The people's voice., 1959-09-18
Repr. Leroy Anderson
Reports To You From
The Nations Capitol

| w WAOHINGION, u. C.-AS Con
gress draws near to a close, somehow
most of the conflicts have been re.
solved, as they should in the give-and.
take of democratic government.
Housing Bill-The housing bill was
twice vetoed by the President. The
Congress said, "Okay, there'll be No
housing legislation. The White House
emissaries said, Gust change your last
bill enough to save face and the Presi-
dent will sign it." So, building of
classrooms was taken out and the bill
romped through the Senate and then
through the House on a voice vote.
Public Works Bill-The public
works appropriation bill was vetoed
by the President and we failed to
override by single vote. We cut the
bill 21a per cent, leaving in the 81
''new starts, and it was vetoed again.
Then, we succeeded in overriding with
a 30-vote margin. Chalk up victory
for Congress in beating down the mo
new-starts" policy and proceeding
with conservation and development
of our water and other natural re-
sources. Originally, this years public
works bill called for around $14 mil
lion worth of activity in Montana.
Since the second bill called for 2 u
per cent reduction of all items in
the first bill vetoed by the President,
the newly-enacted legislation will
mean our state will receive about
$132s million in public works ac-
tivity.
High Interest and Inflation-Since
1853, this Administration has pursued
a policy of choking off credit demand
by restricted money supply and high
interest rates. Their claim has been
that this holds down initiation. The
opposite is true. High interest rates
in our modern economy are initiation
ary. Except for agriculture, prices in
America are largely administered, or
set, with small regard to either supply
Or demand. Take steel, for example,
where prices have been moved up
dozens of times in the past few years,
even when demand was taking only
so or 65 per cent of production ca
oacity. Or take automobiles. There
are a million 1859 automobiles stand
ng around on lots over the country
put the surplus production doesn't
cad to lower prices as it does with
wheat or cattle. Industry sets the
prices and we pay them. Raising the
interest rate no longer lowers the |
,rice level as it used to when our
economy operated on more competi-
i've supply-and-demand basis. High |
interest chokes off economic activity
wherever interest charges are major
onsideration-housing, schools, pub
ic utility expansion, and small busi-
ess. Interest is big part of your
rivate budget and big part of the
ublic budget. In both cases, high in
crest is inflationary and robs you
f some of your ability to buy goods
ou want and need.
High Interest and National Income
The current high interest policy
,rikes at every pocketbook in Amer
"a. For many years we managed to
eep the interest rate below 2 " per
ent. But for six years now interest
ates have been in sweeping uptrend
nd interest on the national debt is ,
lie greatest single-non-defense item I
the national budget-up a whop- c
ing Sd billion annually since 1852. {
he Congress has rejected the Presi- i
ent's demand that we increase the t
terest rates on long-term govern 7
ent bonds beyond the present Az c