Cedar Rapids Gazette, August 13, 1974, Page 5

Publication: Cedar Rapids Gazette August 13, 1974

Cedar Rapids Gazette (Newspaper) - August 13, 1974, Cedar Rapids, Iowa Ford Regime Signals End of Do-Nothing Economic Policy Iv Clitia Par<M    As    fur    monetary Doliev. the By Sylvia Porter NKW YORK - What does the closing «»f the Nixon ad ministration and thi* opening of the Ford presidency mean to you — in terms of your own pocketbook, your own personal financial security? Iii briefest First of two columns summary, this column will give you the over all view; the next will supply vital details. First and above all, specifics It means the lifting of the pall of uncertainly and indecisiveness which has progressively darkened the economic landscape in the U. S for so long. It means an end to the self-defeating economic policy of do-nothingness which has neither strengthened private enterprise in our land nor curbed the murderous inflation spiral nor inspired confidence in our leadership at home or abroad. Quite the contrary These changes alone — inherent in the mere shift of leadership from Nixon to Ford Sylvia Porter WIN AT BRIDGE By Oswald & James Jacoby One of the chapters in the Morehead-Frey book discusses the general folly of bidding your partner s cards for him This hand is given as a proper example of when to bid for your partner The reason is that while he probably has little or nothing in the way of strength, his cards — such as they are — will help you. If West had opened ace and one spade he would have bea- NORTII    13 4 10 9 V LO 8 7 5 2 ♦ Q8 A 10762 WEST    EAST ♦ A4    *62 *K6    V A J 9 4 ♦ J 106 2    ♦ 9 7 4 A A K J 5 4    4Q983 SOI TH ID) ♦ K Q J 8 7 5 3 V Q3 ♦ A K 5 3 ♦ - East-West vulnerable West North East South 14 24 Pass 34- 44 Dble Pass Pass Pass Opening lead- -K4 ten the hand, bul he did open the king of clubs. South ruffed, led a diamond to dummy’s queen; and a second diamond back to his ace, ruffed his small’diamond and played a trump. West took hts ace and led his last diamond. East ruffed and the contract had flown away. Once dummy had been able to ruff that low diamond. South had a sure thing play staring him right in the face. All he had to do was to ruff a second club in his hand, ruff his king of diamonds with dummy’s last trump, show the opponents his hand and claim his contract. He would have six tricks in and four sure trump tricks to ame WtCRRDJfcft** The bidding has been W est Pass Pass North 14 ii 3 N T. East Pass Pass Pass IS South 2 + 3? You. South, hold 4 A Q 6 5 4 VAQ654 ♦ A K A 2 What do you do now0 A —Pass. You have* a magnificent hand, but your partner has heard your bids and the combined hands are clearly a misfit. TODAY’S QI ESTION Instead of bidding three notrump your partner has bid three spades over your three hearts What do you do now? Answer Tomorrow — spell an economic plus of enormous significance Confidence Boost These achievements alone — more in the realm of psychology at this stage than of actual economic programs — will help unite* the* country, vastly improve public confidence, cheer investors particularly The very fact that the suspense about Nixon is over — and Nixonomics is gone — will help improve our economic relationships with our closest allies in Western Europe and Japan, make possible the economic cooperation among us which is so imperative to fight inflation, bring back our foreign economic policy to the positive force it was before Nixonomics took over. On economic policy at home and abroad, the Nixon White House was always weak, vacillating, non intellectual in approach, and frankly based on flexibility rather than on any principles whatsoever. Despite his public statements to the contrary, his sorry attempts to convince the TY audience that he was in charge — witness his last as* toundingly vapid economic address — the former President did not care at all about economics, as he so shockingly revealed in his own presidential tapes For instance, on the issue of relative currency stability (vital to world prosperity) Nixon remarked: “I don't give a (expletive deleted) about (that).” His top advisers — except for those he appointed at the* very end and for Arthur Burns, the world-respected economist he appointed as chairman of the Federal Reserve Board — also were philosophically against government intervention to curb runaway inflation and for do-nothingness. Their distaste for wage-price controls was a major reason the controls failed so miserably. As for monetary policy, tin Federal Reserve first made tin* terrible error of pumping credit into the economy prior to the 1972 elections to holster vote-getting prosperity. And then, when the White House defaulted on anti-inflation policies, the central hank adopted a brutally tough credit policy to help cool the inflation it had itself helped create. As the Nixon administration closed, the Federal Reserve was carrying virtually tin1 entire burden of the inflation battle, using its only weapon of hard-to-get credit for such basic industries as housing and horrendously high interest rates. Yet this weapon is dangerous;, discriminatory and crude. And high interest rates on their own add to inflation, for the cost of borrowing is as much a part of doing business and of living as the cost of food and fuel. M^re Esc Under Ford, though, there will he a shift toward more use of fiscal policy (budget and taxes) to take some of the heat off the Federal Reserve and permit an easing of the credit squeeze and a decline in interest rates. There will be an immediate move away from do-nothing-ness as the tough anti-inflation men around Ford try to control the federal budget and cut enough spending to bring it into balance in real-life terms of dollar outgo equal to dollar income (rather than fancy concepts devised for economists). Ford has said he believes Treasury Secretary Simon s hopes for budget cuts of as much as $20 billion are not feasible, but he also has said cuts of several billions are feasible and a balanced budget is essential. New I m pi re In economic terms, Ford * administration is not a new ball game. For in economics, what is to happen already is happening, and it never is a “new” hall game. But 'there is a new umpire. There is a new sense of dependability and decency and drama even in Ford’s undramatic self. Its all on the plus side. Next: The inflation. No. I problem — Seek Rice Protein Boost For Benefit of Millions LOS BANOS, Philippines (LIM) — Toe next miracle in rice research is the imminent development of a new variety that contains 25 percent more protein. That’s the goal that the International Rice Research Institute. based at this town 40 miles south of Manila, has set for itself. Such a discovery will benefit one-third of the world’s population — 1.3 billion people who depend on rice for more than iudf their food. IRK. tile first “miracle rice.” developed at the institute eight years ago, is K percent protein But scientists now hope to produce a variety by crossbreeding that will contain IO percent protein. That would mean 25 percent more protein in rice, the staple food of some of the poorest people in the world, those who — according to World Bank figures — have an annual income of only $Kll Every Meal Millions of Asians eat rice at every meal. Too often, rice is their entire meal. ‘’It's possible to breed in protein as high as 13 or 14 percent,” said Thomas Hargrove, a y oung Texan at Los Banos who studied agriculture in college and says he learned a lot of practical things about rice-growing while serving as a U. S. army officer in the pacification program in Vietnam. “The problem is that the yield drops ....en the protein content goes too high, he said. So the goal of the scientists here is to create a rice that yields as well as IRK, hut which has 25 percent more protein. Chemists have analyzed the protein content of 7.601) varieties of rice from around the world Six were selected and crossed with IRK and the offspring has been grown through several generations. Choosy on Taste Asians, sometimes even hungry ones, are particular about the taste of the rice they eat. But scientists at Los Banos say taste panel tests have shown that rice with two percentage points more protein cannot be distinguished from lower-protein rice. HEATHCUFF ■fa Tho Odar Rapids Gazette: Toes., Aug. 13. 1974 Mr Nought Syod . to f; ©i For Better_Heolth What Relief Is There for Arthritis? By Dr. S.L. Andelman “What can he done for a person with rheumatoid arthritis?” a reader writes. “My mother has suffered from this disease for several years now and I’d like to do everything possible to make her comfortable,” One of the two most common forms of arthritis, rheumatoid arthritis involves not only the joints hut frequently other connective tissue. As the disease advances, the cartilage. the soft. flexible extensions of bone at the joints. Dr. Andelman deteriorates and may even disappear. Then the cartilage Is replaced with a growth of fibrous tissue that can eventually become hard and bonelike, fusing the joint together so it can't bend. Fortunately, most cases of the disease don’t advance this far. The typical patient will have souk* swelling at the joints and limitation of movement, hut not to the extent that it cripples him. Cause I nknown The cause of rheumatoid arthritis is still unknown and treatments, d veloped on a trial-and-errnr basis, give relief or retard development of the disease rather than curing it Aspirin and other forms of salicylate are the most common and effective drugs to relieve pain and reduce inflammation in arthritis. Cortisone and other corticosteroids have had dramatic success in reducing inflammation and pain, hut their use is limited because of side effects Narcotics, gold salts, hormones and the so-called antimalarial* are other drug agents used to lessen pain and inflammation Exercise Bed rest, warm baths, hot packs, heat lamps and application of hot paraffin are all helpful in reducing joint pain and can he done af home. Exercise is very important to the arthritic, as it helps keep the joints from stiffening. In most eases, the physician can prescribe exercises that the patient can perform by himself. hut the patient vvitll an advanced case may need help Our reader and other families of arthritic patients can he sure their patients have well-balanced, nutritious meals. Special diets and vitamin supplements have -generally proved lo he ineffective. Good posture habits and correctly fitted shoes also help the person w itll arthritis Many people with arthritis say they feel much better rn warm, dry climates, but medical sciences doubt that climate is a factor in causing or curing the disease. It is known, however, that arthritic patients do feel worse when the humidity is high and the barometric pressure low * * * Dr. Andelman welcomes letters outlining problems which he may discuss in future columns. He regrets, however, that he cannot personally answer mail. Write to him in care of The Gazette. Says 200,000 Cubans Are Learning Russian MIAMI (AP) - Some 200,000 Cuban young people are studying the Russian language rn a new radio-correspondence course being carried out throughout the island, officials say. “The learning of Russian has become a necessity for our country,** said Raul Ferrer, vice-minister of adult education. in a Havana radio broadcast monitored Wednesday in Miami. The lessons are transmitted over Radio Rebelde to students throughout the country who have received text booklets with instructions and exercises to bo studied. 0<    ,F. ITZ «• GUARANTY BANK & TRUST CO. 43rd St. & 3rd Ave. Downtown • 1819 42nd St. NE I 91 Jacolyn Dr. NW PHONE 362-2115    „    . Member F O.I C. Hie Investor’s Guide By Sam Shulsk, <) — Is there any suggested percentage of funds which should tic* invested by a widow, 55, with total assets of about $200,001) $10,000 in E bonds, $30,000 in treasury bills and the balance in commons and preferreds? Would it he wise to put $10,000 more into commons today when there* seem to Im* many bargains available? A — AH (IOO percent) of anyone’s funds should be invested at all tunes, whether the investor is a widow of 55. 75, or a young business man of 35 By invested, I mean: “at work.” The question of how much should he at work in stocks, in bonds, in savings accounts and in E bonds, for < xample, is — of course — an entirely different riii>,‘ r. It seems lo me that if a widow has all hut $40,1)00 of $200,000 in stocks she al* ady has a very large equity risk position and should not add more. “Bargain" is a relative term. I thought AT and T common at 50 was a bargain, hut here it is — as of this moment of writing — at 43 I ve heard of large- institutional funds going back into the market. I’ve heard of others still holding large* amounts of cash, fearing further market declines. I’m in no position to he* a “hero” with your money, so I must vote mat $160,000 in equities is enough. (I assume from the $10,000 being kept in E bonds that you don’t need the $600 additional annually that a shift to ll bonds could bring ) #    *    * <) — I’m waiting more than two months fem delivery of some stock and all I get is a brush-off A — Start talking tough. *    *    * Q — I hold some E bonds and need income. Should I convert to ll bonds? A — Ifs a cinch you can’t get any income from E bonds (you have too fe*" to sd up a regular redemption program). Your best bet is either to shift all the Es into Us and begin getting a semi-annual interest cheek, or, if the tax on the accumulated E bond interest is no problem, you can redeem them and put the* money into high-grade preferreds, today yielding about 9 percent or even better. * * * Q — Last February, when I was considering a short-term deposit of $10,000. the banker persuaded me to buy a 7 Vi percent, 20-year treasury bond at IOO12 on the premise that the bond would go higher as interest rates decreased. I now feel I made a mistake and that this banker was just trying to unload. Should I hold or take my loss and switch to a higher coupon bond? I am 37, single*, and have losses both in stocks and in bonds. A — In this topsy-turvy economy, that’s not difficult. Although both bonds and equities are not supposed to go down together (I’m quoting schoolboy economics now) we’ve- had losses in both for the last few years. In that banker’s defense I can only say that there was talk of a downtrend in interest rates at that time. It proved HH) percent wrong However, I don’t think you should dwell on that “unloading’’ bit too much Assuming you paid the going market for the bonds, that hanker didn t have to sell them to you Those bonds arc- traded in huge amounts all the time I’m afraid it was simply a mistake in judgment. A 37- year-old single man who feared the stock market last February (which, it turns out, was the proper attitude) should have put his money into short-term deposits or treasury bi I Is — so as to tx- in a position to go into equities for long-term capital gain investment when he felt the climate was right. As of the moment, a 20-year treasury 7Vi is selling around 92, whic h gives you a c urrent yield of about 8.13 and a yield to maturity of 8.22. I don’t sec-much point in .switching around in bonds. Those you have arc- easily marketable. You might as well stay with them until you think the stock market is right and then get hack where your capital belongs — into long-term equities. fe KILLIAN’S Cordially invites you to attend their Fall and Winter BRIDAL SHOW Wednesday Evening the Fourteenth of August at Eight O’clock Downtown Second Floor Doors Open at 7:30 pm PRESENTING y} Slave St TOLD DRAMATICALLY FROM COURTSHIP TO ENGAGEMENT TO THE ROMANTIC WEDDING DAY ACKNOWLEDG MUNTS: BRIDAL FLOWERS: Newport's Florist MUSIC: Leo Cortimiglia BALDWIN ORGAN:    Compliments    of Cedar Rapids Piano and Organ Company MEN’S FORMAL WEAR:    by Prince Albert TABLE SETTINGS:    From Killian's China, Crystal and Silverware Departments Registry for FREE Door Prizes for Brides-to-Be KI ions ;

  • Arthur Burns
  • Prince Albert
  • Raul Ferrer
  • S.L. Andelman
  • Sam Shulsk
  • Thomas Hargrove

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Publication: Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

Issue Date: August 13, 1974