The Glacier reporter. [volume] (Browning, Mont.) 1953-current, 1958-01-02
Weekly News Report On Doings
Under The Dome In washington
The Recession Of 1855
The Next Six Months
The Needed - eillions-
Defense To Cost More

Defense To Cost More
WASHINGTON. Jan. S - The
recession which is now underway
and which has been felt BY some
sesmentS of the economy already
vii! continue its course until the
summer II may reach full swing
between April and June. but III.
creased government expenditures
nigh, help take up the slack by
the time Congress adjournS -
which is estimated now as .Au.
gust
The Internal Revenue Service
will fee! the recession heavily in
April. and also in the curren.
month. as tax payments are made,
The unemployed do not pay tan
es and the number Of unemploy.
ed may reach million BY March
Moreover. business profits have
no, been what some expected and
this will cut down on government
revenue. AS the recession contin.
ues more and more business men
will cut inventories. as they al.
ways do in recess!onary period.
This tends 10 aggregate the sit.
nation although i; makes for a
brisk spur when things begin 10
pick up again.
One Of the keys to the unfold.
ing picture is the farm program.
and how the farmer fares in 1858
A good year. perhaps a more eff.
fective farm program. might Go
much to pick up business in the
fall. although the farmers buy.
ing power today is only a little
over 10 per cent Of the national
total.
The downward turn Of the stock
market is looked upon by some
as a healthy long-,erm develop.
ment. Certainly the prices Of com.
mon stocks are dropping TO the
point where big break-a crash
is highly unlikely. For those
who haven't seen prices Of their
stocks dip this should be encour.
aging news.
The view Of many economists is
that the recession was begging
unnoticed-when stocks began 10
skid in the last months of 1857.
Christmas business and the las;
quarter Of the year always show
comparative strength and 1857
was no exception. The test will
come in the first and second
quarters of this year.
The secret Gather" report.
which was reported on in this
column four weeks ago. recently
was the subject Of a much.publi.
cized copyrighted article in The
Washington Post"
What that article contained was
reported in substance in this col.
umn q month ago-even though
the wire services played the story
as a first.run scoop The article
did mention figures when IL dis.
cussed recommendations Of the
committee which looked into our
chances in case Of war with
Russia.
The committee. as reported in
this column. recommended the
United States step up It's spend.
ing on defense tremendously. !,
also recommended the govern.
ment begin q huge construction
Observation-Disclosures Of fall.out
shelters for the American people.
This program alone would cos,
up 10 five billions Of dollars an.
nually. And the committee thinks
thst more than this should be
added 10 our already.heavy de.
tense spending. which approach.
ed 20 billion dollars in the cur.
rent fiscal year.
Congress seems certain TO in.
crease defense spending consider.
ably At the coming session. but
whether il will hike the figure to
more than 50 bil!ion-as has been
recommended is cxtrcmel y
doubtful
II Is known that the President
Is planning 10 ask Congress TO
stop certain programs and expen.
ditures which are non.esSential
and some soIons may howl about
this when the time comes. but no
funds are to be included in the
budget for these postponed pro.
grams.