Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-01-29
Key Democrats Hit
Eisenhower's Plan
To Bolster Economy

gram to meet the current bust
ness decline today drew the fire
Of key Democrats on Capitol
Hill. while Republicans generally
applauded it.
In his first Economic Report
to Congress yesterday, the
President expressed "Some as
surance" that the slump would
be cured early-particularly If
the corrective program he Is adj
vancing goes through. At the
same time, however, Gen. EiSen-
hover admitted that there is mo
assurance" that there will not
be further trouble.
Senator Sparkman Of Ala
bama. senior Democrat on the
Senate-House Economic Com
mittee which considers the re-
port as a possible basis for legis-
lation. said the President Of
fered mobile generalitieS." He
added:
81 don't think the measures
he has proposed hold much hope
Of q greater prosperity. The
danger signs are out. He is not
meeting them. He has the tools
but he is not using them"
Boiling Hits Program.
And Representative Boiling,
Democrat, Of Missouri, another
committee member, said:
THE President seems to think
our economy will be affected by
pious exhortations. I think we
need to move faster and harder.
We need more action and fewer
words"
On the other hand, Senator
Watkins, Republican, Of Utah,
second-ranking G. o. p. COM
mittee member. declared the
President was dead right" in
his appraisal that the present
downturn is q moderate inven-
tory adjustment and that the
economy should turn upward
again in a few months.
Senator Watkins said the
President offered a Every sound
program" to meet the situation.
"A short time ago." he said,
everybody was screaming to
stop imitation. Now we've stopped
it. and of course there are bound
to be some adjustments. We are
stabilizing the economy. Does
anybody want to start prices
looming again?"
VIII Meet DR.. Burns.
These and similar conflicting
views by other members were
expressed in separate interviews
as the committee scheduled a
closed session this morning to
get further word from DR.. Ar
thur Burns, chairman of the
Presidents Council of Economic
Advisers. which shaped the re-
port.
DR.. Burns led a procession of
cabinet members, economists,
business and labor leaders who
will testify in the next few weeks
on the report. The committee is
due to report its reaction by
March /.
Gen. Eisenhower gave this
analysis:
The Nations "marvelously
prosperous" economy suffered Q
moderate contraction" in the
last half Of 1858. mostly because
business stocks had piled up too
fast. Business reduced purchases
for inventory. Production, en-
ployment and income dipped
slightly. but the basis Of eco
nomic activity-retail sales-re-
NAMED high. The economic dip
should come to a halt soon" and
the economy should turn upward
again.
Urges Early Action.
The President said enactment
OF his legislative program for tax
reductions and revision, bigger
social security and unemploy-
ment BENEFITS and broader COW
erage. stimulantS to housing and
other steps are Immediately ad-
visable" to help business.
Further, he said, the Govern
ment stands ready to use imme-
diately q formidable arsenal of
weapons" to prevent a depres-
sion if the future brings need
for emergency steps. A public
works program is in the blue
print.
Representative Bender, Re-
publican, Of Ohio. another eco
nomic committee member, said
administration officials ARE not
complacent and they are not
whistling in the dark. We are
generally in good shape and we
will continue to be in good
shape"
AAttAC StAMut0S SCCu,
Senator Sparkman said he
would like to think Gen. Eisen-
hover is right, but: THE report
is deficient. For example, farm
income is way down and he of
fers not one single thing that
gives hope of increasing it. In
stead he definitely promises
lower farm income"
His proposed tax program
will benefit the few. but give
little stimulus" he said. HE
does not raise personal income
tax exemptions to increase pur-
chasing power of all the peo-
pie, which turns the wheels in
factories.
Il certainly am not prophet
Of gloom, but certainly we need
to recognize the danger spots,
and use the tools available in
stead of speaking in general
tiles"
Atomic Sub 10 Receive