Decatur Daily Democrat, Volume 61, Number 79, Decatur, Adams County, 3 April 1963 — Page 11

WEDNESDAY, APRIL J, 1963

Short-Term Claims Exceed U. S. Gold

By LYLE C- WILSON United Press International WASHINGTON (UPI) — Americans would be surprised and alarmed to learn that the solvency of the United States depends now —and has for some time—on the forebearance of foreigners who are this nation’s short-term creditors. Solvent means an ability to pay all legal debts. It is calculated by the American Institute for Economic Research that short-term claims against the United States now exceed the U.S. gold available to meet them. The institute calculated net foreign short-term claims at S2O billion. U.S. gold holdings have shrunk to less than sl6 billion. - The Citizens Foreign Aid Committee calculates the situation somewhat more ominously. CFAC fixes foreign held short-term dollar credits at $24.98 billion, redeemable on demand in gold. CFAC estimates other claims on the U.S. gold reserve at about sls billion. These claims include $12.06 billion in Federal Reserve notes, deposit liabilities and U.S. notes outstanding which, by law, are partly backed by gold. Would Be Insolvent It follows that if all foreign creditors demanded gold today, there would not be enough gold to pay the legal bills. The United States would not be solvent. If that tends to give Americans an Uneasy feeling, there is more “The U.S. gold stock,” explains the institute, "can be likened to a $16,000 house that is subjet to a $20,000 mortgage that becomes due and payable whenever the mortgage holder decides to demand payment." The institute and CFAC agree on what hit the U.S. gold reserve. “The answer is simple,” said the institute. "For many years the United States has disbursed abroad more U.S. currency and credits than it has received from abroad. Through its vast foreign aid program and through large military expenditures in other countries it has placed these claims in the hands of foreign governments, central banks and individuals.” What the institute was describing was the situation that produces annually a balance of international payments unfavorable to the United States. That is, the

PUBLIC AUCTION We will sell Vi mile East of New Maven, Indiana on the Old Edgerton Road, on SATURDAY, APRIL 6th, 10 a.m. 4 TRACTORS—COMBINE—CORN PICKER-FARM MACHINERY 1955 Case Model 411 tractor, 3 point hook-up, live power takeoff, good tires, tractor in goad condition; 3 bottom Case 14 inch mounted plows; 1945 Allis Chalmers W. C. tractor; 1946 Farmall Model "B" cultivision tractor in good condition, good tires; Farmall, regular tractor, as is; 4 row Demster mounted 3 point cultivators; Allis Chalmers model 60 combine; Allis Chalmers 2 row mounted model No. 33 com picker; W. C. Allis Chalmers cultivators; 2 bottom 14 inch Oliver Radex tractor plows; 8 foot Colby wheel disc; 12 hole Oliver fertilizer grain drill; John Deere model 490, 4-row corn planter with new fertilizer boxes; 8 foot culiimulcher,- International 7 foot pull type tandem disc; David Bradley tractor manure spreader; John Deere 3 section spike tooth harrow; heavy duty 4 wheel implement trailer; 2 Gramm rubber tire farm wagons and combination grain beds and hay racks; 32 foot American Standard grain elevator; 16 foot aluminum elevator; Heave-all mechanical tractor manure loader; 7 foot semimounted John Deere No. 5 power mower; 1962 6 row 2 barrel P.T.O. weed sprayer; 2 wheel stock trailer; Papec No. 10 Hammer Mill; Cross P.T.O. power com shelter; 5 foot fast hitch disc for Farmall cub tractor; 14 inch fast hitch plow for Farmall cub tractor; 5 foot mower for Farmall cub tractor; A. C. Model "B" 16 inch single bottom mounted plow; 16 inch single bottom International pull type plow; Seed Easy P.T.O. tractor seeder; 6 foot International mower; Clipper fanning mill with h. p. electric motor; buzz saw; hydraulic wagon hoist; 2 hydraulic cylinders; false end gate; 3_4 wheel feed carts; 800 pound platform scales; 2—10x28 good tractor tires; fence; steel and wood fence posts; pair of tractor wheel weights; 7 foot Dunham tandem disc. 2 TRUCKS—CAR—BUILDINGS—GRAIN BED Sells at 1:30 P. M. 1958 ton Fleetside Chevrolet pick-up truck; 1960 Volkswagen panel truck, good condition, 2 new tires, truck was purchased new by present owner; Butter steel 1000 bushel round grain bin; 24x30 double corn crib with center driveway; 14x18 machine shed to be removed from premises; 1953 Plymouth Cran-, brook, 4 door sedan, heater, good tires, 14,900 miles, consigned by Otto Melcher estate. _ 4 GARDEN TRACTORS—TILLERS—3 CHAIN SAWS POWER LAWN MOWERS—GARDEN TRACTOR TOOLS MISCELLANEOUS Sells at 10 A. M. Page riding garden tractor; Blackhawk garden tractor & sickle bar mower; 2 David Bradley garden tractors, sickle bar mower & cultivators; M. E. 7 h.p. garden tiller; used garden tillers; good 36 inch 2 man Mall chain saw; 26 inch Titan chain saw; Clinton chain saw; Motomower rotary mower; HD Jacobson 24 inch commercial mower; Jacobson Dawn Kjng mower; Toro 31 inch self propelled rotary mower; Craftsman 21 inch self propelled rotary mower; Jacobson 20 inch rotary mower; Wizard rotary mower; David Bradley lawn roller; 21 & 25 inch lawn mowers; Reo 25 inch mower; mower decks with wheels & blades; many mowers that need repair; 3—h. p, electric motors; 4 BriggsStratton engines; 25 gallon of Glidden interior paint in gallons and quarts; Drdawic wall paint to 5 neunfi package; 3 gallon roof paint; 5 large driveway, yard or flood lights; wheelbarrow; garden tools; fence charger; forks; shovels; and lots of miscellaneous articles. TERMS—CASH Not responsible for accidents VAUGHN’S NMKI GARDEN STORE, owners Orville Sturm, W. 1491. New Haven, Indiana, Walter Wiegman, Preble 56, Decatur, Indiana—AuctioneersLunch served.

United States has been for some years spending or giving away abroad more than it gets in return. The unfavorable balance has diminished U.S. gold reserves from $24.5 billion in 1949 to less than sl6 billion today. Speculate on Future The principal creditors on whose forebearance depends the solvency of the United States are central banks of Western Europe. As the years of unfavorable trade balances continue and U.S. gold reserves shrink, there inevitably comes speculation about the future of the U.S- dollar. CFAC asserts that foreign creditors are increasingly apprehensive over a possible devaluation of the U.S. dollar. The institute puts it this way: “In recent years the dollar has been under such pressure in foreign exchange markets that its possible devaluation is a common subject of discussion. The country’s international financial position (accompanied by unbalanced budgets at home) makes the dollar extremely vulnerable.” CFAC and the institute are similar in their alarm and their proposed remedies. CFAC concludes that foreign aid spending should be halved to obtain a favorable trade balance. The institute demanded reduced foreign aid and a balanced budget at home to protect the dollar. Frothy, romantic hats are headlined for spring. Magnificently draped tulle turban evokes “mystique” of the Near East. By Vincent and Harmik.

'''' ■ ft 1 ■ ■ PEEKABOO—Easter Seals are for boys and girls like Jimmy Crumbaugh. This friendly 5-year-old student in Kansas City’s Cnpded Children’s Nursery School is handicapped by cerebral palsy. Therapy for Jimmy and hundreds of others like him depends- <m rapport of the seal campaign.

Aid For Brazil Is Admitted Gamble

By BTEWABT HENSLEY United Press International WASHINGTON (UPI) — The Kennedy administration, with its fingers crossed, is undertaking another effort to help Brazil straighten out its chaotic financial and economic affairs. The outcome could prove crit. ical for the Alliance for Progress, which is based on the principle of helping only those who help themselves. Brazil has promised to mend its ways in return for the new U.S. assistance. President Kennedy’s decision to advance Brazil another S4OO million was an admitted gamble. But it was a gamble administration officials felt had to be taken to prevent economic collapse and possible revolution in South America’s biggest country. This time the United States, which has provided Brazil with $1.7 billion in aid since World War II without detecting any great results, has tied some strings to its assistance. It also has made it clear that Washington feels President Joao Goulart would do well to worry more about Communist infiltration of his government. Doubt Harbored Here The new Brazilian aid agreement, signed last week, has disturbed- some congressmen. Administration officials themselves admit to some doubt whether Brazil can make good on the promises she gave to get money. The probtonis ’ facing this country of 71 milliori people are gigantic. Brazil’s external debt now stands at $2.2 billion, with the United States the chief creditor. Repeated infusions of U.S. aid and postponement of debt payments have failed to halt economic deterioration, despite the paradoxical fact that Brazil’s rate of industrial growth—6 per cent annually—is the highest in the hemisphere. The Brazilian government has 350,000 people on the payroll and any administration that tries to reduce this swollen figure courts disaster at the polls. The cost of living in the country is estimated to have risen 52 per cent in the

PUBLIC AUCTION REAL ESTATE AND PERSONAL PROPERTY I, the undersigned, will sell my home and personal property at auction, located along U. S. 27 across from Liechty Motor Service in Berne, Indiana, on SATURDAY, APRIL 6,1963 Personal Property at 12:30 Real Estate will sell at 1:30 ■■ This is a nice home with a nice kitchen, sun porch, big living room, 2 bedrooms with closets, and full bath on first floor. The upstairs is all 1 room—would make 2 nice bedrooms, % basement under home with oil furnace force air. This home is in A-l shape ready to move in. Has 1 car garage, nice lawn with shrubbery. For further information or to see home call the auctioneers. TERMS: 20% down on sale day, balance whan deed and abstract are delivered, or this home can also be bought on contract if you so desire. POSSESSION: Immediate after sate day. - PERSONAL PROPERTY - 2-piece wrought iron sectional; 2 wrought iron chairs; wrought iron corner table; 2-piece bedroom suite with spring and mattress; bed with spring and mattress; 2 Dunbar upholstered chairs; sewing rocker; wood rpcker; coffee table; Zenith console radio; pair matched hand carved flower stands; 9 x 12 rug and pad; odd chairs; Maytag washer; lawn chairs; odd tables; dressers; 3-piece antique water set; some Eintique bowls; 6 wool comforts; salt spoons; flowers; flower pots; pictures; picture frames; trunks; wash tubs; stand; fruit jars; crocks; garden tools; dishes, and articles not mentioned. TERMS—CASH Not responsible for accidents. MRS. FERD STEINER, Owner Phil Neuenschwander, Auctioneer Maynard Lehman, Auctioneer Emerson Auctioneer First Bank us Berne, Clerk

THE DECATUR DAILY DEMOCRAT, DECATUR, INDIANA

past year. The cruzeiro, once worth 100 to the dollar, has soared to more than 600 to the dollar. Director David Bell of the U.S. Agency for International Development (AID) said the Kennedy administration was helping Brazil again, despite the dismal record of the past, because “we have ben tremendously impressed” by a series of promises that country has made to reform various policies. Pursues “Neutralist” Course Another reason is that the United States has been startled by the growth of Communist strength in Brazil particularly in the poverty-stricken section of the country. All these troubles have caused Goulart to pursue a somewhat wobbly “neutralist” course in some international matters. This has caused a coolness in Brazilian - American relations, exacerbated further by difficulties in getting from Brazil adequate compensation for expropriated American enterprises. • President Kennedy already has twice postponed a scheduled visit to Brazil which he promised to make after a talk here more than a year ago with Goulart led him to believe the country might straighten up. Brazil, under the new agreement, gets $84.5 million at once from the U.S. Export - Import Bank. She has been promised ahother $314.5 million within the near future if she undertakes basic reforms. Finance Minister San Tiago Dantas submitted a list of 24 .promises committing Brazil to a sweeping program ranging from tax and agrarian reform to reduction of the federal payrollBrazil promised to encourage private investment, reform her banking system, pay her bills and reduce government expenses. The list of promises is truly formidable and few officials here expect any miracle. Hopes For Sincerity The /administration does hope, however, that the Goulart regime will make a sincere beginning and warrant further U.S. assist-

Treasurer Opposes Money Color Change By DICK WEST United Press International WASHINGTON (UPI) — As treasurer of the United States, Mrs. Kathryn O’Hay Granahan has charge of the money. I would say that it is in good hands. One of the first things that Mrs. Granahan, a former congresswoman from Pennsylvania, did when she took her new job last January was familiarize herself with the currency under her jurisdiction. She was surprised to learn that a dollar bill is black on one side and green on the other. She had been under the impression that it was green on both sides. Now that she knows what color the money is, Mrs. Granahan is convinced that it should stay that way. She has gon firmly on record in opposition to the policy of her predecessor, Elizabeth Rudel Smith, who last year proposed a new color scheme. Different Colored Bills Mrs- Smith hit upon the idea of making each denomination a different color for easier identification. For example, if you took a fuchsia colored bill out of your wallet, you would know without looking at the figures that it was worth 10 dollars. I personally thought that Mrs. Smith’s plan to jazz up the currency was a real gasser, but from ail indications it has come to an untimely end. At a recent House appropriations subcommittee hearing, Mrs. Granahan was asked for her views and she put herself foursquare behind greenbacks with blackfronts. “To me, it is traditional,” she said. “I do not think one should throw every piece of furniture out, for instance, just because it might be a little old fashioned.” Gets Members’ Applause Mrs. Granahan’s endorsement of traditional old fashioned monetary decor, as opposed to modern pastel shades, was applauded by the subcommittee members. Rep. Silvio O. Conte, R-Mass., suggested that a chamelon-like currency would be confusing to people who are color blind and frustrating to fashion-conscious women. “They might want a dollar bill to match their lipstick or a $5 bill to match their hair," Conte commented. Besides that, he said, “It would be quite a shock, I think, to the rest of the world to see • different color.” Subcommittee Chairman J. Vaughan Gray, D-Va., agreed. “It is like the flag,” he said. All of this started me to thinking of Mrs. Granahan as the Barbara Fritchie of color-fast currency, and in her honor I have taken some liberties with a line from the famous poem: “ ‘Dye if you must this old grey head, but spare our blackgreen bills,* she said.” ance. In addition to cash aid, the United States also has promised to let Brazil postpone again some S3OO million due this year on old debts if European cneditors will make a similar concession. Dantas claims they have agreed to do so. The administration realizes it is on the spot in this affair. If it fails to help Brazil and that major hemispheric nation goes Communist or at least falls prey to chaos, it will be a massive gain for Russia. / On the other hand, if the United States turns loose the new money without Brazil carrying out any reforms, this could destroy the principal element of the Alliance for Progress. ’ » The Kennedy administration considers this situation one of its most critical immediate problems and officials admit they don’t know what the outcome is going to be. *“ ■

/ i ’ * I i "V Opt ■w .'Wm hl* ’ f *■ L I I TEMP METER — Resembling a film exposure meter in ap- “ pearance, new thermometer tested in Frankfurt, West Germany, indicates body tern* perature by means of probe applied to the skin. Quick registration—within seconds —is said to be a feature io

jh .'Mror h J sajHBBBK* • j ■■r'' V * i ■ ] V ’ ■>’ *LB ■ f Ears have emerged for spring and here is a short course from the Fashion Coordination Tn« j sflttite on what type earring is best with new fashions and hairdos. The big domed button earring (top left) is a must with head-hugging turbans. Gay gypsy hoops (top right) accent casual clothes and hairdos. Long, sparkling earrings (lower left) complement upswept lain, dos for evening. For “at-home” clothes that have found a new place in many wardrobes, the long chandelier earrings (lower right) provide a touch of glamor.

Unpopularity Os Assembly Is Incredible By EUGENE J .CADOU United Press International INDIANAPOLIS (UPl)—The unpopularity of this prolonged Indiana Legislature is almost incredible. Never before in the 38 years that the writer has covered the legislature has there been such widespread resentment of both Republican and Democratic lawmakers. And the onus also extends to Democratic Governor Welsh, who has had much to do with legislative proceedings. This criticism was on the tongues of many newspaper publishers of both political faiths during the recent meeting of the Hoosier State Press Association in Indianapolis. One publisher proposed that in' future news stories, the names of all present legislators be printed in red. type Another said he had been informed that parked automobiles bearing General Assembly license plates have had scurrilous signs

A LENTEN SPECIAL That Will Please The Whole Family! COTTAGE CHEESE ■ B 2 FULL POUNDS 39‘ FIU WEEK Monday Saturday April 1 thru April 6 From your Home Dairy Route Salesman or your Favorite Stere

attached to them and that persons have written scathing words in the dust on the cars. The antagonism of the publishers has spread to state officers of both parties, partly because they have spent during campaigns far more money on television, radio and billboards than they have for newspaper advertising. A reporter covering this session asked this sarcastic question: “Don’t you think that the legislators should get time and a half for working on thejr special holiday, April Fool’s Day?” Mistake Beliefs The ridiculous attempts of each

ANGUS AUCTION SATURDAY, APRIL 6,1963 At 12:00 NOON, E.S.T. 60 - HEAD SELLING - 60 15 Bulls—Bulls ready for service and younger bulls. 9 Cows & Calves—Tap Cows with good calves at side. 5 Bred Cows—Close to calving. 20 Bred & Open Heifers—Excellent quality and breeding. Sale to be held at the Whitley County 4-H Fair Grounds, located at the west edge of Columbia City, Indiana. Request Catalog from: Kenneth Sherbshn, Auctioneer and Sales Manager, South Whitley, Indiana . WHITLEY COUNTY-NORTHEASTERN INDIANA ANGUS ASSOCIATION

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party to blame the otter for the bizarre proceedings since January have faded dismally, according to legislative observers. When the inevitable higher taxes are levied, both Republican and Democratic solans and Welsh will be held responsible, according to all indications. For Clam-Diggers It will be much easier to open the clams you catch it you pour boiling water over them end let _ stand for a few minutes. And if you’ll add a handful of salt to the water, it will remove the sand.