Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-03-18
Continued From First Page

Republican congressional lead
ers with him this morning.
Senator Martin. Republican
OF Pennsylvania, left the con-
ference early and told newsmen
Secretary Of the Treasury An
derson had led a discussion Of
various alternatives for a pos
sible tax cut, including slash
ing Withholding taxes by half
and reducing or eliminating
some excise taxes.
But Senate Republican Leader
Knowland said Mr.. Anderson
confined his discussion to re-
port on his understanding with
Democratic congressional lead
ers for bipartisan consultation
before any tax cut plan is put
forward by the administration.
Senator Knowiand said Sem
ator Martin might have talked
privately with the Treasury
Secretary before the general
conferences opened.
Went rush Action
Both Senators emphasized,
that any decision on whether
to seek a tax cut is some time
= off 70 far as the adlniniStra-
ton is concerned. Senator
Knowland said it would be at
least q month, probably two
months. before the impact. OF
anti-recession moves already
being taken could be judged to
determine whether tax reduce
ton was necessary.
In his speech to the Repub-
lican women. the President in
reviewing actions taken, men,
toned Federal Reserve moves
easing credit; various actions
to stimulate housing construc-
ton: acceleration Of public
works projects for which funds
have been appropriated, and a
stepup in highway construc-
ton.
AS the administration con-
tinued to withhold decision
on tax cutting, congressional
Democrats busted themselves
with drafting a proposal for a
$40 lump-sum tax reduction II
an upward turn in business
fails to develop soon. The pro-
posal would provide a So billion
boost for the economy.
The proposal. as outlined.
would involve a $40 rebate on
tax withholdings in the imme-
date pay period following pass
age of the legislation. If less
than $40 were withheld. the
worker would receive a rebate
in the amount withheld as fast
d1c ~ COuIu NC AlduC'
Hope for Quick Action
Such a proposal. it was ex-
planned. would be one Of the
quickest and surest ways Of
giving added purchasing power
to consumers.
Lending support for increas-
ing demands for expanded adj
ministration efforts to curb the
business downturn, the Federal
Reserve Board reported yester-
day that industrial production
dropped in February to its low
est point since December, 1854.
The boards index dropped
three points to 1870 per cent Of
the 1947-49 average. This took
the index IL per cent below
the high mark Of a year ago.
Prices Up Despite slump
In a monthly summary the
board summed UP the economic
situation In these words:
Recession in economic ac-
tivity continued in February.
Industrial production. employ
ment. incomes and retail sales
again declined, and unemploy-
ment rose to a new postwar
high. Construction activity was
curtailed slightly.
I'm February and early
March. prices Of farm prod
ucts and foods continued to
rise. while prices Of industrial
commodities changed little"
Indicating that the admin
istration's hoped-for upturn in
March had failed to material
ize, at least in some important
segments Of the economy, the
report added:
I'm early March auto output
was curtailed further and stee
production remained near low
February rate"