Show BUSINESS PAGE OGDEN Inflation Facing Insurance Firms To Consider Variable Annuities TAKING STOCK hero TO THE OGDEN EVERYBODY'S MONEY change firms By Merrylt Stanley Ruktystr as li for By Cliff Thompson President Eisenhower is expected to renew his request for removing th KVi per cent interest ceiling on long term government securities are competing with expensive J twenty-payme- - - dowment life insurance policy he Reader mail reflects anxiety as saving could put such savings into installto whether in planning the avail- - tematic Life insurance possesses a unique ment purchases of mutual funds abilit yof dollars for personal and advantage over competitive modes and will in the event of death instithe in future the use family of saving By a stroke of the pen eave $1000 of insurance plus the tution of life insurance will remain and the payment of the first pre the keystone of the arch the insured can make his Inflation which has cut the buy- mium of an estate come true irre dream The Bons Redwood will be ing power of the dollar in half since of whether he is removed 1939 stirs doubt as to whether any spective open Friday morning contract expressed in a fixed num- from the scene by sudden death at 10:00 AM is it to unthinkable ber of dollars is in tune with re- Accordingly exclude life insurance from peralities sonal financial planning Recognizing this New Jersey has VVVrtV L With this basic advantage it modified its insurance law to perto me that personalities in PHILLIP H BROWNING mit life - insurance companies to seems side the 4ife insurance industry Passes Bar offer variable annuities based on be- - more creative and inven could common stock investment This will tive in modifying contract forms to give regular companies the right to emulate the "pilot plant exprei provide for changing needs and rrfent along these lines' of the Teach shifting desires' LAW FIRM Lack of experimental initiative ers Insurance & Annuity Associa the industry is playing into within tion through it affiliate the hands of Phillip H Browning 1591 E 4600 CREFwhich' competitors For ex has offered college deans South has passed the Utah Bar and dons variable annuaities mutual the fund salesmen ample as a examinations and joined the law supplement to conventional annui urge customers to buy the cheapest life insurance protection firm of Kunz & Kuna ties written in terms of a fixed form of convertible-teror long-tersuch as He is a son of Mr and Mrs number of dollars to acinsurance and pure Frank M Browning FUNDS COMPETE investment" features cumulate the The new attorney received his Other financial innovations of independently through systematic law degree from the University of Utah Law School last June He re fering the "common man" finan buying of mutual funds Some mer ceived a bachelor degree in eco- cial packages of cbnvenience such chandisers offer a package of mu nomics from the University of Utah as the mutual fund the investment tual funds plus descending term in ' in 1955 company the merged common trust surance offered They argue that if an individua Mr Browning is a graduate of by some trust companyies the protection cheaper through Invest the and banks and gets School Monthly Menlo Park Calif High and r Plan-foterm or even ordinary life a instalment ment $1000 in served with the Army savings Europe Exthan he would with a more Stock New York in 1950-5- 2 policy by sponsored - 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higher premiums than term and ordinary life policies and even though the accumulated cash surrender and loan values of the policies are much higher than in the cheaper policies the beneficiaries receive the face amount of the policy only in the event of death of the insured NOVEMBER 25 prior to the twenty-yea- r period has long given unThis set-u- p ethical life insurance "twisters" a heyday in earing commission through switching policyholders out of old policies into new ones The insurance industry and the state regulatory insurance commissioners have always frowned ca this practice It would however be more effective to remove ruch temptation by a simple changt b policy forms si : when Congress convenes in January officials consider Fiscal authorities including Federal Reserve this one of the most effective steps Congress could take against inflation The U S1 Chamber of Commerce believes Congress would be more cannot choose a time when interinclined to approve the President's est rates are low or when the econrequest if there were evidence of omy is on a downturn and needs public demand for the action some pumD priming The widespread public apathy The government sold some 10 about government financial matters billion dollars worth of short term is due probably to a lack of public securities last summer at five understanding about the govern- cent interest That money wentper to ment's fiscal policy and its conseoff securities that paid less pay quences cent interest The President is thinking about than five per RATES GO UP taking his case to the public in an effort to increase its awareness of And before the next five years the short term borrowing policy rolls around the government will and its economic effects on the in- have to refinance that 10 billion dividual pocketbook dollars worth of notes— probably at " more than five per cent interest COSTS MONEY Had the Treasury been able to It will not be an easy story to sell the original securities on 20 or get across 30 year long term notes it would What President Eisenhower and have saved several interest in his financial fiscal advisors must creases do is prove the fallacy of a wide Commercial banks are' one of the spread belief that the interest ceil' main buyers of short term securi ing saves taxpayers' money m in ties and for each dollar a bank terest payments on the national buys in these bonds ib can lend debt to $5 under present Federal Re Investors today do not want to up serve regulations buy long term government securi rne additional buying power ties because of the 4Y per cent in in created by these loans creates terest ceiling They can invest their flationary pressures money at higher interest rates The long term notes if they were S U to Treas the J5o get money sold at competitive rates would at ury must sell short term securi tract investors and savers This ties maturing in five years or less means the U S would be financing on which there is no interest ceil its government operations on the ' ing current real savings of its people ' This means the Treasury must rather than their future ability to be continually borrowing money to payrefinance the national debt and to finance the spending spree Con gress is embarked on REFLECTS This puts the Treasury squarely and continually in the money mar ket competing at the going interest STEADY rate with private enterprise Bank of Utah directors yester- TIGHTENS MARKET a share day voted an semi-annuIt tightens the money market be dividend plus an cause the government is competing extra cash dividend of 10 for money with every one else cents This policy has not saved the The dividends are payable 1 Dec to stockholders on taxpayers one cent No one wants to buy the low interest rate long Dec 1 term securities So the Treasury President Frank M Brownmust sell the short term notes a ing said the dividends follow the coins' rate a steady pattern of increased If the Treasury were permitted and net profits for the ' to sell 20 and 30 year securities a institution ' V v i could rates it borrow Mr competitive Browning reported the several billion dollars and not worry bank's assets as $12900000 on about refinancing it for that length Oct 30 compared to $11700000 - r of time yon Oct 30 1958 And in refinancing part of this "This is a reflection of the loan the Treasury could choose its - sound financial health of Weber own time to enter the money market County and Northern Utah econagain And it could choose a time omy" he said when interest rates are favorable As it is now: the Treasury must refinance most of the national debt very five years This means it - nt nt 3D R UTAH THURSDAY EVENING accumulated value of his mutual fund purchases On the other hand although twenty-paymelife or twenty-paymeendowment call for much or nt STANDARD-EXAMINE- max Factor has a gift for making lips beautiful— heavenly gift ideas! Production Hl-SOGIET- f i I Y 5 all famous name Simmons England-e- r this is a Serta and many others s sale a few matching sets 9 sets for the early birds (example of Englander full size ortho mattress and box springs a 11900 value now while they last 4800 per set) Regardless of original price this sale only! DETROIT (AP)-Sa- nta Claus will have some 1960 model cars in his pack this Christmas if automakers are able to follow through on pro duction plans announced this week General Motors which hasn't built a car since Nov 11 and which has assembled less than 12000 since Nov 1 will begin returning to asproduction Dec 7 Full five-da- y sembly by all divisions is scheduled for Dec 14 Chrysler which will have only three assembly plants running after Thursday' also hopes to be back in full production by Pbrd has- returned to almost normal schedules ' after slowing down for several weeks American Motors ' and Studebaker-Packar- d continue normally Since GM normally builds almost half of the nation's cars dealers stocks have shrunk sharply during its idleness Most GM dealers say they will be out of new cars by early December Ford reports a continuing shortage of its new compact Falcons It has announced plans to convert the Metuchen NJ Mercury plant to Falcon production as fast as pos- - mis-mat- in dazzling new designs for ed odd-lot- CHRISTMAS A If 4? Wir 11 AVP: mid-Decemb- er - sible starting in values to 6950 each any two pieces per set Bedding Lower Level Cosmetics Upper Level ' special purchase S PLATFORM ROCKERS CiVa GOLD STRIECE 1 t fin' "i y t J U - i J 1 Wrtith manufacturer's closeout $30 ' buy for Christmas giving lay yours away today oo 9 )- fabrics Hardwood rocker frame You'd expect to pay 6900 for a chair of this quality! (Similar to illustration shown) Furniture Lower Level ) - - r A S " o I if V J'i i ivvv - j High-grad- e Vo Modm ! 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A perfect way to say "Merry Christmas" Just slip it in a card with all your best wishes Hardly a name has been left out They're fine swiss embroidered-igrey pink blue or yellow Handkerchiefs Upper Level $10 Cosmetics Ufpcr Levd i |