The Farmville herald. (Farmville, Va.) 1957-current, 1959-05-05
Washington
Report

'SSoAiu Ahoot VI oiAidtlC llSAl III III
Senate this year was the tense bat
tie over the labor bill Senator Johl
Kennedy lost key round in tina
fight and labor union leaders ha,
to come to Majority Leader Lyn
don johnson to get him to pull
their chestnutS out of the fire.
johnson was well award of thi.
opportunity to demonstrate his uni
que power in the Senate, ane
demonstrate it he did. Within forty
eight hours he had modified. thu
bill to appease labor's leaders. HI
had used latent fear of conserva
tives = of an ever-growing fedora
power - to tone down the bill O.
rights" amendment added to the
bill.
When this amendment was adopt
ed. 47-46, it was a resounding de
feat for Senator John Kennedy, q
victory for Senator John L. Nc
Clellan. johnson. however, rallied
strength enough to modify the bill
OF rights and mallify labor and save
kennedy's bill - in the Senate. La.
Dor leaders got the idea. Some, nc
doubt. were impressed.
Meanwhile, the race in the Dem.
ocratic Party for the nomina
ton next year boils down now
to three men. assuming that Adlai
Stevenson can't make it again
These three are John Kennedy. Lyn-
don johnson and Stuart Symington
all Senators. Senator Hubert Hum
phrey is also a candidate but he is
not rated the chance any one OF
the above three now rates.
Stock Market To Rise?
The stock market may continue
on upward and reach better than
700 by years end, according to the
latest estimates by some forecast
ers. A steel strike might affect the
market temporarily. but there are
those who believe it will eventually
go considerably higher than 700 =
possibly well over 900. But this
would take several years.
On the other hand, some econo-
mlSts say that the market is right
now at its peak, and that it will
not continue to rise. If they e
correct this is a time for bearish
policy among investors.
The majority seems to agree with
the former forecast, that the mar
ket will go on upward. a while
longer at least. Business is expect
ed to be excellent this year, pick
ing up in the fall again. after a
summer lull. And the outlook for
1860 is good also. partly = perhaps
because that is an election year.
In fact. tax collections are ex-
pected to be up to such an extent
IN the coming fiscal year that a
balanced budget will be achieved
or something very close to it. Elk
penditures are to be cut by several
billions but tax collections are ex-
pected to rise even more.
Thus better business - meaning
more tax revenue - is the thing
tnat Will do more than anything
else to balance the budget for the
flscal year 1860, which ends June
80. 1860.
Ahead: Fewer Luxuries
Secretary of Defense Neil Nc
Elroy limited at something few
Americans are considering serious
~ at the present time. in a recent
speech in New York. He said that
our consumption Of consumer goods
ana luxuries might have to be cur
tailed if the economic menace of
communism continues to grow.
ms means, simply. that the ma
ton might have to put more OF it's
total industrial output into defense
and security fields. curtailing some
consumer production : which now
accounts for an overwhelming per
centage of the gross national pro-
duct.
The Russians. for example are
oevoting most of their total effort
to the armed services. defense and
science and space work. The U. S
effort is only a small fraction Of
our total industrial output.
If the communists continue to
register impressive gains in the
economic competition they have
undertaken. the day may be near
when some of our consumer con-
sumption. especially of nonessen-
tlal and luxury products. will be
limited. This is a somber and de-
pressive thought. but the threat
now facing the democracies is very
real. and grave Nothing is like to
be done in a year or two. or be-
fore new President is elected. but
soon thereafter. a painful reapprai-
sal might be necessary.