davidaulloa/AmericanStories huggingface dataset:
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-03
~ ISABELLE SHELTON

It is unreasonable to
allow a man to borrow up TO
rs per cent TO buy a car. 100
per cent to buy a washing
machine and - per cent to
buy q house. but let him Dor.
row only 30 per cent to buy
an interest in the company
that makes those items.
q. Keith Funston. presi-
dent Of the New York Stock
Exchange. set forth this ar
gumeht yesterday 70 the
Women's National Press Club.
ct the groups opening fall
luncheon at the Hotel Stat
Ter.
Stock market margin re-
Quirements-which are COM
parable to down payments"
ought 70 be lowered from
their present 70 per cent TO
"a normal 40 to so per cent"
Mr.. Funston commended.
"The effect Of lower mar
gins. ! am sure he said.
twill be to provide added
liuuidity to the market, added
incentives to investors and
added announcement to
companies seeking growth
money"
General acroSs-the- board
credit controls-''for which
the Federal Reserve Board
deserves hearty appreciation"
ARE much more effective
than selective margin con-
trolls as q brake on the
Market he declared.
This is mo more than
acknowledging the fact that
If money Is tight everywhere.
it viii be tight in the stock
market as we'll" he added.
Like an Auto Brake
Likening general credit
controls to an automobiles
foot brake. and selective
control Of stock market credit
to a cars emergency hand
brake. Mr.. Funston said use
Of both sets Of credit con-
trolls at the same time lis
much like our trying to take
the curves with both the foot
brake and the emergency
brake jaInmed on"
Present high margin re-
quirements are not having
the intended effect. he argued
further. They ARE having
their greatest impact. not on
stock market credit. but in
an area they were not de-
signed to affect-on stock
market volume and liquidity."
The stock market chief
tain said he is mot so much
interested in a specific date
on the calendar" for lower
ing margin requirements.
But ! am interested in
establishing clearly that
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-03
Stock Exchange Head
Urges Lower Margins

general credit controls can
effectively regulate stock
market credit. and that the
super-imposition Of high
margins is accomplishing no
constructive purpose. Indeed.
1t is doing the opposite" he
said.
"SoFry Old Myth"
Mr.. Funston said he also
would like to expose a sorry
old myth about the fictitious
extent Of stock market credit.
Out Of a total national in
debtedness Of $500 billion
$426 billion Of 1t private. the
rest owed by the Govern
ment--the securities industry
accounts for only SIS to 81
hillion-''less than six tenths
Of l per cent Of the total"
he said.
Moreover. the amount Of
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-03

securities industry credit
actually has declined BY 2S
per cent since the end Of
World War H." he contin-
ued--and at = time when
farm credit jumped more
than 1855 per cent. mortgage
credit leaped over $50 per.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-03
ChiIdren's coHlIIon

The Naval Gun Factory
Childfen's Cotilllon win re-
sumo its annual series Of BIZ
weekly dances on October i6.
The cotillion is under the
direction Of Miss Adelaide
Courtney.
The membership Of the co.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-03

tillion Is composed OF chill
dren whose parents are In
the armed services. and are
on active duty, and Is d.
vided into two groups. those
whose ages are 8 through 10.
and those II through Is.
Mrs J. v. BeWick Il CHAIR
man.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-03

State and county once
holders, and = list Of phone
numbers for county informal
ton. ranging from "agricul-
tural agents" to "zoning APP
peais.a Ample space is pro-
vided beside each date for
the days lettings.
The calendars viii be on
sale, at 50 cents apiece. at
the Wheaton Newsstand,
Center Book Store In Dethes-
da. Woodward a Lothrop's
Chevy Chase store and the
league ONCE, Ct o37 pershing
drive In Silver Spring.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-03

cent and consumer credit
SCARED e35 per cent"
Stock market credit fep-
resents q vital though infin.
itesimal part Of our total
debt picture-and there Is
every evidence that this
credit Is being used wisely"
he said. TT Is certainly not
contributing to imitation"
But while market credit Is
4 very small part Of the total
economy. It Is q very impOr-
tant part. Mr.. Funston told
the audience.
Il lubricates the wheels Of
industry. and hence Of the
economy. he said.
In addition to advocatine
lowered stock margins. Mr..
Funston suggested that the
market would be improved
and investment encouraged
By changes In our archaic
tax structure-such as cas-
ing the capital gains tax and
the double tax on dividends.
which are inhibltine invest
tnent.1
In answer 10 & question
from the floor. Mr.. Funston
said he does not believe that
present market circumstances
have changed the old adage
that the purchase Of common
stocks Is the best possible
hedge against imitation.
"There Is no perfect hedge
against imitation" he de-
clarcd. But the threat Of tn
fiation has somewhat dissi-
pated in the last few months.
and ! think the old adage Is
still generally sound"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-03
PotrIoiic Group 10 Meet

A meeting Of the Execu-
tive State Board. District Of
Columbia Society. Children
Of the American Revolution.
viii be held at the home Of
Miss Kendra Budd. 1924
North gath road. in Arling-
ton on Sunday at 3 pm.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-10-03
League to Open
Calendar Sale

!. The Montgomery County
League Of Women Voters viii
open the sale Of its 1858
calendars on Monday. octo-
Der Z. This marks the eighth
consecutive year the league
has sold the calendars.
The new calendar has q
map Of Montgomery County
on its cover. showing the IS
election districts. Il also con-
tains Information on voting
and registration. Q list Of
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17

sroe|s Have Little Hope for Real Peace in Gozo Strip

tians," Mr. Ben-Gurion said. "T'hey
are staged. inspired and contrived
by Cairo. and had we been diff
ferent kind of people we could have
done the same thing during the
four months of our occupation.
Even as MIR. Ben-Gurion talked,
the situation in the GAIA Strip
grew tenser. 1t was anybody's guess
whether 1t would deteriorate suffi-
GENTLY to compel Israel to take
defense measures"
Fedoyeen Are Active
Reports reaching Jerusalem in
dicated that fedayeen mobs armed
with rifles and submachine guns
roamed the areas towns and vii
lagos. threatening anyone suspected
OF having even remotely collabo-
rated with the Israelis.
The rising rhythm OF fedayeen
and infiltrators' depred tion S
against Israel, coupled with the
bitter reality Of Egyptian return
TO the GAIA Strip, were precipita-
ting what might become an intoler-
able situation for Israel.
At the frontier town Of Kisufim,
as at Beeri, Nahal OF and other
frontier settlements, the political
pickering and diplomatic double
talk over the GAIA Strip were hard
little facts--stolen crops, pilfered
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17

remain in the troubled area only
SO long as Egypt wanted them.
On the subject of Israeli shipping
in the Suez Canal and through the
Straits of Tiran entrance to the
Gulf of Aqaba. the Egyptian stand
was equally unyielding. Col. Mas
ser's aides announced that Egypt
would deny passage to Israeli ship
ping in the canal AS for the
Gulf of Aqaba, Cairo appeared
ready to renew her blockade Of
Israeli shipping. tSee story by
Simon Tucker on legal aspects of
Suez-Aqaba dispute on Page A-29.)
In Jerusalem there was gloom and
Illustration. Premier David Ben
Gurion warned on Wednesday that
Israel reserved the right to take
any action, political or security"
If Egyptians returned to rule the
GAIA Strip.
Basic in the Israeli strategy ap-
peared to be the hope that. out of
the international concern with the
crisis in the Middle East-and
particularly the American involve
ment some permanent peace
settlement with her bitter Arab
neighbors can be achieved. Since
Israel's creation as an independent
nation in l948. no Arab country
has accepted the fact of her ex-
iStence except as an unlawful
squatter on land that is rightfully
Arab.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17

fighting Arabs since 1850. described
the present situation graphically:
For months while we had the
GAIA Strip we lived like decent hui
man beings" he said. sliding a gun
nysack full of irrigation pipe fittings
off his shoulder.
II could sleep eight hours and be
fresh for work in the morning. The
fedayeen raids became a bad men,
DRY. Now they've started again.
"They stole 2,40O feet OF irriga-
ton pipe last night, 900 feet the
night before last and 600 feet the
night before that. If this keeps up
Ill never irrigate my oats and al
falfa. The Arabs already have be-
gun cutting our barley to feed their
crummy mules"
In the few days since the GAIA
Strip passed under UNEF ministra-
ton. Arab depredations have stead
lily increased. Kisuf1m. as always,
has been prime target. The set
Element is the westernmost of a
string Of border kibbutzim nearest
the Strip and the Sinai border.
"They steal everything that isn't
nailed down." said another settler.
But we're ready for them now. 1t
took us a little time to get back TO
what had become normality--liv-
Continued on Page A-29
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17
Mideast: Uneasy GAIA

With or without the Eisenhower
doctrine. the United States last
week was more deeply involved
than ever in the cauldron OF the
Middle East. Indeed, the involve
ment appeared to be deeper than
in any foreign situation since the
Korean war.
On the record. the threatening
state of affairs in the GAIA Strip
involves Israel and Egypt, with the
United Nations playing the role of
mediator. umpire and pacifier. But
in cold substance the statements
and actions of the United States are
being watched by all the world as
the certain determining factor in
the crisis.
The attitude of much of the
world was typified by the House of
Commons remark Of British For
eign Secretary Selwyn Lloyd, re-
ferring back to United States pres
sure TO end the British-French-
Israeli invasion of Egypt last fall:
Those who brought pressure to
bear upon us and France and Israel
should have to face up to the facts
Of the situation and undertake a
proper share for securing a solu-
ton
The Foreign Secretary was re-
ferring to the latest development
in the Middle East: Egypt, with
fun United Nations concurrence,
had moved back into the GAIA
Strip, and Israel. openly crying
betrayal" of the Assurance" she
had accepted as a basis for with
drawal of her forces from the Strip
and the Gulf of Aqaba, was max
ing ominous sounds. The prospect
Of renewed warfare was immediate.
Since the United States was the
prime mover in the events Gull
minating in the departure of the
Israeli armed forces from the Strip,
it was obviously the view of the rest
of the world that the next move
was up to Washington.
But Washington gave no sign as
the week ended Of departing from
its basic position that the United
Nations, not the United States, was
in the drivers seat.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17
CPUSA::
No Change

The "new" constitution Of the
American Communist Party, made
public last week, threatens expul-
sion of any member who sis a
strikebreaker. provocateur. engaged
in espionage. an informer, or who
advocates force and violence or ter
rorism. :" The threat also was
extended to any comrade who "acts
to subvert, undermine, weaken. or
overthrow any or all institutions
of American democracy. :"
The news media generally re-
ported the action as remuneration
by Reds of spying and violence.
But. as matter of fact. the
party's 1948 constitution (reaffirmed
in toto in 1850 included the same
bans in identical words. And the
l948 constitution was much like the
1910 document, which included adj
ditionally, prohibitions against de
generates" and "habitual drunk
ards" these latter two having been
expunged in l948.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17
After the Withdrawal

Israel. bowling to strongest pres
sure-and implied assurance
from President Eisenhower and
Secretary of State Dulles, COM
pleted evacuation Of the GAIA Strip
and the Sharm ell Sheikh area at
the mouth Of the Gulf of Aqaba
week ago in compliance with U. N.
demands. AS the Israeli forces
marched out, troops of the United
Nations Emergency Force took over
their positions.
But Egypt. gleeful at the Israeli
backdown, promptly presented new
problems and raised the possibility
of new hostilities President Canal
Abdel Nasser. whose claims to lead
ership Of the Arab world rest largely
on his implacable hostility to the
Jewish state, lost no time in pro-
claiming Egyptian sovereignty over
the GAIA area. Col. Nasser told the
world that Egypt would take over
Immediately the civil administra-
ton of the Strip. and he emphasized
again that the UNEF forces would
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17

irrigation pipe and doubled guard
duty in a cold perimeter of dugouts.
Here the headlines and COM
muniques boil down to back
breaking daytime toll and nerve
racking nighttime tension. to con-
Germ for the safety of children and
a round-the-clock struggle for sim
pie survival.
1t is contest with nature and
with human enemies which a few
hundred phenomenally young but
old-looking men and women under
take willingly, almost gaily, but
which in the eyes of even a cynical
visitor quickly assumes the proper
tons Of pioneering epic.
Somehow these leathery, bearded
"kibbutzniks" manage to pillow and
seed their land, pasture their cattle,
build and repair their squat. strictly
functional houses--thick- walled and
strategically scattered within rifle
shot or mortar range of their Arab
enemies.
Kisufim's greening fields of bar
ley and wheat already knee high,
sweep right UP to the Arabs freshly
scratched. recently seeded but still
brown acres in the adjacent GAIA
Strip.
The Raiders Again
An American. Yisrael Brauner.
who has been dairy farming and
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17
The Budget:
Tired Buck

Ever since President Eisenhower
sent his $7l.8 billion budget to Con-
gress on January 16, Capitol halls
have resounded with protests
against its dimensions. But most
of the ensuing suggestions from
both ends Of Pennsylvania avenue
have been directed more to the
question of who should cut it rather
than how it could be cut.
When the document was released
two months ago. Treasury Secre-
tary George Humphrey said he
thought the budget could and
should be cut. but he wouldn't say
where. Subsequently. Mr.. Eisen-
hover said in effect that If Congress
could find any items that needed
pairing, he'd go along.
All this sounded bit strange to
a Congress more accustomed to adj
ministrations that vigorously de-
fend their own budgets. So the
House passed a resolution asking
the President to show specif1cally
where the cuts should be made.
But on Wednesday Mr.. Eisen-
hover passed the battered buck
right back to Congress. He told his
news conference that. Constitu-
tionally, it was Congress job TO
appropriate funds with which to
run the Government, but just the
same. he'd be glad to help in any
way he might.
Congress. top-heavy with lawyers,
doesn't take kindly to executive
instruction in constitutional prin-
ciples. And it did not appreciate
Mr.. Eisenhowers observation that
they have vast stats in Congress
[andl as a matter of fact. they are
building a new building"
So the House decided to take the
President up on his suggestion that
only Congress can appropriate. Al
most Immediately it voted to chop
the appropriations Mr.. Eisenhower
had asked for the Executive staff by
&c per cent-a $40 million cut.
Then the House went on to cut
more than a half billion dollars
from the Presidents request for ID
independent agencies. Along the
line it voted also to continue two
major revenue producers. the excise
and corporation taxes, for one year
at the present high rates. The cur
rent rates on these two taxes were
to expire April /.
Yesterday a House Appropria-
ton subcommittee asked the Pent-
agon to show where S35 billion can
be cut from the Defense budget
There were signs during the week
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17

leaders indicated they will have
some concrete proposals for his
consideration when he meets with
them Wednesday.
Most important, from the policy
standpoint, will be a suggestion
from MIR. Macmillan that the
United States reconsider its ap-
proach to the United Nations.
Leaving international settlements
up to the U. N. the British fear,
places far too much power in the
hands Of the Afro-Asian bloc, now
in a position to hold the balance
OF power in the General Assembly.
No settlement Of the Middle East
crisis is possible, the British will
contend. unless Britain and the
United States work out a common
policy toward the U. N. London
sources indicate that, in the British
view. that first step involves Amer
lean recognition that the q. N.
lacks the power to enforce inter-
national settlements.
AS second step. Britain expects
to press the President and Mr..
Dulles for early United States men,
bership in the Baghdad Pact. Al
though that defensive alliance of
Britain, Pakistan, Turkey, Iran and
lraQ was largely creation of Dulles
diplomacy. the United States has
never formally joined it. Mr.. Mac
milan is expected to argue that
experimentation of the Eisenhower
doctrine makes membership in the
Baghdad Pact necessary.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17
REPORT FROM JERUSALEM
BY FRANK GERVASI

JERUSALEM. Jews are a
stiff-necked people and we treasure
our love of justice" Prime Minister
Ben-Gurion told this correspond
ent shortly before he publicly
blasted the United Nations posi-
ton on GAIA for being more Con-
cerned with the prestige Of the
Egyptian dictator than with the
fulfillment of Egypt's international
obligations"
1t was clear that Mr.. Ben-Gurion
would consider the Egyptians re-
turn to GAIA threat TO Israel's
security of such magnitude as to
necessitate invocation of Article 81
Of the U. N. Charter. This permits
a threatened nation to use armed
force in self-defense.
what happened once can hap
pen again." Mr.. Ben-Gurion said
and there was no mistaking what
he had in mind.
I'VE shall see what Develops" he
said. But he said 1t with the air
OF a man who knew that in the
long run Israel might be obliged
to rely on its own defense forces,
rather than on goodwill and UNDER
standing Of the u. N. Mr.. Ben
Gurion charged the U. N. with
confounding justice with legalisms.
In Mr.. Ben-Gurion's view, Egyp-
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17
Washington Meeting

AS Mr.. Dulles was flying back
to Washington from Australia and
Mr.. Eisenhower, aboard the missile
cruiser USS Canberra, was en- route
to Bermuda for his meeting with
British Prime Minister Harold Mac
milan, top officials of the State
Department Friday summoned the
ENJOYS of Britain. France. the
Netherlands. Italy and Norway to
special meetings. The department
would say only that recent de-
velopmentS" in the Middle East
were discussed. Press Officer Lin
coin White. stressing that the talks
were mo emergency" said he pre-
sumed" that the GAIA Strip and
the Suez Canal were discussed.
Whatever was afoot. it was in
creasingly apparent that the quick
and easy Egyptian triumph in the
GAIA controversy had alarmed
Israel and dismayed much of West
ern Europe. Mrs. Coda Meir,
Israeli Foreign Minister, took a
special plane to Washington for
talks. She was making the trip,
said a Foreign Office spokesman,
to make an effort TO solve the GAIA
problem by diplomatic means be-
fore the government considers other
means"
Late Friday there was one small
note of reinsurance from Cairo. The
GAIA Strips new Governor, Gen.
Latif. appealed by radio to the
Strips population to cooperate
with the UNEF and give it every
aid to make its work a success.
The general. however. added II
should like to draw your attention
to the fact that those on the other
side of the border (the Israelis)
are trying to distort the fact of
what is happening inside the GAIA
Strip"
Gen. Latif's total force consisted
yesterday Of so military policemen,
10 officers and IL civilian officials.
There was as yet no indication
that units of the Egyptian armed
forces were re-entering the Strip
to replace the 1900 U. N. troops
now stationed there. But Col. Mas
ser has repeatedly emphasized that
the UNEF stay in GAIA is a matter
for Cairo alone to decidea
A few optimists saw in this lat
ter fact strong evidence that Col.
NaSser, having satisfied his more
vociferous nationalist hackers by
reaSserting Egyptian administra-
tive rights in the Strip. would now
let the UNEF remain along the
borders pending further develop
mentS.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-03-17
TheCongress::
GIoboI Issues

The Senate last week heard its
Majority Leader, Lyndon johnson
of Texas, call attention to some
remarks made in Toronto on Tues
day by c. D. Jackson, former adj
wiser to President Eisenhower on
psychological warfare. Senator
Johnson, noting Mr. Jackson's close
connections with cold war planning.
urged that he be called for ques-
tioning in the Senate's investiga-
ton Of Middle East policy. He
will be.
Mr.. .Jacksons comment, as re.
ported in news dispatches, was to
the effect that the United States
had deliberately touched off" the
Middle East crisis to force a show
down with Russia. The fuse was
III, Mr.. Jackson was reported as
saying. when Mr.. Dulles rejected
Egypt's bid for aid in constructing
the Aswan Dam.
Two other Senators. Knowland
OF California and Bridges of New
Hampshire-both staunch support
ers OF Chang Kai-shek's National.
ist China-took the floor to complain
about another speech. According
TO the Senators, Never Kestnbaum.
aide to the President on Govern
ment Reorganization. said in a
Honolulu speech on March 7 that
Communist China should be recog-
nized by the United States and
admitted to the United Nations
under suitable conditions" Mr..
kestnbaum's attitude, the two Sem
ators agreed, meant that Ibis
usefulness is Just about over" in
the White House.
A special Senate committee
Thursday released a research report
on foreign aid recommending
against extension of economic as
sistance to Red satellite nations.
Conceding that such aid might
strengthen pro-Western sentiment
in such countries as Poland and
Hungary. the report went on to
argue that economic aid merely
serves to strengthen the total eco
nomic system the Communist bloc
is able to administer and exploit"
A Polish delegation has been
negotiating with the State Depart
ment during the last two weeks for
substantial economic aid. The pro-
posal has administration backing,
but prospects for congressional
approval look dubious. Senator
Knowland has promised an about
right-wing fight to forbid assistance
to any nation identified with the
Communist bloc,