SUNDAY, 11 APRIL 1965 Yrurr miicn7l. A lv nA ii.v VS.^V-f mv wlfl a. as L lr a a.. ti " to 1 H i ! Y PAG.E THiREE~ 9 U.S. PlanesBomb _ ___ NEWS ANALYSIS my -,I 2!!!!!!M I Government Sustains Economic Boom North Viet Nam GENERATION Rusk Voices Disappointment over Communist Rebuff of Peace Talks SAIGON (I)-More than 120 United States warplanes fanned out over North Viet Nam yesterday, striking at a strategic bridge and highways. Officials said all got back safely after meeting little groundfire and not air challenges from MIGs. And in Washington, Secretary of State Dean cial U.S. disappointment at Communist rebuff of B. Johnson's offer to discuss peace for Southeast Rusk voiced offi- President Lyndon Asia. Washington authorities said the final verdict is not yet in on whether the Communists will agree to the unconditional Viet Nam Open Access To Autobahn BERLIN (R)-The Communists abruptly ended East German mili- tary maneuvers yesterday and re- opened the Berlin Autobahn, thus avoiding a showdown on access rights with four big United States convoys. The Russians earlier had said the maneuvers would end Sunday and off-again-on-again shutdowns on the Autobahn would continue until then. So the U.S. assembled the convoys for a challenge yes- terday morning, but the Russians waved the convoy through. Authoritative sources said the convoys of 452 men and 103 ve- hicles were originally to have re- turned to Berlin Monday after three weeks of field training in West Germany. The speedup of the convoy's re- turn made it appearthe U.S. was determined to put its rights of free acces to West Berlin to another test. Six times since Monday the Communists had closed the Auto- bahn, the 110-mile lifeline for West Berlin. They announced it was because of the military ma- neuvers, but privately said it was because of the West German parli- ament meeting in West Berlin Wednesday. peace talks and the massive eco- nomic development program pro- posed by the President last Wed- nesday. But with first Peking and now Hanoi radios heaping public abuse on Johnson's offer, chances of formal Communist acceptance ap- peared to be dimming. Marines Arrive In Viet Nam a Viet Cong-South Vietnamese firefight three miles from Da Nang gave 1,400 newly arrived U.S. Marines their first glimpse of the Viet Nam war but they did not become engaged. The ground troops came ashore con- current with the arrival of the first four of 18 F4 Phantom jets flown by Marine pilots. Seventy-five U.S. Navy planes from the carriers Ranger and Coral Sea knocked out the King Cuong bridge on North Viet Nam's route 7, 150 miles south of Janoi, U.S. officials in Saigon reported. In morning and afternoon runs, U.S. Air Force bombers and fight- ers ranged up and down highways 7 and 8, about 100 miles north of the South Vietnamese border. A U.S. spokesman said they sprayed a variety of targets, presumably road convoys. Da Nang Fight A U.S. adviser to the Rangers said he did not believe the Da Nang fight had any connection with the landing of the Marines. The Marine landing was not af- fected by the fight. By JACK MEYER The United States' sustained economic boom, currently in its fiftieth month, is the result of the evolution of institutional pre- ventive devices and effective sta- bilization policies. The development of legal re- quirements, insuranceprograms, and budget manipulation has en- abled national output to expand continuously. The prolonged prosperity that we have enjoyed since 1961 has perplexed many observers and de- fied some economists. A few months ago some economists and government officials predicted1 that next fall recessionary tenden- cies would hring the boom to a halt. Lately they have modified their forecasts; if production is going to slacken, it will not be this year,s they claim. False Alarms What causes these false alarms? It appears that some of the warn- ings are the result of a pessimistic attitude about the ability of the U.S. economy to avoid sizeable fluctuations. "Whatever goes up must come down" is still the rule of the thumb for some prognos- ticators who fail to analyze our current growth in its proper per- spective. The gradual development of counter-cyclical weapons over the! last 35 years has eliminated the inevitibility of substantial eco- nomic fluctuation. The seeds of recession are no longer contained within the blossoming economic prosperity. Prior to World War II the U.S. economy swung back and forth like a pendulum between pros- perity and depression. Large-scale panics rocked the country; the Great Depression threatened to damage the U.S. economy beyond repair. Lack of Confidence ! The word "panic" reveals the essential cause of the violent fluc- tuations-the lack of confidence. It was the absence of regulated guarantees and operational safe- guards that fostered this wide- spread apprehension and thus pro- moted extreme business cycles. In the 1930's prudent econ- omists and politicians recognized that the key to minimizing fluc- tuations was the restoration and the end of the bank mob scene. sibility of a steel strike looms maintenance of business and con- In addition to providing legal ahead. This unquestionably would sumer confidence. The newly- underpinnings for the economic have an adverse effect upon the formed Securities and Exchange system, the government gradually economy. Commission watched over the developed workable short-range However, the important con- stock market, which had contrib- policy tools and built-in economic sideration is that we have effec- uted substantially to the great de- stabilizers. The regulatory powers tive weapons with which to com- pression. of the Federal Reserve Board were bat steel strikes, bank failures, or The stock margin-representing widened to promote effective mon- short-term debt conversion of the the fraction of actual capital that etary supervision. Unemployment DeGaulle variation. the investor was required to put insurance programs promised to Today these problems may up as collateral-was raised from ease cyclical pressures by chan- dampen, but they do not inevitably its negligible pre-Depression level neling funds to workers when un- undermine prosperity. to a significant percentage of the employment signalled the coming Our supply of tools and pallia- total investment. This virtually of a recession. tives appears to be sufficient to precluded a repition of the 1929 What light does the develop- insure sustained long-run pros- market collapse. ment of these cushions and safe- perity. Bank Deposits guards shed on the future? There What about the infamous "run certainly will be mild fluctuations. on the bank," another manifesta- The U.S. economy is dynamic; it tion of shaken confidence? The is subject to certain built-in de- Read and Use Federal Deposit Insurance Cor- stabilizing forces. poration, which guaranteed bank For example, May 1 is the dead- ay*f deposits up to $10,000, heralded line for the negotiation -of the ---- ----- steelworkers contract. 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