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August 27, 1965 - Image 24

Resource type:
The Michigan Daily, 1965-08-27

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FRIDAY, RJ+47ri ST 277, 1965



Russian Criticizes Economy

Some Schools Forego U.S. Aid

MOSCOW (A)-A leading Soviet Articles like Kantorovich's of-
economic thinker said recently ten are planted in Pravda to in-
the Soviet economy has problems dicate which way decisions are go-
because planners often do not ing. His suggestions may only be
know what is going on, and prices part of a continuing debate.
are illogical. Intellectual Revolution
Dr. Leonid V. Kantorovich pro- Kantorovich a member of the
posed a number of changes that Soviet Academy of Sciences and a
could bring the Soviet economy Lenin Prize winner, has been a
closer to Western ways. These leader of an intellectual revolution
changes included a sliding scale in Soviet thinking about planning.
of prices, to take demand into
account, and greater attention to "The Soviets have turned from
profits. Marx to Kantorovich," one West-
Kantorovich complained that ern economist obesrved about a
the present price structure and current tendency to pay lip serv-
system of economic measurements ice to Marxist theories.
create such distortions that the Kantorovich's ideas using math-
best thing to do often looks un- ematical models of the economy
profitable. to control it have not been gen-
His proposals appeared in the erally applied. Traditional Soviet
Communist p a r t y newspaper economists have wanted to use
Pravda. computers on the rapidly increas-
ing bulk of material they must
Economic Plan handle in directing every step of
Party leaders now are working the national economy.
out economic plans for the period Combination of Methods
up to 1970. They are behind The group that seems to be
schedule because of the complexi- winning top-level approval pro-
ties of adjusting outdated eco- wones toplvlapoval mo-
nomic methods to modern indus- mes a inatonof moder
trialprobems.methods like Kantorovich's with
trial problems. lscetralized dircin
less centralze irection-.
The leaders are expected to Kantorovich complained that
consider a draft plan at a meet- "excessive centralization of eco-
ing in about a month of the party's nomic decisions" causes loss of
Central Committee, which sets local economic initiative.
policy for the Soviet government. Inadequate economic informa-

tion and an illogical price struc-
ture destroy incentives for econo-
mizing, the economic mathema-
tician said.
"With the drawbacks in exist-
ing prices, the monetary calcula-
tions of costs and effectivity of
goods, works and expenditures of-
tengives a wrong, distorted pic-
He proposed a flexible system
of prices that would vary the
cost of consumer goods according
to demand in industry. In indus-
try, the cost of-for example-
electrical power to a factory would
be higher in time of peak demands
and lower in such slack times as
early morning.
A Soviet plan to divert spending
from military goods to consumer
products has been stalled by the
recent escalation of the war in
Viet Nam and the resulting in-
crease in East-West tensions.
Observers in Moscow believe
that Russia wishes to avoid any
deeper involvement in the war
because of its preoccupation with
increasing consumer production,
However, rather than lose prestige
in the race with Communist China
for leadership of the world com-
munist movement, the Soviets
have been forced to provide at
least a minimum of economic and
military aid to North Viet Nam.

The decision on whether to com-
ply with the United States Of-
fice of Education's desegregation
requirements is proving a matter
of simple arithmetic for many
Southern school districts, the New
York Times reported recently.
Most of those that rely heavily
on the federal government for
school funds have submitted de-
segregation plans in an effort to
keep the government money flow-
ing. Many that receive only a few
thousand dollars a year from fed-
eral sources are.refusing to.com-
Southern and border state,
schools began assessing their de-
pendence upon federal aid earlier
this year when the Office of Edu-
cation told them either to produce
plans for desegregation or give up
the money they receive under most
federal education programs.
Impacted Areas
The key programs involved are
vocational education, the National
Defense Education Act and the
"impacted areas" program. Im-
pacted areas funds go to school
districts with concentrations of
military personnel or other fed-
erally connected families.

Glascock County, Ga., a small known as a segregationist, is re-
agriculture-based county with few ported to have told school offi-
federally connected families, is ty- cials that even if they refused
pical of the approximately 400 federal money they could be forc-
school districts that are saying ed to desegregate under court or-

"no" to federal money.
Last year, the county received
less than $5000 for federal educa-
tion and National Defense Educa-
tion projects such as language
and* science instruction and guid-
ance counseling.
Small Districts
School District No. 2 in Cal-
houn County, S.C., is giving up
even less. It is the smallest of
three school districts in a county
where, according to State Depart-
ment of Education estimates, fed-
eral funds under the Defejnse Ed-
ucation and the Vocational Edu-
cation Programs totaled less than
$8500 last year.
The two other school districts,
which received more than two-
thirds of the total, have submit-
ted desegregation plans.
All of North Carolina's 169
school districts, regardless of the
amount of federal money they re-
ceive, have submitted some sort
of compliance plan. One state as-
sistant attorney general, widely


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A new mall which will neces-
sitate the "complete redoing of
the three main blocks from Huron
to Williams," will soon be under
construction, according to Mr.
Stuart Abby, Assistant Director
of the Ann Arbor Chamber of
The erection of the mall will
culminate three years of effort in
which extensive studies have been
made of the best way "to revital-
ize downtown Ann Arbor," he
It was originally estimated that
the cost of this project would be
approximately $86,000, and the
City Council passed a bill provid-
ing for this amount three years
ago, Abby said. He pointed, out
however that present estimates of
the cost are much higher, and as
soon as a new amount is decided
upon by the City Council, con-
struction will begin.
Architectural Planning
Most of the planning for the
architectural design of the Mall
has been done by Johnson, John-
son and Roy. According' to City
Council representative Robert P.
Weeks, the project was initiated

because "the center of Ann Arbor
has seriously deteriorated within
the last few years."
Much of the project will center
around the extensive planting of
trees and shrubs in this area, he
added. Cars will no longer be
permitted to park on the sides
of the streets because this will
be the site for the newly planted
The trees are being paid for by
Elizabeth Dean, an Ann Arbor
resident who recently died and
left the city 1.9 million dollars..
About $28,000 from this fund will
be used to pay for the mall.
Modest Effort
Although Weeks was in favor
of the passage of the bill provid-
ing for the Mall, he believes that
this is a very "modest effort"
when compared to the rehabili
tation programs that were launch-
ed in other cities. He further add-
ed that the merchants could have
contributed more funds to the
project than they have.
New signal lights and benches
are also part of the program. Al-
though only one new store is being
built, several are undertaking re-
building programs. The Rubiette.
has just completed a new front
and Fiegel's is also planning to
enlarge. Abby predicts that the
entire project will be completed by
Nov. 2.

Choice Available
"You have a choice," one source
quoted him as having said. "You
can just take the Negroes or you
can take the Negroes and the fed-
eral money."
One of the few Southern. coun-
ties that has given up a signifi-
cant amount of federal money to
stall racial integration in the
schools is Amite County, Miss.,
near the Louisiana border.
Taxpayers there have authoriz-
ed the county supervisors to levy
a 25 per cent increase in school
taxes, if necessary, to offset an
expected loss of about $57,000 in
federal money. This raise would
mean an additional $80 a year in
property taxes on a house valued
for tax purposes at $10,000.
A school spokesman said the
county was prepared to give up
$24,500 in vocational education
funds, about $10,000 in defense
education money and about $23,-
000 in payments in lieu of taxes
from the Homochitte National
Forest, which encompasses a part
of the county.
Court Order
Although no school district in
Louisiana is voluntarily complying
with the Office of Education regu-
lations, 18 of the largest are in-
tegrating under court order. As a
result, they expect to continue re-
ceiving federal funds.
Mack Avant, executive assistant
to the Louisiana state superinten-
dent of education, said the 18
school districts represented less
than one-fourth of the state's
school districts. He said, however,
that they would collect "well over
three-quarters" of the $60 million
in federal money that would flow
into the state if all school dis-
tricts complied with Education Of-
fice regulations.
The refusal to comply 'with the
regulations could become more ex-
pensive to the holdouts.
While Glascock County, for ex-
ample, receives only a trickle of
federal money, it stands to bene-
fit heavily from. federal elemen-
tary and secondary aid programs
awaiting congressional action.
The programs are weighted in
favor of economically depressed
counties, and Glascock County,
with no significant industry- oth-
er than farming, falls into this
category. Because of increased
farm mechanization, its popula-
tion has fallen to about 3000. Its
largest town has a population of
about 500.


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