Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-03-25
President Maps
Plan 10 Extend
Pay for JobIess
Will Also Request
Congress to Speed
Procurement Pace
BY CECIL HOLLAND
Star stan Writer

ny NEOAA khOLAIAND
Star stan Writer
President Eisenhower will
send to Congress in the next
day or so a two-step program
for combating the recession.
Republican Congressional
leaders, after a White House
conference with the President
today. said the program:
l. Will ask Congress to au-
thorize 5000 million speed-up
in procurement-$100 million
for the rest of the current fiscal
year. and $500 million in the
first part of the fiscal year
starting July /.
2. Request a 80 per cent ex-
tension in the duration of I'M
employment benefits under a
plan that would cali for the
money ultimately to be repaid
Opposition to Tax Cut
Senate Republican Leader
Knowland. who reported the
proposed action to newsmen
after the conference. said a
general tax cut to stimulate
business was not discussed at
the meeting.
In advance of the meeting
Secretary of the Treasury An
derson was reported by the
Associated Press to have indi-
Gated to leading members OF
Congress that opposition to a
general tax cut was increasing
in administration councils.
The Governments procure
ment proposal as reported by
Senator Knowland would in
volve stepped-up expenditures
without increasing the overall
programs for which the pur-
chases would be made.
Showdown Planned Later
An increase of 500 million
in the current fiscal year. it
was pointed out. likely would
increase an anticipated deficit
by that amount. In the new
fiscal year procurement would
be stepped up by moving it
forward three to six months,
with a showdown in the last
half of the year.
Government experts said the
administrations unemployment
compensation plan. as drawn.
would not require special ses-
sions of State Legislatures. For
practical purposes. the in
creased period of benefits would
be regarded as Federal pay
ments over one year, ending
April /, 1859. Such payments.
it was explained. could be re-
captured at a later date by
increasing the Federal part Of
the payroll tax.
Most Pay 26 Weeks
Maximum periods of benefits
vary with the States. ranging
from Is to 80. Most larger
States have 26 weeks and un-
der the Administrators plan
the benefits could be extended
for Is additional weeks.
The Associated Press said
Secretary Anderson has told
influential Democrats and Re-
publicans that Vice PreSi-
dent Nixon did not speak for
the administration when he
said last week it would be good
Republican philosophy" to re-
duce taxes If the business re-
cession continues. ~
Mr.. Nixon conceded at the
time no final decision is likely
to be made by President Eisen-
hover on the issue until all the
economic figures for March are
available, sometime around
mid-April. But he said if those
figures are disappointing. he
believes a tax reduction offers
the best chance Of promoting q
quick upturn.
Mr.. Anderson's optimism ap-
parently is based on indica-
tons that individual income
tax receipts are holding up bet
ter than had been expected
with more than 5 million per-
sons unemployed.
Treasury experts give some
credit to this to overtime work
ordered on military projects by
Secretary of Defense McElroy
Gee TAXES pa0a "A