Banner Graphic, Volume 10, Number 118, Greencastle, Putnam County, 22 January 1980 — Page 2
A2
The Putnam County Banner Graphic, January 22,1980
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lowa results
Carter takes state by landslide; Bush passes Reagan
DES MOINES, lowa (AP) President Carter, back from the political depths, has taken command of the race for the Democratic presidential nomination, and now it is Sen. Edward M. Kennedy who has to prove himself. He’ll have ample opportunity. In lowa’s Republican competition, former United Nations Ambassador George Bush led Ronald Reagan, and burst from a crowded field as the prime challenger to the former California governor. The GOP returns were incomplete, but Bush said he had a victory whatever the final tally. lowa belongs to the president, by a landslide, but in a month Carter will face Kennedy again this time in the challenger’s home territory. The verdict of lowa’s neighborhood political meetings Monday night did not alter the stakes in New Hampshire, which holds the first Democratic presidential primary election on Feb. 26. The Massachusetts senator could, and did, shrug off his drubbing in the farm country, but his candidacy probably could not survive a defeat in New Hampshire, where the voters speak with his own clipped New England accent. The lowa vote was recorded in 2,531 precinct political meetings, which chose delegates to county caucuses and apportioned the state’s votes for a 1980 presidential nominee. With 2,422 precincts counted. Carter had won 59 percent of the precinct level delegates, Kennedy had won 31 percent, and 10 percent were uncommitted. The protected lineup of nominating votes at the national convention was 29 for Carter, 15 for Kennedy, 5 uncommitted, and 1 yet to be awarded. Final computations could alter those totals. lowa Republicans changed their party’s campaign landscape by awarding Bush his narrow edge over Reagan. It was a near thing, but for Reagan, whose managers used
Carter makes buildup of military strength a
WASHINGTON (AP) Pres ident Carter says Americans “must pay whatever price is required to remain the strongest nation in the world.” In a written State of the Union message delivered to Congress Monday, the president took a hard line toward the Soviets and placed a U.S. military buildup first among American goals for the 1980 s. “The Soviet Union has built a war machine far beyond any reasonable requirements for their own defense and security,” Carter said. To counter it, he said, defense spending will be boosted 3 percent, after accounting for inflation, and alliances will be strengthened. Plans for an in-
Banner-Graphic “It Waves For All” (USPS 142-020) Consolidation of The Daily Banner Established 1850 The Herald The Daily Graphic Established 1883 Telephone 653-5151 Published twice each day except Sundays and Holidays by LuMar Newspapers. Inc. at 100 North Jackson St., Greencastle, Indiana 46135. Entered in the Post Office at Greencastle, Indiana, as 2nd class mail matter under Act of March 7,1878. Subscription Rates Per Week, by carrier $.85 Per Month, by motor route $3.70 Mail Subscription Rates R.R.in Rest of Rest of Putnam Co. ' Indiana U.S.A. 3 Months $10.25 $11.25 $13.75 6 Months 20.25 22.50 27.25 1 Year 40.25 44.00 54.45 Mail subscriptions payable in advance . . . not accepted in town and where motor route service is available. Member of the Associated Press The Associated Press is entitled exclusively to the use for republication of all the local news printed In this newspaper.
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crease of that size had been announced previously. More measures will be outlined by Carter in his State of the Union speech Wednesday night. In another part of his speech, Carter appeared to be willing to
Tax cut would worsen inflation: Carter
WASHINGTON (AP) - President Carter says he isn’t proposing a tax cut this year because it could worsen inflation, although he held out the possibility of a tax reduction later in the year if the economy goes into a nosedive. “Restraining inflation remains my highest domestic priority,” he said in his State of the Union message Monday. “The urgency of the anti-inflation fight requires that we defer such tax reductions at this time.” While a tax cut could be included in an anti-recession
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PRESIDENT CARTER GEORGE BUSH Democrats and Republicans pick their favorites front-runner as a synonym for his name, a defeat could be devastating. For Reagan, as for Kennedy, victory in New Hampshire is a must. A defeat there would make his slide almost impossible to arrest. Bush said lowa had done for him what it did for Carter four years ago. He said he’d been transformed from an asterisk on the list of candidates to the Republican with the momentum to handle Reagan in the presidential primary elections. Bush said he’d head for New Hampshire immediately, “and we’ll do better there.” Kennedy managers said that accounted for the margin of Car-
extend an olive branch to Iran if the Americans hostages being held there are freed unharmed. He said the administration was prepared to develop “a new and mutually beneficial relationship” with the regime of
package if the economy suddenly deteriorates, Carter cast doubt on his own administration’s forecasts that Americans are facing a recession. Practically all economic forecasters “predict the onset of a mild recession” in 1980 and his own 1981 budget also assumes a recession, he said. But he noted that the widespread predictions of a recession last year were wrong and said it would be a mistake to take one for granted. “In recent months, the economy has displayed much more strength than earlier forecasts
Soviets tighten grip on Afghanistan
By The Associated Press The Soviet Union is reported tightening its grip on Afghanistan, with thousands of administrators taking over the government and troops transferred from Eastern Europe replacing Afghan army deserters. The Sunday Times of London reported from Kabul that almost 5,000 Soviet bureaucrats have been flown to the Afghan capital to clean up the mess resulting from three communist coups in 20 months. The Times correspondent said a senior Afghan official told him the Russians ordered him “not to show my face in the office unless it is to collect my pay.” The correspondent for the Indian Statesman wrote Monday
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Ayatollah Ruhollah Khomeini if the hostages are released. “We have no basic quarrel with the nation, the revolution or the people of Iran,” the president said. “The threat to them comes not from American
had predicted,” Carter said. “Forecasts of impending recession may therefore prove to be as wrong as previous ones.” The president will send his proposed 1981 budget to Congress Monday. He will deliver his State of the Union address this Wednesday. Carter said his budget will contain only a “critical few” new programs and will cut the budget deficit in half, while providing for a sharp increase in defense spending to ensure “a strong, unsurpassed defense capability” for the nation. The president said he recog-
after arriving in New Delhi from Kabul that the Soviet hold on the Afghan government is “complete and irreversible.” He said Afghan sources told him each minister in the cabinet has two Russian advisers. “No decision at any level of government...is taken without approval of the Russian advisers,” the sources said. Sources in Islamabad, Pakistan, said Soviet troops being flown to Afghanistan from Eastern Europe were replacing deserting Afghans. “What’s happening is that the Afghan army is suffering such rapid desertions that the Soviets are reaching the point where there will be no indigenous forces to rely on,” he said.
ter’s victory. The challenger had tried to set an unreachable target for Carter by saying he’d have to take at least 50 percent of the vote to claim success. Carter got that and more. “I deeply appreciate the vote of confidence from lowa Democrats,” Carter said at the White House. “Their expression of support is particularly welcome in these difficult times. ” Kennedy’s spokesmen said the caucuses had become a ref-. ‘ erendum on Afghanistan and Iran, to the disadvantage of the * challenger, who wanted to focus the campaign on inflation and the economy. r In the days before Kennedy became a candidate, the national polls showed him far more popular than the president, and some * Democratic politicians speculated that Carter might be forced out of the campaign early in the season. Not now But in a season of 36 presidential primary elections, lowa was only a preface. The next set of contests all are in New England, with Massachusetts and Vermont balloting on March 4, a week after New Hampshire. Then the primary competition moves south, to Carter country . Georgia, Florida and Alabama all vote on March 11. Not until March 18, in Illinois, will Kennedy and Carter meet ~ again outside the neighborhood of one or the other Powell noted that the campaign now becomes a sort of “home and home situation,” first in New England, then in the deep South. Republican Bush said he’d started from nowhere and . achieved “the impossible dream.” He told a victory rally in Des . Moines that the analysts were saying organization accounted for-, his showing. “Well, what the hell is wrong with organization?” he asked. “That’s grassroots politics.”
policy but from Soviet actions in the region.” At the same time. Carter reaffirmed his abhorrence at the Nov. 4 seizure of the U.S. Embassy in Tehran and insisted that “our patience is not unlimited and our concern for the well-being of our fellow citizens grows every day.” Condemning the Soviets in Cold War terms, the president accused the Kremlin of “ruthless extermination” of the last government in Afghanistan and said they were now within striking distance of the Indian Ocean and the Persian Gulf. In response, Carter said, the United States is prepared to “confront the threats they may pose to our security. ”
nizes that many Americans’ tax burden has increased. But he said a tax cut now would increase the budget deficit and could overstimulate the economy, which could worsen inflation. “As long as double-digit inflation continues and there is no sign of a recession, our top budgetary priority must be reduction of the deficit,” he said. It has become almost standard political practice for Congress to enact a tax cut in an election year, and Carter seemed to regard a congres-
Strenghtening dollar attributed to Carter's stand LONDON (AP) Gold dropped more than S7O an ounce in Europe today in a bout of profit-taking. The dollar firmed, and dealers attributed the strengthening to President Carter’s stand against the Soviet intervention in Afghanistan. - London silver, which has been climbing roughly in line with gold, also dropped today. It was quoted at $41.50 an ounce, down from S4B Monday. Gold, which closed Monday at SBSO in Zurich and $838.50 in London, opened in both centers at $835 today. London’s five major bullion houses fixed the price for morning trading at $763, and in Zurich, the metal was quoted at $777 at midday. Gold closed at $834.39 an ounce in Hong Kong today. $6.61 above Monday’s close but far below the record prices set Monday in New York and Europe. Trading in Hong Kong opened at $815.67, down $12.11 from the closing price Monday of $827.78, then shot up to a peak of $835.08 in midmorning. Profittaking brought the price down, but it climbed steadily in the afternoon because of rumors that the situation in the Middle East was deteriorating. On Monday, the price hit a Hong Kong record of $838.78 an ounce. In New York, gold prices soared to $875 a troy ounce Monday before slipping back by SSO or more in late trading Gold for January delivery reached a high of $875 on New York’s Commodity Exchange Inc. before closing at $825.50, up $13.50 for the day. At Republic National Bank of New York, gold was quoted late Monday afternoon at SB2O, up $22. New York currency dealers said Carter's iate-altemoon announcement that the United States “must pay whatever price is required to remain the strongest nation in the world" gave the dollar some support.
priority:
The president did not directly mention the prospect of going to war, but a senior administration official told reporters at the White House that “when we say we are prepared to use force to defend our interests in that part of the world, we mean it. ” The official said U.S.-Soviet relations were in “a period of intensified tensions” and the American public “has got to understand this is a long-haul effort.” At the same time, he said, the administration and the news media “should avoid an impression we are on the brink of some military confrontation.” Neither he nor Carter indicated the long-term cost of the U.S. military buildup.
sionally mandated tax cut as a possibility this year. When and if tax cuts are enacted, the president said Social Security payroll taxes should be at the top of the list. A big increase in Social Security taxes is scheduled in 1981. Carter predicted some success in controlling inflation, saying, “Inflation will slow this year. In 1981 it should be even lower.” Consumer prices increased about 13 percent last year, and most economists predict a rise of 10 percent, or slightly below, in 1980.