1965

THE MICHIGAN DAILY

'PAV.r. '01riturr.'

_ 95TH IHI A D TN1 iu ,,t~u

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1;

British
SHeath'

Tory

Party Elects

VIETNAM, UNCERTAINTY:
Professors View Stock Drop

Conservative

Bos

Maudling,

EDWARD HEATH SIR ALEC DOUGLAS-HOME
VOTING BILL TALKS:
H'ouse Rights Balk
Trips Negotia tions
WASHINGTON (OP)-Senate-House conferees on the Voting Rights
Bill broke off negotiations yesterday after the House members balked
at a compromise proposed by the senators.
Senate Republican Leader Everett M. Dirksen of Illinois told
newsmen that he and other Senate conferees had offered a package
deal on two key issues in dispute.
Dirksen said that at yesterday's meeting of the conference com-
mittee, its fifth, the Senate conferees were unanimous in offering this
proposal but the House conferees

REGINALD MAUDLING

Educator
Picked for
HEW Post
By The Associated Press
WASHINGTON-President Lyn-I
don B. Johnson yesterday named
John W. Gardner, an educator'
whom Johnson said was regarded
as "one of the most knowledge-+
able men in the field of U.S. edu-
cation," to succeed resigning Sec-
retary of Health, Education and'
Welfare Anthony J. Celebrezze.
He nominated Celebrezze for a
federal judgeship.
Announcing his fourth cabinet
appointment, Johnson chose words
that could have accompanied one
of the 12 honorarydegrees Gard-
ner holds.
Gardner has served for 10 years
as president of the Carnegie Corp.,
a foundation which administers
philanthropies set up by the late
Andrew Carnegie.

Powell .Both
Resign Early
'Poor Man' Heath
Held 150-133 Lead
Out of 298 Votes
LONDON L)--British Conserva-
tives smashed tradition yesterday
and elected Edward Heath, the
"poor man's choice," as party lead-
er. A bachelor, Heath, 49, is now
in line to become prime minister
if and when the Conservatives re-
gain control of the government.
The 298 eligible Tories in the
House of Commons did the vot-
ing-which in itself was new.
The result elevated a politician
who, unlike most of his predeces-
sors, never attended Britain's elite
private schools. Heath won rec-
ognition with no powerful influ-
ences pushing him from behind.
Rise to Power
A Horatio Alger story in Tory
politics, he acquired the leader-
ship in a default of his rivals.
He got 150 votes against Regi-
nald, Maudling's 133 and Enoch
Powell's 15 on the first ballot.
He fell short of the margin
needed for a clearcut victory un-
der new rules laid down by the
outgoing leader, former Prime
Minister Sir Alec Douglas-Home.
The rules called for a victory mar-
gin of 15 per cent over the run-
ner-up.
But that issue was settled by
withdrawals. Powell, 53, withdrew
first. Then Maudling, 48, dropped
out, choosing not to force a sec-
ond ballot and promising to sup-
port Heath fully.
Certification
The decision will be certified
today in Room 14 of the House
of Commons - the Conservative
committee room where the vot-
ing took place.
It was a two-man race from
the start. When Maudling failed
at the first try, he said:
"Mr. Heath has attained an
over-all majority on the first bal-
lot. I am very grateful to all the
friends who have supported me,
but I have no doubt at all that,
in the interests of the party, I
should not contest another ballot.
I hope to have an opportunity of
working under Mr. Heath's lead-
ership to defeat the present (La-
bor) government as soon as pos-
sible."


By SHREESH JUYAL
1Recent wild fluctuations in the
stock market, largely downwards
now, are mainly due to two fac-
tors: the Vietnamese situation;
and the speech by Federal Reserve
Board Chairman William McChes-
ney Martin at Columbia University
last June, said Prof. Elliott R.
Morss of the economics depart-
ment, recently.
Morss said that Vietnamese
crisis has created uncertainty and
instability in the stock market
and a change or development in
Viet Nam is bound to have its im-
pact on the market here. Never-
theless, Martin's speech a t this
juncture affected the market to a
considerable extent. Martin had
pointed out that there wer? "simi-
larities" between the situation to-
day and that which existed in the
lln, o w

DANIEL R. FUSFELD

lte ±zu's. of full employment. This means
However, Morss asserted that that it is now committed to in-
there is nothing in the basic un- suring that earnings increase.
derlying structure of economy Implications
that would warrant the sell-off WIhat implicit in Martin's sug-
that has occured currently. gestion is that something is going
Differences to happen to cause the economy
Apart from viewing the analogy to slow down in terms of the eco-
between the situation today and nomic progress of the country.
that of 1920-29, Morss maintain- The only evidence is apparently
ed, that there are important dif- to Martin's own policy- tighter
ferences. and higher interest rates-Morss
--Firstly, the marginal require-, commented.
ment is considerably higher today Morss said that in terms of the
than in 1920's. overall situation, a suggestion for
-Secondly, the stock market is the future would be, if we can get
dominated a great extent by large over the apparent concern over
institutional investments, w h i c h Viet Nam situation, to invest in
are more sophisticated, than those defense oriented stocks (com-
in 1920's. panies).
-Thirdly and most significant, Profs. W. L. Smith and Daniel
the government is much more so- Fusfeld, both of the economics
phisticated in keeping the econ- department, also share the view
omy progressing at, or near, a level expressed by Morss that attitudes

and expectations in foreign policy
considerably affect trends in the
stock market. They also agreed
that the situation in Viet Nam has
affected the crash in the market.
However, it is difficult to view
the exact impact, Smith said.
Can't See Reason
"I can not really see any rea-
son for that sharp break in stock
relations. I think, the trend is
favorable for future, though there
has been quite a bit of fluctua-
tion in last couple of months-
quite unstable," he added.
In the opinion of Smith and'
Fusfeld, there might have been a
reaction to the speech given by
Martin and that it might have
affected the market for a very
short period, but did not have any
real effect in the long run.
"The result comes because of
the economic conditions," Fusfeld
remarked.
David Lawrence, noted column-
ist, on the other hand holds
strongly that the speech by Mar-
tin was "one of the most construc-
tive pieces of economic and com-
mercial advice that has come out
of the government in many years.
It was by no means pessimistic.
Little Disparity
"The distribution of our na-
tional income now shows less dis-
parity than in the early period.
In particular, personal incomes
and especially wages and salaries,
have kept pace with corporate
profits, and this has reduced the
danger of investment expanding
in excess of consumption needs.
Perhaps related to that better
balance, the increase in stock
market credit now has been much
smaller," Lawrence wrote recently.

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Across

Campus
1:30 p.m. -- The Audio-Visual
Education Center will show "Day
of the Painter," "Calder's Circus"
and "Interview" in the Multipur-
pose Rm. of the UGLI.
2 p.m--Dean Allen Weller of
the University of Illinois will
speak on "Contemporary Ameri-
can Painting and Sculpture" in
the Architecture Aud.
UMMMM

were divided and declined to ac-
cept it.
He said it involved dropping the
House-approved ban on state poll
taxes in favor of keeping, in al-
tered language, a Senate provision
directing the attorney general to
challenge the constitutionality of
these levies as a voting require-
ment.
Also, he said, it provided for re-
taining a Senate provision under,
which persons educated in Ameri-
can flag schools in languages oth-
er /than English would not be re-
quired to . pass an English-lan-
guage literacy test to qualify to
vote.
The effect of this provision would
be to enable thousands of Span-
ish-speaking Puerto Ricans in New
York to enroll as voters even
though they are unable to pass the
state's English-language literacy
test. The House rejected a similar
proposal in its Voting Rights Bill.
Dirksen described Rep. Emanuel
Celler (D-NY), chairman of the
House conferees as willing to take
it, but apparently Celler was out-
numbered. The House conferees
include four Democrats and two
Republicans.

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For More News,
See World News Roundup,
Page 6

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As chairman of a presidential
task force, he helped draft John-
son's proposals to Congress in the
field of education. Taking note
of that service, Johnson said
Gardner "helped plant, the seed-
bed of the educational harvest pro-
duced by the 89th Congress."
Johnson named Celebrezze to
the 6th U.S. Circuit Court of Ap-
peals, which is based in Cincin-
nati. After three years at the
Department of Health, Education
and Welfare, the 54-year-old Cele-
brezze thus will return to the state
where he began his political ca-
reer.

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First Appearance
Heath kept his counsel. His first
public appearance as leader prob-
ably will be in the House tomor-
row. Meantime, he faced the job
of reallocating jobs in the shadow
cabinet. The men thus singled out
will cope with their opposite num-
bers in Prime Minister Harold
Wilson's Labor cabinet.
Maudling has been shadow for-
eign minister. There were reports
Heath may ask his predecessor,
Douglas-Home,to return to this
foreign affairs role, at which he
played a prominent and success-
ful part before he became a los-
ing prime minister.
If Douglas-Home obliges, Heath
may restore Maudling to his orig-
inal task of shadow chancellor of
the Exchequer.
Both Heath and Maudling are
examples of new, young blood in
the 200-year-old Conservative par-
ty.

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