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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Aug. 14, 1963)
EPSON IN WASHINGTON . . . Balance Of Payments Is Confusing Subject PAGE HERALD AND NEWS, KItnuth Falls, Oregon Wednesday, August 14, 1963 "It's Going to Be a Tight Squeeze!" Who These two businessmen were settling the big issues of the day as they rode to work. " "It's about time," said one, "that these guys in Washington wake up to what's really going on in this country and around the world. Between the White House and Con gress, we're getting nowhere fast. The coun .try is really in a mess." The other man nodded. "Things are rough, all right," he said. "But I'd sure hate to be the ones who have to try to straighten them out." So would we all. Most any one of us can call the shots when we're sitting on the side lines and no one is keeping score on us. But how many of us would welcome the responsi bility of having a voice of authority in ren dering judgment and final decisions in such problems as: The railroads' management - labor problem? The racial unrest throughout the country? The continuous and insistent tug be tween management and labor, erupting into open breaks around the country from day to day? The relation of the nuclear test ban (Cincinnati Enquirer) Sometimes if you ignore it long enough, a problem will go away. Sometimes, it can be dispelled by stop-gap measures. But the prob lem of the gold outflow is not in either cate gory. Temporarily, at any rate, it is worse than it was a year ago. For the first quarter of 1963, the outflow of U.S. capital as a whole was at the annual rate of $3.8 billion, which is higher than the rate of 1962 al though not quite as high as the rates for 1960 and 1961. And it rather looks as though the same pattern will prevail when figures for the first six months of the year are avail able. Further heavy drains on our gold sup ply have brought reserves down to $15.7 bil lion, which is the lowest since April of 1939, nearly a quarter century ago. One conse quence is a new flurry of speculation in European capitals about possible dollar de valuation. The President can attempt to offset this by another firm statement flatly ruling out any such action. But while that may head off another epidemic of raids on the dollar by The By HOLMES ALEXANDER WASHINGTON, D.C.-Congress-man Roman Pucinski, Democrat from Illinois, has an idea which could beam the glare o( public enlightenment upon America's grotesque unemployment problem. Pucinski tells mo he intends to ask Labor Secretary WirU to add a third category to the re ports under which Iho Bureau of Labor Statistics now lists (a employed and (b) unemployed fig ures. The silvering but energetic Congressman, once a reporter and bomber pilot, wants the third category to be those Americans who are unemployable under the mores of Uie times. He says this third-class citizenry w ill compose almost 90 per cent of persons out of work. H Mould break down as follows: 1. About 800.000 draft age youths between the ages of 18 and 26. His studies show that employers do not readily give meaningful jobs to young men classified as 1-A with their draft boards because this would force the employers to keep the job open for two years while a draft ed worker Is in the military serv ice. 2. About two million Ameri cans who arc "functionally illi terate." One of the real contri butions of the Kennedy Adminis tration has been to bare the shocking fact that hundreds of thousands of Americans, under our public and compulsory school system, liavo managed to get through grade school, high school and even Into freshman year of college without being able to read. Of course we were warned long ago in books that were re jected by major publishers and scored by the uptown critics that the "progressive" system of edu cation was leading to Ignorance. Finally a book by Rudolf Flesch did break through to show "Why Johnnie Can't Read." The Irre pressible Admiral Rlckover made himself heard. But tho damage . upon th present generation was Has The Answers? treaty to a nonaggression pact? Who would want to try to guess right on this? The controversial federal aid to schools issue? Tax cuts and tax reforms? The unemployment situation and the national economy? The farm problem? The population explosion and birth control? And on and on and on. We mention those headaches only a few of the scores to plague the administra tion and the lawmakers in Washington not to excuse any errors of judgment or action that may be made, but to emphasize the scope and size of the tremendous task facing our national leaders. The freedom to second guess and to serve as Monday morning quarterbacks is an inalienable right of every American. But there is also the obligation to help solve those problems by individual effort, sober judg ment, calm action, fair play and loyal citizen ship. Contrary to what we may be told or what we may think at times, the voice of the people still prevails in America. Each of us is part of that voice. Each of us is part of America. Persistent Gold Problem private speculators in London and Amster dam, it will not solve the basic problem. Whatever its other effects, the drastic slash in overseas aid for fiscal 1964 that is indicated by the temper of Congress will help to correct the imbalance. So will the ex pected further increase of foreign visitors to this country. For the still longer term, there is anoth er set of corrective forces at work. Chief of these is the upward spiral of prices and wages in Europe and also in Japan in contrast to a leveling off of prices and wages here. Another, unpredictable as to its scope, is a prospective slowdown in the export of private U.S. capital, particularly the movement touched off by formation of the European Common Market. Until our balance of international pay ments is really balanced, however, we shall be operating under a considerable handicap, both financial and political, since a weak gold position is a poor hand to hold in internation al politics. HOLMES ALEXANDER . Miserable substantially done. As recently as last year, a California slate wide election went squarely to the issue of returning to the basic educational principles of the three Its. Meanwhile, illiteracy of job seekers who cannot read j o b manuals and simple instructions has become an albatross around the national neck. "I'm on two subcommittees," said Pucinski of tho House Kclu cation and Labor Committee, "which undertake to create jobs. But until we teach people In road and write, it won't do much good to make jobs for them." 3. About two million workers upward of 40 years old who have been replaced in their jobs by automation and relocation of plunls. At this mature age-group, workers might be thought to be "You mtan u t'rt payM btr bow to BERRY'S WORLD Ones at their productive peak. But the introduction of new machinery, at the old sites or in new ones, in stantly turns a skilled worker into an unskilled worker. Even before the federal and stale governments began to ac celerate retraining, as under the Training Act of 1962, private in dustry and many of the unions wore attempting the same thing. All these effurrs, however, are made in the teeth of a population explosion which necessitates more and more jobs each year. Pucinski is on the trail of a useful idea. Merely to add Uie dreary category of "uncmploy ables" to our already-dreary cn cyclocdia of statistical data will not solve our employment prob lemshut it will spotlight what uur problems are. that fiturv tchool to ltar bo a TREE)" ' ' 'vu1..i:'w'.lJV-i.,.,-iU,-iir; NEWS COMMENTARY Civil Aviation Changed By ROBERT J. SERL1NG UPI Aviation Editor WASHINGTON UPH The airlines, their pilots and the Fed eral Aviation Agency (FAAi, who do not always see eye to eye. have one thing in common these days. Namely anger. It is directed at i recent re port by a House subcommittee headed by Rep. Jack Brooks iD Texas). Last fall the subcom mittee heard testimony concern ing shennanigans in airliner cock pitspilots sleeping or reading while on duty, donkeys running around in cabins, and stewardess es being allowed to take the con trols on scheduled trips. The subcommittee report re pealed the testimony and included pictures taken secretly by flight engineers. What angered virtually everyone in commercial aviation was the implication it drew that the cockpit discipline situation still existed. II urged, for exam ple, that the FAA start making un announced flight inscction to de termine whether "aircrew mem bers are applying themselves to their duties and responsibilities." Demanded Najeeb Resign A nalinnal magazine (The Sat urday Evening Post used the hearings as justification for de manding the resignation of Fed eral Aviation Administrator Na jeeb E. Halaby, who wasn't in of fice when most of '.he incidents occurred. An editorial in the Aug. 3 issue declared: By SYDNEY J. HARRIS My old and dear friend. Mil Ion Mayer, has filed suit in the Federal Court in Washington, DC, to force llie Stale Depart ment to issue him a passport. Milton Mayor, is. in my opinion, llie most brilliant journalist in our country and our time. He would be an adornment in any country and any time. He w riles powerfully, thinks clearly, and has the courage to live as he writes and thinks. He has been an anti-communist during the 25 years I have known him and for years before that. But he refuses to sign llie non communist oath which became a part of I'.S. passport applications last year. For this reason, the Stale Department is rclusing to reissue bis passport, which ex pired last spring. He will not take an nath under duress. "My views on commu nism are widely known," he has said, "but 1 express them ho cause I wish lo. I will not do o under duress." It would be simple for lum In lake the oath, as must of us would. He is contractually obli gated to three publishers and two church orc.iui7.il ions for assign ments in Europe tins year. But as a matter of principle, he refuses to deny a crime with which he has not been charged. Such a lest oath, he believes, "is the historic instrument of ty rannies for the reduction of free men lo servility. It is unworthy of my country and my govern I BSFB "The House government acti vities subcommittee report is fur ther proof . . . that Mr. Halaby should either apply himself more fervently to the cause of greater air safety or else he should re sign." The aviation community said it would like to get a few points across on the subject of cockpit cut-ups: No responsible airline pilots' union or government official con dones the events of the past. But the word "past" should be capi talized. All airlines and their crews have been warned that re currences will not be tolerated. There have been no further inci dents reported. And in all the furor generated by the hearings and the subsequent report, it was easy to forget that the cockpit discipline incidents cited all oc curred between 1957 and 1961. The subcommittee and the maga zine, as far as responsible civil aviation leaders are concerned, arc beating a dead horse. Corrective Action Taken The report went inlo great de tails on the testimony from va rious w itnesses, but went into no detail on the fact that FAA and the airlines, even before the hear ings were held, already had taken corrective action. Aviation officials believe that in citing the cockpit incidents in such great length, the report cre ated a distorted picture of wide spread, frequent and even current laxity which could well prompt STRICTLY PERSONAL ment, and I must make my pro test against it." I know scores of upstanding, high-principled conservatives, who inveigh daily against government authority and restrictions but only when these directly alfect their earning capacity, their schedule, and their business pro cedures. Most of them would be heartily in favor of Ihe non-com-miinisl oath for passports. Likewise, most of Ihe liberals I know concentrate only on one nsicct of "freedom" that part which coincides with their politi cal and economic beliefs. They aie not unduly concerned about -government infringement of the business area, even it it is un just. But "freedom." if il means anything, is indivisible. We can not le (or it in one sector, and iiuiifteient lo its abuse in an other sector. We cannof ask the government to move in when il serves our interest, Mid to slay out when our interest is threat ened. But this is exactly what most of us want. Milton Mayer stands to gain nothing personally, and to lose a lot. by refusing to take the passport oath. He is fichting our battle more than his. For, as he says, "Liberty goes down the drain, little by little, while no body is looking." He was opxsing the commu nists long before most of us knew what was going on. Now he is opposing llie government. In both lights, lie is right, and the rest of us are put to shame. A fearful citizens to stay away from air travel. The magazine also gave the impression that the FAA and the airlines still are indiffer ent to the necessily for cockpit discipline. The report's recommendation for unannounced flight inspection warrants some comment. This is why the FAA doesn't think much of it: FAA inspectors want to watch the entire operation of a flight, not just what goes on in the cock pit. This involves observation of flight plan and dispatch duties, pre-flight mechanical inspections, etc. The FAA is gettinpl ready lo issue a proposed regulation re quiring all cockpit doors be lock ed as a precaution against sabo lage or hijacking. Cockpit secu rity appears to be a far greater air safety problem than cockpit discipline. FAA officials already perform a certain amount of unannounced inspections. They ride incognito in airliner cabins to observe the per formance of cabin attendants and the frequency with which pilots leave the flight deck. One fact stands out which was not mentioned either in the sub committee report of the maga zine: Civil aviation has changed since the cockpit incidents oc curred. Any layman privileged to observe the flight deck of today's jels or any other airliner would be surprised as well as reas sured. There is noticeable ten sion, total alertness and an at mosphere of no-nonsense. It might be said that this happy situation is due in part lo the revelations of the Brooks subcom mittee. There undoubtedly are a handful of pilots who might mis behave if they were not afraid someone like a flight engineer would report them. But the main deterrent for cockpit laxity is a jet age fact of life there no longer is time for culling up. LETTERS TO THE EDITOR Inhumane I have always enjoyed my fre quent trips through Moore Park, but only recently have I visited a part which I consider a disgrace lo this beautiful park as well as our whole community. I refer lo the zoo. or rather an imitation of one. Here I observed wild life con fined to "two by four" pens, pac ing ceaselessly back and forth in view of their natural environ ment but with 110 hope of ever gaining their freedom. Do unto others as you would have them do unto you. Have you good citizens of this city ever considered this to apply as well to our friends. Ihe ani mals'" If you will put yourselves in their place and have a spark of companion in your hearts, you will agree with me that it is high time to put an end to this form of petty cruelty. Truly man's inhumanity to man can only he comparable to man's inhumanity to these dumb and helpless creatures. Alice B. Wilson, Lakeshore Drive. By PETER EDSON Washington Correspondent Newspaper Enterprise Assn. WASHINGTON (NEA1-A1I the pieces in the papers about the delicit in the U.S. balance of pay ments and the declining U.S. stocks of gold have a bad psycho logical ellect on most American citizens, even though many of Ihem haven't much notion what it's all about. This is a pretty sophisticated subject. A short time ago it was said that the only man in the world who really understood interna tional payments was Per Jacob sen of Sweden, managing director of International Monetary Fund. He died in May. Bankers, economists, govern ment fiscal experts and some con gressmen discuss balance of pay ments very emotionally. Even so, their language is almost com pletely unintelligible lo laymen. Back one of these authorities into a cornor and ask him for a simple explanation. You'll get something like this: "Tiie balance of payments is an international accounting in sum mary form for all U.S. interna tional financial transactions. "It includes exports and im ports of goods and services, for eign loans and investments, for eign aid, the cost of keeping Amer ican military forces overseas, their spending and tourist spend ing abroad, dividend, interest and loan repayments and the move ments of gold to balance inter national accounts." An average citizen may then ask, "What has all this got to do with me?" One solid answer is that it af fects U.S. jobs and taxes, due lo Us influence on the value and purchasing power of the dollar. It can influence your mort gage interest rates or time pay ments on a new car. This last is an intricate daisy chain, but it can be followed. On the day President (v'ennedy sent his long message to Cong ress with recommendations to improve the U.S. balance of pay ments position, the Federal Re serve Board raised the interest By FULTON LEWIS JR. The departure from Washington of Elizabeth Rudel Smith, a pert California divorcee, has killed , one of the most bizarre schemes under high-level consideration in recent years. An ardent Kennedy-for-Presi-dent Democrat, Mrs. Smith was named Treasurer of the United Slates during the first days of the new Administration. In that position, she plugged hard for multi-color currency, for dollar bills tinted ochre, for five spots colored pink, for lavender tens and scarlet twenties. The experts could not convince Mrs. Smith the plan was wild ly impractical. They told her that mulli-color currency would con fuse the public. There are more than five tril lion pieces of currency with a lolal value of $31 billion cur rently in circulation. To introduce a new type of currency inlo the economy. Mrs. Smith was told, would lie a great hazard in that if would encourage counterfeiting and could deceive the public. Mrs. Smith stepped down from her post last year and was suc ceeded by Kathryn Granahan, a Philadelphia Congresswoman who had lost her seat through redisricting. Mrs. Granahan huddled with Treasury olficials including H. J. Hollzclaw. Director of the Bu reau of Printing and Engraving, and asked about the feasibility of multicolor currency. After a personal investigation Mrs. Granahan turned thumbs down on her predecessor's scheme. In a recent report to Treasu ry Secretary Douglas Dillon, the Chief of the United States Secret Service reviewed his war on Ihe nation's counterfeiters. James J. Rowley revealed that his agents last year picked up almost $3 4 million in counterfeit currency. Of this more than $2 R million was seized before it was put in circulation. The other half million was turned in by banks and individuals who had been stuck. In June of this year, agents of Chief Rowley's Secret Serv ice seized more than a million dollars in phony twenties from five North Carolina residents. Run olf the presses of a legitimate print shop by an unscrupulous busi nessman, the bills were less than 48 hours old when Secret Service agents swooped down. Tliey were tipped ofl by an undercover agent who had two days earlier pur chased HO.OOO of the phony bills. In June, 19H2, a counterleit $30 showed up in Fort Lauderdale, rate on its loans to banks from 3 to 3.5 per cent. It also authorized U.S. banks to raise to 4 per cent the in terest rales they charged on short term loans from 90 days to a year. The aims were to attract for eign money to the United States and to encourage U.S. corpora tions and others with surplus funds for investment to keep this money in this country. Tins action was not intended to affect long-term interest rates on mortgages or corporate and municipal bonds. There is no agreement among all government or private industry economists, however, that long-term interest rates will not be pushed up by Ihe authorized increases in short term rales. One overriding concern is that if a federal tax cut doesn't come soon to release new funds for saving and investment, a tight money supply might develop. Higher interest rates would re sult and might slow up new busi-1 ness investment. This would hold back economic growth and employment a prime Kennedy objective. We come to the interest which consumers must pay on their homes and autos. The rates now average between 6 and 7 per cent. In a tight money market though, when in terest rates are going up, the terms may be changed to make up the difference. Down payment requirements could be increased. Auto loans could be cut from 36 to 30 or even 24 months. Mort gages might be granted for only 25 years instead of 30. The re sult is larger monthly payments, which hit consumers hard. The alternative to the compli cated balance of payments ad justments could be even worse. Say the United States doesn't raise its short-term interest rates. Then foreign depositors could de mand payment in , gold which U.S. depositors can't do and the drain on U.S. gold stocks could continue. Then con fidence in the dollar at home and abroad may be further impaired. WASHINGTON REPORT . . . '. Counterfeiting One , Of Principal Rackets j Fla. During the next fortnight; identical bills were passed in Mir ami. Investigation disclosed the identity of the passer as an em ploye of a Fort Lauderdale printing firm. On July 5, 19t2 he was ar rcsled and $99,000 in Counterfeit bills were seized along wilh the plates and negatives used in their manufacture. The passer, who had manufac tured the bills without the knowl edge, of his boss, is now serving a five-year sentence in Federal prison. One year ago fake tens and twenties began to appear in the Chicago area. Crudely - etched, they were thought lo be the work of rank amateurs. Within a short time, new bills appeared. Similar to the first issues, they were, however, much improved. Il was obvious the counterfeiters wore making pro gress. By January. 1963, more than $17,000 in twelve different issues had been passed inside Chicago. Each bill wes shown lo be the work of the same group. Secret Service men determined that tiie notes were distributed by a small group of Cook Coun. ly crooks. Simultaneous raid were conducted in April, 1963 on a restaurant and residence, re sulting in the arrest of the five manufacturers, and the seizure of the press, plates, negatives and several thousand dollars in uncut counterfeit bills Al manac By I niled Press International Today is Wednesday. Aug. 14, the 226lh day of 1963 with 139 to follow. , The moon is approaching its new phase. The morning stars are Jupiter and Saturn. . The evening stars are Mars, and Saturn. On this day in history: In Ihoo. 2,000 U. S. Marines helped in the capture of Peking. China, which ended the Boxer Rebellion. In 1929, Uie dirigible Graf Zeppelin left Germanv with 20 passengers on a round-the-world trip. In 1943, President Harry Tru' man announced that Japan had unconditionally surrendered. A thought for the day Amer kan essayist Henry Thoreau '!: "The mass of men lead lives of quiet desperation."
