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November 19, 1965 - Image 1

Resource type:
The Michigan Daily, 1965-11-19

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See Editorial Page

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Seventy-Five Years of Editorial Freedom
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Y , u , JW JNo. 41





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Predict Big 1966 Unemployment Drop

By MARSHALL LASSER Prof. Henry C. Wallich discussed
"International Monetary Reform,"
Economic growth will bring the and warned that "not until after
United States to full employniet the payments deficit has been
in 1966, according to University convincingly ended can we expect
Prof. Daniel B. Suits. ocnumt ucsflrfr.
Speaking yesterday at the 13th to consummate successful reform.'
annual Conference on the Eceo- Prof. Suits, giving the opening
nomic Outlook, Suits, director of address, predicted a six per cent
the Research Seminar in Quanti- rise in GNP from $671 to $712 bil-
tative Economics that prepaied lion, based on current prices
the forecast, declared that next (based on 1958 dollars the increase
year's rise in Gross National Pro- is four per cent).
duct will bring unemployment be- "The expected growth in 1966
low 4 per cent, which the Presi- output will mean over 1% million
dent's Council of Economic Ad- more jobs, which in the face of a
visers has called full employment projected 1.1 million increase in
for the economy. the civilian labor force means a
Also speaking at the conference, decline of % million in unemploy-
Prof. Melvin Rothbaum of the ment," Suits said. The unemploy-
University of Illinois pointed out ment rate would drop by a very
that the government's effort to wide margin (compared to the
drive the economy to full employ- slow decline of past years) to 38
ment and to stabilize prices will per cent.
necessitate a related wage-price Suits said the econometrc mocel
policy. used this year has been slightly
Following Rothbaum later in altered from last year, mainly due
the afternoon, Yale University to the failure to predict 1965's

high rate of auto sales. Yet even!
including last year's mistake, the
forecast has not failed to point the
direction of the nation's economy
during its 13 year existence. (How-
ever, several very sizable errors in
the size of the changes have been
Major increases in expenditures)
next year are expected to comel
from services, capital spending,
and government (both state and
local) purchases of - goods and
services, Suits said. In arriving at
the 7 per cent increase in gov-
ernment spending, no allowance
was made for further escalatin
in Viet Nam.
As a result of these increases in
spending, corporate profits before
taxes will rise 9 per cent over this
year, from an estimated $74.4 bil-
lion to $81.3 billion. Evidence
shows, Suits said, that the expect-
ed drop in unemployment will not
squeeze profits.
Another important developmentl

will be the drop in inventories, And as the labor market should
both of durables (autos, furniture, not result in "substantially high-
a p p 1 i a n c e s) and nondurables er wage increases" and productiv-
(food, clothing, petroleum pro- ity gains from new plants and
ducts). modernization should continue,
A disappointing expectation, in the pressure of rising labor costs
light of the government's efforts should be mild.
to cure the balance of payments
problem is the small gain, $2 bil- The most important outlook
lion, in exports. As imports will, though for the next year and fol-
gain by $1 billion at the same lowing years, Rothbaum said, is
time, net exports will therefore go for increased government guid-
up by only $1 billion. ance of wage-price levels. The
Reviewing the predictions for p would aim at "sufficient
restraint in private wage-price de-
the economy as a whole, the pro- cisions to maintain a stable price
jetted increase in GNP of $23.9'csost anai tbepie
bicteincrease nin GNP ho $23. level, thus avoiding the need for
billion will continue the hot pace restrictive fiscal and monetary
of expansion set in recent years. policies before full employment is
In the other speeches, Prof. reached."
Rothbaum noted that with most
major industries now under long- Besides braking the upward
term contracts, collective bargain- movement of wages and prices, the
ing activity will decrease in 1966, policy "may be a way of channel-
and any significant upward move- ing wages and prices into an or-
ments in wages will have to arise derly upward .movement" would
from general labor market condi- be the way to smooth would also
tions. have the effect of smoothing the;

changes into orderly patterns.
Prof. Wallich, claiming that the
United States would not be able to
reach reform of the international
monetary system until it ended
its payments deficit, said that we
should not push reform, for "the
harder we press, the more strong-
ly our creditors will suspect that
we are just asking for something
to hail us out of our current pay-
ments difficulties. That they will
not give us."
The solution, Wallich said, lies
in keeping prices and wages in
line, maintaining a level of short-
term interest rates commensurate
with those abroad, and controlling
the foreign activities of American
banks and corporations, But, he
pointed out, "while the direct for-
eign investment of American cor-
porations is a heavy balance of
payments drain in the short run,
in the long run it will make a
much larger contribution" to the
amount of incoming dollars.

-Daily-Ron Berman
RESEARCH SEMINAR DIRECTOR Daniel Suits speaking yester-
day in Conference on the Economic Outlookk.

What's New
At 764-1817

Dr. Peter Ostefan of the Office of Community Relations
announced yesterday that the driver regulations board will meet
next week for the last time before submitting their final recom-
mendations on the motorcycle noise regulations to city council.
Jerome Brasch of the school of public health has submitted
to the board the last of his memoranda detailing the testing of
muffler systems for noise control.
The board will formulate a final noise control proposal in
their meeting next week, and shortly thereafter submit it to
Councilman John Hathaway, who brought the matter before
council two months ago. The board will concentrate on the noise
aspect of any legislation first, Dr. Ostefan said, formulating safety
and education recommendations later.
A pleased Panhellenic executive board announced yesterday
that 1122 women registered for Spring Rush an increase of 191
over last year's 931.
* $ ' *
SGC members spoke out yesterday at a Regents banquet
against a lack of communications between students and Regents.
Council members said that a dialogue should be carried on for
the purpose of better expressing to the Regents the particular
interests of the student body.
Several Regents responded by citing the Office of Student
Affairs as the proper channel for communication, but also agreed
* that. a more direct dialogue between student representatives and
the Regents might be beneficial for a better understanding of
student concerns.
At a mass meeting last night in the Multipurpose Room of
the UGLI, transportation arrangements were announced for a
march to Washington on Saturday, Nov. 27, in protest of the
war in Viet Namh. Round trip by bus will cost approximately $20.
Long Distance
Michigan Staste University's Faculty Committee on Student
Affairs has not yet reached a decision on former grac student
Paul Schiff's plea for readmission.
The committee met for five hours Wednesday, and then again
yesterday without contracting a final resolution.
The Michigan State University News endorsed Senator Barry
Goldwater's proposal to bomb industrial areas in Hanoi in an
editorial Wednesday.
In the editorial headlined "Barry Right On Bombing Hanoi's
Industrial Area," the News said, "Washington shouldn't hold off
an inevitable military act because of the reasons it has given.
Bombing civilians should be avoided at all costs, and those in
the area should be notified that bombing will take place."
"As long as the U.S. delays bombing North Viet Nam's in-
dustrial center, the war will endure and more human lives will be
lost," said the editorial.
Ford Encourages Re
To Boost Two-Party

Schiff Case i-or
Editor Remains, Sides
With Faculty Advisor
In Holding Stories
The entire editorial board of
Michigan State University's stu-
dent newspaper resigned yesterday
in a dispute over news consorship - -
invnvnlr in ,fnrm.n, n nnh+ rn n- i












rs Resign over Censoring



Fifth Day
Valley Fight

invivi inoiiauin o ie con-
troversial Paul Schiff case.vs
Charles Wells, editor-in-chief of
the State News, reported the res-
ignations, which make him thel ivpp ED .00 .0

only student editor remaining on
the paper's staff.
Schiff has charged MSU with
illegally refusing him readmission.
The editors who left the State
News wanted to publish MSU's
formal court charges against
Schiff and Schiff's reply to those
Louis Berman, a member of the
MSU faculty, charged with final
authority over the content of the
State News, has informed Wells
that he did not feel that publica-
tion of the statements would be
appropriate at this time.
said last night that he fully
intends to publish the statements,
but "Not until the Faculty Com-
mittee on Student Affairs has
delivered its decision. I do not
want my paper to influence that
decision in any way."
News editor James Sterba, one
of those who resigned, claimed
that he and the other editors had
exhausted all available avenues of
negotiation. He alleged that the
faculty advisor would have refused

V.. V U1 X.JF11,1v.. "4
ACT Performance
Cancelled To Allow
MUSKET Rehearsal
A conflict in the scheduling of
the Lydia Mendelssohn Theater
has resulted in the cancellation of
the previously announced Feb-
ruary 6 performance by the
American Conservatory Theater
repretory company.
On February 6, the last date
of the professional company's pro-
posed 26 day stay at the Univer-
sity, MUSKET had been schedul-
ed to occupy the theater in pre-
paration for its production of
"West Side Story" beginning
February 9.
Robert Schnitzer, executive di-
rector of the University's profes-


-Daily-Thomas R. Copi
department of architectural landscape have been studying uses of
countryside for two weeks.

Architecture Students Advocate
Better Use of Natural Wondersl

permission to publish the state- sional theater program, had sched-
ments had Wells given his permis- uled the repertory's stay past the
eion. dates for which he had been By ALICE KLEINHANS Human needs in the countryside beauty which nature has carved
Schiff's case is presently being granted occupancy of the theater. ThSwere considered from contempla- and endowed with resplendent
tried in the U.S. District Court in The potential conflict was re-. Outlining The Great Society tive, physical and cultural stand- qualities.''
Grand Rapids. Schiff claims he solved when Schnitzer cancelled in his comecement adress e points, whether these were pursu- These cameos were mapped with
was dismissed from MSU because the Sunday performance by ACT, o years ago, President Johnson ed collectively or individually. The population centers to indicate their
of, his political activism on cam- thereby leaving the theater free said "A second place where we space involved was also taken in- distribution throughout the U.S.
pus. The court has maintained forMSUKET's occupancy. begin our countryside. We have to consideration. The project and their proximity to human
"'jurisdiction, at the same time Scheduling for student produc- ils nrourdcourysie.es haei showed that 'collective needs were beings. A proper utilization of
asking the MSU Faculty Commit- tions in Universitystheaters goes always prided ourselves on being in eneral more important than these "geographic cameos" would,
tee on Student Affairs to make through the calandering commit- not only America the strong and individual needs, and that spiri- of course, combine their unique
an independent judgment. tee of SGC and is supervised by America the free, but America the tual satisfaction were more im- physical features with human
- - ------ - ---- - Maurice Rinkel, auditor of stu-pbeahnhyu..d
_____batfl"portant than physical., needs.
dent organizations. Speeches and press releases such The land was assessed according Project membersstressed that
Rinkel said that his office had as these convinced Prof. Walter to land form, climate, land use, this study was not intended to be
not been aware that a potential L. Chambers, chairman of the de- and present population. In assess- an empirical study, in depth, of'
conflict was present, and had as- I partment of landscape architec- ing the land, project members the problem. They saw it as a
sumed that Schnitzer's booking ture, and Prof. Harold Spence- made use of the concept of the sort of introductory overview, a
P u b lican s I of the ACT presentations was Sales from McGill University in "geographic cameo." A geograph- framework in which more exten-
within the dates when the theater! Montreal, that an investigation of ic cameo "is a gem of natural sive studies should be conducted.
was free. the utilization of the countryside -
The calandering of Soph Show,'= would be worthwhile.
'Musket, Gilbert and Sullivan, and
University Players takes place For the past two weeks, 23 stu-
during the spring semester pre- dents, chiefly graduates in thet
By DAVE KNOKE ceeding the academic year in landscape architecture depart-
which the productions are planned. ment, have been studying the uses H olPt am est
Gerald Ford, House of Repre- E Dates are left free for APA pro- of the countryside, assessing both
sentatives . Republican minority' human needs and the land, un-
leader, spoke to a crowd of 350 in deuscsionas progm, awin te tpu der the direction of Prof. Spence- By ERICA HOCHBERG attendance at the Harvard Grad-
the Michigan League Ballroom . Sales te School of Mathematics.
last night, and called for advance dent groups are allotted time in Tess Thirty-nine University students Smll awads are g tomin-
latngt n aldfravnethe remaining periods. The basic assumption, as stu- Salerawrsregvnti-
preparation by Republicans on all MUSKET leaders were not in- dents on the project stated, is are scheduled to participate in dividual members of the winning
levels of government to return the the William Lowell Putnamtem
two-party g sem to ts the formed by Schnitzer that a sched- that the countryside must be plan- Ihteam.
two-party system to its fu.l . mathematical competition Satur-
strength. - uling conflict was present but ned. This includes not just thed a icalm. ompetitin Hatur
lestroetngth.atl ?'o~ peevainofbauyo sml day in Rm. 2203 of Angell Hall. Prof. Nicholas Kazarinoff, of

U.S. Casualties Light;
Exhausted Soldiers
Withstand Pounding
PLEIKU, South Viet Nam (A!--
U.S. air cavalrymen remained in
toe-to-toe battle with tough North
Vietnamese troops early today in
the sixth day of bitter fighting
near the Cambodian border.
Communist mortar and small
arms fire slapped into the three
main American positions last night
and early this morning.
Bright flares lit the Ia Drang
Valley throughout the night. Bone-
weary U.S. infantrymen, crouched
in deep foxholes, fought off four
attacks. The North Vietnamese
attacked in platoon- to company-
size strength.
U.S. casualties were described as
very light in this latest action.
This assessment by a U.S. 1st
Cavalry D i v i s i o n, Airmobile,
spokesman was in sharp contrast
t the moderate heavy casualties
reported during the past five days.
There was no estimate of enemy
dead in this latest action. The
battle scene is 210 miles north of
Saigon in lightly jungled country
six miles west of Cambodia.
Ofticial secrecy prevails on
American losses in specific a't'ous.
Casualties are grouped on a week-
ly basis. The Pentagon yesterd~ay
reported 108 killed for the creek
ended last Monday night, the larg-
est U.S. casualty total for any one
week in Viet Nam. There were 358
The period included only part
of the Ia Drang Valley fighting.
A Washington compilation also
showed a total of 3,542 Commun-
ist soldiers killed in South Viet
Nam fighting.
Far from the central highlands
battlefield, Vietnamese govern-
ment t r o o p s mounted drives
against Viet Cong battalions that
had staged major raids in two
sectors-at Tan Hiep in the south
and Hiep Duc in the north.
In the Ia Drang fighting, the
Communists pounded a command
post with mortar fire last night.
Mortar fragments damaged a
large, troop-carrying Chinook hel-

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