Evening star., 1959-12-29
Anderson Raps
Reportof U. 5.
'EcOnomicLag'
BY JOHN A. GILES
Star stan Writer

gressional staff report which
blamed it with sacrificing tht
country's economic growth il
an unsuccessful attempt to hal
imitation.
Secretary of the Treasury
Anderson said that undue
emphasis on growth for its
own sake can result in growth
of the wrong kind" He spoke
before the American Financt
Association and the American
Economic Association at the
Sheraton-Park Hotel.
His speech contrasted with
the report issued last night
which stated that the national
growth rate has "tapered of
substantially" since 1858, pri-
marily because the Govern
ment stepped too hard on the
fiscal and monetary brakes"
Mr.. Anderson also said the
United States faces a worri-
some deficit in its international
financial dealings next year,
despite signs of recent i'm
provement.
He said continuing action is
needed to help shave the pay
ments deficit and guard against
a weakening of the dollar.
Their comments of Mr.. Ander-
son apparently were directed
at a Commerce Department
report that the July-Septem-
ber quarter saw a significant
improvement in the United
States payments position.
I Turning Point Seen
The report. issued last week,
said developments during the
summer probably marked "the
tcrning point in our recent
balance of payments esperi-
ence."
Treasury officials are known
to feel that the Commerce De-
partment may have been too
optimistic. They were some
what annoyed by the report,
feeling it might weaken their
position in promoting policies
aimed at reducing the pay
mentS deficit.
Mr.. Anderson said the deficit
will approach $4 billion this
year. While forecasting a some
what smaller deficit for 1860,
he said this would be due to
"a temporary increase in for
eign demand for certain types
of exports" and added:
1T seems likely that the def
cit will continue to be rela-
lively large"
He said the deficits of recent
years have given foreigners
such large holdings of dollar
claims that they now have a
sibable financial stake in the
way in which we manage our
affairs"
The staff report criticized BY
Mr.. Anderson was made to the
Joint Economic Committee
headed by Senator Douglas
Democrat of Illinois.
The report bore the notation
that committee members neither
approved nor disapproved its
contents.
wrong Kind of Growth"
Mr.. Anderson said that "the
wrong kind of growth" coulc
result in "the production OF
goods that people do not wan,
and which end as surpluses.
And heavy emphasis on
growth for its own sake can
contribute to distortions and
imbalances that would hamper
future growth.
1T is sustainable growth that
we seek, not solely as an over
riding goal of policy. but pri-
marily because it's attainment
implies success in achieving
other highly important and
long accepted goals"
The congressional committee
staff report predicted the Amer
lcan economy in the future will
grow at a somewhat higher rate
than it has in the last so years
The staff said the annual
economic growth should be 3.4
per cent a year, if unfavorable
factors are assumed; 3.9 per
cent, If more optimistic factors
are assumed, and as per cent,
IF we try"
Many Changes Urged
Numerous changes in Federal
policies were advocated. These
included:
l. Revision of the admins
tration's tight credit and high
interest rate program.
2. Abolition of the ceiling on
the national debt.
3. Revision of Federal taxes
to encourage investment and
saving.
4. Streamlining administra-
ton of the Federal Reserve
System.
S. Sitter enforcement of anti
trust laws.
6. Increasing Federal aid to
education and distressed areas,
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