Show i £ljc 5alt £akt ftHbunt- - Wednesday Morning-- - Boom Nears Noted Economist Tells Investment Bankers Two-Yevestment Bankers Association of America received news that ths U S treasury would offer $500000000 in taxable notes as "an indication of the beginning of a broad program by Secretary Morgenthau to draw upon the investment nation’s savings rather than continue to finance the government with credit created by the bankers In estimating the amount ot Fla Dec 10 chief raisers of HOLLYWOOD ForUS The nation’s capital ers the Investment bank- — — were Ayres Says : A Denies Sharp Rise Due in f an esti- presented net for funds for the national would exceed defense effort mation Tuesday that $25000000000 period In June ending the the de-nfk- two-ye- ar 30 1941 At the same time delegates to the annual convention of the In -- In this connection bankers attending the convention said they understood plans were afoot in Washington to apply these brakes One suggestion from government sources was said to be that the ' treasury tap a large proportion of the Idle excess reserves of the banking system now at unprecedented levels close to $7000000000 and sufficient to support an enormous credit expansion well-know- conference board said that barring a larger increase than anticipated in the - national income it was likely that the real savings of the country during er the two-yeperiod would fall short of the requirements ‘by about $10000000000 This would have to be raised 1940 3 Defense Program for V S Will Cost 25 Billions ar by the creation of credit by the n banking system said the economist Such credit expansion he described as a “speculative adventure — but not likely to be dangerous in its early stages” He wfned how-evthat the nation should look ahead and be prepared to apply the brakes on inflationary credit growth to avoid “k postwar financial collapse of unimaginable magnitude” capital fundi which will be required Dr Virgil Jordan president of the national Industrial ll December -- The plan would be to give the banks treasury bonds In return for a portion of their reserves These bonds could be cashed In at the federal reserve banks If the commercial banks later needed funds Some bankers were unenthu-slast- ic about the proposal saying it tended to put the banking system further under the control of Washington Bankers said the government was faced with the conflicting problems of - desiring to apply brakes against Inflation — a to rapid Increase In credit aa to boost the price level create boom conditions leading to collapse — and at the same time accomplish Its borrowing as cheaply as possible Applying brakes to credit expansion would normally tend to make Interest rates higher W Living (Costs CLEVELAND Dec 10 Leonard P Ayres Tuesday drew this picture of 19J1 business prospects: " A boom on its way ' Rises in the price ot labor Advances in stocks but no big bull market No "inflationary” increases in living costs Depression conditions in farm regions that depend upon ex- ’ 4 ports-- " Colonel Ayres made these predictions in his annual business forecast for the Cleveland cham- ber of commerce The forecast drew especial attention from his listeners this year because Colonel Ayres recently was recalled to active war department duty — as chief statistical officer Work is ‘Secret Weapon "Germany’s ‘secret weapon be said "is hard work "We cannot win without Itbut with it we can win” he added "If we bring to our task of rearmament all the energy and cooperation of which we are capable we can succeed in it” The most important lesson to be learned from Canada the econ-- ! omist observed is that- “Preparedness must take first place all other activities must be ' x I v V ' In fin adorable ? - - $ lace end made 1 f Joyce 5 K v Chadwick nightie ii edged wifHam'out 8erbUon fit and fine tailoring Sarbiion’s Slip of silk and rayon satin Barbhcn’s 300 2 seraphim ' I " i She’ll be flattered to find her gift hosiery it lovely the kind she always chooses for herself because they're so marvelously theer and so 5 pr for rs 200 s w w vh8v ’ 500 d SO i X Woman’s Aviation Companion Case by Koch 1 Ideal for cosmetics shirred pockets lingerie and knickknacks Lafy Buxton Billfold of finest grade genuine leather ’ rt Uh 285 T long-weari- (! ' f Ni QaAvrrK vfrioi subordinated” the prospective Discussing "boom” Colonel Ayres said: Will Have Boom “It can last for a long time We are going to have a boom because so much money is going to be spent so fast that the boom is inevitable “Industrial workers in the heavy industries will soon be fully employed and earning good The sure prospect under wages those conditions is that those workers are going to spend most of their earnings for the things that they and their families want “The result will be that before the middle of next yea£ we shall see both the heavy industries and the light Industries fully employed and striving to increase their productive capacities" Sees Specialization But the boom will be “specialized” Colonel Ayres warned: “The industrial regions that produce munitfons will be prosperous and so will the tidewater communities where ships are built At the same time real or near depression will probably persist in agricultural regions which formerly sold important parts of their production to the countries pf Europe “The cost of building must adOne price that is alvance ready visibily advancing is the price of labor and it is clear that further increases are on the way m - Sees No - Sharp w n T V-- 4 i til I larHv Z f gr yi m O' 'FSP'O’A yA wytjtwot ? x ' A Maid blouse' pairs smartly with her pet suit skirts hand-finishShe’ll love a band-loome- d long sleev terdigen sweater for only Choose e matching or contrasting slip-ov- 1 t v s - - - ’ t ufcfcis— y - y 598 298 av : 3 tar rr-- ’ ' Dainty hankie with blue embroidery 'riBn with tiny flower nosegay trim ‘Sheer linen trimmed with drawn work with lipstick stripe wedge chanillo cross-to- e scuff neiJ color Joyea HiKiek square too and square wedge 59c Joyce Harlequin 50 c Joyce yyy yyyy&xy k as j 1 95 49S by AVtsk — i “Under ordinary circumstances we should soon see important advances in the cost of living but these are not ordinary circumstances Under present conditions we need not fear that we i of inflationary price increases that result in large and sudden advances in the cost of livring “Stock prices will- - probably have a generally rising trend in 1941 for they are now abnor- mally low in relationship to the It earnings of corporations seems unlikely that there will be a prolonged or enthusiastic bull market for stocks because investors are wary of the existing high taxes and anticipate that coming taxes will be still higher ifit British Hold Catholic Leader Italy Asserts s Dec 10 MP— Vatican ROME sources said Tuesday reports had ft- - teen received from Palestine that patriarch of Jerusalem Monsignor Luigi Barlassina had been Subjected to coercive measures by the British It was not indicated whether the reports were the aeywe bag in soft kid with’a shirred panel front and marvelously convenient sections crepe or satin new colors smartly initialed Long underarm three separate Ascot scarf in Bunny fur mdtenj kid palms In gay colors Classic kid slipons made by Trefoussa Black Vf gloves white bow stitching trim zipper top 898 1 00 1 98 Early American Old Spice Toiletry gift bo Luminous Coro Pearts in I 2 3 or 4 strands Arden’s Dusting Powder Lipstick m candy cane 850 298 ft IF SHE IS WORTH A MILLION AMD YOU HAVE LESS THAN 5 COAE TO Barbizon’s Lazy Lady Robe in lovely rayon crepe iagere Quilting trim Coral Symphony blue San Remo blue 400 fuchsia YOU’LL BE AMAZED HOW MUCH BETTER A HOUSE CAN APPEAR IF PAINTED WITH— rV'Y PflBCO PAINT INVFSTIGATE COST AND COLORS TODAY AT— RTTTjTTJ -- My -- Arnstrcng-Engberg- WALLPAPER CO It W W 1tDo SoPicturePhone Framin ttt "fmsubei A Niurseesri Italian-bor- n official naThe patriarch tive of Turin and appointee of the late Pope Piux XI was said at first to have been interned outside Jerusalem Later it was said he was returned to his home and ordered not to leave A guard whs posted outside the residence v 495 - V S s & 298 11 wissswt - Tailor "I ’rrt U V aLnrssrrr ! - aJf 7 K t vP- t Rises 1—Tshallexperienceiiri94t-the-kirK- h 'hr 5 - t j Sts f - ? 200 100 250 |