PAGE-
HERALD AND NEWS, Klamath Fall, Ore.
Monday, February 11, 196!
EPSON IN WASHINGTON . . .
Atom Test Ban Talks
Deemed Not Fruitful
'', Comes The Day Of Reckoning
: Frank Jenkins is well able (and he gener
ally does) to take care of himself in defending
his "conservative" attitude as it regards eco
nomics and the general welfare of the peo
ple. But, we are so dismayed at a letter from
a reader taking issue with one of Mr. Jenkins'
recent columns on federal government deficit
spending that we feel obliged to throw our
two-cents worth into the pot.
f Not only are we dismayed we are some
what outraged with the conclusions of our
friend reader's letter, as well as we are out
raged at the statements made by Chairman
Walter Heller of the President's Committee of
Economic Advisers. He blames the "basic
Puritan ethic" of the American people for
their fear of an unbalanced Federal budget.
This is the sort of accusation that could
only be made by somebody who has spent
most of his life in a cloister, far from bruising
contact with the maddening crowd. We don't
profess to know much about the complexities
of economics, but Heller's reasoning is egg
head philosophizing from the word go. No
body who really knows the American people,
who think nothing of loading themselves up as
individuals and families with monthly time
.payments for cars, refrigerators, home mort
gages and even "fly now, pay later" trips
abroad, would ever accuse them of being
Oconomic Puritans.
Actually, what is bothering many citizens
these days is something quite different from
'Puritan scruples about the "immorality'' of
government debt. People are worried, not
about the ethical aspects of an unbalanced
budget, but about its effectiveness in promot
ing a quick take-off to enhanced national pros
perity. The big bogy at the moment is the pos
sibility that continued federal deficits must
negate the value of any tax cuts the people
lnay have coming to them.
; Only an occasional individual can quote
statistics about the effect of deteriorating dol
lars and a high-cost domestic economy on in
ternational gold movements. But common
cnse tells most people that there is a con
nection between fiscal looseness at home and
distrust of the dollar abroad. A rotting dollar
hiust, in the end, cause foreign central banks
o cash in their balances in American currency
for gold. And as the gold hemorrhage goes
IN WASHINGTON
!7N Lnmmifi I inp AnH HI AC.
: By RALPH de TOLEDANO
; Communist propaganda r a m
paigns are launched from a build
ing at No. 3 Vocclova Street in
Prague. For some weeks, a steady
fucam of directives has issued
from that building to the (ailhlul
and to professional operatives in
JCurope, Asia. Africa, and Latin
jnicnca. Tliey have instructed
Jo spread the word that Comrade
Khrushchev and President Ken
nedy are the two great guardians
of world peace.
Propaganda analysts In Wash
ington have been somewhat puz
led at the spectacle of interm
lional Communism handing Mr.
Kennedy such a spy. On the (are
for it, this would seem to indicate
a change In Ihe parly line Irnm
nasi mess to sweetness and light.
But it is obvious that the Krem
lin and Its stooges bear no love
for the President of Ihe United
Al
manac
tly United Press International
- Today is Monday, Feb. II, Ihe
C'nd day of 19M with M.I to
follow.
. The moon is approaching lis
$ast quarter.
The morning star is Venus,
v The evening stars are Mars,
Saturn and Jupiter.
Those born on Uiis day Include
Thomas Alva F.dison. who had
pver 1.000 inventions, in 1R47.
J On this day In history:
In 101K, tlermany advised Ihe
L'.S. ambassador in Merlin the
Initial Powers intended In sink
All armed enemy merchantmen
s itltoiil warning after March I.
i In 1937, General Motors agreed
In recognize Ihe CIO United Au
tomobile Workers Union.
In 1945, President Roosevrll.
Prime Minister Churchill and
.Marshal Stalin ended their week
long World War II conferences at
Yalta.
In 1!62. t'niled .Slates U2 pilot
praneia Gary Powers was reumt-,
fd with his family under secrecy
filer having been released from
a Soviet prison.
" A thought for the day Mussian
dictator Joseph Stalin said: "lliv
jory shows that there arc no in
vincible rmiei."
' law I I W I
States. What they seek, in Madi
son Avenue terms, is a "merged
image." of the two leaders to re
place the bad one that resulted
from Comrade Khrushchev's mis
sile rattling in Cuba.
There's nothing new aliout this.
During the war years, Stalin
played the same game. Millions nl
liemused people fell for it so that
they had dilliculty in separating
the Rnosevclt-Churchill-Slalin trin
ity. But while the Soviet dictator
was posing (or pictures with the
two leaders of the free world, he
was busily plotting against them.
The unchanging nature of the
party line is not demonstrated by
the grandstand play but by Ihe
specitics. A good example is Ihe
parallel campaign, again launched
from Prague, directed al Ihe
House Un-American Activities
Committee. There are men of Ihe
right, left, a ml -or center who have
expressed criticism of the com
mittee for a variety of reasons.
I can number myself among
litem though (or reasons which
would give little aid or comfort In
III1 AO's real enemies.
The international Communist
movement, however, lists "aboli
tion of the House Un-American
Activities Committee" as one ol
seven "essential" steps to R e d
world domination. This certainly
is a flattering comment on the
work of Ihe committee. It proves
that, whatever its limitations,
HUAC has done much to blunt the
edge of Ited propaganda, espion
age, and infiltrnlion in the US.
To achieve Ihe destruction of
Ihe House-Un-Amei ican Activities
Committee, the Communist move
ment has (or years given curren
cy In a mass of falsehoods about
Us woik and its procedures. Un
fortunately, too many well
meaning and patriotic Americans
have accepted these falsehoods a
truth The result has been a whole
mythology about the Investigation
of Communism.
It is repeatedly staled lhat the
objectives of HUH' are sound
but that its methods are repre
hensible. The lad is. however,
that the House committee's pro
cedures are far mote proper than
those of many oilier Congressional
bodies. The Kefauver Committee,
which investigated organized
crime, and Ihe Senate Labor
Rackets Committee 'of whuh
on, the inflationary impact on the American
monetary system must hurt every citizen's
ability to pay. And, this is the point where
our very un-Puritanical John Q. who might
want a new washing machine, a larger home,
a better car, and a wherewithal to send Junior
to college, must resent the situation as a per
sonal outrage.
Committed as they are to an economy
of time payments, Americans probably would
not mind seeing their government go "on the
cuff" if they knew that the increase in the
federal debt could be extinguished over the
normal short or intermediate cycle that is the
rule for private installment buying. This, in
effect, is what the Administration is promising
when it anticipates that a tax cut will so stimu
late business that it will produce a budgetary
surplus three or four years hence. But to
hope that the economy may be brought into
balance by such means involves an act of
faith. And how many congressmen, worried
over the ability of their constituents to sus
tain such faith, will be impressed by the "new"
economists' reasoning?
The faith in the government's arguments
would be tested the moment the Treasury
tried to cover the projected $11.9 billion defi
cit for the next fiscal year by selling bonds
to the people. If the bonds could be disposed
of by marketing them to individuals who
would set them to one side, they would not
he a cause of inflation. But if the govern
ment, to finance a $11.9 billion increase in
the national debt, should be reduced to stuff
ing IOU's into the banking system, where
they would swell the money supply, the result
ing inflation might shortly cancel every bit of
the purchasing power released by the tax cuts.
We shall continue to regard the huge,
unmanageable system of federal deficit
spending as "dangerous," "disastrous," and
"irresponsible," because common sense tells
one that no individual or agency can continue
to accumulate debt on a basis of immunity
from the day of final reckoning. Granted,
this debt can be "manipulated" for a time.
But what happens on the day when the bur
den becomes greater than the manipulators
can handle? This is the contemplation that
sends shudders down Ihe spine of the appalled
"conservatives."
I I
Robert F. Kennedy was chief
counsel I w ere (ar less concerned
with the. Constitutional rights of
witnesses than HUAC and were
praised (or their work.
In 1!M5. HUAC asked the ultra
respectable Brookings Institution
In set up standards for deter
mining what were un-American
activities. The findings of this
foundation have lieen used as a
textbook by HUAC since then.
Again, in 1II.V1. the committee pub
lished its rules of procedure. II
was the first group in the House
to do so and they have since
been adopted by other committees.
HUAC, unlike its Senate counter
parts, forbids one-man sulicommit
tees, and fought successfully to
gel the House of Representatives
to bar this practice.
The American Rar Association,
hardly a collection of wild-eyed
extremists, has lauded HUAC. A
special ABA group was "im
pressed with the fairness with
which hearings before (HUACI
have been conducted." And it not
ed its satisfaction lhat "witnesses
called to testify . . , are being
treated fairly and properly in all
respects."
The party line, however, con
tinues to call for the destruction
of Ihe "witch-hunting" House In
American Activities Committee.
This propaganda scops through to
those who have no sympathy with
Communism. And the mythology
persists. If Ihere is any real rea
son for criticism of HUAC, it is
Ihe timidity of iLs members.
There is still much to be put nn
the record, hut HI AC will not
liilly accomplish its mission until
it gets a fair shake from Ihe
orrosiondonts who cover it and
the public that need it.
QUESTIONS
AND
ANSWERS
Q What animal Is often re.
frrrrd In as a "living fossil?"
A-The tunlara of New Zealand,
a lizard-like creature.
Q Huh respect In population
which are the largest and smallest
tale capitals?
A The least populous stale cap
ital is Carson City. New; the most
populous Boston, Mass.
Some Hindsight On Economics
(By RICHARD L. STROLT
in the Christian Science Monitor)
Christopher Columbus never
knew where he was going, didn't
know when he arrived, and al
ways thought he had been some
where else when he got back.
On economic matters, Franklin
Roosevelt was almost as much
at sea. Like Columbus he was
orthodox in nearly all things save
one. Columbus had that odd no
tion that the world was round,
so you'd hit India if you kept .sail
ing west, and wouldn't fall off.
In FDR's case it took the no
lion of believing that the gov
ernment must keep on trying to
do something if the depression
didn't cure itself. Unfortunately he
did most of the wrong things. His
orthodoxy tripH'd up his hetero
doxy: He believed in a balanced
budget no matter what.
Another president is now trying
to restore a sluggish economy and
end unemployment. The latest ro
xirt of Mr. Kennedy's council of
economic advisers (CEAI tries to
show where FDR went wrong in
the 30s as a preliminary tit ex
plaining what ought to he done
in the 60s.
It has driven this reporter to
look up old material, too. Who
was it who proposed to meet the
eronomic crash by slashing fed
eral expenditures? FDR be
lieve it or not. "For three long
years," Roosevelt charged March
9. 19M, "the federal government
has been on the road to bank
ruptcy." The fact is FDR had only the
foggiest notion of the economic
seas until the start of wartime
spending finally rescued him.
"I don't think your President
Roosevelt knows anything about
economics," observed Maynard
Keynes.
Very few people in those days
did understand the subtleties of
guiding Ihe economy. Kcnnomics
Grab Bag
ACROSS 41 Ever (contr.)
1 Invititloa 42Seiie
4Hiu.nl 43 Sicilian voland
A Jimi 47Ryde(rre
11 Veinlike deooiit so (arret
vi ngainii
64 Rodent
13 rmimn
nick nam
14 National
cemetery
1(t Sesamt
17 Fowl
18 With keennem
55 Ace. fullbacks
67 Consumed
M Wrinkle
iS9 Settled upon
0 Affirmative
61 Rim
6i Things inlaw
DOWN
1 Drill
2 Unoccupied
3 Relief in God
nihil ov)
4 Tatter
5 Mean
20 Horace ,
educator
22 Sun wen on
Rroadway
M Keminin nam
20 Redecorit
28 Act rest
Joanne
SI Eye i outer coat
33 Kit Ft mi
M Vacation plact
J7 Binlria
M Re (or
(reek portico
7 Re (tent i
ft Make known
9 Tn
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30 I'resrnt
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tyOifpt
was just beginning to accumu
late the superb equipment of sta
tistical material it now has.
Mr. Kennedy's three man CEA
pointed out that FDR's "great de
pression" averaged an unemploy
ment rate of over 18 per cent,
19:50-39, as compared to 5.6 per
cent today!
The gap between actual and
potential output averaged 40 per
cent during most of the 30s. Today
it's around 6 per cent, amounting
to a loss of around $.'10 billion
a year, a tidy sum but infinitely
smaller percentagewise than in
Roosevelt's disastrous time.
Why was this? Because, say
the modern economists looking
' back pityingly on the tragic epi
sode, "active fiscal policy was
not employed vigorously, consis
tently or with proper timing."
For "fiscal policy" read "fed
eral budget policies" to fill the
economic gap. Today they would
call it "deliberate countercyclical
fiscal action." It is the common
place of economics.
How about the 30s Federal
expenditures "increased substan
tially" under FDR that was
good, says the CEA.
Rut most of the effect was off
Rv SVDXEY J. HARRIS
"I can't understand the rise o(
those 'sick' comics," said a man
Ihe other day. "They attack ev
erything, and they're against ev
erything. They seem to take a
perverse ilcasure in tinning all
Answer to Previous Punt
"EH
19 Comparative
ending
21 1'nder (poet.)
2.1 Plot of land
24 One who (teti
things done
55 Salts of acids
27 Own
lampreys
43 In the year of
Our Lord tab.)
44 Musical
instrument
4R Perfume
47 English poet.
i nomas
29 Network (an) 4fl Price
30 Sov.els.ao.) 4 Dry
32 Negative
34 Amphitheaters
35 football
position (ab.)
M Stor
2 Klowef
S.tTime belt (lb.)
56 River in
Knf land
40 mn? for
i
BANja ISMi
set "by a series of heavy tax
rate increases." It seems incred
ible today but federal revenues
increased "by 77 per cent over
the decade," even with a terribly
depressed tax base.
The Roosevelt administration
tried to reduce deficits by main
taining high taxes even as it in
creased expenditures. The result
was that the deficits were higher
than ever.
Meanwhile, the CEA recalls,
stale and local governments were
paring expenditures too they
shifted from deficits to surpluses,
1929-1934. This added to the uni
versal deflation.
What happened? Along in 1941
military needs led to large budget
deficits. "Unemployment melted
away very rapidly." It was war
that did it it finally produced
massive, countercyclical spend
ing. Wartime expenditures and defi
cits grew during the war and re
stored full employment an in
flation, too.
Shaking its head over the whole
sorry mess the CEA plainly im
plies that neither the tragic con
tinuation of unemployment nor the
later period of inflation was nec
essary in the 30s.
STRICTLY
PERSONAL
our traditional values upside
down."
As a matter of fact, I happened
to he reading Ihe comment of a
lamous "sick eomic" not long
apo. His bitterness, his cynicism,
his rancor, his iconoclasm, were
evident in everything he said.
He was irreligious: "All reli
gions issue Bibles against Satan,
and say the most injurious things
against him, but wc never hear
his side."
He was misanthropic: "All that
I care to know is that a man is
a human being that is enough for
me: he can't he any worse."
He was contemptuous of the
American success story: "All you
need in this life is ignorance and
confidence, and then success is
Mire."
He mocked our social conven
tions: "Good breeding consists in
concealing how much we think of
ourselves, and how little we think
of others."
He despised our political sys.
tern: "Ain't we got all the fools in
town on our side, and ain't that a
big enough majority in any
lown?"
He deprecated our American in
stitutions: "In our country we
have those three unspeakably pre
cious things: freedom ol speech,
freedom of conscience, and llie
prudence never to practice eith
er." He attacked our civic life: "In
Ihe first place God made idiots;
this was (or practice; then he
made school boards."
He maligned the V $. Congress:
"It could probably he shown by
facts and figures that there is no
distinctively native American
criminal class except Congress."
He derided ecceiesiaslical au
thority: "A man is accepted into
church for what he believes, and
lie is turned out fur what he
knows."
He perverted our moral axioms:
' The moral sense enables one
tn perceive tnoralils and avoid
tu Ihe unmoral sense enables
By PETER EUSON
Washington Correspondent
Newspaper Enterprise Assn.
WASHINGTON (NEA) Wil
liam C. Foster, director of the
U.S. Disarmament Agency in the
Stale Department, is going to Ge
neva as temporary chief negotia
tor for the 18-nation talks on a
nuclear test ban agreement sched
uled to reopen Feb. 12. He will
take over the first round of dis
armament talks, then turn the job
over to mission chief Charles
Stelle, pending President Kenne
dy's appointment of a successor
to Arthur Dean, recently re
signed. Not too much hope is held that
anything definite will come out
of tliese talks, following Russia's
abrupt withdrawal from the Wash
ington and New York negotiations
with Britain and America just
when everybody had been led lo
believe that the Russians were in
a mood to sign.
American officials still believe
the Russians will sign ultimately,
after they have given their ac
ceptance of on-site inspection a
good propaganda ride with the
eight smaller nations at Geneva.
One major difficulty in the pres
ent situation on the test ban talks
is that the Russian position is
always completely flexible to the
point of being fluid or even gas
eous, while the American-British
position is almost always frozen
to the point of being immobile.
The Americans and British, aft
er careful research and thorough
study, prepare position papers
on every phase of disarmament,
including the ban on nuclear test
ing which is an all-important pre
liminary step. The principles set
forth in these plans are always
considered fair, workable and, of
course, right.
Having announced these policies
to the world, the western powers
are stuck with them even though
it is made clear they are open
to negotiation.
The Russians never put them,
selves in any such strait-jacket.
Starting from a broad principle
of being for general and complete
disarmament which they know is
unattainable, they yu'illate all
over the conference rooms with
the greatest of ease.
By FULTON LEWIS JR.
President Kennedy's much-publicized
tax bill appears tn be
the political flop of this new year.
Senators and Congressmen
from North and South, East and
West, Democrats as well as Re
publicans, report no grass roots
support for the President's pro
gram. A spokesman for New York Re
publican Ken Keating, up for Sen
ale reelection next year, says:
"We have received no mail in
support of the President's budg
et. The overwhelming majority of
letters demand a cut in spend
ing before any cut in taxes."
Massachusetts Senator Ted Ken
nedy, younger brother of the
President, admits that his constit
uents have shown no great inter
est in the Administration program.
"We just haven't received any
thing." says an aide.
Kennedy's Republican colleague.
Senator Iverett Sallonstall. re
ports that virtually all mail re
ceived by bis oftice on the tax
program asks that spending, not
taxes, be reduced first.
Alaska's Senator Ernest Gruell
ing, a loyal New Frontiersman,
has received almost no letters in
support of the tax package. The
only mail received, his ottice re
ports, favors budget reductions.
Peter Dnminick. freshman Re
publican from Colorado, says:
"There has been no mail backing
Ihe Administration tax cut. I have
received, however, a good deal of
mail from disabled veterans and
others living on pensions who
point out thai the tax 'cut' hill,
means higher, not lower, taxes
lor Ihem. Voters of both parties,
asked me to try and reduce this
mammoth budget and 1 will cer
tainly try."
Kentucky's Senator Thinston
Morton, a Republican, says that
his mail is running 10-1 agam-l
a tax cut without a corresponding
reduction in spending. Texas' John
one to perceive immorality and
enioy it."
He expressed contempt for old
age: "Well enough (or old folks
lo rise early, because they have
done so many mertn things all
their lives they can't sleep any.
how."
He scorned Ihe pretensions of
friendship: "It takes your enemy
and your friend, working together
to hurt you lo Ihe heart, the one
In slander you and the other to
get the news tn you."
The name of this sick rnrnic?
America's favorite for century.
The fun-lining, irrepressible, na
tional figure. Mfrk Twain.
For nearly two months, Ameri
can and British negotiators had
been convinced the Russians were
at last serious about wanting to
sign a test ban agreement. Rus
sian Foreign Minister Andrei
Gromyko accepted on-site inspec
tion in principle. Only the ques
tion of the number of inspections
remained to be resolved.
The negotiations were being con
ducted responsibly, in secret, with
out news releases or speeches in
open conference for propaganda
purposes. Then all of a sudden,
like a groundhog ducking before
its shadow, the Russians broke
off the talks.
In one sense, the negotiations
may have been considered shad
owboxing to the point of being
futile. For being considered in
tiie test ban agreement was an
escape clause big enough for all
the missiles in the world to he
launched.
It was provided that if a fourth
or a fifth power France and Red
China, for instance began ex
tensive nuclear testing that threat
ened their national security, sig
natories to the ban could pull out
and resume testing on their own
at will. There was also, of course,
provision that other powers could
lie brought under the ban if they
wanted to come in. But there was
no way to force them in.
Why the Russians broke off the
talks even with all these provi
sions remains a mystery. And the
pursuit of Communist motives in
any situation is always futile.
' While the talks were in prog
ress the speculation was that the
Russians were at last being rea
listic over their setback in Cuba
and their growing ideological split
with Red China. Also, the Rus
sians had just completed their ow n
series of tests and they wanted to
reduce tensions for a while.
In the past, when the Russians
have broken off disarmament and
nuclear test ban talks, they have
followed with a resumption of
their own testing. President Ken
nedy's quick order to prepare for
a resumption of U.S. underground
tests in Nevada, after announc
ing their suspension, may have
anticipated some such Russian
move once again.
WASHINGTON REPORT . . .
Little Enthusiasm For
Kennedy Tax Program
Tower estimates his ratio at close
to 1O0-1.
Senator John J. Williams, Dela
ware Republican, received one
letter informing him that he did
"not understand modern econom
ics" in opposing the tax bill.
Neither, apparently, do most of
the Senator's constituents. He says
that mail is heavy against the
tax program. Almost all letters
favor cuts in spending.
Little mail is reported by New
Jersey's Harrison Williams, an
Administration supporter.
"There have been more letters
in support of tiie animal welfare
bill i which would limit the use
of animals in medical and scienti
fic lesearchi than in support of
the tax cut." says an aide. Al
most all letters have urged a
reduction in spending by the Ad
ministration. Indiana Congressman Richard
Roudchush says his mail indi
cates "The Administration's pro
posed lax cut is going over like
a lead balloon." He has not re
ceived a single letter urging a
tax cut without concurrent cuts
in spending.
"People seem less worried about
the so-called tax cut." he says,
"than they are about runaway fed
eral spending. Many of his con
stituents." he continues, "have
done a little figuring and realize
in many eases the 'lax cut' actual
ly will be a tax increase. Despite
the lowered rate, the Administra
tion proposal will erase many de
ductions and exemptions allowed
under present law.
"Exemption and deductions for
charitable contributions, medical
expenses, the interest on one's
house mortgage, allowances for
slate income and property taxes
paid, and other present benefits
will be eliminated or reduced un
der the Administration plan."
Note: There is a sizable tax
increase in store for ttvoM? totally
or permanently disabled Ameri
cans living on pensions. For ex
ample, a person now drawing M
dollars a week disability benefits
pays no tax at all. But under
the President's program he would
lurk over in taxes K16 in I9R4
and ItHvi. and $tt each year
alter that.
Sen. John Williams, who has
completed a personal investigation
of the Administration bill, says
that all retired employes receiving
between Sun ai.d $7,7C year
would get a tax increase under
provisions of Ihe bill. A sinzle
retired government worker, now
living on K.Kl a year, he says,
pays no taxes. Under the new
hili. he would be orcwl to pay
n.7.