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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Jan. 3, 1963)
g P THUHBDAY, JANUARY 3, 1S83 ' MEPFORP MAIL TRIBUNE, MEPfORP, OREGON - - ' .: Kennedy VJill VJage All-Out Congressional Battle for Tax Reduction ....... . .. , , ...:n . . ti js i u- mo (av Kill nnrf rfpht limL Editor's notet Ai President Kennedy tumyi hli lint two yeari In the Whit Home end lopki at proipecii for 1883 in gravely troubled world, hii viewi are reported on th highost authority in th. lot lowing article. By MERRIMAN SMITH Uri Whit Homo Reporter Palm Beach, Fla.-OOT-Presi. dent Kennedy at the dawn of 1963 believes it will be pos sible to Keep the country relatively prosperous and avoid a growth-stunting rise in unemployment. For this reason and beginning this month, he intends to wage an all-out fight in Congress for tax reduction effective this year. The tax cut he envisions would not go into effect all at once. It would be phased to take effect at different times in order to lessen its impact on the budget deficit. Before Treasury Secretary Douglas union puts the de tailed administration, one' package tax reform bill be fore the House Ways and Means Committee late this! month, the President and his lieutenants face a first fight over whether to keep the House Rules Committee at 15 members or allow it to revert to 12 members. Without' a 15 member Rules Committee, Kennedy fears the next two years will be virtually barren of legislative accomplishment and his program largely unadopted. Domestically, and economi cally, the President feels the nation is slightly better off than a year ago. But without the tax reduction, he fears un employment will rise danger ously. For this reason, once the Rules Committee fight is out of the way, the tax bill will have first priority on his list of needed legislation. International Field In the international field, the chief executive thinks Russia may have learned a lesson from the Cuban missile venture and thus helped to improve slightly chances for keeping the world at peace In 1983. While this country has no Intention of invading Cuba, the President has made it clear that absence of Ameri can action is contingent on Cuba living at peace with her neighbors. He believes in lime that Premier Fidel Cas tro will be toppled, but he does not know how or when this change will take place. He wants it understood, how ever, that the United States would be sympathetic toward a shift to new and free gov ernment in Cuba. " ' Generally, the President takes a guarded attitude to ward the continuing East West struggle in 1963. He finds the military balance of power still on the side of the West. The United States in his opinion also has an edge in nuclear weapons. And de spite stray hits to the con trary, he finds no currently dependable evidence that Russia wants to deliberately better relations with the West. Domestic and foreign pros pects taken together, the President sees 1063 as a year of increased peril for the United Slates, but an era of more opportunities for ad vancement. It is possible to report this and other Ken nedy attitudes at the new year as the result of conver sations here in Palm Beach where he spent a mixed rest- end-work holiday. His associ ates responsible for this re port are clearly authoritative. The President anticipates no less a laborious and trou blesome year with Congress than he experienced in 1962. Ranked a shade behind tax reduction, medical care for the aged financed through so cial security and federal aid to education will be pushed again by the administration. The President is determined to get a decision on Medicare in 1963 but he realizes this will be a difficult task Economic Outlook Economically, he thinks business is reasonably good and for' this i reason, 1963 is a better time to put across a tax cut than waiting until unemployment rolls the na tion into another recession. He regards his relations with the business '. community as more satisfactory than they were six months ago, but he also attributes this in part to business, itself,; being more satisfactory than it was last June. He foresees 1963 trouble In the labor-management field with hard-to-settle strikes arising from automation, work rules and technological changes, particularly when such changes result in aboli tion of jobs. The last unemployment fig ures showed about 3.8 per cent of the work force out of jobs. Kennedy believes that even with inroads caused by automation and the addition of one million people a year to the work force, unemploy ment can be kept from in creasing if Congress passes his new tax program. With a tax reduction phased as the administration will propose, Kennedy would expect to keep unemployment below 6 per : cent. Without the tax bill, there would be some growth in the production rate, but also a growth in un employment probably higher than 6 per cent. Second Term Inevitable Politically, the President regards his second term can didacy as more or less in evitable; he feels he is in good political shape now, but he expects a decline in popular- Polaris Submarine Joins Fleet Friday Washington -IUPD- The Navy announced today the Polaris missile submarine Thomas Jefferson will officially join the fleet at Newport News, Va., Friday. The Thomas Jefferson Is the fifth U.S. submarine equipped to fire either the Polaris A2, which has a range of 1,725 land miles, or the A3, which will have a range of 2,875 statute miles when it becomes operational in mid-1964. Kenned Limits Foreign Visitors Washington tUPTi So many foreign dignitaries are visit ing Washington that President Kennedy has limited them to two days In the capital dur ing 1963. The State Department said Wednesday the two-day limit on the Washington portion of foreign statesmen's official visits was set to make sure Kennedy would be able to work them into his schedule. Malta, British base In ihe Mediterranean, is about 95 square miles in area. f; V ity of his administration aa measured by opinion polls when Congress re-opet fighting over domestic begins. According to associ ates, he does not have a 1964 Republican opponent in mind, but expects the race to be hard-fought in the manner of former President Harry S. Truman's reelection battle of 1948. The President looks at the 1962 congressional and gubernatorial election results and finds the country politi cally is very closely divided. He foresees no changes in his cabinet although he ac cepts the fact that after two years in office, some of his cabinet members may want to return to private business in the foreseeable future. This does not apply to Secretary of State Dean Rusk. There is no doubt in Kennedy's mind that Rusk will stay in his post. As for reports that Post master General Edward Day may be thinking of leaving the administration, Kennedy's position is that he has no knowledge of it. He feels it is possible that some of his ad ministration associates may want to depart, but he knows of no definite plans at this point. The domestic fate of the na tion, in the Kennedy frame of reference, is bound tightly to the international situation. While Communist expanion lsm may have been blunted momentarily by the recent So viet experience in Cuba, the President feels the West must not let down its guard. He feels Western Europe should play a much larger role in assisting the have-not nations and not leave the burden pri marily to the United States. He has the same attitude to ward prosperous Japan. Psychological Boost In his opinion. Soviet Pre mier Nikita S. Khrushchev would have scored a resound ing victory had his strategy of placing Soviet medium-range ballistic missiles In Cuba been successful. This would have given Russia a psychological boost with the rest of the world as great as that gained from Sputnik I In the last decade. K h r ushchev, however, learned in Cuba the United Slates would risk war when necessary and, In the Presi dent's opinion, the Soviet leader will now move with greater caution than he dis played in going into Cuba. Kennedy is deeply concern ed about conditions in Latin America. He plans to ask Con gress for Increased funds for the Alliance for Progress, but the boost over last year's fig ures will not be substantial because aid to South America produces a net drain on bal ance of payments. He regards Latin American relations as so important that he plans to travel extensively in the area In 1963 and the next year, top. There Is a possibility he will meet this year with French President Charles de Gaulle who has a political problem in rationalizing his firm program for Independent nuclear deterrent power with U.S. and British efforts to form a multilateral force with France within Hie North At lantic Treaty Organization. Unrest Creates Problems Kennedy docs not want to see the western alliance begin to fragment into individual deterrents with inevitable and weakening imbalances. While the United States may have Ihe edge over Russia in nu clear weapons, the President feels the means of delivery has become more important than kiloton capacity of a warhead. This country has no more atmospheric tests sched uled at present and will con tinue to press for a test ban, but pending a workable agreement some underground testing will continue. He sees added problems in 1983 because of unrest and great need in South America and Asia. He is confident Red China eventually will explode a nuclear test bomb, but he does not forecast Ihe time, ac cording to associates. When Red China docs test success fully, he believes (his will add to Sino-Sovlet friction. This could end up as a plus for the West if Russia then shifts to ward her more historical identification with Western Europe. There are no signs of such a shift at present, but the President feels It may be a possibility over the interna tional horizon. His mood shortly before the new Congress convenes can be described as one of de termination, admittedly more realistic than optimistic and quite rejective toward the philosophy that big govern ment is dulling private initia tive. Because of the time-hon ored seniority system in Con gress, he feels he must pro ceed with caution in advo cating any modernization of congressional procedure that might cut across the feeling of independence, in the legis lative branch. This, however, does not rule out his fight concerning makeup of the House Rules committee. Sees Tough Tax Sledding If the Rules Comnuttee Is kept at 15 members as the administration desires (Chair man Howard Smith of Vir ginia would like to see it re vert to 12), Kennedy then sees an opportunity to bring even controversial legislation to the floor for a vote. To keep vital bills off the House floor would be bad public policy, in his opinion. Furthermore, Kennedy feels it would be a terrific re sponsibility for Republicans, as well as for a good many Democrats to put the power ful Rules Committee in con trol of those usually opposed to almost any action the Kennedy leadership would want to undertake. Even with a favorable out come in the Rules Committee fight, the President expects tough sledding for his tax proposals. Such Important voices of labor and manage ment as the AFL-CIO and U.S. Chamber of Commerce are for the tax cut, but the President also Is aware of some rather important people in opposition. He sees no point in putting the country through the wringer of a recession before adjusting tax rates downward, A recession, he coniinues to remind his friends, would cause the worst possible sort of federal deficit. He plans another move against high federal farm subsidies which add annually to surplus stocks, particularly in wheat and dairy products. He is Impressed rather nega- WEDDING PLANNED Rick Nelson, 22, Idol of millions of 1een-aers, and Kristin Harmen, 18, daughter of sporlscaster Tom Harmon and actress Elyse Knox, will be married some time in the spring. Nelson il the (on of TV'l Ottle and Har riet Nelson. (UPI) TOPS IN QUALITY! LOW IN PRICE Coming In The JANUARY 6TH Weekend Issue fry I Cinnamon on Hot Cereal 1 .(df I tmpeon or so to tfi(i n it CooK Of sprinkle ppr swf f t wd ttnl. Bf surf it's C'fsefM burnt t pack on! choice tin Mron (rrwi Ihf Far list, MlfClM lor eitrj jromi, fi,or and roior. CRESCENT - ipit Mtrffcunri Sine IM1 JFamJv :: , . ! Wttokty ! ' ''.-'' ;! PERSONALITY PROFILE: An Intimate Portroil of Carl Sandburg on hii 85th Birthday HUMAN INTEREST: How Ihe Lou of a Child Turned Into a One-Woman Safely Crusade INSIDE SPORTS: Big 10 Commissioner Tells 8 Ways to End Basketball Fixes STORIES AND FEATURES FOR EVERYONE IN Weekly with your copy ef the Medford Mail Tribune tively by the fact that because of large dairy surplus stocks, the average person on relief is getting twice as much but ter as those not on relief. In looking around the economy, Kennedy sees un employment and its paradoxi cal aspects as constituting one of the nation's larger diffi culties. Even with unemploy ment at 9.8 million in Novem ber, Kennedy finds it highly interesting that the stock market was rising and the general economic state of the nation was ralher hopeful. He feels that 1963 may be a pretty good year, but the un employment problem will re main with the country be cause of automation and tech nological advance, plus a dis turbingly high rate of school drop-outs - a situation that might be helped extensively by the youth opportunity bill. Mindful of Suggestions The President is mindful of suggestions from some quarters that he may have been too cooperative with Congress for the good of his program and that more of a stiff attitude by the White House might be in order. He counters such arguments, ac cording to friends, by point ing out simply that the Con gress is Democratic - not like the Republican - controlled 80th Congress which Truman fought vigorously and to his own benefit. He also realizes that some members of the House and Senate can block his programs with no real reprisal. Friends report that he cites an ex ample of House Rules Chair man Smith carrying his own district by a much larger margin than the President ever could manage. There fore, there is nothing. he could do to Smith, nor does Ken nedy see any form of his dis approval ol the Kuies cnair man that would not rebound to the chairman's benefit in his own congressional district. Kennedy cautions his asso ciates not to write off a given Democrat in Congress simply because he opposes one piece of administration legislation. He has pointed to such power ful leaders as Chairman Wil bur Mills of House Ways and Means and Sen. Robert S. Kerr of Oklahoma as Demo crats who opposed him on Medicare in 1962, but backed him solidly on foreign trade, the 1962 tax bill and debt limi tation. The President currently is keeping his own counsel as to whether he asks for new civil rights legislation this year, but he does feel that the ra cial problem in America is national rather than concen trated entirely in one geo graphis division. He regards the national aspects of the racial problem as demon strated in statistics showmg a greater number of Negroes among the unemployed, school drop-outs and non-owners of housing. "MEDFORD'S FINEST MEATS SINCE 1940" "NEBERGALL'S" OLD FASHION LARGE FRANKFURTERS LARGE J j C JUICY In I L- SKINS L J 1 0N VJ b. LOAF TO U OUR OWN DELICIOUS MAKE ALL CENTER CUTS LEAN PORK CHOPS FANCY EASTERN PORK FRESH GROUND BEEF POUND PKG. 10 $375 BONELESS PORK LOIN ROAST: PORK TBN1?BK LOIN www 98c lb. TO OUR OWN PURE PORK SAUSAGE CHOICE AGED TENDER STEAKS BONELESS FANCY TOP T-BONES SIRLOINS GROUND LAMB 93- frVJ lb LEG 0 LAMB Genuine Young lamb 75 ZEE PINK Toilet TissueH 2 $1 BORDEN'S or KRAFT'S COTTAGE OQ CHEESE j7pt. ZEE Jumbo 200' Rolls.. COTTAGE BRAND. 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