Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-03-14
President and Cabinet
Review Business Sag

Continued From First Page
on a bill introduced by Repre-
sentative Simpson, Republican
of Pennsylvania, calling for 10
per cent across the boards tax
cut totaling more than Sc
billion.
Buying Outlays OF
Supporting the AFL-CIO
view were two Government
studies issued last night. One
reported that business expects
to cut spending for new plants
and equipment-a major source
of new jobS-to $50 billion this
year. This would represent a
Is per cent reduction below
last years $37.75 billion.
Another report said consum-
ers plan reduced Noutlays this
year in homes, hew cars, home
appliances and furniture. This
study was prepared by the Uni
versity of Michigan's survey re-
search center under the direc-
ton Of the. Federal Reserve
Board.
Partly offsetting these dis
couraging reports was another
one from the Federal Reserve
showing that countrywide de-
partment store sales rose last
week Z per cent above the COR
responding period last year.
The volume so far this year.
however. was 2 per cent under
last year.
Other hopeful signs, in the
administrations view. were the
strength Of the stock market and
the applications for Govern
ment-insured loans on new
homes. The Federal Housing
Administration reported loan APP
plications were 70 per cent
higher in February than for the
corresponding month last year.
Meany Stresses Lag
AFL-CIO President George
Meany, in a letter accompany
ing the memorandum, cited
cuts in automobile and steel
production in the past week and
added:
"In other words, things are
not growing better; they are
in fact growing worse. =
Mr.. Meany said the Govern
ment's official jobless figures
released this week were based
on unemployment during the
week which included February
is.
During that week." Mr..
Meany continued, when un-
employment was nearly So mill |
lion, the auto industry manu-
featured over 100000 automo-
biles and the steel industry |
operated at SIS per cent Of
capacity.
But during this week, the
measuring rod for the figures |
to be released next month, the |
auto industry is manufacturing |
only $4,000 cars and steel pro-
duction is at SIS per cent Of
capacity"
Production Falling i
Among the key economic in
dicators cited by Mr.. Meany's |
memorandum to show that
business trends are still down.
ward were:
Industrial production: The
February 1858, figure will be
out in a few days and will show |
a drop from 1873 in January to
100, as compared to 146 in
January. 1857.
New orders placed with
manufacturers: The January,
1858. figure shows a drop
from $25.1 billion in December
to '$24.2 billion, as compared to
$3.50 billion in January, 1857.
Total retail sales: The fig
ureS just out in the last day or
two show drop to $16.2 bill
lion in February from $16.7
billion in January, 1858, as
compared to $16.3 billion in
January, 1857.
"Nonagricultural employ
m n t, seaSonally adjusted,
shows a drop in February,
1858, to 51.2 million, as COM
pared to SIT million in Janu-
airy, and 52.5 million in Janu-
airy, 1857.
"Hours worked per week in
manufacturing industry j
shows the February figure at
38.5 hours per week, as COM
pared with 1877 hours per week
in January, 1858, and 40.2 hours
per week in January, 1857"
Claims Compared
Mr.. Meany included in his
memorandum a comparative
table on unemployment insur-
ance claims for February of
this year and last year.
The table showed that initial
claims for the week ending
February 8 totaled asa, 500. a 81
per cent increase over the COM
parable week last year; for the
week ending February is. 432,-
401 claims, a 70 per cent in
crease; for the week ending
February %, 6,625. a 100 per
cent increase, and for the week
ending March /. 443.076 claims.
a 81 per cent increase.
AFL-CIO leaders who called
on the President yesterday to
urge tax cutting and other
administration action immedi-
ately came away with the feel
ing their plea. had been un-
availing.
They reported the President
as saying he was glad to have
their views but that he didn't
"share their fears" about the
worsening state Of the economy
The President. EXPRESSED his