Evening star., 1954-07-14
Presidential Adviser
Sees National Gross
Up 10 $3.50 Billion
BY the Assoeiased Press


BOLTON LANDING, N. Y,
July 14.-Presidential Adviser
Gabriel Hauge told the Nations
Governors today that the econ
omyis Stabilizing and the
country is catching its breath
for a possible advance to $3.50
billion gross national product in
five years.
Speaking at a panel session on
the final day of the 46th annual
Governors Conference here, the
White House economist said
President Eisenhower's legisla-
tive measures already approved
and now before Congress contain
billions of dollars of economic
punch and stimulation"
Contending that what he
called the recession or readjust-
ment" which has been in prog
ress since July, 1858, has been
halted, Mr.. Hauge said a reor-
ganization now is going on that
should bring a forward surge.
1.-THE chances are excellent"
he said, that the economy can
be held within minor variations
in the next five years and there
is no reason why we cannot
reach a gross national product
of from $140 to $50 billion"
The gross national product of
services, manufacturing and
other factors, now is operating
at the rate of about 1857 billion
q year.
While Mr.. Hauge did not men
ton it specifically, Governors
agreed generally that President
Eisenhower's proposal to super
impose a 10-year $50 billion i'm
terstate highway building pro-
gram on normal outlays Of $40
billion in that period would help
stimulate the economy.
Gov. McKeldin Speaks.
Gov. Theodore McKeldin,
Maryland Republican, told his
colleagues the Governors have
been suffering a severe attack
of buck fever" in expressing fears
that the Presidents proposal
means that they would be barred
from controlling highway pro-
grams of the future.
In a prepared speech defend
ing the Presidents proposal Gov.
McKeldin said President Eisen-
hover seeks to dictate nothing"
about the form the program
should take.
Abiding to demands that the
Federal Government get out Of
the gasoline and auto tax field
and let the States collect such
levies to finance highways. Gov. |
McKeldin said the President was
not foreclosing such system.
All the President was asking, |
Gov. McKeldin said, was for the |
Governors to get together on a
national program.
"He did not call his proposals |
q Federal program" the Mary
land Governor said. "He did not |
say it is to be or should be fl
nanced by the Federal Govern
ment."
Cites Re-adjustment.
Mr.. Hauge told the Governors 1
the Nations economy appears to
have gone through a moderate
re-adjustment," insisting that
such wrinkles" in the business
curve are inevitable under a
free economy and play part |
in avoiding any deep depression.
To-day we have reached the
point where the retreat from
July, 1858, has been halted" he
said. ''It is a point where stabili-
cation and reorganization is
going on and the economy is |
catching it's breath to go for
ward"
He mentioned as factors point |
ing toward this a lengthening of |
the average work week, resur-
gent retail buying, lowering of |
savings, shrinkage of the num-
ber Of those unemployed for |
more than Is weeks, the rising |
stock market, more stability in
prices. an increase in industrial
output and higher average
weekly earnings.
Mr.. Hauge said. however, that |
attention still must be paid to |
cost-price relationships, that the
farm surplus situation must be |
cleaned up" and that large in
dustries need strengthening.
Proposals Are Listed.
Among President Eisenhower's |
legislative proposals he said |
would add impetus to the econ
omy he listed tax revision, farm |
price-support changes, social Sc
curity expansion, housing and |
slum clearance, increased unem-