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DOC WATSON (and MERLE)
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TONIGHT (and always in your heart, you know)
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Sunday, October 26, 1969 Ann Arbor, Michigan Page Three

ECONOMIC DECISIONS

Nixon policy: His own

cordially invites you to
for a group of U.N.

a reception
Delegates

Including
Ambassador Maxime-Leopold Zollner-Dahomey
Ambassador Simeon Ake-Ivory Coast
Abassador Ismail Saeed Noaman-Southern Yemen
Ambassador Lazar Mojsov-Yugoslavia
Ambassador T. J. Molefhe-Botswana
Ambassador Victor Issraelyan-U.S.S.R.
And representatives of the following countries:

Ceylon
India
Netherlands
Italy
Syria
Turkey
Ethiopia

Cyprus
Poland
Finland
Equador
Brazil
Malta
United Arab Republic

Denmark
Norway
Argentina
Libya
Ireland
Spain

WASHINGTON {,TP) - In the
nine months since he brought a
powerhouse of economic talent
and a beefed-up policymaking
machinery to Washington, Pre-
sident Nixon has repeatedly
found himself picking his way
among the conflicting views of
his advisers and making t h e
major economic policy decisions
himself.
In making his choices, he has
seen his range of options grow
narrower as Congress has tak-
en the initiative on taxing and
spending policy and, to a de-
gree, made Nixon its prisoner.
In a pre-election speech Nix-
on said, "the President's chief
function is to lead, not to ad-
minister; it is not to oversee
every detail, but to put the right
people in charge . ."
If that meant relying on the
second echelon of command for
decisions, Nixon has found it
does not work. On problems
ranging from mass transit to
welfare reform, he has received
c o n f l i cting recommendations
from his advisers and has made
his own decisions.
In terms of laws put on the
books, not much evidence exists
that there actually is a Nixon
economic policy. The only major
enactment of the Democratic-
controlled Congress was a mod-
ified extension of the 10 per
cent income tax surcharge-
and in asking for that, Nixon
reversed his campaign policy
pledge to let the surtax die or
be drastically reduced at mid-
year.
The scarcity of legislation is
-- at least partly Nixon's fault.
The policy machinery ground
out its recommendations slowly.
Drafts of bills finally began
flowing to the Capitol in quan-
tity this summer. Many did not
closely resemble Nixon's c a m-
paign commitments or the Re-
publican platform, but they will
add up to a substantial body of
legislation when and if Con-
gress gets around to voting on
them. In many cases that won't
happen until 1970 at the ear-
liest.
The most dramatically and
bitterly contested decision with-
in the administration - that
on the overhaul of the welfare
system - climaxed a five-month
struggle. It took almost another
eight weeks to hammer out a
draft bill for Congress.
Almost the whole Cabinet
participated in the showdown
session at Camp David, Md., in
August. Most had reservations,
some were openly opposed. Only
two members actually supported

it - Secretary of Welfare Ro-
bert H. Finch and Secretary of
Labor George P. Shultz.
Chairman Paul W. McCrack-
en of the President's Council of
Economic Advisers - who two
years ago predicted that some
kind of income guarantee would
emerge from the next national
administration, whichever party
won - voiced sympathy for the
.drastic welfare overhaul, but
both he and Budget Director
Robert P. Mayo were concerned
over the multibillion-dollar cost.
Secretary of Defense Melvin
R. Laird took a neutral posi-
tion and said little, thus probab-
ly helping the Finch-Shultz pro-
posal along. As a former top

Sunday, Oct. 26, 1969, 4 to 6 P.M., Lawyer's Club, Law Quad

painfully unpopular, and on
election eve he had dropped all
his qualifications about it. The
surtax, Nixon finally said flat-
ly, would have to go.
His turnabout came in a
scene now familiar to the of-
ficial family. The advisers sat
in chairs placed along one side
of the long narrow, oval Cab-
inet table. Nixon entered and
took his place alone on the
opposite site.
McCracken made the basic
presentation, updating the bud-
get problem and the inflation
threat and discussing other pos-
sible solutions.
As weeks passed and inflation
roared on, the administration's
alarm and frustration mounted.
Congress failed to act and got
more and more concessions.
When liberal Democrats be-
gan to talk of tax reform as the
price of their votes for surtax
extension. The administration
quickly assembled and offered
a modest tax-reform bill which
constituted virtual tax exemp-
tion for almost all Americans
below the poverty line.
Then Congress began talking
of extending the surtax at only
5 percent. This brought another
Nixon compromise which would
let the surtax run at 10 per cent
until Jan. 1, then drop to 5
per cent. This compromise also
included repeating the 7 per
cent investment tax credit to
make up the revenue loss.
The plan to dump investment
credit was perhaps the most
astonishing policy swing of all,
even though almost all econo-
mists agreed that the tax bene-
fit to industry was fueling the
inflationary spending boom in
plant equipment and machin-
ery.
Less than a week before the
repeal decision came, McCracken
and other advisors stated pub-
licly their opposition to it.
Urban mass transit provided
another long, hard internal
struggle. The issue was whe-
ther federal aid to help mod-
ernize transportation system
should be financed out of a new
Mass Transit Trust Fund.
Secretary of Transportation
John A. Volpe wanted the trust
fund, into which would be fun-
neled various travel and user
taxes and all automobile excise
tax collections.
The stickler was that the
trust fund technique provides a
straight pass-through of fed-
eral funds for earmarked p u r -
poses, with no annual review
by congress or the Budget Bur-
eau.
Nixon decided against t h e
trust fund. But that did not
end the battle. As one admin-
istration aide explained, "Volpe
appealed by stalling. He simply
didn't send the proposed bill to
Congress."
The President finally broke
it up by going along with his
other economic advisers a n d
sending to Congress a $10 bil-
lion, 12-year transit bill, fin-
anced in the usual way - an-
nual federal appropriations.

the
news today
by The Associated Press and College Press Service
THE SENATE INTERNAL SECURITY subcommittee said
that terrorists are waging a campaign of propaganda and sabo-
tage in Puerto Rico.
The subcommittee, releasing testimony from its closed hearings
last November, said that the immediate goals of the terrorists was
to force withdrawal of U.S. capital from the island territory. The
subcommittee also accused the terrorists of having ties with Havana,
Moscow and Peking.
Acts of sabotage against the Reserve Officers Training Corps Pro-
gram at the University of Puerto Rico and millions of dollars in
damage to American-owned property was attributed to the terrorists
by the subcommittee.
* * *
PRESIDENT NIXON will campaign this week for the first
time since he won the presidency.
Nixon will be testing his vote getting ability by helping the Re-
publican candidates for governor in New Jersey and Virginia-both
governorships are presently held by Democrats.
In the presidential election, Nixon carried New Jersey by 61,000
votes and Virginia by 148,0000.
* * *
MAYOR JOHN V. LINDSAY has pulled substantially ahead
in his fight for re-election according to the latest New York
Daily News poll.
The Daily News straw poll-which has never been wrong--shows
Independent Lindsay favored by 47 per cent, Democrat Mario A.
Procaccino with 31 per cent, Republican John J: Marchi 19 per cent
and three per cent undecided. The last Daily News poll had given
Lindsay 44 per cent of the vote.
In his campaign, Lindsay has promised that if he is re-elected
Nov. 4 he will run a "coalition" administration and stay out of GOP
party politics.
MAY PICKET:
SStudents to rotest
Justice Dept. o

Communication o e
DvLa
Information-Issues-Attitudes
Questions--Answers
Professional resource people include psychologists, psy-
chiatrists, marriage Counselors, obstetricians, gynecolo-
gists, family planning experts, etc.

President Nixon

GOP policymaker in Congress,
Laird's opposition would h a v e
hurt it seriously.
Nixon stood by his guns, over-
ruling the majority opposition
of his official family, and he
sent to Congress a plan that
would almost double federal
welfare costs, and make nearly
one out of every nine Americans
eligible for benefits.
The Nixon style of signal call-
ing was unveiled in mid-March,
when the decision to seek ex-
tension of the 10 per cent sur-
tax was made.
By then it was clear to the
advisers that they, like John-
son's economists, had overesti-
mated the deflationary force of
the surtax.
But Nixon had rejected an
invitation of the outgoing pre-
sident to join him in January
in a bipartisan call to Con-
gress for a one-year renewal
of the surtax. Like Johnson he
was aware that the surtax was

By RUSS GARLAND
An informal discussion to be
held tomorrow at the Law School
featuring a former assistant at-
torney general, Stephen Pollak,
may be followed by a demonstra-
tion protesting the role of the just-
ice department in enforcing the
Nixon administration's policies.
Both the discussion and the
Soviets gain
in arms race
(Continued from Page 1)
significant reduction of arms and
thereby increase the opportunity
for peace in the world."
"At the same time," Tower add-
ed, "we want to take great care in
our negotiationsato insureth sfu-
ture safety of all Americans."
U.N. Secretary-General U Thant
warmly greeted the announcement.
A spokesman told reporters,
"The secretary-general welcomes'
this development, which is in line
with the General Assembly ;esolu-
tion of last year on this subject."
That resolution urged the Soviet
and U.S. governments "to enter
at an early date into bilateral
discussions on the limitation of
offensive strategic nuclear weapon
delivery systems and systems of
defense against ballistic missiles."

demonstration result from a series
of unsuccessful attempts to get a
representative' from the Justice
Department to come to the Law
School and speak on the present
policies of the Nixon administra-
tion.
The Justice Department is re-
sponsible for enforcing the dese-
gregation policies of the Nixon ad-
ministration-policies which have
run into considerable criticism
both in the North and the South.
Definite plans for the demon-
stration have not been formulated
yet. Two justice department inter-
viewers will be at the Law School
tomorrow, but it is unlikely they
will be involved in any way.
Attempts to have a justice de-
partment representative speak at
the Law School began as a result
of a "feeling on the part of .tu-
dents at the Law School that the
Justice Department did not have
the same function under Nixon
that it did under Johnson," said
law student Neal Bush.
A letter, signed by 274 law stu-
dents, was sent by Anderson to
Deputy Attorney General Rich-ard
Kleindienst requesting that either
he or Attorney General John
Mitchell or the heads of either the
criminal or civil rights depart-
ments address the Law School.
The request was turned down how-
ever.

TONITE

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YOUNG DEMOCRATS
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TUESDAY, OCT. 28-8:00 P.M.
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ELECTIONS TO BE HELD
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