Evening star., 1960-10-20

Is the teri of
the economic Held advanced
his speech to the National
omists today.
expansion Of residential renewal
and new housing. We also need
improved criteria for Federal
assistance in the whole renewal
program. The purpose Of my
overall approach is to maxi
mize private investment through
prudent public action. As a re-
suit Of the. teamwork on the
part Of the Federal Govern
ment. private investment and
State and local responsibility
for area development and plan
ming. we can meet the chal-'
lenge Of the COS in city and
suburb.
8. To maximize our growth
potential, we must attack the
stubborn problems of depressed
areas through sensible, Coop
srative Federal-local effort. This
can be done If the opposition
will cease its pork barrel ap-
proach to this vital matter that
has led to presidential vetoes
and concentrate instead on a
bill that will help those areas
that really need help.
Hits Featherbedding
9. To keep the economy 1T.
efncient and competitive at
home and abroad and, thus.
capable of healthy growth, we
must attack featherbedding, in
all its forms. wherever it ap-
pears. That includes bureau
cratic waste and ineficiency
that obstructs orderly and efi-
cient government. It includes
the make-work mentality still
surviving in some quarters of
labor. It includes pricing prac-
ticeS by business which are not
fully geared to maximize vole.
1t includes infiationary wage
settlements In labor-manage-
ment negotiations that involve
overpaying ourselves for the
work we do.
The dynamic quality Of our
economy can be further en-
hanced by vigorous but fair
minded enforcement of the
antitrust laws. It can be i'm
proved by an imaginative,
outward-looking policy in in
ternational trade, especially in
this day of growing common
marketism. Efficiency can be
spurred by keeping the econ
omy open and constantly re-
newed through programs to
stimulate new and small busi-
ness. Its productivity can be
stepped up by full exploitation
OF the rapid chronological de-
velopments being generated by
the Nations astounding prog
ress in research and develop
ment. In order to deal with
the problems created by au-
tomation, especially their. i'm
pact on the workers affected
special efforts are required. j
90 not believe an overall. top
level meeting of union, indus
trial and Government leaders
such as the opposition sug-
gests, is the best approach,
The problems posed by auto
nation vary too much as be-
tween different industries to
benefit by such general talk
tests. I shall, instead, convene
working sessions, for each
major critical industry. under
the leadership of the Secre-
tary OF Labor and the Secre-
tary OF Commerce to analyze
the problem as it is UNIQUE In
that industry and develop q
problem for assistance in deal
ing with it.
To Keep Money Honest"
10. To help keep our money
honest. we must practice rig
orous economy, exercise strict
control over the Federal budg-
ct, and thwart attempts, clearly
foreShadowed in opposition dis
cuSsion, to undermine the in
dependence of the Federal
Reserve System in its efforts
to pursue a flexible monetary
policy geared to the economy's
changing needs. The crucial
question here is not one Of
tight money" versus "easy
money" or of high interest
rates versus low interest rates
but rather whether monetary
and credit conditions are such
as to maintain prosperity anC
growth. History has demon.
Strated clearly, for anyone who
wants to learn from history
that monetary policy makes it.
; largest contribution to pros.
!, perity when it is flexible
enough to put a, damper or
speculative activity in boom
periods and to spur expansion
, in slack times. Those in the
opposition who loudly demand
very easy credit and artificially
low interest rates, at all times
and under all circumstances
are practically inviting foreign
banks and investors to pull out
the billions of dollars that they