SUNDAY, OCTOBER 911955
THE MCHIlGAN DAILY
SUNDAY, OCTOBER 9,1955 THE MICHIGAN DAILY
STABILITY OR CHAOS?
U.S. Investors Keep Eyes On Argentina
By DAVID L. BOWEN
Associated Press Newsfeatures Writer
Always extremely sensitive to
changes in government control
anywhere in the world, United
States financial experts are close-
ly watching the efforts of Pro-
visional President Eduardo Lonar-
6i to establish a democratic and
stable government in.Argentina.
Lonardi's task is not expected
to be easy. After ten years of
iron-fisted rule under Dictator
John Peron, most observers pre-
dict Argentina's 19 million citizens
will not find it simple to solve
national problems by unfamiliar
free'elections.
The history of Latin America
abundantly shows that a period of
confusion and instability usually
accompanies a democracy's re-
birth. There is no reason for as-
suming Argentina will be able to
avoid it.
Confusion and Chaos
Confusion and instability are
two factors most likely to keep
foreign investment away. Ameri-
can business firms already have
$400 million invested in Argentina,
as in other South American coun-
tries, but the size of the invest-
* ment is not likely to grow until
it is certain the new government
will be capable of fulfilling long-
range promises and maintaining
order along with freedom.
The uncertainty comes at an
unfortunate time. For the past
eight years Argentina has been
short of cash to buy oil, coal, ma-
chinery and other products it im-
ports from the large industrial na-
tions.
Argentina occupies nearly the
entire lower half of South Amer-
ica. On the South American con-
tinent ,only Brazil is larger in
area or population.
The country's main source of
wealth is the immense central
zone called the, Pampas, a gentle
plain that slowly rises from the
Atlantic to the foothills of the
Andes This vast and fertile area
is an agricultural paradise. Its
abundant yield makes Argentina a
strong rival of the United States,
Canada and Australia in produc-
tion of wheat, beef, hides and
wool.
Subtropical Region
North of the Pampas is. the
Gran Chaco, a subtropical region
of grasslands and dense forests.
Its principal products are lumber,
rice, cotton and citrus fruits.
South of the Pampas bleak Pata-
gonia stretches toward the Antarc-
tic. Comparable to Siberia, its
wind-swept steppes support little
agriculture besides sheep raising.
Th e Commodoro Rivadavia oil
fields, however, are located in up-
per Patagonia and produce ,70 per
cent of Argentina's growing crude
petroleum output.
Most of the population and the
principal cities are located on the
Pampas, where the climate is tem-
perate. The greatest industrial
concentration is at Buenos Aires,
both the largest city of Argentina
and the largest in South Amer-
lea. Meat refrigeration has become
the country's chief industry and
flour milling ranks second.
Rich in resources of all types,
what Argentina needs most to
realize its economic potential is a
remedy for the ailment troubling
its Latin American neighbors: lack
of funds for capital investment.
Until the new government has ac-
quired a record of reliability, how-
ever, the financial pipelines from
the Northern Hemisphere are apt
to run considerably less than full
capacity.
Special Rate
For Series
Announced
A special rate on Lecture Series
season tickets for college and pub-
lic school students has been an-
nounced by the University's Ora-
torical Association.
The student price for the seven
attractions being offered this year
is $3.00.
Carlos Romulo, Philippine Am-
bassador to the United States is
scheduled to open the series Wed-
nesday, Oct. 12, when he will de-
liver an address entitled "Ameri-
ca's Stake in Asia.''
Regular season tickets for the
Lecture Course may also be pur-
chased at a saving through Wed-
nesday. Beginning Tuesday tickets
for all attractions will be on sale
at the Hill Auditorium boxoffice,
open from 10 a.m. to 5 p.m. daily
except Sundays.
Also appearing during the sea-
son will be Dr. Rudolph Bing,
manager of the Metropolitan
Opera on Oct. 18 and a debate on
United States Foreign Policy be-
tween Sen. Wayne Morse (D-Ore.)
and Sen. Alexander Wiley (R-
Wis.) on Nov. 15.
Henry Hull, stage and screen
actor; Clifton Fadiman, critic and
television emcee; Dr. Norman
Vincent Peale, prominent clergy-
man; and Edith Atwater and Al-
bert Dekker, theatrical artists,
round out the Oratorical Associa-
tion's season.
Professor Blood Calls
Friends Center 'Unique'
By SUZANNE JESSUP
"Completely unique on the cam-
pus" is the way Prof. Robert O.
Blood of the sociology depart-
ment, described the Friends Cen-
ter.
The Center, 1416 Hill Street,
provides living quarters for 16
students and is the location of
regular Quaker meetings.
Prof. Blood explained that it
is run on a cooperative basis, with
all residents sharing the work.
The Center is a member of the
Inter Co-operative purchasing
plan, which means it can buy food
at considerable savings.
Each week Quaker meetings are
held in the Center. "Approximate-
ly three-fourths of the people who
attend these meetings are not
Quakers," Prof. Blood said. Many
are foreign students, Moslems and
Buddhists who find that the sim-
Appointments
For Seniors
Bureau of Appointments senior
registration meeting will be held
at 4 p.m. Oct. 12, in Rackham au-
ditorium, Rackham building.
All 1956 graduates are eligible
to register.
The Bureau can provide intro-
ductions to employers and infor-
mation about available jobs. It
also compiles a complete perman-
ent file of the student's course,
grades, activities and job exper-
ience.
ple, flexible Quaker program ful-
fills their religious needs, he add-
ed.
The Center residents are also
very hetrogenous, including stu-
dents from the Netherlands,
Japan, China and India. Ameri-
can students who are Protestant,
Jewish and Catholic also live
there.
Prof. Blood is chairman of the
Friends Center committee. This
group purchased the house this
summer and selected the resi-
dents.
"At present the entire program
seems to be working quite satis-
factorily," he concluded.
New Hillel Chorus
Will Meet Today
The first meeting of the new
Hillel Chorus will be held at 7:30
p.m. Sunday at Hillel.
The Chorus will be a mixed
group and will perform at con-
certs and services.
Stationery for Every Occasion
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PROFESSOR VIEWS '56:
McCracken Sees Boom Continuing
Notes Invitations
Greeting Cards
In 1956, for the first time in its
history, the American economy will
achieve a 400 billion dollar gross
national product, according to
Prof. Paul W. McCracken of the
business administration school.
But in the same year the boom-
ing output 'of the auto industry
will recede by about 1 per cent
from 1955's record high of about
7.5 million cars, he predicts.
Prof. McCracken said "it will be
a good year for the automobile in-
dustry, although the exceptionally
high production in 1955, and the
fact that most new models will ap-
parently represent a face-lifting
rather than a fundamentally new
design, suggest the possibility that
production in 1958 will not quite
equal 1955." His prediction is con-
trary to the claims currently ad-
Vanced by the automobile manu-
facturers.
Business Level High
In contrast to the auto in-
dustry, the general level of busi-
ness activity will be higher in 1956
than it was in 1955, he-comment-
ed. The forward momentum of
of the boom has slowed down, as
full employment has b e e n
achieved, he said, but "the minus
elements in the picture are not
yet strong enough to cause a re-
versal."
Prof. McCracken said, "How-
ever, danger signs are always pre-
sent," citing two:
"1. While the stiffening of mon-
etary and credit policy has been
quite appropriate, the line be-
tween a necessary tightening and
a money and capital market so
congested as to threaten a reces-
sion is a fine one-as we found
in' 1953.
"2. There is some concern about
business inventories. Some further
build-up can occur before inven-
tories become too heavy, but toe
current rate of build-up is roughly
50 per cent in excess of what can
be sustained.
"Red Flag"
"An important red flag would be
a combination of a more rapid in-
ventory build-up and a rapidly
tightening money market."
Prof. McCracken predicted that
machinery, equipment and service
industries plus consumer goods
would all benefit from the rising
volume of capital outlays in 1956,
reflecting enlarging pay envelopes.
"The year 1956, being what it
is in politics, will more than likely
also produce a tax reduction with
a corresponding increase in take-
home pay," he said, adding that
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"the pressure of demand against
capacity will be the single most
important 'bullish' factor in the
capital goods industries."
Prices Stable
He also predicts that the con-
sumer price level would be rela-
tively stable, though slightly high-
er than in 1955, with price indexes
pushed up fractionally by con-
tinuing high demand plus increas-
ing costs.
And business profit should be
slightly higher in 1956 reflecting
generally a somewhat higher vol-
ume of business activities, he con-
cluded.
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