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. 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(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.