davidaulloa/AmericanStories huggingface dataset:
Evening star., 1959-06-08
TEXT
Competition Is Cited
In Bond Rote PIeo

4, the current fiscal year. as esti-
mated In the budget submitted
in January.
The Treasury expects the
debt TO approximate t2e5 bill
lion on June 80, 1859. leaving
about SO billion leeway under
the proposed $2S8 billion regu-
lar ceiling-a leeway which is
essential to protect the Gov
ernment in case Of unforeseen
emergencies and to provide
necessary flexibility in debt
management operations.
Even with budget receipts
covering expenditures in the
next fiscal year the debt is ex-
pected to rise considerably
above $3.50 billion next fall and
winter as the Treasury borrows
to cover seasonal needs. This
seasonal borrowing can then
be repaid before the end of the
fiscal year. / am asking. there
fore. for q temporary increase
Of 81 billion in the public debt
limit beyond the $3.50 billion
permanent ceiling to cover
those seasonal borrowing needs.
This temporary limit would ex-
pire June 30. 1860. and can be
reviewed prior to that time.
Interest Rise Offset
Certain other technical pro-
posals to improve the manage
ment Of the public debt are also
included in the proposed legis-
lation.
The enactment Of this pro-
gram is essential to sound con-
duct Of the Governments A.
nancial affairs. It win con-
tribute significantly to the
Treasury's ability to do the
best possible job in the man.
agement Of the public debt. /
urge. therefore, that the Con-
gress give prompt consideration
to this request.
There Is another matter to
which I wish to call your at
tention. quite apart from the
legislative program discussed
above. When / submitted my
budget to you In January in
terest costs on the public debt
for the 1scal year 1850 were
estimated at SO billion. The
increase In interest rates that
has taken place since that es-
innate was made Is now ex-
pected to add about half q bill
lion dollars to this figure.
At the same time. however,
/ am informed that, because
Of the strength Of economic re-
covery and growth beyond our
earlier expectations. our reve-
nue. estimates for fiscal year
1860 will be sufficient to Offset
the increased interest cost on
the public debt.
Evening star., 1959-06-08


legal ceiling on Government B
Successful MANAGEMENT Of
the debt Of the Federal Gov
ernment is one of the most
important foundation stones Of
the sound financial structure
Of our Nation.
The public debt must be
managed so as to safeguard the
public credit. It must be man
aged In a way that is consistent
with economic growth and sta
bility. It must also be managed
as economically as possible In
terms of interest costs. The
achievement Of these goals is
complicated today by several
factors. despite the fact that
United States Government
securities are the safest invest
ment In the world. Our growing
prosperity. combined with Gov
ernment programs to support
mortgages and other types Of
debt obligations. has strength
ened the position Of these mort
gage and other investments
with which the Treasury must
compete when it sells Govern
ment securities.
Trend to Stocks Cited
In addition. the rapid growth
in borrowing d e m ands of
corporations. individuals and
State and local governments
(which issue tax-exempt obli-
gations) tends to diminish the
amount Of funds available for
investment In direct Federal
Government securities. Fur
thermore, the market for all
fixed dollar obligations has
been affected by a recent pref
erence among some buyers for
common stocks.
The achievement Of a fiscal
position that allows our reve-
nues to cover our expenditures
--as well as to produce some
surplus for debt retirement
will improve substantially the
environment in which debt
management operates. Greater
flexibility Of debt management
action is required. however, un-I
der preSent-day conditions If a
reasonable schedule Of maturi-
ties is to be maintained and the
safeguards against imitation
strengthened.
/ am, therefore, asking the
Secretary Of the Treasury to
transmit to the Congress today
proposed legislation designed TO-
improve significantly the Gov
ernment's ability to manage its
debt in the best interest Of the
Nation.
3 Main Points Outlined
The legislation provides prin-
cipally for:
Cd Removal Of the present
3.26 per cent interest rate on
savings bonds. This. together
with other changes. viii REIN
vigorate the savings bond pro-
gram.
90 Removal Of the present
az per cent interest rate cell
ing on new issues Of Treasury
bonds. The present ceiling
seriously restricts Treasury
debt management and is in
consistent with the fiexibility
which the Secretary Of the
Treasury has on rates paid on
shorter-term borrowing.
t3l An increase in the
regular public debt limit from
$283 billion to $3.50 billion. an
increase in the temporary limit
from 1888 billion to $295 bill
lion. These increases are essen
tial to the orderly and prudent
conduct of the financial opera
tions OF TIE Government. even
with expenditures covered BY
revenues in the fiscal year 1860,
as the budget proposes.
Proposed Revisions .
Removal of the present 3.26I
per cent maximum limit ON
savings bond interest. together
with certain other changes,
will permit the Treasury to i'm
prove the terms Of savings
bonds. This will strengthen the
contribution Of the program
both to habits Of thrift
throughout the Nation and toI
Evening star., 1959-06-08

Der calling for abolition OF the
ond interest rates:
10 better structure Of the
public debt.
The Treasury Is proposing
the following revisions In the
savings bond program. subject
to approval Of enabling legisla-
ton: A 334 per cent interest
rate to maturity for all Series e
and H savings bonds sold or or
after June /. 1859; an improved
interest rate on all Series E
and H bonds outstanding and
continued to be held: and i'm
proved extension terms for out
standing Series e bonds when
they mature.
There is no statutory maxi
mum on the interest rate which
can be paid by the Treasury
for marketable borrowing Of
Ave years or less (bills. certi-
ficates and notes.. The Sec
retary Of the Treasury should
have similar flexibility with
regard to Treasury bonds
(which run five years or more
to maturity.
The Treasury always tries to
borrow as economically as 1t
can, consistent with Its other
debt management objectives.
But in our democracy no man
can be compelled to lend to the
Government on terms he would
not voluntarily accept. There
fore. when the Government
borrows. it can do so success
fully only at realistic rates Of
Interest that are determined by
the supply and demand for
securities. as reflected In the
prices and yields of outstand-
ing issues established compete
lively in the Government secu-
rites market.
artificial Ceiling"
I am aware Of the fact that
many proposals have been made
which are designed to produce
lower interest rates. However,
any debt management device
which would seek to interfere
with the natural interaction Of
the competitive forces Of our
free economy and produce un-
natural reductions In interest
rates would not only breach
the fundamental principles Of
the free market, but under cur
rent conditions could be dras-
tically infiationary. The ad-
ditional cost to the Govern
ment alone from increased
prices Of the goods and services
1t must buy might far exceed
any interest saving. The ulti-
mate harm to the entire Ma
ton Of such q price rise could
be incalculable.
Market yields on q number of
Treasury bonds are already
above "a per cent. With one
exception all bonds which have
5 years or more to run to ma
turity have market yields above
1 per cent. The Treasury re-
Gently has done substantial
short-term borrowing. But 1t
must avoid undue shortening of
the public debt and therefore
should continue to sell inter-
mediate and longer-term bonds
whenever market conditions
permit. It should not be pro-
hibited from doing so by the
existence Of an artificial ceiling
which under today's conditions
makes 1t virtually impossible to
sell bonds in the competitive
market.
Seasonal Needs Cited
The Treasury's current esti-
mates, assuming that revenues
cover expenditures for the fiscal
year 1860 as a whole. indicate
the need for an increase In the
regular Cor permanently statu-
tory public debt limit from $3.50
billion to s288 billion. The $288
billion figure is $13 billion
above the permanent limit Of
SITS billion in effect at the be-
ginning of the fiscal year 1859.
This $13 billion increase is ap-
proximately equal to the Fed
eral Government deficit during
Evening star., 1959-06-08

lpIe owe $500 billion. Of which
nearly $500 billion IA In the
Federal debt. He argued that
any increase In the interest
rate on Government bonds
twill be reflected In everything
you buy and pay interest on
He said Congress must stop,
look and listen" before raising
interest rates. and added, "The
look will be q long, hard one
On the House side, Speaker
Rayburn said today the House
Ways and Means COMMITTEE
and the House itself will move
"expeditiously" on the proposed
increase In the debt limits. He
too indicated. however, that
the bond interest rate recoin-
mendation would get a some
what longer look"
He told reporters that the
ideal procedure would be tc
have both measures reach the
House floor at the same time
from the committee. He said
this was possible but that some
G o m m1ttee members might
want TO give more extended
study and hearings to the In
terest rate question.
Kilburn Favors Action
REPRESENTATIVE Clarence e.
Kilburn Of New York. ranking
Republican on the House Bank
ing Committee. said Mr.. Eisen-
hover was right. because III
we're going to get the money
We need we've got to raise
interest rates.
when this Congress- shows
evidence Of trying to keep q
sound dollar by cutting SPEND
ing programs, youIl find con-
fidence In Government bonds
coming back and interest rates
coming down." Mr.. Kilburn
added.
Evening star., 1959-06-08

FOLLOWING Is the ert OF oddys special to Con-
cress from President Eisenhower calling for abolition OF the
legal ceiling on Government bond interest rates:
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06
New Weapon

If the Department of Justice is
successful in its effort to bring the
antitrust laws to bear against union
racketeers a new, or at least little
tried, weapon will have been fashioned
for use in this y, rticular segment of
the war against crime.
1t has been announced that more than
10 grand juries have been impaneled to
study alleged violations of the anti
trust laws by the labor racketeers. The
investigation is said to have been started
almost year ago.
The use of the antitrust laws in
a drive Of this sort may be somewhat
analogous to the prosecution of gang
sters Of the AL Capone stripe for income
tax violations. In other words, 1t is
somewhat indirect way of getting at
racket which has thrived despite other
statutes which relate more specifically
to racketeering. In our judgment. how
ever, there is no basis for complaint
against this approach. Labor racketeer-
ing has reached point where it literally
threatens the welfare of the country.
If these racketeers can be put out OF
business, or in jail, through antitrust
prosecutions it most certainly should be
done. We wish the Attorney General
all the luck in the world.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06
Welcome Back!

Mr.. Harold Macmillan will be well
come in much more than the official
sense when he comes to Washington
later this month for talks with Presi-
dent Eisenhower and other leaders in
our Government. For the British Prime
Minister, son of an American mother,
already has established his personal
popularity on this side of the Atlantic.
1t was only last summer that he paid
his most recent visit to the United
States, but close and cordial associa-
ton with Mr.. Eisenhower dates back TO
1912 when he was assigned as the British
cabinets political representative at the
allied military headquarters in North
Africa. AS Minister of Housing, Minister
of Defense and Chancellor of Exchequer
In Conservative governments he added
steadily to his good relations with Amer
lean officials.
At this point, fresh from his own
mission to Moscow, Mr.. Macmillan is
strong figure on the stage of Western di-
plomacy. With something Of the tireless-
ness that SO often has been displayed by
Secretary of State Dulles, Mr. Macmillan
already is carrying out schedule of
post-Moscow person-to-person talks
with French President de Gaulle in
Paris and West German Chancellor
Adenauer in Bonn. We hope there will
be time while he is in Washington for
the Prime Minister to discover that "our
town" Is glad to have him back again.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06
Farm Curbs

We commend you for your
front-page article, "CurbS
Ruined Business. Farmer
Tells House" We had long
tried to get action on this
issue. The courageous stand
and long fight of Stanley
Yankus for the constitutional
freedoms of our republic is
all the more tragic by the
apathy and indifference of
the vast majority of the
American people to what is
actually happening within
our Nation that threatens
our republics and Constitu-
tons destruction. This is be-
cause the American people
no longer get the true facts
on vital issues. How many of
them are aware of the bill
lions paid out to farmers for
not planting wheat, cotton
and corn?
Helen M. Harris,
Trustee, Gold Star Sons
and Daughters of u. S.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06
THIS AND THAT
BY CHARLES E. TRACEWELL

Il said Good morning
once" he said. stalking on
down the hall.
X
A better way to live is to be
generous with greetings.
Life can be made a con-
tinuing Christmas card by
anyone who wants to make
it that way, within reason.
OF course, there are al
ways days when one does not
feel like being overrespon-
sive. The aches and pains
of humanity sometimes. make
this impossible.
In most cases, and on most
days. one can summon
enough smile to adorn it with
a fair greeting.
The weather? Why not?
The weather always makes
a good greeting.
Its a nice day, isn't it?"
This will be good with all
except the argumentative
man.
He will respond. "Oh. I
don't know" or maybe even
assert it is not q nice day
at all but a very poor day.
What can you do with such
a person, except greet him
and pass on?
Never let such a wight stop
you from being yourself.
How are you?" is always
sure-fire.
This instantly gives him
the conversational initiative,
and permits him to tell of his
ailments.
People love their aches and
pains. Except for the secre-
tive person, now and then,
who persists in being mum.
Most people love to talk about
operations. as has been
pointed out many a time be-.
fore. but it always serves as
a conversation gambit.
How are you?"
I'm all right" is the ia
vorite answer, whether the
speaker is or not. He puts his
best foot forward, as the say
ing is: he makes the best Of
things, and you can 60 on to
more important affairs.
Life is a great deal Of chit
chat. Wouldn't 1t be terrible
If we were allowed to talk
only of the very important
things?
Maybe the world will come
to that in time. but 1t Is going
TO be q terrible day for man
kind.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06
One Drive for All

That the Red Cross will
have another drive to raise
100000 is not surprising TO
me. How can the United
Givers Fund function If CO.
operation by all Embarrassing
groups Is not established?
We have had door -to-door
eBnpaign drives until we
volunteer workers and givers
are disguised. l do not ap-
prove Of these individual
drives and should say no
when asked to help, but like
many thousand others I
wonder when the disease will
strike home. Therefore, I go
ahead and help.
Blanche T. Cawton.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06
Courage in Teheron

Iranian notification to Moscow that
certain articles Of the 1921 Soviet
Iranian Treaty henceforth are to be
considered invalid opens up potentially
explosive issue. The articles in question
permit the Soviet Union, under stated
conditions which have been differently
interpreted, to move Red troops "into
the Persian interior" On their face, the
conditions are that there must be EVIL
dence that Iranian territory Is being
used as a base for military operations
threatful to Russia. In an annex to the
treaty, however, the Soviet diplomatic
representative in 1921 noted that the
conditions were meant to apply "only
to cases" in which there was threat of
armed attack "by the partisans of the
(Czarist) regime or by its sup
porters."
1t has been convenient to Moscow,
Of course, to ignore this qualification
as it did when Soviet troops were sent
into Iran during World War II, in the
summer of 1941. The excuse then was
to protect supply lines by which allied
war materiel was being moved from
Persian Gulf ports to the Soviet Union,
but the Red occupation from Teheran
northward was complete in its far
reaching control of the political and
economic life of the provinces. An iron
curtain" was hung across the country
long before the term entered general
use after the war, and only simultaneous
British military Intervention in South
ern Iran in 1941 may have saved the
country from being permanently an
nexed to the Soviet Union. When Brit
ish forces left in 1916, it took the strong
est pressure by the United Nations
with the United States playing leading
role and Iran itself demonstrating
marked courage-to force Soviet with
drawal.
As early as 1913, Moscow was hint
ing threatfully at sending its troops
back on the ground that the United
States was 'militarizing" Iran as base
for possible aggression against the
Soviet Union. In the background of
Soviet denunciation of Teheran'S adher-
ence to the Baghdad Pact, and now of
the newly signed bilateral American
Iranian military aid agreement (identi-
cal agreements have been signed also
with Turkey and PakiStan), there is
the same threat of Red troop movements
against Iran.
In these circumstances, Iran has
taken the initiative in labelling the 1921
articles as obsolete and invalid. 1t is
saying, in fact, that there are no grounds
on which Soviet troops have right to
enter Iran and. in effect, that for them
to do so would be an act of war. These
are strong and courageous words, how
ever automatically expressed, and the
potential consequences could be grave.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06
The Daring Mr.. Butler

Democratic National Chairman But
Ter has ventured to scratch some SEN
sitive political feelings in his press
conference discussion of possible presi-
Dental nominees for his party Most
daring of his predictions, perhaps, is
that Adlai Stevenson will not be nomi-
mated under any circumstances" "a
phrase that is just about as dangerously
broad as using the word never"
It is correct, of course, as Mr. Butler
points out, that Mr.. Stevenson-a two
time loser-put himself on record a
rather long time ago as saying that he
would not again be a candidate. Mr..
Stevenson now has said that Mr. Butler
is right And in the meantime, how
ever, the former Illinois Governor has
not by any means retired from the
public stage. He has travelled abroad
and has been among those prominently
present at important gatherings Of
the party faithful Furthermore, the
existence of hard core of Stevenson
admirers within the party-often iden-
titled as the Liberal bloc"-is well
recognized and there have been
manifestations of its quiet activity on
behalf of Keeping door open for their
favorite. Even the selection of Los
Angeles as the party's convention site
was widely interpreted as favorable
omen for MIR Stevenson in the light
of his proved popularity in California.
And, finally, it was noticeable that Gov
ernor Meyner of New Jersey, dark
horse" himself, spoke up at the same
news conference in disagreement with
the Butler analysis.
Mr.. Butler also yielded easily to
questioning on who is currently the
leading candidate when he named
Senator Kennedy of Massachusetts,. Mr..
Kennedy, he said, has substantial sup
port throughout the country and per-
hapS more than any other" This is
seemingly accurate statement, although
some of the other "hopefuls" may not
relish having Mr. Kennedy singled out
for even an implied blessing by the
national chairman.
Quite logically, in view of its big
victory last November, the Democratic
Party is in mood of high optimism
about the 1860 prospects. 1t follows,
however, that party optimism nourishes
individual ambitions-a place on the
national ticket next year is considered
a prize much to be desired. In this
atmosphere, aspirants are apt to study
with cold critics eye all evaluations of
their personal standing by national
officer of the party.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06

course. about even small amounts OF
pollution, This whole unfortunate situa-
ton Is an example of the need for more
extensive efforts to clean up the river.
Even in the Potomac's present deplor-
able state, however, 1t is unrealistic to
suppose there will be any letup in the
popular sport of pleasure boating. Money
for the new center is in hand, and the
project could be finished by late sum-
mer. We hope that 1t is.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06
BOATING on the Potomac

Recent objections to the proposed
canoe and shellracing center on the
polluted Potomac near Rock Creek must
have come as a shock to Washington
park officials. Their plans have been
generally known for two years, and the
11th-hour expressions of concern came
virtually on the eve of constructing the
$290000 facilities.
Health officials warnings about the
dangers of pollution cannot, of course,
be brushed aside. They have served a
positive purpose in forcing a review of
the entire project The fact of the mat
ter, however, is that most Of the Poto-
mac along the Washington waterfront
is badly Enthusiastically less SO in
the Rock Creek area than downstream,
where hundreds of sailing, motorboat,
canoe and shellracing enthusiasts have
been boating for years.
Why not build the center above Key
Bridge where, as several people have
pointed out, the river is less dirty and
active antipollution drives are under
way? Park officials have Sunderland
restudied during the last few weeks
seven upstream locations. All have been
ruled out as impractical, variously be-
cause of access problems, conflicts with
highway projects and unreasonably high
costs. Some existing upstream boating
facilities, in fact, are likely to be wiped
out by massive new road improvements,
thereby adding to the need for addi-
tional facilities elsewhere.
Probably the most telling points
in the argument have been made by
rowing clubs and school ofhcials-the
people who will principally use the
center. They say they are satisfied that
no better location exists, and point out
tnat people have been rowing in the Rock
Creek area for years with no harmful
health effects. Park officials insist that
pollution at their location will reach
serious proportions" during only about
2 per cent of the normal rowing season.
The public, nevertheless, should be ade-
quately warned Of the bad conditions
There is nothing attractive, Of
Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-06
Lobor's Power

Jouett Shouse has asked a
most important question:
Are labor unions bigger and
more important than the
United States Government"
Mr.. Shouse no doubt
realizes that labor unions
have in many cases been
taken over by racketeers, also
that this was accomplished
with the assistance of some
of our elected and appointed
officials who are obligated 10
labor leaders for their cleo
ton
This condition will prevail
until the voters nominate and
elect members of Congress
who will place the welfare of
all their constituents first
and not be whipping boys for
chiselers who use union funds
for their own. benefit.
william A. Walsh.