anaheim-gazette 1961-01-12

How Gross Product Is Used to Gauge Nation's Economic Status Explained THE UNFAVORABLE SIDE OF 1960 By Ralph Robey Those who believe we are in a recession have many strong arguments on their side. Some of the factual points they cite are: Gross national product is as broad an economic measure as any nation can have. It is the total of all goods and services produced. Since it is expressed in monetary terms, a change of price affects the total. We have an official price "deflator," but it has shown little variation over the past couple of years. The all-time high of our gross national product was in the second quarter of 1960. The figure was $505 billion. Since then there has been an insignificant decline, but the total should have continued to advance and be around $525 billion by the end of the year. Production is measured by the index of the Federal Reserve Board. This has extremely broad coverage and the figures are subjected to every corrective method known to statisticians. The average of 1957 is used as the base, which means it is shifted to the Census Bureau. The immediate change was dramatic and has continued so month after month. Now no one knows exactly what to make of the figures, because they behave like a jumping-jack, and the housing industry does not operate in that manner. In any event it is clear that the total of housing starts is well below 1959. Total construction appears to be at just about the 1959 level. Employment has done well during the past year—done well in the sense that month after month a new seasonal high has been made. But the labor force has been growing at an unusually rapid rate and this has resulted in unemployment remaining distressingly high. This is serious, not only for those out of work, but because we are now in the period of the year when unemployment always increases for purely seasonal reasons and, with the total rising to above 5 million in January and February, we are almost certain to get some unfortunate legislation which will do nothing basically to help those out of work get At the start of 1960 there was a quite appreciable lessening of worry over international deficit—the difference between all that we receive from abroad and what we send abroad. The 1959 deficit was close to $4 billion, and the better feeling arose from the conviction be reduced to at least $3 billion that for 1960 this figure would lion and perhaps lower. Some months ago this conviction was shattered by the start of a large gold outflow. The primary cause of the outflow was the substantial difference in interest rates between this nation and foreign financial centers. This means, among other things, that our Federal Reserve System can not do much more in the way of lowering interest rates, and it presently appears that our international deficit for 1960 will approximate $4 billion again. These are merely some of the broad developments that are cited by those who believe we are in a recession. In the next column we shall list some of the favorable factors. production is measured by the index of the Federal Reserve Board. This has extremely broad coverage and the figures are subjected to every corrective method known to statisticians. The average of 1957 is used as the base, which means it is equal to 100. The all-time high of this index was 111 in January 1960. It dropped a couple of points in the spring, but in July was still 110. In November the index was 105. Again, this does not amount to much percentagewise, but it is disturbing that we have not been able to get above the peak of January 1960. Until a few months ago our statistics on housing starts were collected and published by the Bureau of Labor Statistics. It was rather generally believed that the figures left much to be desired and the task of compiling the informa- This is serious, not only for those out of work, but because we are now in the period of the year when unemployment always increases for purely seasonal reasons and, with the total rising to above 5 million in January and February, we are almost certain to get some unfortunate legislation which will do nothing basically to help those out of work get jobs. Corporate profits continue to decline. In the second quarter of 1959 corporate profits before taxes $52 billion. Reached a peak of just short of The original budget estimates for this fiscal year were based upon the assumption that pre-tax profits would be $51 billion. But such was not to be. In the first quarter they were $48.8 billion and they have been going down ever since. This is true both in the aggregate and in the profit per dollar of sales. Annual Meeting Is YMCA Topic Plans for the 38th annual meeting of the Anaheim YMCA will be reported at the association's board of directors dinner meeting next Monday at the Anaheim YMCA building by Everett Gillespie, event chairman. The annual meeting is scheduled at the Disneyland Hotel at 6:30 p.m., Thursday, February 9. The public is invited. Sixty-five years ago today the first X-ray photograph was made at Davidson College, North Carolina. Here’s how the Wide-Track Pontiac keeps with your stepped-up driving schedule Pontiac for '61 is tuned and tailored to enliven the extra hours you spend in a car. Weight is trimmed to give you more action with less expense. Wider doors open farther to ease your getting in and out. There's more room inside. Outside, Pontiac has a more parkable, garageable size. You maneuver without effort, sit steady and straight on curves and corners. This comes from the built-to-the-road stability of new Wide-Track. And Pontiac's famous V-8 performance lets you take city or turnpike travel with assurance. Choose the car that has kept pace with the change in your driving habits. Inspect, drive, select the '61 Pontiac of your choice. PONTIAC '61 – IT'S ALL PONTIAC! SEE YOUR LOCAL AUTHORIZED PONTIAC DEALER: CASEY-BECKHAM PONTIA 801 SOUTH LOS ANGELES ST. ANAHEIM, CALIFORNIA Auto Gauge Explained The start of 1960 there were appreciable lessen worry over out internation deficit—the difference all that we receive abroad and what we send. 1959 deficit was close to on, and the better feel from the conviction preceded to at least $3 billion in 1960 this figure would perhaps lower. Months ago this con was shattered by the large gold outflow. Mary cause of the outas the substantial diff in interest rates be his nation and foreign centers. Means, among other that our Federal Resystem can not do much the way of lowering rates, and it presently that our international for 1960 will approxiibillion again. Are merely some of the developments that are those who believe we recession. In the next we shall list some ofrable factors. Office Robots That 'Think' Are Foreseen New "thinking machines" now under development will one day automate entire business organizations, including positions held by high-level management, a University of California researcher believes. When this happens, today's teeming office buildings will become automated centers staffed by only a handful of supervisory and maintenance personnel, said Edward A. Feigenbaum, assistant professor of business administration on the Berkeley campus of the University. Feigenbaum directs a graduate research training course entitled "Simulation of Human Learning and Thinking Processes in a Computer." "There is an underlying set of human mental processes with which people learn and solve problems," he said. "We want to duplicate these processes in a machine." Rapid progress is being made along these lines, Feigenbaum claims. "There seems every reason to believe that machines will be able to do almost anything human beings can do now in a non-mobile kind of job," he declared. Banks Handle Only Punched-Carbon Auto Tag Renewals, DMV Reminders Annual license plate renewal statements, addressed to most car owners on record in the state, are currently in the mail from the Department of Motor Vehicles. Motorists in the Anaheim area are invited to make their applications at the Bank of America branch, 150 E. Centtr St., where a registration office will be available through Feb- registration card for the year. Any transfer, change in of vehicle registration, or statement issued on a with a red stripe must taken to a regular Depart of Motor Vehicles field o as the bank stations are equipped to handle transac other than straight renewalplications submitted with Annual meeting YMCA Topic for the 38th annual of the Anaheim YMCA reported at the association of directors dinner next Monday at the YMCA building by Gillespie, event chair. annual meeting is scheduled the Disneyland Hotel at Thursday, February public is invited. five years ago today X-ray photograph was at Davidson College, Carolina. Rapid progress is being made along these lines, Feigenbaum claims. “There seems every reason to believe that machines will be able to do almost anything human beings can do now in a non-mobile kind of job,” he declared. “Business organizations ought to be considering the day when the technical capability will exist to automate and replace virtually everybody in a business organization. We are moving quickly down the road of intelligent machines. “While so-called blue-collar workers were the first to be affected by automation, the new thinking machines seem destined to cause a scientific and industrial revolution among white-collar workers. “Machines will do high level problem solving and not simply the routine, repetitive accounting and clerical jobs that present day computers are doing.” Annual license plate renewal statements, addressed to most car owners on record in the state, are currently in the mail from the Department of Motor Vehicles. Motorists in the Anaheim area are invited to make their applications at the Bank of America branch, 150 E. Centr St., where a registration office will be available through February 3. DMV personnel stationed temporarily in the bank are authorized to accept fees as shown on the complete punched card statements, and to issue red renewal sticker for the rear plate, with a validated registration card for the year. Any transfer, change in of vehicle registration, or statement issued on a with a red stripe must taken to a regular Department of Motor Vehicles field office as the bank stations are equipped to handle transactions other than straight renewalplications submitted with prepared punched-card segment. The banks do not handle special small stickers issued motorcycles. Cycle own therefore, will also need to DMV offices for renewal. Pontiac keeps pace driving schedule! and corners. This the-road stability of Pontiac's famous you take city or insurance. kept pace with the habits. Inspect, pontiac of your choice. PONTIAC PONTIAC DEALER THE ONLY WIDE-TRACK CAR! Pontiac has the widest track of any car. Body width trimmed to reduce side overhang. More weight balanced between the wheels for sure-footed driving stability. "INDIAN NO FOOL. ME KNOW FROM PALEFACES AT ANA PLENTY SAFE, TOO!" ANAHEIM AND LOA TEMPORARY TEPEE ½ BLOO AHEIM, CALIFORNIA Loan Company Promotes Two WILLIAM B. SHEPPARD Two executives of the Keystone Savings & Loan Association of Anaheim have been promoted to vice presidencies by the firm's board of directors, Ronald W. Gaspers, president, has announced. They are William B. Sheppard, who has been with the company since it was founded, and James F. Corbett Jr., who joined the firm in 1959 as loan officer. Caspers also reported a 40 percent growth in the company's assets during 1960—a which now has more than 3,000 accounts, will be ready for occupancy in the Broadway-Orange County Center by May 1, it was reported. Nursery School Now Has Openings Open to children of all faiths, the Temple Beth El Nursery School at 400 N. Emily St. now has vacancies for tots aged nine months to two years, Mrs. Ruth Brewer, its director, announces. Registration card for the new ar. Any transfer, change in type vehicle registration, or any statement issued on a card in a red stripe must be en to a regular Department Motor Vehicles field office, the bank stations are not shipped to handle transactions other than straight renewal applications submitted with the paired punched-card statement. The banks do not handle the special small stickers issued for motorcycles. Cycle owners, therefore, will also need to go DMV offices for renewal. They are William B. Sheppard, who has been with the company since it was founded, and James F. Corbett Jr., who joined the firm in 1959 as loan officer. Caspers also reported a 40 percent growth in the company's assets during 1960—a total today of more than $7,000,000. Among other actions the board voted to continue payment of 4½ percent interest for the first 1961 quarterly period. New offices for the firm, it was reported. Nursery School Now Has Openings Open to children of all faiths, the Temple Beth El Nursery School at 400 N. Emily St. now has vacancies for tots aged nine months to two years. Mrs. Ruth Brewer, its director, announces. WATER COMMISSIONER The California Water Commission had a new member this week. He is Mayor George C. Fleharty of Redding, a television station executive. OOL. ME KNOW WAMPUM EARN MORE (4½%) FACES AT ANAHEIM SAVINGS... AND HEAP FE, TOO!" HEIM SAVINGS AND LOAN ASSOCIATION ARY TEPEE ½ BLOCK NORTH OF CENTER ON LEMON