less duction and sale will simply 'the existing money; it all that stands between the will change hands but it will not country and uncontrolled inflation is high production at a disappear. no is Production solution. minimum price. This probability of less goods at higher and highWages and materials consume Every American must recognize er nearly all of every dollar Harprices will become a certainty and fight the true enemy to vester takes in from sales. A Govin" all lines of industry if steps national security, recklessly creernment board has recommended ated excess paper money, and are not taken to curb the and the Company has agreed to power of the not rely on any naive panaceas. monopolistic pay a general wage increase of 18 modern labor union. cents per hour for Harvester facThe questtion of inflation or tory employees. The Government prosperity is far too vital and has also allowed price increases serious for that. on raw materials which, we purAdvertising Pays First State Bank Or Salina a Published Every Friday At Salina, Utah Entered at the postoffiee at Salina as APRIL 26, 1946 3, 1879. three-quarte- "The Livestock Bank of Utah" Capital $ Surplus 250,000.00 25,000.00 Member: rs y WESLEY ORSA B. CHERRY CHERRY Editor Publisher INFLATION AND THE BANKS an all-tim- e low. Comparing our present posiThomas Parkinson, with the past, we find that tion Formerly Professor of Law, our money supply in 1942 was Columbia University President, 100 billions, in 1939, 60 billions, The Equitable Life Assurance and in 1929, 55 billions. Our Society of The U. S. present total of 180 billions is The average citizen of this more than half of our national country does not need to be told wealth, and is 23 of our governthat we have an unusual amount ment debt. of that which we use for money. What we thought was a large The fact is, we now have in the in 1929 was the United States a money supply of money ofsupply and private result corporate 180 billion dollars. Of that total, from the banks. The borrowing 28 billions is represented by of those loans or their money in circulation, that is, sil- foreclosure at the beginning of ver coins and bank notes. The the depression reduced bank debalance, 152 billions, is repreour money and sented by deposits in banks on posits downbrought to 42 billions in the supply which someone has the right to 30's. It went up again in draw. The total amount of 180 earlylate the 30s, because of the inbillions is avilable for spending creased bank reserves resulting or investment. This great vol- from the Gold PurTreasurys ume of money accounts for the chase Plan, under which we pressure upward on prices of all the gold that anybody such things as are available to- bought else in the world had for sale, day and is also the reason for and because of bank financing the boom in real estate and the of Treasury deficits of those bullish stock market. years. The veteran retruning from This matter of money has alservice In the armed forces discovers the existence and the ef- ways been somewhat confusing, fect of this huge money supply if not mysterious, even to some when he finds that what he had of our bankers. Nevertheless, as Eccles of the Federal thought of as a $5,000 home now Chairman costs him $10,000, or that what Reserve Board recently said, it he thought a $40 radio costs him is time that more people in this $65. If he, brings home some country understand that every savings and seeks to invest them, time a bank buys government he finds also that the volume of bonds, either from the Treasury money seeking Investment re- - directly or in the market, there duces the yield on his savings to is an increase in bank deposits, I. .- -. Sometimes, although an idea is wrong, it does no harm. Like the idea that a square jaw is the sign of will power. That winters arent as severe as they used to be, or that red hair denotes quick temper. But there are other wrong ideas, which are definitely harmful to public confidence in and understanding of industry. One such idea is the current "guessing about profits made by large business organizations. Many people are apt to grossly exaggerate the money made by business. So Opinion Research Corporation (an independent organization) made a survey to learn just what the public thinks about profits. Compare these guesses-an- d yours with the International Harvester profit figures given below. rate of profit in normal times. 30.01 Public guess on war profits . . l H four war year average profit . . . 4.91 In this survey, the average of the guesses by the public of the wartime profits made by industry was . . thirty per cent (30). But in the four war years of and 1945, the profits of International Harvester 1942, 1943, 1944, Company averaged only ... 4.9 on sales. Less than one sixth of what the general public " guessed for all industry. For this period, the year by year per cent of profits on sales was: 19427.34, 1944 -3- .95, 1945-3.- 93. 1943-5.- 59, 18.0 Public guess oa peace profits 0 I H four year average profit . . 7.17 pre-w- ar Many large businesses, including ourselves, would consider it a banner year if we could reach this figure. Our average profit for the last ten years four war and more than six peace was 6.43 a third less than what the public considers fair. All these figures show that our profits are not high. As a matter of fact, the entire farm machinery industry is a low profit industry. In 1944, the Federal Trade Commission published a list of 76 industries ranked in order of their ratio of profits to sales. The farm machinery industry was 57th on the list. What About Current I H Prices? When the War ended and we producplanned our peace-tim- e tion, we had hoped to be able to serve our farmer customers at the same level which has held since in1942, regardless of war-tim- e creases in costs of wages and ma in the four peace years of 1938, 1939, 1940, and 1941, the profits of International Harvester Com- pany averaged ... 7.17. This is well under half of what the public "guessed for all industry. ''' " Majority think fair profit in normal times is I H ten-ye- average is less 10 than 7 The survey indicates the public knows that in our economy profits are indispensable. And the as a fair majority regard 10 UKl M9FTTS, nt terials up to that time. But recent developments have forced a change in our plans. Federal Deposit Insurance Corporation C on-th- e g 10-ce- cir-cula- te W, at Is your on our projits. Federal Reserve System take-hom- chase in large quantities. Steel lias had an average increase of 8.2. TRAFFIC DR. H. CRANDALL LAWS DENTIST SAUNA Obstruction To Drivers View Or Driving Mechanism: UTAH Office Hours: 9 to 12 a. 1:30 to 5 p. m. m. No person shall drive a vehicle when it is so loaded, or when there are in the front seat such number of persons, exceeding three, as to obstruct the view of the driver to the front or side of the vehicle, or as to interfere with the drivers control 1 ovr the driving mechanism of the vehicle. MONUMENTS Order Now For DECORATION DAY NEW DESIGNS See i No passenger in a vehicle shall k ride in such position as to interfere with the drivers view fi ahead or to the sides, or to interfere with his control over the driving mechanism of the vehicle. i Clayton Rasmussen Phone TB I Salina 107-- J i ; COSTLY LOAFING The magazine Newsweek of April 8, published the following brief item: In February, the Labor Department reported strikes lost s the nation 21,500,000 of work. At $1 an hour, the level of average hourly wages the department found in its last survey, February strikes cost the workers $172,000,000. In February, 1929, strikes took only At 56.6 an 156,000 hour, the 1929 yearly average, they cost $706,368. In February, 1939, strikes took 553,000 At the 1939 yearly average of 63.3 cents an hour, they cost $2,800,392. man-day- man-day- E. H. Mfckelson At Your Service Sewing Machine & Vacuum Cleaners; Repairs, All Makes Northwestern Mutual Fire Insurance Northwest Casualty Automobile Insurance May I Give You An Estimate? Tel. 106W Salina, Utah s. man-day- s. pmaiBa Washington 1946 KNOW YOUR Snapshots OUTGO By JAMES PRESTON 19427 fill (Jt 1 Its J J spring house'cleaning time for your car. J-ife- There has been no general increase in our prices since they were frozen by the Government early in 1942. So our situation today is that what we BUY costs us 1946 prices. We will be paying average hourly wages 56 above 1941. For what we SELL we get only 1942 prices. This condition cannot long be met out of our present low rate of profit. Future Prices on i H Products price relief will be It is plain that needed to meet the increased wage and material costs which we must carry. We regret this necessity. We prefer to lower prices, when possible, rather than raise them and we know our customers prefer to have us do that. We had hoped to be able to hold the line," at least. But we do not see how we can avoid operating at a loss if our prices continue to remain at their present frozen levels. We will NOT "cut corners on any of our products, because QUALITY IS THE FOUNDATION OF OUR BUSINESS. Our customers can be certain that we will seek no more than a moderate profit, both because of our policies and because we have approximately 300 competitors fighting us vigorously for your business. Our request for price relief will be no more than is necessary to insure continued service to our customers, continued work for our employees, and a reasonable return for our stockholders. INTERNATIONAL HARVESTER Another hard legislative fight after the Senate Education and Labor Committee files its formal report on the Case labor bill. The Administration has followed delaying tactics on this measure from the beginning. As approved by the House, the Case bill went directly to the heart of several important labor The Senate committee issues. trimmed the bill down and left it largely meaningless, but a bipartisan minority report will accompany the formal report. The minority report will recommend six important amendments. substantially as follows: Six Amendments 1. Provide for an independent mediation board, although technically under the Labor Department, with duties of parties defined. These duties would include that of bargaining collect-tivel- y and in cooperating mediation efforts, with a cooling-of- f period. 2. Provide for mutual responsibility by making unions subject to suit in Federal court for violation of contracts. 3. Outlaw secondary boycotts by making them subject to antitrust laws. 4. An amendment under which it would be unlawful to bar entrances into, and exits from, plants. 5. Make it unnecessary for employers to bargain collectively with supervisory employees. 6. Order limited in the case of public utilities. Under this proposal. 90 days would be given for negotiations before a strike could begin. looms on Capitol Hill Let your Vico Pep 88 station or dealer help you keep yours in proper trim by this Spring freshening plan: Motor oil changed to spring and summer grade Car completely lubricated wheels repacked Transmission and differential drained flushed and refilled with clean lubricant of u.vr grade Battery and tires inspected and serviced Spark plugs checked, replaced if necessary Cooling system cleaned and checked for leaks, radiator hose and fan belt replaced if necessary 60-d- ay removed (saved if permanent type) Anti-freez- e and rust preventive added In addition, it a good idea to have the air cleaner cleaned and the oil filter changed. is anti-violen- fact-findin- Qet highest quality products PEP 88-VIC- at STATIONS AND DEALERS O 'atlas g Ctsolimt ftp SS KttmUr CmJw Viet, Qmtitr Shu Mutt OUt AtUt OIL IEFININC UTAH (UTOCO) COMPANY fndtutt M |
