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THE CHRONICLE Strives To Be A Cleon Newspaper, Complete Newsy and Reliople CUintmt If You Don't Read IHE CHRONICLE You Don't Get the News Volume LI1 Clinton, S. C., Thursday, October 25, 1951 Number 44 TIME FOR FEARING INFLATION IS PAST, BABSON DECLARES Solution To Problem Is I Little Longer Work- Week, He Asserts. By ROGER W. BABSON Babson Park, Mass., Oct. 19. Most people worry at the wrong time; and worry about the wrong thing. A few years ago when no one was fearful of inflation, readers know I was continually warn ing against it. In fact, the Frederick A. Stokes Com pany of New York published in 1937 a book by me en titled "If Inflation Comes.” At that time no one paid B«(cr w. any attention to the book or to inflation; but re- cently the book has gone through ten editions. People are now fright ened about inflation. People Are Usually Wrong In 1937 the cost-of-living index was 10.3. Since then it has risen 80 per cent and average weekly earnings have risen 160 per cent. Now all the columinists are warn ing of inflation! It is just like the stock market. When stocks are cheap, as they were in 1932 and 1933, no one was interested in buy ing them; but in 1951 when they have risen 175 per cent and the Dow-Jones Average is up from 100 in 1033 to 275 today, people want to buy stocks. 1 am not condoning inflation. It is bad. But there is no legitimate excuse for the increase in prices and the cost-of-living. If people hsd been worried about inflation in the thirties, as they are today, in flation would not have happened. It » just as bad now to fear in flation will "bust the country” as It was then to ignore it Lat a Look Al Tho Rocord After, every great war, until now. there has been a decline in the cost-ef-living. After the Civil War. 1MMMS. the cost-of-living grad ually declined until 1IM. After World War I, the cost-of-living, be ginning in 1920, declined until it reached a low point in 1933. The cost-of-living then fluctuated for a few years and again increased dur ing World War II. The natural thing would have been for it to be on the decline again today. If it followed the course of all previous wars, including the Revolutionary War, the War of 1812, the Mexican War, the Civil War, the Spanish- American War and World War I, we would now have deflation in stead 6f inflation. The truth is that the present trend is contrary to previous ec onomic history. Inflationary prices are due to organized labor, aided by the politicians reducing work ing hours. Labor leaders yell about the high cost-of-living and blame it on “Inflation”; but they will not tell you the real cause for inflation. This is not necessarily a criticism of labor unions. I have always de fended collective bargaining. The fact, nevertheless, remains that if the labor leaders had been reason able, the cost-of-living would have gone down following World War II No Roaaon To Foot Tho U. S. Will Bust The talk now is that the arma ment program will "bust the coun try”; but I don't believe this. Bankers point to the fact that an expenditure of 150 billion a year on armaments will either result in taxes so high that the people can not stand them, or else will cause our Goveshment to get into terrible debt. The facts do not uphold this non-sensical talk. Labor leaders can solve the problem whenever they wish and this will not require a reduction in "take home” wages. Fifty billion dollars a year can be spent on armaments, the cost-of- Support Rate Announced For 1951 Com Crop The price support rate for 1951- crop com for South Carolina is $1-73 per bushel for com grading U. S. No. 3 or better, according to an an nouncement by the United States Department of Agriculture. Hugh Bonds Workman, chairmim of the Production and Marketing Administration county cormpittee for Laurens county, stated that in bringing this announcement to the attention of local farmers he wanted to point out that there would be a discount of 2 cents per bushel ap plied to the com rate in the case of mixed corn. The $1.73 per bushel support price is for corn grading white or yellow, he said. Corn grad ing below U. S. No. 3 is not eligible for price support except that com grading No. 4 solely on the basis of test weight and all other factors are grade No. 3 or better is eligible for price support. Mr. Workman stated that price support on com will be available by means of farm-stored loans, warehouse-stored loans and pur chase agreements. Loans and pur chase agreements will be available until February 28, 1952 All loans will be handled through the local office of the Production and Marketing Administration, Mi Workman said, and the loans will bear interest at the rate of 3 per cent per annum. Farmers are cautioned to keep com free of weevil as com contain ing live areevil is not eligible for the Joan uirtiHMl live weevil have been eliminated by fumigation, Mr Workman said. exceed 10 per cent of the total de posits. Some excise taxes were in creased and others added to the list. As adjournment nearea, the box score of this first session indicated that President Truman had sent 57 requests for action to the Hill, and as of Oct. 1 action had been com pleted on 21, seven had been re jected, partial action had been taken on 11, 17 had been complete ly ignored and hearings had been held on one. Still to be passed on the list of appropriation bills are the army civil functions measures, which include appropriations for flood control; state-justice-com merce' appropriations; defense and foreign aid (in conference commit tee. Pending enactment, the con gress has had to pass four "stop gap” temporary appropriations i measures so the government could 1 function. * • • Probably the most important loss to the President was the 49 to 53 vote on the amendment offered by Senator McClellan of Arkansas which made it "the sense of the senate that no troops” in addition to the four divisions already con templated for Europe "shall be sent . . . without further senatorial approval.” While this is indicative of senate intent, there is a ques tion, according to constitutional ob server!, .as to whether the Presi dent gin be held to the amend ment. however, if he should decide, as commander-in-chief of the armed forces, whether the nation's safety depended upon another division in Europe while congress was in re cess or adjournment. Adjournment may nip the ouster resolution by Senator William Ben ton of Connecticut to expel Senator Joseph McCarthy from the senate membership. With 1952 a campaign year, it may be expected that the second session of this congress may get some early action when it con venes next January on some of the still pending legislation asked by the President. DR. L B. MARION nato16pat& L... Res. Phone 939 SUBSCRIBE TO THE CHRONICLE Savings Accounts 3%—DIVIDEND—3% We invite savings accounts from the people of Qinton and vicinity. You will like our friendly and efficient ser vice, and you will receive your dividend promptly each January 1st and July 1st. Any amount — from $1 up— opens an account. Each account is insured up to $10,000 by the Federal Savings and Loan Insurance Corporation. Two people may have up to $30,000 fully insured. Accounta by mail promptly acknowledged. Chartered and Supervised by the United States Government Two important measures still in conference and expected to be act ed upon before adjournment were the postal rate increase measure and the postal pay increase for postal employees. II Laurens Federal Savings & Loan Association Telephone 22271 LAURENS* LARGEST SAVINGS INSTITUTION 104 West Main Street Laurena, S. C As Washington Sees It. •. living can be reduced, federal . 0 V*? I IHE NATIONAL SCENE with a surplus, instead of a deficit. | ■ and taxes can be reduced by ex tesidiag the working day ‘ hours to tea hours w The total income of the country r MORE FOR YOOR MONEY! i Here » your bc*t bread buy betaine thia t richer . . . fresher . . . tastier . . . more nourt'htng loaf give* you MORE MILK ►.. MORE SUGAR . .. MORE VITA, MINS and MINERALS! CalldotL enjoy “Milk-Rich” ChuSSen'S today! 3 Ways! Special to The Chronicle Washington. Oct. 23—Despite a number of important measures hanging fire, it began to look as though the congress might adjuem in the midst of its unfinished bus iness and call the first session cf the 82nd congress history FREE! The Key to COMMON SKNSE WEI0HT REDUCTION N c r FREE! A LOW COST WAY TO LOSE WEIGHT CLAUS8EN*S BAKERY, GREENVILLE. S. C. Gentlemen: At no cost or obligation, please send me your COMMON SENSE WEIGHT REDUCTION leaflet, with the diet cal- ing for low-cost, everyday foods, including enriched bread. ! Name. Addresi. City and State. I I f| 1 4 I 5 I ■ *1 I I A conference comm 1 tee on the tax bill was expected to agree in most instances with the senate- ' passed measure. Major provisions ' as passed by the senate were in- I crease of 11 per cent on present ' taxes of individuals or. eight per I cent on income after taxes, which- • ever is less; raise in maximum ef- ; fective limitation from 87 per cent to 88 per cent with no change in ' the 25 per cent capital gains tax I (effective date was Nov. 1, 19511: increase in corporations’ normal rate from 25 per cent to 27 per cent and in surtax rate from 22 to 25 per cent, giving a top bracket com bined rate of 52 per cent on normal and surtaxes; ceiling of 17 pfr cent that can be taken in excess of prof its; retention of average earnings credit for excess profits tax at 85 per cent of earnings in the three best years in the four-year period 1946-49—effective April 1, 1951; no change in maximum capital gains. Insofar as individuals are con cerned, the bill means they will pay about 2 per cent more taxes on 1951 income, while next year they will pay about 12 per cent more fur married folks up to $60,000 and singles up to $30,000. On higher in comes, the tax increase will be smaller percentagewise. Higher withholdings will be required on pay on or after Nov. 1. • MM For farm co-ops—they are still tax exempt except for a corpora tion tax on earnings not allocated or distributed to patron members. Mutual savings banks and savings and loan associations must pay cor poration tax on earnings, but are allowed deductions for losses on loans and amounts paid to depos itors or credited to their accounts. A minimum of 15 per cent of in come must be set aside tax-free for reserves, or a larger per cent set aside as long as total reserves, sur plus and undivided profits, do not for 1951 will be about $275 billion. Of this amount about $175 billion will go to wageworkers on the basis of an eight-hour day. If we all worked two hotirs more — which would be no longer than our fath ers worked—-this would be equiv alent to increasing production 25 r c. This could solve our inflation prob lem and pay for all our military preparations. To talk about Russia waiting until our country is busted is the “bunk”. Of course, we will some time have another business depression for taring to get some thing for nothing; but if such threatens our existence, it can quickly be cured by all of us work ing longer and harder. By doing this now we would have Russia licked once and for all. No wonder the Communists and fellow travel ers are urging labor to resist a longer work day. 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