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November 24, 1964 - Image 3

Resource type:
Text
Publication:
The Michigan Daily, 1964-11-24

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TUESDAY, NOVEMBER 24, 1964

THE MICHIGAN DAILY

PAwF T m.'PI

rAUM .Unnnlf

If

Us.

Raises

Bank

V

Afe r B ritish Raise

British Move
Causes Some
Trepidation
r LONDON tom)-The British gov-
ernment boosted Bank of England
tlending rates from 5 to 7 per cent
yesterday, seeking to ward off a
crisis. that had made the pound
sterling wobble and brought talk
of devaluation.
In a move which demonstrated
the underlying urgency, the bank
rate was raised as high as it's
been in modern times.
The vent followed a weekend i
which foreign confidence in sterl-
ing appeared to be evaporating at
an alarming rate. With the na-
tion's international trade seeming-
ly headed for its biggest-ever an-
nual deficit, financiers had start-
ed shedding pounds as fast as
they could unload them.'
Trend Checked
This trend was instantly check
ed by the higher bank rate.
The higher bank rate will mear
more interest to pay on almost
every type of business loan, from
buying a home to floating a cor-
poration.
By damping down domestic con-
sumer demand, it diverts more o
the national product to the vital
export market, but-more impor-
tant, from the point of view of
the immediate crisis-it, attracts
international speculators seeking
the best bargain for their finds.
Unhappy Reverse
For the Laborite government
in office less than six weeks, the
move represented an unhappy re-
verse.
For years in opposition, Labor
had campaigned against the banl
rate as a weapon of financial con-
trol. The Conservative habit of
juggling with the rate to ride
over financial storms was con-
demned by Labor as "the stop-go
policy."
The Laborites claimed this pre-
vented industry from expanding
at a healthy rate. And when their
own turn came last month to deal
with a crisis, they selected as their
weapons a 15 per cent surchange
on imports coupled with higher
income and other taxes.
Pound Insecure
These measures apparently fail-
ed to convince foreign realers that
the pound could be kept secure
from devaluation.
The Conservative opposition lost
not time in mounting an attack.
"The need for action," declared
former Chancellor of the Exche-
quer Reginald Maulding, "arises
directly from the collapse of for-
eign confidence in the Labor gov-
ernment's financial policies."
One line of Conservative criti-
cism was that scary Laborite talk
about the crisis they had inher-
ited from the Conservatives con-
tributed to the loss of foreign
confidence in sterling.
Italan Election
eturns Show
Party Strength
ROME (AP)-Italy's Communist
Party appeared last night to be
maintaining its strength in first
returns in the country's crucial
nationwide local elections. Pre-
mier Aldo Moro's Christian Demo-
crats seemed to be faltering'.
But the first returns were too
fragmentary to indicate a nation-
wide trend, and no national fig-
ures were expected until early to-
day.
Moro's own office was not at

stake, but the vote-because of its
nationwide nature--was clearly a
referendum on his experiment in
center-left coalition government
with the Marxist socialists. It also
was a test of the effect on Italian
Communism of the ouster of Ni-
kita Khrushchev in Moscow.
A definite setback for the Chris-
tian Democrats could result in
the party taking a new look at
the Moro government and perhaps
scrapping it. Moro himself has
said the elections, although local,
were crucial for his government's
future.

Timing of Increases
Comes as Surprise
By ROGER LANE
Associated Press Business News Writer
NEW YORK-The one half per cent rise in the Federal Reserve
Bank discount rate, the first increase in 17 months, caused some
surprise but little excitement in the financial district.
The surprise was confined pretty much to the timing. Some
bankers and economists looked for the same move later this week.
They foresaw little effect on domestic business. Before the news

Rates,
Board Acts
To Counter
Imbalance
Also Sets New Limits
On Deposit Payments
WASHINGTON ()-The Fed-
eral Reserve Board yesterday rais-
ed the bank discount rate from
3%/ to 4 per cent.
The Federal Reserve said the
action was taken in order to
counter "possible capital outflows
that might be prompted by any
widening spread between interest
rates in this country and the high-
er rates abroad."
Britain's bank rate was also
raised yesterday, from 5 to 7 per
cent.

Use LPledlge,
Court Rules
WASHINGTON (P) - The Su-
preme Court refused yesterday to
interfere with the recitation by
pupils in public schools of a
pledge of allegiance containing
the words "under God."
The court also broadened the
freedom of citizens to criticize'
public officials without penalty.
It said statements made in ill-
will are no ground for criminal
libel unless they are made with
"reckless disregard" for the truth.
The refusal to prohibit an "un-
der God" pledge of allegiance to
the flag seems significant in light
of question raised when the court
barred required, official prayers
in public schools in 1962 and 1963.
Some critics predicted then that
the court would eventually ban-
ish all mention of God from the'
schools, including that in the
pledge.
The court, however, made no
comment on the question yester-
day in unanimously rejecting an
appeal by parents of two children
in schools of Richmond County,
N:Y., Joseph Lewis and Alfred L.
Klein.

inexi cans
SAN FRANCISCO (') - Since
1951 more than a million Mexican
farm workers have crossed the in-
ternational border, reaching from
Texas to California, to help in
the harvest of vegetable, fruit and
cotton crops.
On Dec. 31, the border gates
may be closed to the Braceros-
a Spanish word for laborers and
the name given these Mexicanf
citizens when they first began the
annual trek to the Western farm
lands.
Conservatives
Ponder Move
To Oust Kuchel
WASHINGTON (A')-Conserva-
tive Republican senators are
sounding out sentiment for a pos-
sible move to oust Sen. Thomas
H. Kuchel of California from his
post as assistant GOP leader.
Although their plans have not
yet jelled there is reportedly dis-
cussion of running either Ro-
man L. Hruska of Nebraska or
Peter Dominick of Colorado

Pupils MayCLOSED BORDERS:
TTTh 1/

I

Riots Plague
New Rulers
SAIGON WP)-Several hundred
Vietnamese students barricaded
themselves in a school yesterday
in protest against the draft' and
held several foreign teachers, in-
cluding one American woman, ap-
parently as hostages.
Police who tried to open the
main gate of Le Quy School were
met with a barrage of rocks, ta-
bles, chairs and even blackboards
from the windows of the five story
building where Saigon's upper
middle class and wetalhy families
send their children for education.
Although several hundred stu-,
dents were in the barricaded
school, police said they believed
the demonstration was the work
of a hard core group. Students
who tried to leave the building
also were targets of stones and
hurled furniture.
After a time violence quieted
down.
Premier Van Tran Huong filled1
Saigon's streets with armed troops
and police last night to guard
against demonstrations against
this 21/2-week-old civilian govern-
ment.
The high national council of 15!
civilians went into session for
three hours but issued no state-+
ment after the meeting ended.

breached Wall Street, however, an-
ticipation of tighter money policy
prompted by a jump in the British
bank rate, led to a moderate loss
in the stock market and a sharp
setback for United States treasury
bond prices.
Possible Outflows
The Fed's focus was on check-
ing possible outflows of sliort,
term capital rather than on do-
mestic impact.
An exodus was feared after the
official lending rate in England
advanced to 7 per cent, a rise of
two points which widened the re-
turn an American could get on
his money by shipping it to Lon-
don.
Leif Olsen, vice-president in
charge of the economics depart-
ment of the First National City
Bank of New York, said the do-
mestic effects of the Fed's action
were "certainly desirable."
He also said it appeared that
the hike was sufficient, after al-
lowing for "insurance" costs in'
sending money abroad, to narrow
-perhaps wipe out-the effective
spread between U.S. and British,
return.
This and other comment was
in tune with observations made
in Washington by William Mc-
Chesmey Martin, chairman of the
Federal Reserve Board.
Martin predicted a "negligible"
effect on business. He said there
was no intention of altering the
board's policy of gardually in-
areasing the money supply through
control of commercial bank re-
serves.

I

May Lose U.S. Jobs

Public Law 78, the congressional
act granting the Mexicons ad-
mission into the United States
for seasonal farm work, expires
the last day of the year.
There apparently will be no re-
newal of the treaty.
The program was granted a one-
year lease on life in December,
1963, with a congressional nota-
tion that there would be no fur-
ther extensions.
Braceros did the most demand-
ing and unpopular of the farm
work-scoop labor on crops such
as strawberries, cucumbers and
lettuce.
The end of the Bracero pro-
gram will touch the lives of do-
mestic farm workers, cannery.
workers, farmers and even the
housewife responsible for balanc-
ing the grocery budget.
California, which used 62,670
Braceros at the peak of the 1963
harvest season, will feel the sting
of this lbaor loss more than other
states.-
But the California farm prob-
lem may set off a chain reac-
tion that will reach Arizona, New
Mexico, Texas and other agricul-
tural areas.
A State, Senate fact finding
committee reported receltly that
wherever California growers look
for replacements to fill the Bra-
cero jobs, serious problems arise.
The committee said if Califor-
nia growers don't find an ade-
quate work force and, instead,
cut back crop production, the ef-
fect on the state's economy would
be critical.
For every farm job, the com-
mittee said, 2.6 are created in
other fields. A reduction in crops,
therefore, would mean a loss of
jobs in other industries.
Arizona finds itself in much.
the same position, with thousands
of Braceros used each year, and
have an uncertain domestic la-
bor force.
Farmers in New Mexico have
expressed fear that elimination of
the program will mean a drain
on their supply of domestic work-
ers by hard-pressed kest coast
growers.

All of these are big California
crops, some are major crops in
other states.
Serious doubt remains among
farmers and some labor experts
if domestic workers would do the
demanding stoop labor.
Braceros, paid by piece work,
'earn from $1.50 an hour for
picking tomatoes to 90 cents an
hour for thinning cantaloupes.
DAILY OFFICIAL
BULLETIN
(Continued from Page 2)
Tech. Mkt. Analyst, grad engr. with
MBA degree. Locations include Cieve-,
land, Saginaw, Detroit, & Marion, Ohio.
For further information, please call
764-7460, General Div., Bureau of Ap-
pointments, 3200 SAB.
EDUCATION DIVISION:
The following list of schools will
be interviewing at the Bureau of
Appointments for prospective teachers
for 1965.
MON., NOV. 30-
Chappaqua, N.Y. 4- For Sept. 1965;
Elem., J.H.; Soc. St., Sci., Engl:; HS.-
Engl., Soc St.
TUES., DEC. I-
Midland, Mich.-Elem. 1 & 2, 5 or 6;
M.R.; Type./Math. (For.Jan.)"
Milford, Mich.-Elem. K, 1; H.S. Eng-
lish (For Jan.).
St. Clair, Mich. (East China Twp.)
-Elem.,' Elem.-Music, Art, FE; J.H.
Lib.; H.S. Phys./Chem. (For Jan.
Birmingham, Mich. - E. Elem. (Dec.
21), El.--Gr. 5 & 6 (Feb. 1), Gr. 2
(Dec. 21), Kdg. (Feb. 1); H.S. Soc. St.
(Feb. 1); V.T., Audio Vis./Lib.
WED., DEC. 2-
Highland Park, Mich.-For Jan. 30--
Elem. 1-6, Lib., Vocal, Girls PE; J.H.
Set., H.S. German.
Wyandotte, Mich. - Instr. Music
(Strings-H.S.); H.S.'Ind. Arts; Elem.
PE; Elem. Vocal Music; Elem.-, 2 &
3 (For Jan.).
THURS., DEC. 3-
Manistee, Mich.-Type A (for Jan.).
Brethren, Mich. (Kaleva-Norman-
Dickson Schs.)-Math.Engl., Type A
(For Jan.).
FRI., DEC. 4 -.
Flint, Mich--Elem., Women's .PE, Art,
Spec. Edu. (For Jan.).
* * *
Make appointments now.
For additional information and ap-
pointments contact the Education Di-'
vision, Bureau of Appointments, 3200
SAB, 746-7462.

Thei
charge
rowing
serve.
The
will be
eral Re
York,:
St. Lo
The
ed the
may p
posits.
The
deposit
one ye
4 per c
pay fo.
posits1
The
will be
of less
cent fo
The m
one pe
less th
for th(
The
rates,
is aim
flow of
cial ba
financi
The
rate is
wheni
3%, per
that ti
vent an
tal fror
A flo
because
wouldl
United
to stem
this co
Gene
in the
as anti
the sup

The Test of the First against Kuchel when the Senate
Borrowings j The parents said the phrase GOP conference meets in Janu-
discount rate is the interest "under God" in the pledge recom- ary.
d member banks for bor- mended for classroom use by a Kuchel did not support Sen.
,s from the Federal Re- New York state regulation "ex- Barry Godrwater of Arizona, the
presses a religious conception." Its GOP presidential nominee. Con-
rise in the discount rate repeated use in the schoolrooms, servatives also cite Kuchel's fail-
effective tomorrow at Fed- they contended, "has the neces- ure to support actively the sen-
eserve banks in Boston, New sary effect of advancing religion atorial candidacy of George Mur-
Philadelphia, Chicago and and thereby appears to fail the phy of California.
uis. test of First Amendment validity." Although Goldwater was pri-
Federal Reserve also rais- The court's ruling on criticism vately critical of Kuchel, he did
maximum rate that banks of public officials reversed the not include the California sena-
ay on savings and time de- conviction of New Orleans Dis- tor among the "so-called Repub-
trict Attorney Jim Garrison on licans" who refused to back him
.mo i a charge of defaming eight crim- and whom Goldwater blamed in
maximum rate on savmngs inal district judges in the Louisi- part for his defeat.
ar was raised from 3 to ana metropolis. Sen. Everett M. Dirksen of Il-
ent. sanks previously could Garrison was fined $1000 by the linois, the Senate Republican lead-
our per cent only on de- Louisiana courts during his quar- er; declined comment. There were
rel with the judges in 1962 when indications, however, that he is
held one year or longer. they froze funds he said he need- against any movement likely to
Time Deposits ed for a vice probe in New Or- split the Senate minority at the'
new rate on time deposits leans' French Quarter. beginning of a new session of Con-
4 per cent for maturities Raps Justices gress.
than 90 days and 41/2 per At a news conference, he ac- An independeit check indicat-
or all longer than 90 days. cused the judges of inefficiency, ed that the results might be very
naximum rates have been laziness and excessive vacations close if the conservatives choose
er cent for maturities of and said their refusal to provide to make an open fight against
an 90 days and 4 per cent funds hampered efforts to enforce Kuchel.
ose over 90 days. 'the vice laws.-
action on deposit interest The Louisiana Supreme Court
the Federal Reserve said, rejected Garrison's claim that his
ed "at insuring that the conviction violated his guarantee
f savings through commer - of free speech.
nks remains ample for the The U.S. Supreme Court unani-
.ng of domestic investment." mously disagreed with the Loui-
change in the discount siana court and Justices William
the first since July 1963, O. Douglas and Hugo L. Black
it was increased from 3 to wanted an even broader rule bar-
r cent. The reason given at ring criminal convictions for cri-
me was the same: to pre- ticism of public officials.
n excessive amount of capi- Basic Rule .t... By Barrie
,m going to other countries. Justice William J. Brennan, Jr., Ltd. of New Haven.
w of money to banks abroad delivering the court's opinion, not- Made of Scotch grain
e of higher interest rates ed that the court last term laid or smooth veal. Full leather
have an adverse effect on down the basic rule of freedom lined Hand-sewn forepart ' leather
soles and heels " Polished to Perfection
States government efforts to criticize public officials-in a , Available in golden grain or black,
n the outflow of gold from New York Times case in Alabama brown or honey tan veal.
untry. that limited the award of civil order by mail, state size, $19.95 postpaid!
erally speaking, an increase libel damages to criticism made Free Brochure Upon Request
discount rate is regarded with the knowledge that the state- Barrie Ltd., 260 York St., New Haven, Conn.
-inflationary by tightening ments are false are in reckless '2w..- 7f.'nu7j
ply of credit. disregard to the truth. i ^- . UL

Congolese Troops Approach
Rebel Base in Stanleyville

11

LEOPOLDVILLE (JP)-A Congo-
lese army attack force moved to
within four hours driving time
of the rebel capital of Stanley-
ville yesterday.
The rebels were reported de-
manding that the column he
halted as a condition for the safe-
ty of 1000 white hostages.
Conflicting reports arose pre-
dieting what the rebel camp is
likely to do.
The Congo radio at Leopoldville
said last night it understood the
rebels in Stanleyville have be-
gun laying down their arms in
response to an appeal from Pre-
mier Moise Tshombe. There was
no confirmation from other sourc-
es.
The Leopoldville broadcast mon-
itored in London said: "We un-
derstand that the prime minis-
ter's aopeal for the rebels to lay
down their arms is being heeded.
They are responding to his ap-
peal."
The British Foreign Office said
it had heard nothing on the re-
port.
Another Broadcast
Another rebel broadcast said the
rebels would fight to the death
to defend Stanleyville.
The rebels have said in broad-
casts that the hostages have been
k moved out of Stanleyville.
Negotiations
Meanwhile, rebel leader Chris-
tophe Gbenye announced in aj
broadcast that he had delayed
-apparently for 24 hours - the
scheduled execution yesterday of
IAmerican medical missionary Dr.
Paul Carlson pending the out-
come of negotiations with the
United States in Kenya.
Carlson has been convicted of

being a spy as a U.S. armed forces
major fighting against the rebels.
The U.S. has denied this.
Slightest Attack
In Nairobi, Kenya, direct ne-
gotiations began on the fate of
Carlson, 62 other Americans, 600
Belgians and about 400 other
whites in rebel hands. U.S. Am-
bassador William Attwood faced
a tough rebel "foreign minister,"
Thomas Kanza, who was reported
demanding a halt in the Congolese
army advance. The rebels have
threatened to kill the hostages
in the event of "the slightest at-
tack" on Stanleyville.
In Washington, State Depart-
ment officials said the first round
of talks were not satisfactory.
The rebels aos are demanding
that the United States, Belgium
and other nations cut off aid to
the central government of Premier
Moise Tshombe.
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THE. PHILIPPINES
* Of Its Cultural Character?
Discussion-Dr. Aram Yengo Yan
Tues., Dec. 1 .. . 7:30 P.M.
Multi-Purpose Room in UGLI
" Of Its Role in Today's World?
Discussion-Dr. Farrel Heady
Wed., Dec. 2 .7:30 P.M.
Multi-Purpose Room in UGLI
* Of Its People on Campus?
Fri., Dec. 4 .. 7:30 PM.
International Center
Refreshments & Entertainment '

DON'T
Forget to pick up your ticket for the
WILLOWPOLITAN Bus on Nov. 25

t
GIVE THANKS
0To Your y
Parents, Family and Friends 0
With a Gift Box of
RUSSELL STOVER CANDIES
ii A

Monograinmed
CIRCLE PInS
Sterling and Gold Filled
$2.95 to $6.95
Engraving done at no extra charge
16 Nickels Arcade-Off State St.

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