PAGE TWO THE MICHIGAN DAILY SATURDAY, APRIL 2, 1966 PAGE TWO TINE MICHIGAN DAILY SATURDAY, APRIL 2,1966 , Tobin Advocates Tax Changes To Offset Economic Expansion 'MAN ON A WILD HORSE': Hart Discusses War Involvement r HARD PRESSED 4 M By MARK R. KILLINGSWORTH Acting Editor "The expansion of the economy is going faster than it should be permitted to do," Prof. James To- bin of Yale University's economicsE department said yesterday. He was' interviewed after a talk at the In- stitute for Social Research. "As we have gotten closer to full employment, the speed of the, economic expansion taking us there has increased, not decreas- ed, and we should taper off," To- bin said. He stressed, however, that "if we have an over-reaction like the Fed- eral Reserve's tightening of credit in response to inflation in 1955- 57, it could hurt the economy a lot.", Tobin, a member of the Presi- dent's Council of Economic Ad- visors in 1961-2, said he favored temporary suspension of the seven per cent credit against corporate income tax allowed on certain forms of corporate investment - along with an increase in' per-' sonal and corporate income taxes, if necessary-to dampen the rate of economidexpansion. He added, however, that busi- ness opposition to the tax credit suspension-in addition to 'strong opposition from the Treasury De- partment on the grounds that the administration had pledged in 1962 on its enactment that it would not be used to stabilize the econ- omy-made "a general surcharge. on income taxes" most probable. Pointing to rising prices, Tobin said, "We are clearly in the zone of the economy where most of our excess capacity and unemployed workers have been used up. Addi- tional demand, while it may bring additional output, causes industry to pay 'more for increasingly scarce units of production. Unemployment in February was 3.7 per cent of the job market one of the lowest figures in the postwar period. The Consumer Price Indexrrose one-half of one per cent last month, and whole- sale prices have been rising dur- ing the past five months at an an- nual rate of five and one-half per cent. GNP Growth Tobin noted that the Council of Economic Advisors 1966 report had anticipated a total growth (in money terms) of gross national product-the value of all goods and services produced for the year --of about seven per cent, two per cent of that representing price in- creases and hence leaving a "real" growth rate of five per cent. "But I wouldn't be surprised if the actual figures were eight per. cent 'money' growth and three per cent price increases," he added. Dangers of Inflation Tobin cited several dangers of inflation he felt were especially important: -The country's unfavorable balance of payments (the differ- ence between its payments to oth- er countries and its receipts from them for purchases, foreign aid and the like) would increase faster than it already has because Ameri- can goods would be higher priced; -There is ssome inequity to people on pensions, fixed incomes and annuities" since their set money income is in effect eaten up in part by rising prices, and -"Some of the heavy invest- ment being made in response to the increasing demand could bet- ter be absorbed next year-we cer- tainly can't sustain a corporate investment rate of 16 per cent a year, which is the case now." (Continued from Page 1) tions and the personnel involved are matters that I can have a strong opinion about, but on which I can contribute not a bit," he said in reply to a question on ne- gotiations with the National Lib- eration Front, the political arm of the Viet Cong. Hart is believed to feel that NLF representation in some form is inevitable but forcing the ad- ministration's hand on such a delicate issue would be wrong. NLF Representation The administration has said it would accept an NLF delegation at talks if it were part of a North Vietnamese delegation but opposes any NLF representation as a sep- arate body. Hart noted, however, that "we didn't slaim the door on the issue at the United Nations or neutral- ize the effectiveness of the In- ternational Control Commission of the Geneva Conference. Even those nations which express doubts about our course .should join with us in seeking to bring the issue before the UN." The senator, who supported the recent Senate Foreign Relations Committee hearings on Viet Nam and Communist China, added that he thought both sets of hearings had been "good" and "useful." Lauds Discussion "I've never been critical of the people who lacerate the adminis- tration for whatever reason," Hart said. "It does indeed add fuel to Hanoi's attitude in this case, but this is one of the prices we are glad to pay for a society which seeks the truth through free dis- cussion." He added-referring to a speech this Thursday. favoring recogni- tion of Communist China by Rep. Weston E. Vivian (D-Ann Arbor) -that "we clearly have to antici- pate and try to arrange that Red China will become a member of the human community just as we had to make that transition with Soviet Russia." He stressed that "we also have an obligation to get some under- standing on the status of Taiwan, nuclear testing and weapons con- trol. Recognition of Communist China is just one of several ques- tions in a complicated context in which time-when should we rec- ognize them and admit them to the United Nations?-is an impor- tant factor." 'Ready To Wrestle' , Hart, who in early January said he was "ready to wrestle with -any man who wants to cut" from the budget to pay for the war in Viet Nam, said yesterday he is "still ready to wrestle but a little afraid I'm going to lose." He declared that "our commit- ment to the war on poverty and other domestic programs is as sol- emn as the pledge we gave to the South Vietnamese. It makes much more sense to raiserevenues to fight both wars rather than have poor people lose one and pay for the other. "Cutbacks in areas like the school milk program and National Defense Education Act scholar- ships aren't the price we should have to pay to fight the war in Viet Nam," he added. He said his pessimistic outlook on budget cutbacks came from a feeling that the Congress would raise taxes but would cut domestic programs as well, rather than sim- ply damping the economy via tax- es, as President Johnson is under- stood to favor. to f ind the kind of summer housing that's just right for you? Call or come in to Across Campus STUDENT RENTAL SERVICE, Ann Arbor's ONLY professional subletting service, and check our lists. There is NO CHARGE for this service We're the only clearing house of this kind in the Ann Arbor area, so if we dont have what you're looking for, it probably doesn't exist. STUDENT RENTAL SERVICE 1215 S. University (across from Campus Theater) NO 5-4480or NO 5-4489 -H------- 1 :u" .rr nM.e or. n M ".v {{t}r'rl. . :": :K"'';rx." r q{rrr ;}r:%rr'"}'rr' :?;'rfi:;:0':?h:":;:}:rr^: r.::"::~" r:{."R:r'{{{.,:gt,"" ....... {,:.:' 4 r :":.::Sti r. :r .S{ ",3 ' JLC{ r X":"?%r" ..w"M," oov .rr$r.44M " nl:rr:"" "S::rT:" M} ?.}i 4Yn:C"F. 7v;. x"3:". nrrP.so n.v:.: .r:k'^Cx.7Cvr n.. n-xxrr ih'$M. y:nX,"re pr.r" .'y R",'q;r : P}S;, "r.." " ,nn.M: "rt.::"r'. r::::{" .:; .r ,G, . :"YrCv' .;f F.,Yry :rh, r.:. r:.". .P"iv .r , o .; nov'"'r ," r"1r.X:"7MaM:.:frrn4}rr.MaM:rnn:vo".v.":ti^:":"i:":rrr.:".":: r'i.{.}},M 6t DAILY, OFFICIAL BELLETIC ..o..:,"ro..{ x.::rr s . M. r .or M r..... . rnM.o" aMx. " r:r . q .%Y r:.";x . xr .".v.:rdF.y°,%?4?4:8;"S}{{;;:k{;:;{: .,vv{?:::;:"r;{:,.;r{rn^;'r " ;: .^C'o :v: n" "vr " vwoao"voM.vove". "v"gov;n:;n:::M M,... . .,"3. .... ""S?:"'". 4.. { :r ':"ho. ..rR+. Mrr "i7 r. ivv : nn?"n T.:: . ..{..". ...... r "i,. AR. Ff. : " "'::::.".: :. ...": ":. .."}, ,r..Ro v;.,.... ... "" . ... :,rrr:"'r,. ,'::g:" {."."xtC". yrr. :."} ., r : fFrJ.v' Sad::"rr::. r:" :M.";?"'$re:: i:":"Rvo....r..... r.n: :v::.......... :"::::"s:":::::::: M.4"rvvo..r nY".S"."xxr~r::v1..".v: x. :"}:i{:M::.,rr,"" n:r."+i.":":"Mr,..S?:....Mrdr FfrJ: 'rr. . r":{"." .vyv:-0::.":MnvA SATURDAY, APRIL 2 9 a.m.-The French Historical Studies Conference will be held in the Rackham Building. 9 a.m.-5 p.m.-The Engineering Council is presenting "Technirama '66'," the engineering school open house.1 7 and 9 p.m.-Cinema Guild will present "Forbidden Games" in the Architecture Aud. 7 and 9:05 p.m.-Cinema II will present part two of Hitchcock's Trilogy "Vertige" in Aud. A. 8 p.m.-The movie "Children of the Damned" will be presented at the Newman Center. 8:30 p.m. - The University of Michigan Men's Glee Club will present a concert conducted by Phillip A. Duey in Hill Aud. SUNDAY, APRIL 3 2:30 p.m.-The music school will present the concert, "Chamber Music for Clarinet, Horn, Bassoon and Srtings," in Rackham Lecture Hall. 3:30 p.m. - The music school concert, "Sigma Alpha Iota Ameri- can Musicale" will be presented in the Recital Hall of the music school. 7 and 9 p.m. - Cinema Guild presents "Forbidden Games" in the Architecture Aud. f... The Daily Official Bulletin is an official publication of the Univer- sity of Michigan for which The Michigan Daily assumes no editor- 1 ial responsibility. Notices should be sent in TYPEWRITTEN form to Room 3519 Administration Bldg. be- fore - 2 p.m. of the day preceding + publication, and by '2 p.m. Friday for Saturday and Sunday. General Notices may be published a maxi- mum of two times on request; Day, Calendar -items appear once only Student organiratian notices are not accepted for publication. SATURDAY, APRIL 2 Day Calendar French Historical Studies Conference -Rackham Bldg., 9 a.m. Cinema Guild - "Forbidden Games": Architecture Aud., 7 and 9 p.m. - School of Music Degree Recital - Catherine Corlett, pianist; Recital Hall, School of Music, 7 p.m. University of Michigan Men's Glee Club Concert-Philip A. Duey, conduc- tor: Hill Aud., 8:30 p.m. School of Music Degree Recital-Linda Briod, violinist: Recital Hall, School of Music, 8:30 p.m. General Notiees Summary of Action Taken by Student Government Council at Its Meeting March 31, 1966 Approved: That SGC allocate $1000 for .the purchase of office machinery for SGC. use to include a mimeograph machine and a copy machine (Thermo- fax or..other type) and for repair or replacement of those machines we al- ready have.- Approved: That any member of the. student body be able to present mo- tions for a first reading directly to'SGC during constituents' time. The constitu- ent will be allowed to present the mo- tion and answer any questions con- cerning-it and mupst provide copies for all council members\ The motion will then be automatical1y postponed to be considered as old business at the next regularly' scheduled meeiting at which time the maker of the motion will be able to participate in debate. Approved: That SGC add its name as a sponsor for the Emergency Con- ference on China which will be held on April 3. Approved: SOC; urge the Board in Control of Intercollegiate Athletics to' reconsider its policy of holding ex- clusively closed meetings and to open its sessions when faced with matters which affect students and the public, (Unanimously.) Approved: That SGC suspend its cal- endaring rules and approve a bucket drive conducted by the U. of M. Friends of SNCC on Fri., April 1. Approved: That SGC endorse Dean Douthat in the Monday City Council election as a candidate from the 2nd Ward and authorize its Student Hous- ing Association to release position state- ments in regard to candidates running for City Council from all wards. (Unani- mously.) Appointed: Mark Simons administra-w tive vice-president of Student Govern- ment Council. Student Government Council Approval of the following student-sponsored events becomes effective 24 hours after the publication - of this notice. All publicity for these events must be withheld until the approval has become effective. Approval request forms for student sponsored events are available in Room 1011 of the SAB. - University of Michigan Friends of SNCC, bucket drive, campus areas, April 1. Late Permission: Freshmen. or Sopho- more women who live in Residence Halls and sororities and who plan to attend the China Teach-In, Sun., April 3, may arrange for a late permission with their individual housemothers. Technirama '66: College of Engineer- ing Open House*ssponsored by the En- gineering Council, Sat., April 2. from 9 to 5; and Sun., April 3 from 1 to 5. Ushers: Ushers are needed for the annual Spring Glee Club Concert, which is to be given in Hill, Aud. on Sat., April 2 at 8:30 p.m. Persons who wish to usher for this event will please report to the east door of Hill Aud. no later than 7:30 p.m. on Sat., April 2. Bus Service: Effective April 4, 1966, the University bus service between the cen- tral campus and North Campus will be extended. The last bus will leave the shelter for North Campus at 12:15 a.m. and will return to campus at 12:30 a.m. This service will be maintained seven days per week. Placement Vickers Div., Troy, Mich. - Advtg. Trng. Immed. opening for grad with Journ, or English degree. Some tech. bkgd. No exper. req. Coordinate infor- mation from des. & sales to prepare advtg. brochures. Martin Place Hospital, Madison Hts., Mich.-Lab positions in clinical chem., bacteriol., & gen. med. tech. Exper. pref., but will train grads with. bkgd. in organic or biochem., bacteriol., or gen. biol. Opening as trainee for sum- mer also available. Local Institute-Geologist, Research Assoc. Infra-red imagery. Some knowl. of econ. BS. 3-5 yrs. exper. pref., will consider April grad. Continental Motors Corp., Muskegon, Mich.-Young man to understudy chief of admin. as ass't. Degree in Bus. Ad. MBA pref. Exper. in automotive indust. desirable. Belfour Stulen, Inc., Traverse City, Mich.-Computer Programmer. - Bkgd. in 1400 series, using Autocoder, either trng. or exper. Little Cloud Girl Scout Council, Inc., Dubuque, Iowa-District Adviser. BA Camping or teaching exper. desirable. 21 yrs. or older to initiate, organize programs. Public Library of Charlotte & Meck- lenburg County, Charlotte, N.C.-Ref- erence Librarian, completion of "fifth yr." in lib. school or equiv. Also Young Adult Librarian to specialize in selecting books for young adults and Adult Services Community Librarian. Pennurst State School & Hospital, Spring City, Pa.-Speech Pathologist. MA-provide clinical evaluations in speech & language. Speech Clinician. BA-assist in gen. speech therapy serv- ices. Language Clinicians. .BA-work with patients who have delayed speech & language and/or aphasia. * * * For further information, please call 764-7460, General Div., Bureau of Ap- pointments, 3200 SAB. SUMMER PLACEMENT SERVICE: 212 SAB- Jobs for Men-Begin April 26 as engi- neering aides, assembly workfi rough- necks on oil & gas rigs, desk clerk jobs, bell boys. These jobs with following companies: Ford Motor, Saline; Gen- eral Motors, Tech. Ctr. Service Section; McLouth Steel Corp.; Jones & Laughlin Steel Corp. Men & Women Students-Come in to register in order to receive job infor- mation after you leave Ann Arbor. To contact you we must have an applica- tion. Details at' Summer Placement Service, 212 SAB. Lower Level. *0 discuntrecords, inc. WE HAVE A * BIG SUR RISE FOR YOU FROM NOON to 6 P.M. TOMROAPRIL 3rd 4 H' GR 1 S. I GS Suzuki X-6 Hustler, a heavyweight in responsiveness, a lightweight in'prico ON MAJOR LABELS FREE COFFEE & DO-NUTS at r: E PEI SUS N U discount records, a HOURS: Mon.-Fri.-9:30-9 Sat.-9:30-6 Sun.-12-6 + Use Daily Classifieds + Suzuki are here and you houd be loo. M April 1-9,... GIANT GIVE-AWAY OVER $1000 FREE REFRESHMENTS Suzuki Cycle Center 4040 Washtenw I I1 EMERGENCY 9 9 II I U U . 1-i AL -m -iva-m I SZ II I 1l 0"