The Glacier reporter. [volume] (Browning, Mont.) 1953-current, 1962-06-21
Washington
News Notes

Stock Losses
Washington, ID. c. - President
John F. Kennedy, who began his
term of office with the highest
hopes of strengthening the west
ern alliance of democratic ma
tons, is today faced with the
task of holding IL together as an
effective functioning power bloc.
Ever since World War ii the
United States, with its prepon-
derant nuclear power and finan-
cial strength, has been the I'M
questioned leader of the western
bloc. The situation is still sub
stantially the same, but not
quite.
France has her own nuclear
potential today and is in the
hands of an ardent nationalist
of the old European school OF
nationalism. Moreover, the sta
bility of the us. dollar will be-
come suspect If the us. imbal-
ance of payments cannot be
halted.
Meanwhile, western European
economies are booming. In
France and Germany and Italy
things are on the upgrade and
gold reserves in France and Ger
many are high - while they con-
stantly fall lower in the United
States.
All this has brought about a
different mental attitude among
some European statesmen. Feel
ing secure in the European Com
mon Market, they are no longer
willing to concede so much lead
ership to the United States.
After having depended on
Washington for economic aid and
protection for fifteen years or
more, the governments in West
Germany and France are a bit
more independent, especially the
De Gaulle government in Paris.
In fact, President Charles De
Gaulle is described by State De-
partment types as the most ser
ious problem faced by the Ken
nedy administration in this field
today.
Announcements have come
steadily from the State Depart
ment for more than six months
concerning talks and efforts to
bring Paris and Bonn back into
line. But il is clear that both
De Gaulle and Chancellor Alden
auer view Secretary of State
Dean Rusk with something less
than burning enthusiasm.
Only a new Secretary of State,
following different tactics, con-
corning West Germany, could
clear away all the bad feeling
between Washington and Bonn.
A new Secretary might restore
West German allegiance almcs
completely.
But IL is doubtful il even ?
new Secretary can restore the
ties which existed with France
prior TO De Gaulle's assumption
of supreme power. This my
have to await a new governmer
and that might mean a wait o
number of years.
The recline of the us. stock
market in May, following Wash
ington's breakdown on the steel
| industry, has had worldwide eff.
fects.
The most nervous OF all in
vestors apparently, were Wall
Streeters, who repeatedly sold
heavily when stock prices de-
creased. The sell-off on Wall
Street also checked a develop
ing bullish market in London
and adversely affected the Paris
and Frankfurt exchanges.
| Yet the Administration in
Washington believes the picture
of business is a good one. Sources
say that as earnings and total
income 60 up, business will en-
JOY expanded activity and good
earnings. And the most recent
economic indicators lend en-
enlargement to this forecast.
IL the Kennedy Administration
succeeds in increasing the rate
of economic growth to five or
six per cent a year, over the two
to three per cent of recent years,
the business prospect should in
deed be very good for the next