Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-05-21
AndersOnHaiIs
Business for
Slump Fight

dump TlgnI
MIAMI BEACH. Fla. May 81
@-Secretary Of the Treasury
Anderson told the Nations
Governors today "the private
enterprise economy is putting
on an impressive performances"
In resistance 10 further eco
nomic declines.
Mr.. Anderson spoke after
President Eisenhower had
called upon the country 10 rally
all Of It's forces 10 speed an
early upturn In business. Mr..
Anderson cautioned against any
program OF massive Govern
ment spending that might fur
ther unbalance q budget he
said Is likely TO equal the s7e
billion outlay proposed by for
mer President Truman In the
Korean War period Of 1884.
Supporting Mr.. Andersons
position. Defense Secretary Nc
Elroy said that unless some saw
lngs are made elsewhere future
defense expenditures threaten
a rigid control Of the economy.
Half Of All Spending
Mr.. McElroy said In q speech
prepared for the closing BUSH
ness session Of the 50th annual
Governors Conference that de-
tense spending now represents
SO per cent Of the total out
lays by the Federal Govern
ment.
II can't offer any realistic
hope that this will decline as
long as international tensions
continue at current levels" Mr..
McElroy said.
Mr.. Anderson said in a pre-
pared speech that the country
cannot expect any decline in
defense spending in the near
future. He said overall outlays
ARE more likely to increase in
the absence of curtailment Of
domestic programs or a LESSEN
ing of uncertainties IN the world
situation"
He said. Federal Govern
ment expenditures alone will
probably reach a level. Of more
than $78 billion in the next
fiscal year." the total proposed
in the 1854 period Of the Ko-
rean War.
LOng-Term Adjustment
Mr.. Anderson said there are
signs that a long-term adjust
ment Of the economy is taking
place in the framework Of
built-in resistance to any last
ing business slump.
Month by month we can see
proof that our basic strengths
are effectively resisting the
downturn" he said.
AS President Eisenhower did
In a major economic speech
in New York last night, Mr..
Anderson avoided any COM
mitments on a possible tax
reduction.
To the Governors, Mr.. Nc
Elroy offered the olive branch
in a statement that he fore
sees mo change in the Ma
tional Guard traditional reIa-
tionShip" as a result of Mr.. |
EiSenhower's defense reorgani-
cation proposals.
This is a touchy subject with |
the Governors, who were on
the verge Of approving a res
olution opposing the scheduled !
abolition Of six State National
Guard organizations.
Meet in Puerto Rico
For the first time in its so
years of existence, the confer
ence may be held outside the
United States in 1859.
Conference officials said they
expect approval of an invita-
ton to hold next years meet
ing in San Juan, Puerto Rico,
probably in April.
Yesterday, a Governors con-
ference panel swung into a
drive to get President Eisen-
hover to summon congressional
chiefs Of both parties and draft
a non-partisan program for
fighting the business slump.
Gov. Abraham A. Ribicoff,
Connecticut Democrat, spear
headed the anti-recession ma
neuver. Eight other Cover
oors, both Republicans and
Democrats, quickly teamed up
with fim-after chatting and
scrapping over what caused the
recession and what should be
done about 1t.
Petition to President
Gov. Ribicoff proposed that
the Governors petition the
President by resolution. Adop-
ton of q resolution takes q
three-fourths vote-36 Of the
48 Governors.
Backing up Gov. Ribicof's
suggestion for q resolution d.
rected to Mr.. Eisenhower were
Democratic Cows. Averill Har-
riman of New York, Robert B.
Meyner Of New Jersey. Luther
H. Hodges of North Carolina,
George Bell Zimmerman, jr., Of
South Carolina and Robert D.
Holmes of Oregon, plus Repub-
leans Victor e. Anderson Of
Nebraska, Edwin L. Mechem Of
New Mexico and John E. Davis
of North Dakota.