Tabor City tribune. (Tabor City, N.C.) 1946-1991, 1958-07-23
III
Comment
BY JAMES w. DOUTHAr

: SO
BY JAMES w. DOUTHAr
!, Asst. Vice President, Gov.
eminent Relations Division Of
The National Association Of
Manufacturers.
No COMMENT is q report
of incidents on the national
scene. and does not necessarily
reflect NAM policy or position,
WASHINGTON, July l6 :
Members of Congress who be-
! lievc that state and local gov
IernmentS should handle all pos
Sible problems-inStead of run
ming to a giant federal bureau
crazy in Westinghouse oppoS-
ing pending legislation to auth
,orize 50 billion of federal loans
to finance local improvements.
These Congressman are a.
Harmed over the prospective
huge federal deficit - which
would be substantially swollen
by the proposed legislation -.
and by increasing federal domi-I
nation of local affairs
They think it is particularly
.unwlSc To propose such cXpendi-
lures at a time when FEDERAL
finances are deep in the red.
They regard the legislation as.
the height of fiscal irreSponsi-
bility and pork-barrel boondog-I
glang at its worst.
One of the leading critics of
the bill, Rep. Hiestand (RH
Calif), describes it as panic
button politics at its worst . !
and 1.-The worst measure offered
so far this year" !
House debate on the measure
known as the community facili-
ties bill is expected soon. It was
first proposed in the Senate ear
ly In the session as an anti-de-
preston measure. 1t called for
81 billion of government loans.
but the Senate cut the amount 70
81 billion. The House BankingI
committee in turn approved So
billion.
Arguments advanced against
the legislation include these:
1t offers boundless opportuni-
ty for taxing and taxing, spend
ind and spending, and thus is
a JOY to the hearts of big gov
eminent promoters of New Deal
and Fair Deal vintage.
Because the subsidized inter-
est rate q 5/8 perccnt) is lower
man can be obtained elsewhere.
this type of financing would
shift from private investment
'hannelS, where money is now
plentiful, to the Federal Bu-
'eaucracy, now operating in the
'cd.
The Federal Government is
borrowing money at interest
rates higher than would be
charged for the loans. Taxpay-
erS would dig into their pocket
DOCKS To pay the subsidy.
Although it was sponsored as
an anti-recesSion measure. no
new employment could result for
At least IL months. if ever. be-
cause OF the time required for
planning projects. There was
'aid TO be no unemployment
problem now in the construction
industry.
1t was suggested that unem-
oloyment possibly was intended
% be affected by hiring thous-
indS Of bureaucrats to admin
ster the proposed legislation.
There would be no limit. il
was conterdcd, to the type of
project for which loans could
De understanding public hous-
ing and school construction.
1t is virtually impossible to
stop such a program. Thus, the
legislation would open the doors
Of the Treasury and likely
wedge them open for keeps
with one part of the population,
oelng taxed to provide special
benefits for a favored group.
Tax Reform Needed
Tax reform advocates in Con-
5resS contend that it would be
Tar preferable to give general
AK relief to business and indi-
than to provide piece
neal relief to certain segments
Of the population.
They believe that legislation