Evening star., 1960-01-12
Mueller Sees
Prosperity
Signs for so
BY LEE M. COIN
Star stan Writer

~N-~-
Secretary of Commerce Muel-
Ter is surer than ever that 1860
will be a prosperous year.
Settlement of the steel dis
pute, brisk retail sales nd
other factors provide fresh
supporting evidence of rising
business activity" he told a
news conference yesterday. "a
very high rate" of business ac-
tivity is assured at least
through this year. he said.
But he warned that all-out
efforts to fight imitation and to
increase exports are essential
to keep the economy growing.
Slight Dip in December
simultaneously with Mr..
Mueller's news conference, the
Commerce Department issued
a preliminary report estimating
that retail sales totaled SILT
billion last month. down / per
cent from November and un-
changed from December, 1858,
after adjustment for seasonal
influences.
Sales of nondurable goods at
retail were estimated at S15.6
billion last month. up / per cent
from November and 4 per cent
from December, 1858, on a sea-
sonally adjusted basis. de-
creased sales Of durable goods,
especially automotive products,
pulled down the retail total.
Retail sales for 1859, the de-
partment said, increased 8 per
cent above 1858 to a record
total of $2l5.6 billion.
Another report. by Assistant
Secretary of Commerce Henry
. 'Kearns, called the outlook for
increasing exports this year
highly promising" although
gains will require more vigor-
GUS efforts in sales promotion"
While exports last year re-
mained at about the 1858 level
Of $l6.3 billion. Mr.. Kearns
said, imports increased from
$12.8 billion to SIS billion
narrowing the margin of the
United States favorable balance
of trade. Exports will increase
more sharply than imports in
1860, Mr.. Kearns said, predict
ing a much improved trade
balance"
Urges More Exports
But, he continued. the ex-
pected improvement will not be
enough to Offset the continuing
large unfavorable balance of
payments. Total United States
payments abroad - including
investments, grants and over
seas military spending. along
with payments for imports
are expected to continue to ex-
ceed receipts from abroad by q |
big margin.
Discussing the heavy excess
Of United States payments over |
receipts. Mr.. Mueller said the
best way to reduce the deficit |
is to expand exports. He said an
increase Of 10 to Is per cent is
well within the realm of pos
sibility."
He said he would like to see
completely free trade between
the United States and Canada.
but added that he doubts the
feasibility of eliminating all |
trade barriers. AS for protect
ing American industry against |
competitive imports. such as
textiles, Mr.. Mueller warned |
that the United States would |
risk "retaliatory action" if
mandatory import quotas were
imposed.
Mr.. Mueller defended the So
called buy American" policy
adopted for some forms Of for
eign aid, requiring recipients to
spend money borrowed from
the United States in the United
States. He also said the United
States should reduce its foreign
aid as other countries expand
their aid programs.
The Secretary said the steel
settlement will be non-inla-
tionary If labor and manage
ment increase productivity
enough to absorb the costs of
the new contracts.