Banner Graphic, Greencastle, Putnam County, 24 September 1974 — Page 8

*

Page 8

Banner-Graphic, Greencastle, Indiana

Tuesday, September 24, 1974

Business Mirror" ^ orc ^ M ust Use "Wisdom Of Solomon

By JOHN CUNNIFF AP Business Analyst NEW YORK (AP)-There is no dearth of material from which President Gerald Ford can pick and choose in formulating an anti-inflation policy. There never was, and that is precisely his problem. He must exercise the wisdom of Solomon. On the matter of taxing, for example, Richard Cooper of Yale University claims a tax reduction of $10 billion to $15 billion for low-moderate incomes would be anti-in-flationary. But J. Kenneth Galbraith of Harvard urges a tax increase. The proposals advocated over the past three weeks of presummary are replete with contradictions and special pleading of business, finance, labor, government, housing, the poor, investors, borrowers, lenders .... But there are areas of agreement as well, especially in regard to lowering interest rates, keeping a check on government spending, and attempting to keep joblessness from rising swiftly during the adjustment to more stability. Among the suggestions that must be considered by Paul McCracken, who has the unenviaole job of formulating an economic program, are these — separated into monetary (money supply, cost) and fiscal (government spending, taxing) categories: Monetary: —Ease Federal Reserve policy on money supply. Widely advocated by economists and others of all persuasions. While administration spokesmen opposed mildly, Arthur Bums, Fed chairman, indicates the easing already may have begun. —Allocate credit to most productive uses. Money now is allocated by price alone. Has been suggested that criteria of efficiency and social good, such as to boost housing, also be used. —Negotiation of an international agreement to regulate Eurodollars. These are obligations payable abroad in U.S. currency. Critics contend that while domestic dollar supply is limited by Fed, dollars abroad unregulated. Fiscal: —Balance the budget. That is, don’t permit government spending to exceed revenues. Widespread support. Government budget deficits over a long period of time are highly inflationary. “There is only one cure and we all know it,” said Milton Friedman of the University of Chicago, generally regarded as a conservative. “We have to

slow down total spending. Only the Federal government can do that ...” —Use taxing power for special effects. Nathaniel Goldfinger, AFL-CIO economist, proposes an excess profits tax. Investment community wants to encourage capital formation by lowering income tax on interest and dividends. Some economists suggest higher taxes on income to curtail demand. But others suggest a tax cut for lower income workers to make them more satisfied with smaller wage increases. Many of the suggestions from economists and others go beyond the usual fiscal-monetary measures. Among the suggestions for a multidimensional attack on inflation are these: —Controls or restraints. Business especially complains about negotiated inflation through wage settlements, but unions declare something of the same sort occurs with prices. Less support than in past, but still prominently mentioned. —Indexing. Advocated by the Friedman school. “Escalator clauses on all sorts of things,” says Friedman, plus cost-of-living adjustment on taxes. Al-

ready used in labor contracts, which specify raises equal tc inflation rate. —Examination of existing regulations and subsidies. Hendrik Houthakker, Harvard economist and former adviser to President Nixon, claims he has a list of 45 federal programs that inflate prices and which should be ended. Business complains that environmental and safety regulations raise prices without contributing to production. Transporters claim maze of regulations on how things must be shipped adds to costs and prices. Thomas Moore of Michigan State University insists that erasing Interstate Commerce Commission regulations would reduce trucking charges by 20 per cent or more. Limitation of competition among airlines also keeps prices high, he says. —Antitrust action. Various proposals have been suggested even before pre-summit conferences. The belief is that concentrations of power in big industries, unions, institutions tends to reduce competition. —Encouraging smaller businesses. The more competition the lower the prices — in theory anyway.

By ROBERT A. DOBKIN AP Labor Writer WASHINGTON (AP) - Spokesmen for the nation’s cities urged President Ford today to support a proposed federally funded $4-billion public service jobs program to deal with rising unemployment. The National League of Cities and the U.S. Conference of Mayors said the type of program discussed earlier this month by Ford “is a far cry” from what is needed to take the sting out of inflation. In a statement prepared for today’s state and local government conference on inflation, the two organizations endorsed a proposal first made by Arthur F. Burns, chairman of the Federal Reserve Board, for providing 800,000 public service jobs. “Such a program should be advocated by this adminis-

tration,” declared the two organizations, which together represent 15,000 municipalities. The conference is one of a series leading to the economic summit at the White House later this week. The mayors offered a ninepoint program for curing the economy. In addition to the jobs program, their proposal included tax reform, expanded urban economic development, increased federal subsidies for public transit and reenactment of general revenuesharing programs. They also warned against excessive cuts in the federal budget, saying that “if the knife is employed too freely, there is a strong possibility that the current economic recession will deepen—unemployment will rise, economic output will further decline and profits will

be lost.” The administration has called for a $5-billion cut in the current federal budget, with most of it to come from domestic social programs. “Those people most adversely affected by today’s economy—the poor and the elderly— would be required to shoulder the additional recessionary burden that excessive federal budget cuts would likely produce,” the mayors said.

The public employment program proposed by Burns and endorsed by the mayors would be triggered when local unemployment rates reach 6 per cent and would be separate from existing federal programs. Ford, in meeting with labor leaders Sept. 11, spoke of an existing jobs program based on currently available federal resources. The President said that “contingency plans” would be developed against the

possibility of substantially higher unemployment, but gave no specifics. Mayor Kenneth A. Gibson of Newark, N.J., said in a statement that mayors are caught in a squeeze between inflation and citizens’ demands for improved services that is forcing city officials to make compromises with the quantity and quality of municipal services.

Known For Simplicity

OXNARD, Calif. (AP) - Walter Brennan played many different personality types over a half century, but he was known for brevity and simplicity in his own life. Brennan, who died at 80 on Saturday after a long battle with emphysema, was noted

for playing the grizzled sidekick to the big stars of Westerns early in his career. He later gained national fame as the wise and wisecracking grandfather, Amos McCoy, in television’s "The Real McCoys.” Brennan’s first Oscar was

awarded for his 1936 performance in “Come and Get It,” in which he played a lumberjack who ages from 25 to 75. Two years later, he won an Oscar for portraying an 84-year-old man in “Kentucky.”

Underground Fear In Japan

By STEVE WILSON Associated Press Writer TOKYO (AP) - Fear is growing that Japan’s elusive underground radicals may be ready to resume a terrorbombing campaign, with Japan’s biggest companies their main targets. The bomb explosion which killed eight people and injured more than 300 on Aug. 30 in Tokyo was the first overt indication the radicals again may be going on the offensive here. The Japanese gunmen’s takeover of the French Embassy in the Hague last week has intensified these fears and further demonstrated the skill and dedication of the Japanese radicals such as the Red Army members. Police say Japanese leftists have even published a textbook on how to make bombs, entitled “Poem of Roses.” The nation has a long history of political violence. Its present crop of terrorists has baffled police, and probably are causing concern for officials planning President Gerald Ford's scheduled visit to Tokyo in November.

A number of important business sources say they received discreet warning from officials this summer that another wave of terrorism might be expected. “At the time we laughed and didn’t take it seriously,” said an employe of a big bank recalling a warning sent to employes to be on guard for bombs and the like. “No one is laughing now,” he declared after last month’s blast at the Mitsuibishi Heavy Industries building, Japan’s largest defense contractor. The explosion "did not come as an utter surprise,” declared an executive for one of Japan’s major companies. “We had received a warning that some big corporations may be bombed.” The motive behind most of the terrorist acts in Japan seems to be to strike at symbols of authority and power, such as police, railroads and the nation’s business elite. Radicals used bamboo staves for weapons in the late 1960s. But as they were driven underground by the usually efficient Japanese police, many have taken up other weapons, particularly bombs.

PRESTIGE

Your money starts earning the same day you make a deposit — and keeps right on earning right up to the day you make a withdrawal, And your savings are compounded daily. Even more, Prestige Card holders soon will find their card may be used to obtain emergency funds in participating savings and loan associations throughout the country...

tfieeHcnAttfe' 7-edebcJl

SAVINGS & LOAN

Tim«& Temperature 658-1212

Weather Forecast 653-8466

Of Mon.-Sat.,9to5 p.m.

SALE OF FAMOUS Stratalaungers Americas fastest selling reclining chair.

BUY NOW... SAVE NOW!

00

Reg.

*124.95

Sole Price $ 1 O 8

SAVE *16.95

It’s TIME to relax in man-pampering comfort Now's your chance to save on a famous Stratolounger Reclining Chair. Its quality craftsmanship and expert tailoring will please you at this amazing low, low price. Visit Link's ... sit down, recline back and relax. It's TIME to change to a new indoor lifestyle. TIME to consider your comfort now and for years to come. TIME to save on this durable, supported vinyl Stratolounger and enjoy years of pleasure.

Colors: Rich Black Cool Olive

Convenient Credit Terms Free Delivery

FINE SELECTION OF BUYS

Bring the family. Shop now . . . Buy now . . . SAVE now on vinyls & fabrics in all shapes and size. There's one right for your family. Discover a new indoor lifestyle of family enjoyment and SAVE!

SUPER-SIZE STRATOLOUNGER® Olive or Brown Textured Vinyl

EXTRA-POSITION STRATOLOUNGER XP® Brown Vinyl or Stripe Fabric

Reg. *144.95 128 00

Festival

Sale Price..

Extra-wide, extra-high Stratolounger Rediner upholstered in a extra-heavy supported vinyl. Soft, pillow headrest and a but-ton-tufted back add to the comfort and man-

size comfort appeal.

Reg. *159.95 Festival $] A 4^ Sale Price... H.rc3nFobnc!..mss Total stretch-out comfort of an extra-posi-tion Stratolounger XP can be yours for years. Modern styling upholstered in durable vinyl of Herculon Fabric.

Other LoBacks From *1

Qualify... Value Service ... Low, Low Prices

y&taceYlnk "The Store of Furniture" Greencastle, Indiana

SPACE-SAVING STRATOLOUNGER LOBACK® Lush Olive Velvet Festival f\ r\ QOO Sale Price... £ £ O

Reg. *249.95

Twice the chair a small lounge chair or a full six# recliner with an extra stretchout position. This Stratolounger lo back is the answer to any space problem and has the elegant look many decors need with new

casual comfort.