davidaulloa/AmericanStories huggingface dataset:
Evening star., 1962-09-18
YOUR MONEYS WORTH :
How Deficits Help
Europe to Grow
By SYLVIA PORTER

government budget deficits
have the same economic impact
in the United States as in Eu-
rope.
| 2. We have kept pace with
European countries in running
deficits during the last decade.
Our Federal, State and local
governments had deficits in
eight of the last IL years;
Britain in nine of the last IL;
France in each of the last 10
years, and Germany in four out
of the last six years.
Mixed Economy
8. Why. then, have govern
ment deficits resulted "in such
an inadequate rate of growth in
the United States while yielding
such high rates in France and
Germany" The answer is that
Europeans have accepte d,
which we have not, the prin-
ciple of the mixed economy
wherein the government con-
ducts many industrial under
takings that are privately
owned in the United States" In
Europe, governments own, by.
and large, transportation. COM
munications, power and many
basic industries such as coal.
gas. petroleum, iron and steel.
When European government
budgets go into the red, a fun
damental cause is that they are
investing in these enterprises
which are productive, make
jobs, spur growth.
4. In the United States, the
situation is drastically differ
ent, for Much that would be
government enterprise in Eu-
rope is privately owned" When
our Federal budget goes into
the red, little Of the extra
spending is for productive en-
| lterprise. Mr.. Kust explains:
1T would be quite different If,
let us say, the Government
owned the railways and floated
a multi i-billion-d dollar bond is
sue for rehabilitation and mod
ernization."
Taxes Curb Investing
5. Tax policies also are a key
factor. We tax corporations
far more heavily than other
countries do. Since corpora
tions undertake most of the
private productive investment
in industrialized countries, hea-
wy taxation of their earnings
dissuades growth" The same
goes for our personal tax struc-
ture, which cuts down on the
savings that are essential to
greater investment in produc-
tive facilities. We invest much
less of our total production in
new machinery and equipment
than European countries do,
and the outcome is that the
United States has an old and
obsolete industrial plant"
Mr.. KuSt's conclusion is that
"it is this quite striking diff
/ ference in the economic impact"
of our various government pol
icies which may provide the
answer to the great difference
/ in growth rates" He clearly
believes the fundamental need
is to overhaul our fiscal pol
icies with the primary aim Of
stimulating investment rather
than consumption.
i Whether or not you agree,
this is a thoughtful contribu-
ton to the debate on what we
should do to get back on the
road to strong growth. An q
most significant is that Mr.
! Martin sympathizes with this
view, for, as head of the power
full central bank of the United
States, he is among the mos
informed and influential mer
of the free world.
Distributed, 1852, by the Hall Syndicate
Inc All Rights Reserved
Evening star., 1962-09-18
TREASURY BONDS

NEW YORK (AP) Noon over the coun-
ter U. S. Government Treasury bonds,
Evening star., 1962-09-18
RE-STYLED GALAXIE FOR 1863

fabrication $4,000 miles retyng
26cubicnch engine the Ford Gaaxe
hardtO o IA models in the 1868 Ine
Evening star., 1962-09-18
AMERICAN STOCK EXCHANGE
Sales High Low 100 Chg.

list NeLUDEs
Following New
Evening star., 1962-09-18

you should read an article
which has just appeared in the
New Republic on this question
Of the American economy's in
adequate growth in recent years
in comparison with the strong
growth rates of European econ
omies and what should be done
about it." said William Nc
Chesney Martin. chairman Of
the Federal Reserve Board, "for
the article says things people
here should understand"
The face of a man have
known since he was the boy
wonder president of the New
York Stock Exchange broke into
a broad smile. "Of course. the
reason I'm asking you to do this
is that I agree with the points
the article makes"
So naturally, as soon as /
left the Federal Reserve Boards
headquarters in Washington, I
picked up the magazine (Au-
gust 81 isSue) and studied the
article Deficits and Economic
Growth" by Matthew j. Kust,
identified as a Washington
lawyer specializing in interna-
tional tax and financial mat
ters." 1t is not easy reading,
but here in simple language are
the major points Mr.. Kust
makes.
/. 1t has become fashionable
this year to suggest we examine
what Europe has been doing
that we have not been doing
to spur economic growth - and
an argument gaining adherents
is that Europe loves its greater
economic growth to a bolder
use of government deficit fl
nance" But before we accept
this. we should inuuire whether
Evening star., 1962-09-18

fIICes quoted m doIIarS and thirty sec
,nds.
T-Partially tax exempt.
w-When issued.
Evening star., 1962-09-18
$40 Million Plant

NEW ORLEANS. Sept. 18
(AP) The Du Pont Co. an
nounced plans to locate a new
chemical plant costing more
than $50 million at Laplace. up
the Mississippi River from New
Orleans.
Evening star., 1962-09-18

Among other things, the
SEC is seeking a sample of
each banks loans outstanding
on September 26 this year.
The announcement. m a d e.
jointly with the Federal Reserve
Board. said answers will make
it possible to estimate total
bank credit secured by stocks
and bonds - including loans
for purposes other than pur-
chasing and carrying securities.
The latter area is one in which
Evening star., 1962-09-18
AncelI Elected

CHICAGO, Sept. 18 (AP) -
Nathan S. Ancell, New York,
has been elected president of
the National Association of
Furniture Manufacturers. Mr..
Ancell is president and treas
urer of Baumritter Corp, New
York.
Evening star., 1962-09-18

data is not regularly collected
from banks and for which no
"benchmark" figures are avail
able, the SEC said.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18
New Hampshire Split
Over Bolt by Powell

MANCHESTER, N. H., Oct.
10 (AP).-Gov. Wesley Powell,
declaring he is still a Repub-
lican, today asked his thou
sands" of friends to join him
in voting for Democratic gu
bernatorial candidate John
King in the November 6 cleo
ton.
Gov. Powell, whose political
future was cut short-at least
for the present-when he lost
a bid for a thfrd-term nomina-
ton last month, said he can
not support the man who de-
feated him-State Representa-
tive John Pillsbury.
Gov. Powell's latest blast,
which was not unexpected by
many political leaders, came
last night in a telecast and was
repeated today over the States
radio stations.
Mixed Reaction
There was mixed opinion as
to the effect Of Gov. Powells
move to back a Democrat.
One theory was that Gov.
Powell has a tight band of en-
thusiastic followers who will do
the Governors bidding and,
thus, Mr.. King will receive a
block of Republican votes that
could make him New Hamp-
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18
Student Daily
Editor Fired
ForAttucks

BOULDER, Colo, Oct. 1s
(AP) The editor of the Uni
versity of Colorado's student
daily newspaper, who printed
attacks on Senator Barry Gold
water, Republican of Arizona,
and former President Eisen-
hover, was fired by the uni
versity president yesterday.
In announcing the dismissal
of Gary Anthem, 81, a senior.
President Quigg Newton said
the editor, had displayed d
pattern of editorial irresponsi-
bility that required his re-
moval."
I'm not sure this is in the
best interests Of the univer-
sity," Mr.. Anthem said.
Both DR.. Newton and Mr.. AL
then had apologized to Sena-
tor Goldwater for publication of
a critical article written by Carl
Mitcham, 81, a philosophy stu
dent from Dallas, Tex.
After Mr.. Althen was warned
by university officials to exer-
else better judgment. he wrote
an editorial advocating admis-
sion of Communist China to
the United Nations.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18

LA JOLLA, Calf, Oct. ID
(AP) Republican Congress-
man James B. UT says he be-
lieves President Kennedy is "a
compulsive liar, at least a path
illogical liar"
Mr.. UT said in a campaign
speech yesterday that he thinks
the President lied about both
the Cuban and international
situation in a recent Ohio
speech.
The President was wrong,
Mr.. UT told a 'For America"
group, when he said Fidel
Castro's Cuban government
was desperate because of a
breakdown in the country's
economy.
Mr.. Kennedy also told an
untruth, Mr.. UT added, in say
Ing the United States interna-
tional position has improved
under his administration.
Somebody has to call him, !"
Mr.. UT said I'm going to
act as an American whether
or not I become the second
political prisoner, after former
Gen. Edwin Walker"
Gen. Walker was charged
with insurrection for his part
in the University of Mississippi
rioting over admission of a
Negro student.
Mr.. UT said 1t was trigger
happy" United States marshals
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18

ministration policy toward Mr..
Sukarno, the G.. o. P. said:
1.-THE New Frontier. which
persistently wooed Indonesia's
Sukarno even while he ratified
Soviet guns in the face of our
longtime friend, the Neither
lands, has finally reaped the
harvest. 1t added:
1--WE find Sukarno, having
won Dutch New Guinea by de-
fault, joining Soviet satellite
Romania in a joint commu-
nique.
1.-The two Presidents called
for world acceptance of two
Germanies, Transformation Of
West Berlin into a neutral de-
militarized city, and the with
drawal of military bases from
foreign territories. They would
admit Red China to the U. N,
they would oppose interference
with Communist Cuba"
The statement said the ad-
miniStration's troubles were
multiplying with no answer in
sight"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18

Government during the Eisen-
hover administration"
And the Republican National
Committee zeroed in on a new
target. 1t charged the New
Frontier had wooed a neutral"
and won an enemy in President
Sukarno of Indonesia.
Does anyone now believe the
New Frontier has either the
wisdom or experience to cope
with the international problems
of today?" Asked a statement
in the Republican committee
publication Battle Line"
Growing Hotter
The cannonading over for
eign policy has been growing
hotter as the November 6 cleo
ton draws nearer. with Presi-
dent Kennedy and former
President Eisenhower joining in
the firing.
Gen. Eisenhower has called
Mr.. Kennedy's foreign policy
too sad to talk about. Mr..
Kennedy, aiming in the general
direction of Senator Capehart,
Republican of Indiana, rallied
at rash talk and those self
appointed generals and adj
mirals who want to send some
one else's sons to war"
Yesterday, Mr.. Mccormack
blamed the G. o. P. leadership
for making the Cuban situation
an election issue and urged his
Republican friends to take
foreign affairs out Of the cam
paign. This is one field
in which we all should be united
as Americans"
Policy on SukarnO
Mr.. Mccormack, replying to
a Republican National Commit
tee statement attacking the
administration for tragic ir-
resolution" in dealing with Mr..
Castro, said Mr.. Kennedy is
doing everything he possibly
can. short of war, to meet the
Cuban situation that he in
herited from President Essen
hover"
In hitting yesterday at adj
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18
Kennedy Lied on Cube,
Representative Utt Says.

who started the campus riot
ing. "Then," he added, "they
threw a great general in JAIL"
The Congressman said he
had information that the Rus
slams, within the last two
weeks, have unloaded in Cuba
"a 1-700-mile ballistic missile.
and" he added, "the tan
trum kid in the White House
doesn't do anything about it."
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18
BY JOSEPH YOUNG
Star Staff Writer

The Civil Service Commits
sion's new regulations on the
granting of in-grade salary in
creaSes to Federal classified
employees are even tougher
than expected.
Acting under provisions OF
the new pay law. the csc has
issued regulations which re-
quire that Government super
visors take positive action in
order that an employe can re-
ceive an in-step raise.
In other words, the super
visors must make a written au-
thorization for the employe to
get the in-step raise. Otherwise,
the employe does not receive
the in-step. This will be true
even if he has a satisfactory"
performance rating.
This is in direct contrast to
the previous system where en-
pIoyes automatically received
their in-step increases unless
they had an unsatisfactory per-
Torrance rating - something
that adversely affected less
than l per cent of Federal
workers.
Furthermore, csc officials
said that supervisors will be
required to defend" their
granting of in-step raises for
employees when CSC inspection
teams visit their offices and
installations periodically to
checkup on personnel practices.
All this suggests that quite
g. few Federal classified en-
pioyes may be denied in-step
salary raises.
The most astonishing thing
in the light Of all this is the
apparent complete acquiescence
OF the two main Government
employe classified unions-the
American Federation Of Gov
eminent Employees and the Ma
tional Federation of Federal
Employees.
In fact, CSC officials say
that the AFGE and the NFFE
leaders have told them that the
new in-step system is a good
thing. This doesn't jibe with
the mail that this reporter has
received from AFGE and NFFE
members.
Employees denied in-SteE
raises don't even have the right
to appeal to the Civil Service
Commission. They can request
a review by their agency oil
their supervisors action, but
this is as far as they can go
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18
THE FEDERAL SPOTLIGHT
Tougher-T hon-Expected Rules
Grant or Deny ln-Step Raises

continues the old provision to
the effect that postal workers
get their in-step raises after
the regular allotted waiting pc
RODS of satisfactory service"
= =
PROVISIONS-Here are the
csc regulations on the grant
ing of Federal classified en-
ploye in-step raises:
"a Before an employe may
receive a within-grade increase
under section 701 Of the Act,
his work shall be of an accept
able level of competence. The
head of his department, or per-
sons authorized to act in be-
half of the department head
shall make this determination
which shall be recorded in writ
ing.
ABB When a department de-
termines that an employees
work is not of an acceptable
level of competence, it shall
notify him promptly Of that
determination in writing. II
shall also give him the oppor-
tunity, upon timely request, to
secure a reconsideration of that
determination within the de-
partment. If the determine
ton upon reconsideration is
favorable to the employee, the
new determination supersedes
the earlier one and is deemed
to be made as of the date OF
the earlier determination.
"(c) When it is determined
that an employees work Is not
of an acceptable level of COM
petence, the department shall
make a new determination
within the next So calendar
weeks. If this new determin-
alton is favorable to the en-
ploye, the effective date Of
within grade increase fol
which he is otherwise eligible
is the first day of the first
pay period beginning on Of
after the date the new deter
mination is made.
"(d) There is no right to Sc
cure a review by the Civil Serv.
| ice Commission of a depart
mental determination.
"(e) When a determination
as prescribed by paragraph!
Ia, (b), and (c) of this section
is not made on a timely basi.
through administrative over
sight, error, or delay. it i!
deemed to be made as of the
date 1t would have been made
were it not for the admins
trative oversight, error, Of
delay"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18

shire's first Democratic Gov
ernor in 40 years.
In the opinion of others, Gov.
Powell's action will anger Re-
publicans and solidify the
G. o. P. vote, and could even
cost Mr.. King the votes of
some Democrats who would OBJ
ject to any connection between
Mr.. King and Gov. Powell.
The 47-year-old Governor hit
out in the broadcaSts at Mr..
Pillsbury on a number of is
sues, including the sales tax,
reorganization of State govern
ment and the State Technical
Institute.
AssaiIs Publisher
II frankly do not believe in
John Pillsbury," Gov. Powell
said. II cannot subscribe to his
obstructionism in the Legisla-
ture. I cannot tolerate his sur
render to William Loeb pub
Usher of the Manchester Union
LEADER.
Mr.. King said in a statement
he is happy to receive Gov.
Powell's support.
Gov. Powell, whose two terms
have been marked by frequent
clashes with Republican lead
ers, ran as an independent in
1850 against Republic al
Charles w. Tobey, who sought
election to the United States
Senate. Senator Tobey, who has
since died, easily won re-
election.
In his television speech, Gov.
Powell sharply criticized what
he termed the "Old Guard" of
the Republican Party in New
Hampshire. He said the party
has lost in the Nation be-
cause officials, even former
President Eisenhower, were un-
able to shake off the curse of
the Old Guard"
Gov. Powell's speech attrib-
uted his defeat by Mr.. Pills
bury in the September IL pri-
mary to his appointment of
Maurice ]. Murphy. jr., to fill
the United States Senate va
cancy caused by the death OF
Senator Styles Bridges.
He said he made the appoint
ment against the desires of
Publisher Loeb, who supported
Mrs. Doloris Bridges, widow of
the Senator.
Mrs. Bridges ran for the
10. o. P. nomination to the
Senate in the September pri-
mary but lost to Representative
Perkins Bass. Mr.. Loeb sup
ported her in the primary cam
paign.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18
ADA Backs Negro
In Massachusetts

BOSTON, Oct. Is APP. =
For the first time in its Is
year history, the Massachusetts
chapter of Americans for DEM
ocratic Action is indorsing a
Republican candidate for a
Statewide office.
Edward w. Brooke, Republic
can nominee for State attorney
general, won Endorsement by
the ADA board yesterday. Mr.
Brooke, a Negro, is opposed on
the Democratic ticket by for
mer 1t. Gov. Francis E. Kelly
The chapter made no in
dorsement in the United States
Senate fight between Edward
M. (Ted) Kennedy, youngest
brother of the President, the
Democratic nominee; George
Cabot Lodge, the Republican
nominee, and Harvard history
professor H. Stuart Hughes,
running as an independent.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18

be done if this country is going
to move ahead"
This was Mr.. Kennedy's first
chance to reply to former Pres
ident Eisenhower's criticism Of
Monday night that this admin
istration has what he called "a
dreary foreign policy"
But Mr.. Kennedy ignored the
criticism.
He neither mentioned his
Republican predecessor nor de-
Tended his own foreign policy,
in spite of signs needing him
about Cuba.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18
Loan to Boost Indies
Electric Power Output
BY the Associated Press

The Agency for International
Development announced today
a loan of $17.9 million to fl
nance expansion of power
generating facilities in the
Bombay (India) area.
The loan, to the Tata Power
Co., will be used to purchase a
single 125-megawatt generator
and associated facilities in the
United States.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18

The emphasis on denying in
steps to employees who are doing
marginal or sub-marginal work
is contrary to the general
practice in private industry. In
industry, when an employe is
doing unsatisfactory work, the
company moves to get rid OF
him. But if an employe is re-
tanned on the rolls, it's prima
facie evidence that he is doing
a satisfactory job and is en-
titled to whatever type Of auto
matte seniority raises the COM
pany may have.
But the Government has now
adopted a policy which says
in effect that an employee can
do less than an adequate job
and still remain on the Fed
eral payroll, as long as he is
denied his in-step raises.
y
MISCHIEF AT WORK-The
new in-step system could cause
a lot of trouble and mischief
In the first place, since Con-
gress has ordered Federal agen-
cies to absorb as much of the
pay raise cost as possible and
President Kennedy has followed
this up with a directive to cut
Federal employment costs, sup
ervisors will be under pressure
from their bosses to reduce
payroll expenses as much as
possible.
Consequently, the tempta-
ton will be great for many
supervisors to save expenses by
denying in-step raises.
Also a factor is the preju-
dices and other personal fac
tors involved in the relation
ship between some supervisors
and their subordinates, and
| this could lead to denying OF
| in-step raises even though ar
employe deserved one.
It is doubtful if most men,
bers of Congress or even most
members of the House and Sen
ate Civil Service COMMITTEES
knew the intent of the pro-
vision in the Presidents pay
reform plan which stated thai
a Federal classified employees
work had to be at an "accep'
table level of competence" II
order to get an in-step.
Significantly enough, such 6
proviso was not proposed by the
President for postal workers
Administration officials knew
that the postal employe unions
would not stand still for such
"a proviso. Regarding posta
workers. the new law merely
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18
Kennedy Has
Day Off From
Campaigning.

President Kennedy has an
open date on his campaign
schedule today after yester-
days lively reception in Con-
necticut.
Mr.. Kennedy drew one
highly enthusiastic audience
and got one loudly booing
reception-during his 60-mile
drive through an area that con-
tains a lot of industry and a
| lot of Democrats.
Mr.. Kennedy starts a three
day campaign trip tomorrow
that takes him all the way to
Seattle.
The big crowd yesterday was
at Waterbury, a town that ap-
parently loves, and is loved by,
Mr.. Kennedy. 1t was so car
ried away with the Presidents
vista police officer thought
$4,000 were there - that, 1t
threatened to get out of hand.
Police scurried over to calm
down one segment, seemingly
composed mainly of squealing
young ladies.
The critical crowd was at
New Haven, home of Yale Uni
versity. Nobody knows for sure
who gave the President the
raspberry or held up dispar-
aging signs.
But it's the custom on such
occasions in New Haven to
give all the credit, or blame, to
Yale students.
Calls Yale His College
Mr.. Kennedy, a Harvard man,
was given an honorary degree
by Yale in June, and the Presi-
dent referred to this as he be-
gan his talk.
IT have come to this center
Of learning" Mr.. Kennedy
said, ito come back to my COL
lege-Yale-and have en-
joyed that warm reception I
have gotten from my fellow
Ellis as I drove into this city.
But they will learn, as this
country has learned, that the
Democratic party is best for
them as it is for the country"
Unlike in Waterbury, where
the police rushed over to pro-
tect Mr.. Kennedy from his
friends, everything went
smoothly in New Haven.
All during his campaign yes
terday, as he rode in an open
car from Bridgeport to Water
bury to New Haven, Mr.. Ken
nedy followed what has now
become a familiar pattern.
Plugs Candidates
He plugged hard for Demo-
cratic House candidates, for
Abraham Ribicoff, his former
Welfare Secretary who wants
to be a Senator, and for John
N. Dempsey. who wants to stay
on as Governor.
In Waterbury, the President
made his pitch for a Demo-
cratic Congress this way:
TOO many times I have seen
fights won and lost by one, two
or three votes, on housing and
medical care for the aged, and
education, and farming, and
all the rest.
II don't want to see the next
two years spent with a Con-
gress in the control of the Re-
.publicans and an executive in
control of the Democrats, and
nothing being done which must
Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-10-18
Both Parties Zeroing In
On Foreign Policy Issue
~ the Associated Press

Campaign snipng foreign policy still flashes between
Republican and Democratic lines.
Speaker Mccormack of Massachusetts, concentrating his
fire on G. attacks against the administrators Cuban
policy said yesterday Prime Minister Fde Castro could not
have got into power without the direct indirect aid Of our