Masonry Magazine April 1966 Page. 14
A higher minimum wage $1.60, reached in two instalments.
Among those in the toss-up category:
-"Truth in packaging" the bill is set to federal standards.
-Unemployment compensation imposing federal yardsticks.
-Demonstration cities comprehensive urban renewal drives.
Among those that are now regarded as dead:
-"Truth in lending", to require statements of credit charges.
-Reducing strikes, by providing greater emergency powers.
-Relaxed trade curbs with the Red bloc, not counting China.
DEMOCRATIC LEADERS AREN'T WORRIED ABOUT LABOR'S THREATS
to pursue an independent line in future elections. They see little danger in the White House policy of attacking unions especially the construction unions for wresting extra-large gains from industry. Such a tactic is necessary to induce businessmen to accept White House restraint on price increases and thus enable the President to check inflation perhaps without tax increases.
Party leaders are confident that labor has nowhere else to go. Key union leaders are not ready to break their tested alliance with the Democrats. They cannot see getting the support after normal times return from the GOP. What's more, big unions are not involved in many talks this year.
WATCH THE OREGON PRIMARY ON MAY 24 FOR A TIP-OFF
as to how voters will be taking sides on the Viet Nam issue next November. Two candidates for the Democratic Senatorial nomination are being labeled as the symbols of opposing viewpoints. One leading contender is linked with the Johnson position of vigorous prosecution of the war in Viet Nam. The other entry is being backed by Senator Wayne Morse a main critic of Viet Nam policy.
INTEREST RATES MAY NOW BE CLOSE TO THE PEAK
they will hit this cycle. That is the view of many officials at the Treasury and Federal Reserve. For one thing, rates have reached a point where they are prompting deferral of borrowing. They are also drawing savings to the areas of most scarcity. And banks appear less eager to bid up the rates they pay for time deposits.
-Yields on bonds may have their main upsurge behind them.
-Rates on savings are also thought to have made their move.
-Bank loan rates may have to edge up more before leveling.
-Mortgage rates are still feeling a shift of money to bonds.
THE BANKS ARE "RATIONING" CREDIT
directly, instead of relying on higher rates to discourage some customers. Many lenders are screening out requests for "non-productive" loans, on suggestions of regulatory officials. They are less prone to lend to finance activities in stocks or real estate. Many borrowers are being requested to accept less than they have asked for.
Borrowers will not have trouble getting auto loans, however, even today. This has now become an increasingly important part of the bank's business. Consumer loans are profitable worth developing and worth holding on to. They often get priority over other types of loans, even in a money squeeze.
TIGHT MONEY IS NOW CURBING CONSTRUCTION ACTIVITY
in many sections. The trend in new housing starts suggests this. Developers are discovering that high money costs are cutting too deeply into margins, on the one hand, and raising the mortgage-carrying cost to buyers too sharply, on the other. Certain local public projects are being put off because of high money costs.
Building costs will rise 5% to 55% in 1966, say construction experts. Most of these expected increases -4% or more will reflect higher labor costs. Contractors will have to pay more for a long list of fringes, as well as wages. Material costs are likely to add much less to total costs only 1% to 2%.
FOOD PRICES WILL CLIMB ONLY A BIT FURTHER
before they level off. Demand is still high, here and abroad. And production is still recovering from the shrinkage caused by low prices or, in certain cases, bad weather. Increases in processing and distribution costs have lifted prices, as well. But production of major items is on the increase again, farm experts say. Farmers are responding to the price raises of last year with bigger crops. Come summer and fall, shortages will ease. Many prices will level off.
Beef prices will soften as the more numerous cattle now on feed lots go to market. Pork, the biggest single item in the spurt in food costs of the past year, may edge a little higher, then decline this fall as the spring pig crops get to marketing size. Vegetables, kept high in price by frost, will decline again, when the summer crops start coming in.
Remember-much of the "inflation of the past year was the result of the big jump in food prices. It would only need a leveling off in the farm-food area-not really a decline to move much of the steam out of the present upsurge.