The Clinton chronicle. (Clinton, S.C.) 1901-current, October 25, 1951, Image 1
THE CHRONICLE
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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
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Two important measures still in
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II
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Telephone 22271
LAURENS* LARGEST SAVINGS INSTITUTION
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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
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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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