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January 10, 1965 - Image 3

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Publication:
The Michigan Daily, 1965-01-10

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SUNDAY, 19 JANUARY 1965

TAE MICHIGAN DAILY

vr" iwn

Bayh Seeks Presidential Disability Frenzied Gold Speculation Eas
Amendrment Hs S c trn S tParis Markets Still Under Stror

es; London,
ia Pressure

11

g ht, Mundt J ek Chage in El C g yste J V 1 . '
Wright, Mundt Seek Changes in Electoral College System

WASHINGTON (P) - Enough
senators to pass the measure in-
troduced yesterday a proposed
Constitutional amendment to deal
with the problems of presidential
disability and of filling vacancies
in the office of vice-president.
Sen, Birch Bayh (D-Ind) intro-
duced it for himself and 66 co-
sponsors - the exact two-thirds
majority needed for Senate ap-
proval of the legislation if all of;
100 senators are present and vot-
ing.
A separate resolution, sponsored
by Sen. Jack Miller (R-Iowa)
would provide only for filling;
vacancies in the office of vice-'
president.
Electoral College
Sen. Karl E. Mundt (R-SD)
introduced a third measure which
would amend the Constitution to
change the state by state winner-
take-all electoral college system
of electing presidents and vice-
presidents. Another approach to
that problem was taken in a meas-
ure introduced in the House by
Rep. Jim Wright (R-Tex).
The Bayh resolution is similar
to one passed by the Senate last
September, on which the Houset
failed to act. It would permit theC
President to nominate a new vice-
president when the office becomes
vacant, subject to majority vote{
confirmation of the nominee by
the Senate and House in joint
session.
Miller's proposal is similar ex-
cept that it would spell out that"
the new vice-presidential nominee
must be of the same political faith t
as the President.I

Three S e n at o r s introduced Constitutional amendments in Congress last week designed to
alleviate the problem of presidential succession in case of disability and to make changes in
the electoral college system of electing the President and vice-president. The senators are Birch
E. Bayh (D-Ind), center, Jack Miller (R-Iowa), right, and Karl E. Mundt (R-SD).

Other points in Bayh's measure.
would provide methods for deter-
mining the inability of a Presi-
dent to perform his duties, and
declare that the vice-president in
such an event would take over as
acting President until the dis-
ability ended. It would affirm also
that a vice-president filling a
vacancy in the presidency nbe-
comes the President-not acting
President.
The Constitution is vague on
the disability problem, merely say-
ing that when a President can't

Grand Jury To Hear New
Civil Rights Case Evidence
JACKSON, Miss. (A)-A biracial federal grand jury reconvenes
Monday to hear new evidence in the Justice Department's latest
attempt at indictments in the murder of three civil rights workers.
It will be the jury's second time to study the killing of the trio,
whose bodies were found beneath an earthen dam near Philadelphia,
Miss., last Aug. 4.
The newest piece of evidence which the 23-member jury has not
heard was expected to be what the government described as a con-

perform his duties his powers I
shall "devolve upon the vice-pres-
ident." But it didn't say how. And
that's been the puzzler.
PresidentshEisenhower a n d
Kennedy had an understanding
with their vice-presidents-Rich-,
ard M. Nixon and Lyndon B.
Johnson - about what to do in
case of presidential disability.
No Law
But these were only personal
agreements between the men each
time and didn't have the force of
law.
Under present law, the speaker
of the House of Representatives
would become President if there"
was no vice-president and the
President died.
Mundt's proposed Constitutional
amendment would change the sys-
tem under which each state's en-
tire electoral college vote goes to
winner. He would substitute a sys-
tem under which two electors+
from each state would be elected
by statewide vote, while its other
electors would be elected from
districts roughly corresponding to
its congressional districts.
Same Proportion
The bill by Wright in the House
would require that the electoral
votes cast for each state be in
the same proportion as the popu-
lar votes received.
Wright in offering his bill said
the electoral college "is a carry-
over of the powered wig and snuff,
box era of American politics."
He said it was not considered
likely in the early days that the
average person would know much
about the candidates. The idea, he)
said, was that they should pick
individuals in whose judgment
they had confidence, "and let;
these 'electors' actually meet andl
decide independently who the1
President should be."
Eight Presidents have died in
office and 16 times the country1
has been left without a vice-presi-
dent.
Luckily, each time a President
died there was a vice-president
to take his place and serve out 1
the term, although this left the1
vice-presidency vacant. But sev-i

en other vice-presidents died in1
office, and one resigned.
Thus the country has been re-
peatedly faced with the twin ques-
tion: what happens when a Presi-
dent is disabled or when a Presi-
dent dies and there is no vice-f
president?-
President Johnson in his State
of the Union message Monday
night promised to suggest laws
to "ensure the continuity of lead-
ership should the President be-
come disabled or die."
He knows the problem first
hand. The country has been with-
out a vice-president since he went
into the White House after Presi-
dent Kennedy's death Nov. 22,1
1963 and will be until Jan. 201
when Hubert H. Humphrey be-1
comes vice-president.t
Last September the Senate by a
65-0 vote approved a proposed
constitutional amendment intend-
ed to settle the two questions on
succession. But the busy House
failed to act.
They're Riotin'
In Panama,
PANAMA (P)'-National guards-I
men used tear gas grenades yes-c
terday to break up a group of
demonstrators trying to reach thej
Canal Zone on the first anniver-
sary of last year's bloody anti-7
American riots.;
About 1500 students and mem-
bers of labor organizations had
staged a noisy but orderly proces-
sion to the grave of Ascanio Aro-
semena, first student killed in the
1964 rioting, in the national ceme-
tery. They chanted anti-U.S.
slogans.
Then 50 young men broke away
from the cemetery and tried a
march on the Canal Zone nearby.
They were stopped by nationalt
guardsmen.
The guardsmen had been sta-
tioned along the parade route and
the Canal Zone border to prevent
possible violence.

NEW YORK (A) - Pressure on
United States gold reserves is
building up fast again and fear is
rising that the International
Bankers Fund that held last year's
U.S. gold loss to $125 million may
be unable to keep the loss this
year from mounting to the danger
point.
At stake are the gold reserves
behind U.S. currency, the official
price of gold at $35 an ounce and
the dollar's reputation as the
world's leading medium of ex-
change.
Late last week the British and
U.S. treasuries made counter-
moves against speculators scram-
bling for gold and putting pres-
sure on the staggering pound
sterling.
These events led to a strong
stalement by the U.S. treasury. It
came too late to affect the London
gold and exchange markets, but
the prices of leading gold mining
shares, which have been rising
steeply, fell back Friday night.
Stockbrokers expect further falls
when the markets open again on
Monday.
Fizzling Out
Financial circles here said the
vast world-wide gamble in gold
appeared to be fizzling out under.
pressure from London and Wash-
ington.
The gold rush put new strains
on the Atlantic Alliance, as some
financial writers blamed President
Charles de Gaulle's government
for not correcting misconceptions
Artistic Thaw
Reprimanded
In Pravda
MOSCOW (M)-The Soviet Com-
munist Party yesterday appeared
to have put a chill on an artistic
thaw that set in after former
Premier Khrushchev's ouster last
October.
A policy statement published in
Pravda, the party's official news-
paper, contrasted sharply with the
new regime's first statement on
cultural policy published in Prav-
da Nov. 22.
The earlier statement mildly
echoed the liberal intellectuals
emphasis on quality as the key
criterion for artistic works.
Today's editorial returned to the
familiar phraseology of party pre-
cepts on art and literature laid
down in harsh terms during a 1963
crackdown on "ideological short-
comings" among Russia's creative
inteliegentsia.
It reaffirmed that the develop-
ment of Soviet art was "insepar-
ably linked with the struggle
against bourgeoise ideology."
.t'.1N S1'
U
6K

I I

I

about French plans to switch $150
million in American dollars into
gold.
De Gaulle wants more U.S. gold.
He has been taking about $400
million a year. He was reported
planning this year to turn in U.S.
dollars that France holds for any-
where from $500 million to $700
million in gold.
Speculation
Speculators, and others worried
lest the British pound be devalued
and even the U.S. dollar lose value
in foreign exchange markets, are
buying up gold in the free markets
in London and Paris.
Market operators reported that
the London gold market Friday
had its heaviest dealings since
the peak of the Cuba crisis in
October 1962.
The Paris gold market also had
to cope with a wild scramble of
private hoarders. Turnover was up
300 per cent on the average day's
dealings.
Private Demand
The heavy and sustained pri-
vate demand pushed the London
price of gold up by 4 cents to
close with an unusually wide mar-
gin at $35.17 to $35.20 an ounce.
The 4 cent jump in price re-
flected the acute buying pressure
in the market. It took the price
close to the upper limit of the
"gentleman's agreement" at which
the Gold Pool works.
The Gold Pool is a vast stock
of gold held by the Bank of Eng-
land, on behalf of an international
syndicate of foreign governments,
with which it attempts to regulate
the price of the metal.
Any further advancein the gold
price above $35.20 would - theo-
retically-put the dollar at a dis-
count compared with the free
market of gold. So this is the
price at which the central banks
must try to peg the price.
French Plans
French plans, announced earlier
last week, to switch some dollar
holdings into gold, renewed fears
of currency devaluation. This re-
newed pressure on sterling, less
than seven weeks after a $3 billion
rescue operation by 11 nations to

(C7

support the British currency.
Part of the gold rush stemmed
from private individuals switch-
ing their paper money into the
precious metal. Others, nervous of
holding English pounds, switched
them into dollars.
Uneasiness about currencies was
aggravated when the Bank of
England ceased to hold the rate
at $2.79 to the pound on Thurs-
day and allowed it to drop 1/16
of a cent below.
South African gold producers
have long been clamoring for a
hike in the price of gold. Ameri-
can, Canadian and Russian gold
producers also would gain by an
increase in the official price.
. $25 to $16 Billion
The U.S. treasury, which once
held $25 billion in gold, now is
holding on tightly to the $15.5
billion left it after several years
of gold losses to foreign govern-
ments turning in surplus U.S. dol-
lars. Their holdings are still build-
ing up because our international
payments run a deficit each year.
In 1963 better than $2 billion more
dollars went overseas than re-
turned.
Foreign governments and their
national banks hold some $12 bil-
lion short term dollar commit-

I

ments they could turn in. Other
foreign banks, traders and in-
vestorshave about $10 billion in
dollar short-term liabilities, some
of which they might turn in to
their central banks.
Of its $15.5 billion in gold, the
U.S. treasury must mark $13.6
billion as legal backing for Federal
Reserve notes (U.S. currency)
totaling $35 billion, and for com-
mercial bank deposits in Federal
Reserve banks of around $19
billion.
Eliminate Backing
Increasingly talk has been
heard of eliminating the backing
for the commercial bank deposits
and even of reducing the 25 per
cent gold backing required for
Federal Reserve notes.
Treasury gold holdings now rep-
resent 27.7 per cent of this cur-
rency and bank deposits. A year
ago the gold hoard was 29.5 per
cent, and two years ago 32.2 per
cent of the money supply that
must be backed.
By eliminating the backing for
bank deposits, the treasury would
have $6.7 billion, instead of $1.9
billion, to meet anysdemands of
other nations for gold in return
for their dollars.

TRY FOLLETT'S First
for that
Hard-to-Find Textbook
NEW SHIPMENTS of NEW & USED
TEXTBOOKS ARRIVING DAILY
Buy Some at
STATE ST. AT N. UNIVERSITY

I

Malaysia Sinks
Indonesia Tug
KUALA LUMPUR, Malaysia (P)
-A Malaysian warship shot an
Indonesian tugboat out of the
water yesterday as it tried to land
guerrillas about 50 miles south of
Kuala Lumpur. Sixteen Indone-
sians were captured and informed
sources said 40 to 50 may have
r drowned.
If the report is correct, it would
be the third attempted landing by
Indonesia in the past 36 hours.
Friday, two dozen raiders armed
with light weapons and grenades
landed on the southern tip of the
mainland near Singapore and
police and troops rounded up 13
with little resistance. Four of the
prisoners were seized in a small
boat. They were apparently trying
to escape back to Indonesia.

fession by one of the 21 men
arrested by the FBI last month.
The charges were dropped after
a United States commissioner
ruled the statement inadmissable
as evidence in the others' cases.
Presiding over the grand jury
Judge Harold Cox, reportedly a
Sstern individualist who runs his
court with a strict adherence to
f rules of procedure.
Should the hearing not pro-
duce any indictments, as happen-
ed in Biloxi in October, the state
of Mississippi might take criminal
action in the murders.
The Justice Department is ex-
pected to seek indictments on a
civil rights violation charge since
murder is not a federal crime un-
less performed on federal property.
The explosive case began June
21 when Michael Schwerner and
Andrew Goodman, both white and
of New York, and James, Chaney,
a Meridian Negro, drove to Phila,
delphia to investigate the burning
of a Negro church.
They dropped from sight after
being arrested there on a traffic
charge, and 44 days later their
bodies, each showing a bullet
wound, were dug from beneath the
dam.
DANCE to
THE ROAD RUNNERS
LIVE ENTERTAINMENT
Thurs., Jan. 14
at the SCHWABEN INN
215 S. Ashley

SALE
reg: $09
Sale Price: $89

f j4
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Pants
Skirts
(plain)
Sweaters
(plain)

laundry-
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JOIN THE NATION'S
LARGEST FRATERNITY
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OPEN MEETING
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Why do men who hate girdles like girls who wear
Delilahi by WARNER 'S
A girl ought to look like a girl-even in a girdle.
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A U S T I N
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RAINCOATS, Cleaned &
waterproofed .. $2.00

I1

A & P CLEANERS
312 E. Huron
across from City oll
668-9500

SPORT in the USSR
Monthly from the Soviet Union.
English or Spanish. Illustrated.
All sports in Soviet Union, in-
cluding system of training. One
year subscription ONLY $1.00.
Imported Pub. & Prod. (M)
1 Union Square, N.Y.C. 1003

WELCOME BACK!
this sunday
10:30 a.m. SELF-ANALYSIS
calvin malefyt
7:00 p.m. SAVAGE AUCAS TODAY
professor kenneth pike, Ph.D.

1209 S. University

663-7151

-1

-

DON'T MISS

BAYARD RUSTIN

University Reformed Church
East Huron by Rackham
S.T.O.P. TOURS
(Student Travel Overseas Program)
HAS ARRANGED A SPECIAL TOUR
fn Ir 1 M TRIMECTER

ROI
LI

1/3

I

off
nylon
lors

1

Deputy Director,
1963 March on Washington; Leader
in CORE and FOR; participant in the
U. of M.'s 1964 Summer Series on
"The American Negro in Transition"

BES-brushed and quilted r
INGERIE-discontinued col

I.

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