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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Jan. 21, 1956)
L 1 J TUflE WdDKDD THUDS WEEK . j a -kil Furor Over The Brink of War" Is Prelude to Battle Russians Are Dead Serious on1 Business Bets B'"onson Prosperity foreign Aid Plans Overtaking U.S. Production JW TOM I IIITNF.Y Ainu-laird Prtn foreign Slaff V rilrr Tilt essential fart emerging from xtudy of the new Soviet five-year plan in that the Kremlin in throwing everything Into it giant effort to overtake the industrial military might of the United State before 1070,, The Soviet leadership'! record of fulfillment of all major coal for heavy industry in the liHt five-year plan indicate the CommunihU have learned how to plan effectively j for industrial development an distinct from agriculture, wnere ineir record is poor. And thi pose a major que km il i , , A Wh.iiw I ... tmn for U.S policy maker: Ii the United State to permit the U.SSR. to get within itnkrg position of world no Domic leadership, no held with turwtantial margin by the United States? And what will happen if thli don take plare? The United State ii by no mean stand ing Mill in economic de velopment, of eourie. The at decade hai seen enor mous progress in the entire American economy. Addition! to produc (ive capacity planned for the coming year by American in dustrial leaders teem to insure continued rapid rate of growth. i No Eoora for Complacency ! But Soviet induitrial progress has been pyramiding at so rapid rate that the race between these two powers can hardly be viewed with complacency in the United States. A major depression in the United States, for example, eould mult in the Soviet Union's overtaking the United States. Most American official: nd economist feci that this lr extrcmcly unlikely. But even a recession of few yean' dura tion could enable the U.S.S.R. to narrow appreciably the gap between them a gap which; has appeared' to many West- erners to be the world's main. hope of continued peace in the remainder of this century. The charts on the right sum marize the relative positions of the two nations in, four vital field! The I960 Russian figures' are the targets of the new five year plan. The 1970 figures arej projections reached by assuming that during the decade between 1960 and 1970 the Soviet Union will maintain the annual rate of increase planned for the 1955-60 period. Actually, the Russians have been increasing regularly their rates of ex pansion in basic industry. Not shown on the charts is the expected natural growth of American production. An interesting thougn not ELECTRIC w POWER F m union or '' viiowan Mouei , 3?0 ,' Z ' una us si usta u s a. wsj o wo- ms hi I y . - v STEEL in mnuoHi or rcms 126 50 75 Pi 4 A L USSI. less US$1 I960" urn. W70 U.S.A. less imcnu of the coming five yrr m quite hkrly they will then ,it i the living standard lector ol the eeonoiry vhxh will be expected by the Communiitt Irtrleri to muke again tht ncc ary sacrincc, The new five-year plan'i pot poncment once more of a rie in low Soviet living standard .brings up a vital question: j If the enormous Soviet in dustrial might is not to be used t.ri.v.ta.'tlM ,.,..,, C.t,; lit,. ing standnrds, juM what will it TWO IUSINISS GIANTS, Renjomin f airless (left), spokesman far steel manufacturers, and 0f war. The be used for? Three Channel In bny modern economy sue h Stir Real Trouble ly l M. HOIJKHT.S Atiorinlrd Veil Aeiei Antilyit SECKETARY DULLES wondered out of furor thll week and promptly marched Into a fight. The furor was over aome ouotations in a uje rnaga ine article which aome people interpreted as meanintf the United Statcj had gone to the brink of war three tlmeg, aucceeding each time In getting the enemy to oaca: down jut in time. The fight wa over a term foreign aid program The wordi behind the were: we were brought to the verge of war. Of course we were brought to the verge long- furor as that of the Soviet Union or the United Sute there sit three general channel of con Kumplion of national output II) by the population for its need;; (2) by the state for defense or ultimately war; and (3) by the state or private Balance Achieved enterprise taepenaing on me Fer lne flrst tirne type of economy) for capital , . ident Eisenhower C.n.ral Malar 'raiidtnt Horlow Curtice (rioht) revealed this week In separateVstaltments sbility to get heavy Industry's confidence In a continued boom. Curike announced CM plans a spend ane to the verge billion dollars an expansion this year; Fairltts reported ihot the steel Industry plans spend j10"' three billion an incrtattd production capacity during the next three years. Boom Gives Lift to Budget . l .... . a,.i ..... k.ir in me ena noi oniy iniouxn cui-,n-m " vum- . , , , , l j . tmg back government spending, plete. Principal credit for this . in (he faceon thej The foreign aid fight was real had been taking voluntary chance. What it mostly boiled down to wa tnat uune critics nia manned him tin on some techni "Veu have to take chance for rilllf, 0f language, whereas peace, juM as you must take poIjfy 1Uef nad actually been chances in war. Some say that bl..d on - lone-esUbhshed and generally accepted thesis that strength, with constant remind ers to the aggressor nations that it will be used when they push too hard, is America's best war deterrent. The incident came early in year of intense domestic politi cal activity. Perhaps it served to remind the secretary that, since broad general foreign policy il accepted bv both parties, it is the little asides, the generaliza tions, the mall words that need not necessarily be said at all. inevitably get into war. if you which will give his critics their try to run away from it, it you targets. are scared 10 go 10 me onn.. Trouhla Ahead ting into war is the neces sary art It you cannot master it, you 1 ri 1 1 LJILL IvktfH , ... but bju of me current wave turn 01 events can m ascnoea " n . enl,rin. lne Ko- and promised to be earnest House. Pres- of prosperity. The Presidentjto the record-breaking business J""11"" 01 lrfueon It Dulles said he believed the this week estimated that tax receipts.; boom, which has seen tax .col-, ,,,. the lndochin a war.! administration could convince in ratio ID cumo- .. , . nr.'rnnirre. aventuallv that thii on mi qucsiiuii i iunnu. " n - j --- - - walked to the brink and welcountry must be in a position t investment rt . 1 , l. . u y . coumonthTdVniU realized an aim toward which'-oUen by prosperity, would lections rise i.,.c,. ....... In .V'ha h.. ea.erlv worked ver!previde a budget surplus even.ing prom. only deferred consumption of' since 1952. He sent the Congress ough planned spending in; IndicaUons that businessmen looked u in lhe fiC6i We look I encourage underdeveloped coun- the Other two types, since it a balanced budget represents goods used to produce fiscal 1957 will be more than are banking on a continuation COAL 1,H IN MftllONI r 7-1 oe rows ,s 653 riiln USSR mi U.S.S.R. I960 USSI. U.S.A. less tries to undertake long-term I 1- Klllion Wntlara Vm.Vi.i- than U1. li.ina " I . .: :.u .u. Eisenhower estimated federal "Va ' . I rf wl vl e.,.', Not Exact '-"P w u. other tnoA Thu there are in rf,,r,n flrl 19.17 i..c w ,., iw awuranreonong-irrm.ia.ini. effect only two ultimate types v h h rUnin next Julv 1 at Current Surplus Harlow Curtice, president of The secretary ina.caiea mat j, ,0 mect renewed Russian ef-.. ofCt!on4 t The House Tlso happily UrL tnT eSh.n ,. . , , j. .-j w ,,. . j . w inn . j l . j . . pub ic confidence inspired by red, but sometning less man rnce ,nt0 immature economie tor Zvnl or l J" . uV, n . ? ' u " h" Bnhower administration exact a. to word.ge. He said he ,y.tMni nd i0 8ain . polilic.l tL it? Z I Ln s h'?h'r th'n thM r'C"re- u 1 fT'.td ,8X Z P n will carry the nation', economy would never have referred to hyoId upon them The U.S. wmomy p e.ent Aluinn,nt f thc inj!.SouCht duand there would be a small ' , he ..nwMiry rt,- ,nd that in- Thi add .n additional com- Vrw 3. rZ n nil ., COal f 8 haanvcd buei came budget surplus during ine cur- e revM,ed lh GM erpreU. ,houid emphasize the plication t0 the cust0mary fight .rld!!tJ J ' .has earmarked a record one bil- word "brought- rather than the L those who donH believe in by rises in popular consum Despite current high defense expenditures, it is not "war-,. T . User lax . ieaerai Dorrowing on a uvi.u j .u. a.v that ih. Tv.. in.,ut iTr,in ih-'. A new n an for bu d ne a nro- . i nouncea the same day tnat me t iv t 1 t, vsuviif wi . - r r PCTRCLEU 364 IN MfUIOMS Of TOMS 77 149 a U.S.S.R U.S S R. less i960 U.SSR. 17 0 U.S.A. tess MniMi ' .has earmarked a record one bil- word brougnt ratner man me by those u.no don't believe in nntinn DAA.HC A A4-Ua D r c T I llon dollarl for caPiU1 expend-iinferenc that the United States (oreign iid it a 1, in fc,, n"e KUAUJ: AnOTher PrOpOSaiutumthis year. Benjamin Fair-! foreign aid, or believe in it only , . . . ... i... less, presioeni 01 me American 1 - .money 'would be raised through; , ; Steel Institut HOUSinC federal borrowing on a bond nniI . m. lh,t lhi IWWJlliy KUlfa . . . m . a other hand, has been consistent- posed 40,000-mile lystem of in- Cort., proposa, pasMd by the f!T!!.7 ...w ."iau,ck Chan Ihwsys acros. bu, ... Hous. wouid c After a clamp - n.mnt;nn a 1 fiat inn .'n fe arfvanrian hl . -. . UOli ly carrying out a policy of rais- terstate superhighwsys consumption less week. for those countries who are defi nitely committed to the West in the Cold War. It is traditional that Congress does not like to try to commit . . fiitur CAnfmin It ra n of over six monins, tne govern- ".7 V.. "u.ii ment acted this week to loosen l"' .-.... clampdown of barely;1 1 a . . 11. .. it. 1 : 1 k v.. .jj;.. ion wic uuik vi uiv iiitn..u nancea in pan uy uumg, output a penny a gallon to the federal . .l .HHnairv finri ii fiKil it V ti U'flfJPar 2 This means tna; me f rurthermore the he world, and in particular the tee. Russian whose l.v ng nQl'" 7 " " econom c only power which is in a posi- The Clay plan envisaged a 30 i, sUU Uttle higher than U was r record of ' prev ious onoc V P 1028-before the nugur.uon "V a eult of the United States-intend to ment footing most of the bill in the five-year plans and coiiec- ms develop b)rm? , . 27 billion dollar project-Th tiviiation ol larming wm c Dates Thursday, Jan. It Speech by Gov. Smylie of Idaho on GOP "Pulse of the Nation" Forum, New York City. . , . Saturday, Jao. Zt Convention of the Ameri can Academy of Orthopedic Surgeons, Chicago. Monday, Jan. JO Prine Minister Anthony "klen arrives in Washington to begin tflks with President Eisenhower, irrMi . ..L. 11 u.1 r .. . senate dui not me nousc, wouiu ,- ...:. v ,u. 1 xnls set ud a flve-yaar program with . . . Z ', .... ;i); living standards at much less weex. !lhe ,0Vemment paying 7 bil- "",",, jllrin, ,1.. ... ment ,clM ,n" WWK 10 10O,en li w. V hnrrfu -.T-.... .w :.. .11 ... mu. r. r u.l! . . -T--.v--.tons annually during the next f a Mminirtr.inA plan had to hurdle r.u. ..m u..n in vommmrc .ur "-,Jon oouar a. me major ....r. lh The price Ug. three V.tVr. Adm n Utra on; Regardless Of the Dulles be- put. Development, a nonprofit organ-e money would come from bilIi'd 6 Veterans Administration Coneress will ao along So long uth a Soviet pol- -tion of businessmen whose re-Ungressional appropriations. bllllon dol"rs- mortgage rules. 'when the need has befn thor. icy is continued it inevitably search tudie have been used inj The CED plan would scrap the Tax Cut Delayed ; Llst July the repayment ouohy eXprained the proposal suggests that it is the second tye past in the formulation of hond issue idea and finance the In his budget message, Pres- period on loans insured by . m jon'. terrn ,SDect """"' ... nriKiatiuM, .uKK..u ... ....... supcrnignways largely oy raminn lunu um-ihiuc lunxu uia. ciinrr vi u.e jemit, 'and the increased appropriation state for defense which is ab-i : jn tha. the roads be built thf federal gasoline tax from 2 the surplus margin will - be cut from a maximum of 30 . . .fi t rocKy legislative sorbing in one and another fash- over the next 29 years and fi-10 3 tcntJ , gallon. "slim" in both fiscal 'M.and "57. years to a maximum of 25. This road ne aia not aavocaie a tax cut, wees, ine action was uiktiku . proposing to use the surpluses and 30-year mortgages which; eaaers upposea on reduction of the national make possible slightly lower j Sen. George, chairman of the debt jmonthly mortgage payments Foreign Relations Committee, Secretary of the Treasury can again be insured by both! was against it, and so was Sen. George Humphrey, however, ad-! the FH A and the VA. jKnowland, whose job it is to mitted to reporters that the A joint announcement by the; line up as much strength as he Treasury's forecast of future agencies said last summer's ac-lean behind administration pro tax receipts may be "unduly tion ending 30-year loan guar- posals. conservative." If such later turns antees was aimed at avoiding; The long-term proposal is, prl out to be the case, the ad-over-extension of credit and at marily, a propaganda weapon. Iministration still might recom- helping to protect home buy- inasmuch as it merely would I mend a tax cut before Congress ers against inflationary price in- give congressional approval for ! adjourns in the summer. creases. t what the administration already I As in the recent past the new! The announcement added: has most if not all of the au budget was dominated by the' The reduced volume of home thority needed. Cold War. Defense and other building has reduced the hazard Despite the difficulties facing 'expenditures for protection0' over-extension of credit to the proposal, help for it has such as atomic energy and the Pint where the 30-year come from the usual quarter. foreign aid took up two-thirds maximum mammy again may just Deiore uuiici ana unucr of thespending.Inthiscategory.be permitted.". .secretary Hoover urged their the President called for an in- Numerous builders have pro-; views on Congress, the Russian! t .,w. vmi,.,. tested that the tighter mortgage announced a program of eco. This suggests mat me soviet gasoline tax. Communist party slogan of, H. C. Turner Jr., chairman of "heavy industry first" is in fact the subcommittee which drafted a phrase which in reality means the report described the CED "preparation for war." j highway plan as "somewhere! And this in turn leads one to between Clay and Gore." surprising fact which emerges j New five-year plon goal. ssk other questions: He referred to rival roadbuild-i from study of the new Soviet j Projection based on '55-'60 1. Just how long does the inr plans debated inconclusively five-year plan is that again thej re ef jncreose. Soviet government intend to by Congress last year, one backed, Soviet consumer will have to! , .carry out this kind of a policy by Gen. Lu:ius D. Clay, head of take a back seat in economic relatively minor benefits while and what does it ultimately President Eisenhower's highway 1- ,u. c.,;. .lot. ronliniiM in n. Dortcna lor 111c icsi vi u.c iwiiiniiiKrr. i.u w.c vu. w, uv.., ... , i w. L..,j, Emphasis on Industry crease ita industrial productive " Gore (D-Tenn). chairman of the Just how does the rest of Senate Public Road Subcommit- Quote Secretary of State Dulles, in summing up his position on American foreign policy: "I have devoted my whole life to the pursuit of a Just and durable peace. I believe, however, that there are basie moral values and vital In terests, for which we stand, and that the surest wsy te avoid war is to let it be known In advance that we are prepared te defend these principles, If need be by life Itself." Report from Jordan Twenty years ago a dimihutivej British officer named John Bagot, r.inhh rame to the deserts of ini-Han Snpakin. Arabic like a native, wearing Arab dress, rid ing a camel he coaxed the rou and-ready Bedouins into ciplined army called the Legion man-for-man the fighting force i' the Middle Now chief of the general staff of this crack-army, he is called by his enemies "The Uncrowned King of Jordan. ....,-,,..-...,.. Writing from Cairo, Egypt after a trip to riot-torn Jordan where cen rship has been in ef fectAssociated Press Corre- 1 security , , wiU- vr,n thi week aecrecy. more data on increased dcribod clubb as tne No. j, , use of pushbuttons in possible of the ,nli.Western ele- future wars are emerging from tpearheadcd violent jni.ii.. - -- nots in almoft every town in One of the latest devices to be jordan iast weck. .announced is SAGE. The Pen- Orderhasbecorestoredthrou".h tagon descriijc the device as a most of the country and a week "quantum jump" -a major ad- ,cng curew ijflcd jn the chief vance in effectiveness. It is a ,cjt es Restive elemenU tempo device to operate manned war-;rarily called off QiT demon planes from the ground, jstratjons after achieving their When it was previewed for! first political objective, a govern- "the press SAGE was described. ment promise that Jordan would as sui important factor in thejnot sign the Western-sponsored attempt to permit fleiense meas-i Baghdad Pact Rioters Aiming at British Organizer far suggested for accomplishing the first purpose is to have neigh boring Arab states Saudi Ara l:.r in snrnrlina in dtrpntrthen TUleS naVC mterierea Wltn me the defenses of the United States housing market and are respon ! and its allies. s'be or harP cut ln nome Other increases were recom-, starts. mended in the field of domestic me relaxation win oe ap economic and social nomic penetration into uann America. As so often remarked before in this column, when the Rus sians have committed some overt nlicable on all VA-suaranteediact just at the right time to bia. Egypt and Syria-pay the!pr0grams to susUin what thej loans not closed by Jan .17 and.stiffen some weakeningAmeri subsidy now coming from the: president railed the nation's on all FHA-guaranteed loans'can or Allied po icy. The Rus- like a A XV 2 ' Arab! 7 A 1 , y -; . 1 . . best. .V J VA7 S -1 Pushbuttons 1 o- Sidelights ures to catch up in speed and power with the offense. But victory-flushed opposition leaders from left to right warned Y ?r Z Wff ' " V i t - ' . . . It. Gen. Clubb, British chiaf of the famed" Arab leaion much of Arab Palestine and in herited. nearly a million urban ber wolves. Suddenly, one of the wolves took a mighty leap at its or agricultural Palestinians, half j tormentor. The animal hit a ski of them homeless refugees blam-u the plane whipped by and the ing the west ana uiuoo ior snlx piled up in the snow, com their fate, - 'oletely wrecked. Although ma Combined with previous an-that their-rxt several hours, Bur- nounment, of plan, for dr jput the nation's army under Arab ,onf J 0. must flrs Uk. over this' politically volatile, these people !gesI ,nd Ulyt were uninjured. t air atomic weapons and long-, control. According to Corre-; wave of trouble can rexpuraft rid ofiwere the mainsprings of mobs iThey Ceure they have the dis- h emiauto-isnnlenl Wvnn. that means they " me army is not roc- r-cm. whirhreoentlvatUcked-svmbols'.inMiftnnf Kin rh first nersons - . ,. , - 7 . v- JZZ Z.r. . imnreSsive'intendihatr.1ubh must eo. Lead-! The Arab Legion as financed uiuoo -no uu. ,. .ZXZ i lis military effec- er f the opoosition to the gov- by British subsidy of newly.comm.no.n, m. tiveness. eramentof Western-backed King,$22.00,000 annually. Jordanese officers I which recently attacked "symbols' tinction of being the first personsi of the West" all over Jordan. !ev,r to see a wolf score a killj The most popular method so ,AttRiohuHtnrvt.APNw$ttmion an airplane. I Rritish Rfnnrts from Damascus'.'.. n.,A.A rncA.rif ,r,A not insured by that time. sians have done it again.1 - 1 unjivui llicu yt ij saaivi say the three states already nave t0 spread iU benefits more wide made such an offer to the Jor-.jy throughout the country. dan government. Wynn reported the opposition leaders predicted that the gov ernment will reject the Arab offer. They added that if this in a When i3-year-old Karen 'ff ct occurs, blood will again flow Smith of Ogden, Utah, broke her in the streets. jfoot this week she wasn t sur-; Britain has tried to remedy i prised. In 1948 she fell from a; the Jordan problem by offering i horse , and broke an elbow, in membership in the Baghdad '1 950 shfslipped on ice and broke ; Pact promising economic aid and a wristMn 1952 she broke a foot; a greatly expanded Arab Legion.iin gym class, in 1954 she cracked One opposition leader retorted a bone in her back. This year it the "expanding the Arab Legion was a foot again, broken when onlv means expanding the power she twisted too far in ballet class, nf niuHh o imDrison us all." iWith a record of an accident In the past although Jor- every other year since W48. Ka dariese governments have come ren gloomily reported 'I m not, and gone, Clubb's Arab Legion iooing ioi.u i . ; has provided stability and tran- j,cK Burgess and Richard quility for Jordan's half a mil- L,nya of Tower, Minn., were' j lion inhabitants. After the Arab-iskimming over the snow-covered ,Tra.1i H'S, llA11Vr the situ1:.. - - T sir. 4ki wnlr! ation changed. Jordan annexed playfully chasing a pair of tim t t MwfM, MM Svitr Nwl HOW NOT, TO REDUCE 0 M t
