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March 22, 1960 - Image 1

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The Michigan Daily, 1960-03-22

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A WORLD PROBLEM:
POPULATION EXPLOSION
See Page 4

Seventieth Year of Editorial Freedom

D m 1oo

VOL. LXX, No. 121
Consumers

ANN ARBOR, MICHIGAN, TUESDAY, MARCH 22, 1960 FIVE CENTS SIX PA

Stabilize

Us.S

Economy

By NAN MARKEL
It is consumers who have kept
the United States from "economic
excess" - runaway inflation or
spiraling depression.
Acting as an economic "balanc-
ing wheel," consumers have re-
duced the need for direct govern-
ment control of business policy or
central planning of business in-
vestment, Prof. George Katona
says.
He heads the economic behavior
program at the University's Survey
Research Center which has col-
lected interviews with 50,000 con-
sumers since 1946-the largest pool
of basic information in this coun-
try.
Releases Book
His book just released, "The
Powerful Consumer," points up the
findings.
Prof. Katona writes that when

consumers expect small price in-
creases, they tend to fight inflation
by reducing demand for cars, ap-
pliances and other durable goods.
In 1955 spending for durables
shot up sharply. But in the years
1956-1959-a time when the high-
est proportion of people expected
long-range price increases-con-
sumers refused to follow industry's
lead and spend still more.
Occurrence of Hoarding
Only at the outbreak of the
Korean War, when substantial
price increases and shortages of
goods were expected, did scare
buying and hoarding occur.
And despite the fact that the
years of inflation have been good
years, most Americans have felt
inflation is bad. "The danger that
creeping inflation will be trans-
formed into galloping inflation is
not too great," Prof. Katona says.

"The attitudes opposing inflation
are deeply ingrained and have
proved fairly resistant to repeated
inflationary experiences." '
He warns, "It may well be that
a business recession causes more
human suffering than creeping
inflation."
But here, too, consumers have
minimized severe economic trends.
They refused to panic both in 1949
and in 1954 when many experts
feared depression. In 1958 steady
spending for non-durable goods
and services kept the economy
from spiraling into depression.
Nothing like the Great Depres-
sion could ever happen again, well
over half the families interviewed
by the Survey Research Center
believed.
Most of them felt that public
works and other types of govern-
ment spending could help control

depressions and bring "full em-
ployment." To a lesser extent,
American business was also
credited with power to help sus-
tain prosperity.
Discusses Production
Few consumers said war-related
production dispelled depression-
in fact many maintain that re-
armament is an unfavorable eco-
nomic development, often in con-
tradiction to their own personal
experience.
They did see government deficits
as "bad," viewed common stocks
as risky investment and commonly
allowed "what goes up must come
down." The longer an economic
trend continued, the more the con-
sumer watched for a reversal.
Describes Attitude
This basically conservative atti-
tude is the best hope for steady,
continuous growth of our econ-

omy, Prof. Katona says. And the1
American consumer has great new
power to wield in the role of
stabilizer.
He sees these as:
1) Changing income patterns,
where millions of families may
spend money for goods other than
basic necessities. The most "pow-
erful consumer"-the one who sets
the styles-is couples with chil-
dren, whose income is between
$4,000 and $10,000.
A product's popularity depends
on innovation - minded families
such as these, rather than on the
very wealthy.
Increase Reserves
2) Increased financial reserves.
Savings ("liquid assets") were $45
billion before World War II,
amounted to $175 billion by 1957.
3) Credit income buying. About
two-thirds of all families have

some kind of debt and use a fairly
large share of income to pay fixed
obligations like mortgage install-
ments and life insurance. They
find installment buying helps keep
track of spending.
4) Technological advances.
These have been enthusiastically
accepted in the past 50 years--
only a few Americans regard
model changeovers, in the auto
industry for instance, as forced
obsolescence or as industry-wide
effort to diminish the value of cars
in use.
5) Increased intelligence. Cen-
tralized news sources spread good
and bad news fairly uniformly
throughout the United States. Be-
cause of this, "discretionary
spending" is widespread and most
consumers deliberate and choose
carefully when they feel it really
matters.

Williams

Seeks

House

Support
Budget

ITo I1v
Asks Boost
To Restore
Senate's Cut
Governor Requests
Hike of $4.5 Million
By THOMAS KABAKER
Gov. G. Mennen Williams ap-
pealed to the House Ways and
Means committee yesterday for
aid in raising budget appropria-
tions to state colleges and univer-
sities,
The Senate Monday passed $4.5
million less in appropriations for
higher education than Williams
had requested. This is the same
bill that was reported out of the
Senate Finance Committee last
week, giving the University what
president Harlan Hatcher termed
the "inadequate budget" of $35.2
million.
The Governor "urgently asked
the committee to restore the Sen-
ate cut from his $112,054,545
spending plans for higher educa-
tion. Without it, the nine institu-
tions cannot hire new faculty
needed for growing enrollments or
meet competition from other
states for top-flight faculty mem-
bers.
Quality Lessened
"This means that the number
of students who can be accommo-
dated and the quality of instruc-
tion will be lessened," he said in
a letter to committee chairman
Arnell Engstrom (R - Traverse
City).
Engstrom said college officials
would get a chance to lay their
case before his committee some-
time this week. The Senate-ap-
proved budget was criticized last
week by the University.
At the University Regents meet-
ing last week, President Hatcher
said the Senate appropriations
bill "does not meet even minimum
essential needs of the University."
Forced Curtailment
The University has been forced
In the past two years to "curtail
operations in all areas except fac-
ulty salaries, and these have not
kept up with trends elsewhere," he
added.
The House is expected to take
up the higher education bill some-
time this week. University officials
will probably present their case to
the House Ways and Means Com-
mittee in person.
Student Group
Demonstrates
Before Shop
A group of University students
picketed The Cousins Shop on
State Street again yesterday after-
noon.
About 1; people, working two or
three at a time in shifts, par-

uise

Universies'

TEMPORARY BASIS:
Juniors, Seniors To Live in Couzens

By KATHLEEN MOORE,
"Couzens will have to be mainly
what is called an upperclass
house" next year, Constance Kre-
ger, '60, chairman of Assembly
Association housing committee,
said recently.
Because half of the women's
residence will be closed for re-
vamping, "we've had to back into
the policy on a temporary basis,"
Elsie Fuller, assistant dean of
women, explained.
Couzens will also become pre-
dominantly J u n i o r a n d senior
nursing student dorm for the year.
Originally established as "solely a
,nurse's home" in 1924, no non-
nursing students were admitted
until 1956, Dean of Women Debor-
ah Bacon noted.
Students Displaced
In the shuffle which reduced the
population from 474 to 259, the
50 graduate students now livingj
in Couzens will be completely dis-
placed from the residence hal
system and no entering freshmen
will be admitted to the dorm. In
addition, the "best guess" now is
that about 35 current freshman
residents will be asked to move to
another housing unit.
The 35 will be chosen on the
basis of position on the room-
drawing list. Each resident plan-
ning to return to the dorm in the
fall is asked to draw a number for
placement on the room preference
Fine Negro
Resistance
MEMPHIS (P) - A Negro editor
and 36 Negro students, arrested
during a sitdown at all-white pub-
lic libraries, were fined for dis-
orderly conduct yesterday.
L. E. Palmer Jr., editor of the
weekly Tri-State Defender, was
fined $50 for talking to demon-
strators in the library. The others
were fined $25 each.
City charges against four other
Negro newsmen arrested during
last Saturday's demonstrations
were dismissed.
Inspector Testified
Police Inspector G. A. Lawo
testified Palmer disturbed people
in the library by speaking to the
sitdown demonstrators. Palmer
said he was covering the incident
and spoke in low tones.
A quiet crowd of about 250 Ne-
groes stood outside central police
station, where city court is located,
throughout most of the day-long
hearing.
Judge Beverly Boushe said the
fines imposed were for violation
of a city ordinance and that race
or civil rights had nothing to do
wtih it. The defense didn't agree.
The nine Negro lawyers said
every conviction would be appealed
to higher courts, with violation of
civil rights a main argument.
tas- . n a nt

list and the bottom 35 will be
the ones asked to leave, Miss
Kreger explained.
Remodeling Scheduled
The third women's dormitory
to be scheduled for remodeling
in as many years, Couzens pre-
sented some problems all its own
when it came to rearranging and
farming out residents.
The only dorm open 12 months
of the year (and the closest one:
to University Medical Center),'
Couzens has traditionally been
the home of junior and senior,
nursing students. W h iI e n e x t
year's total population will drop
to 259, the number of nursing
students will remain basically the
same - somewhere between 180
and 200.
Since room has to be set aside
for these students, particularly
incoming junior nurses, a conflict
with the "basic tradition" of the
residence halls system arises, Mrs.
Fuller noted.
Priority Living
The philosophy has always been
that "the girls who elects to stay
in the house another year has a
priority over any girl entering the
house," and can thus be assured
of remaining if she wishes. But
Couzens, she added, "continues to
be the place where the junior and
senior nurses have priority" over
non-nursing students already liv-
ing there.
So 35 current freshmen may
find themselves scouting for a
new campus home. Because the
number Is so small and half of
Couzens will remain open, it was
not possible to implement the
same moving plan used when
Mosher and Jordan closed down
temporarily, Mrs. Fuller explained.;
While residents in these two
dormitories were allowed to move

en masse to a house in Mary
Markley Hall, each of the dis-
placed Couzenites will be on her
own.
Possible Movers
Recognizing the "possibility that
by the time the whole thing shakes
down, we may come out even" and
no one will be forced to move, Mrs.
Fuller said, Assembly housing com-
mitee has worked out a temporary
"stand-by list" for the possible
movers.
If they preference either Mark-
ley or the re-opening Mosher and
request a position on the list,
they will be notified of any va-
cancy in Couzens and may elect
to fill it rather than move, Miss
Kreger said.
Because therstudent must be
consulted before placing her in
Couzens, Mrs. Fuller added, the
stand-by list will be "dissolved"
in June.
Extensive Renovations
As for the renovations them-
selves, they will be much more
extensive "than just the plumbing
that was done in Mosher and
Jordan," she said.
The plan calls for revamping of
the heating system, the wiring
system which was set up in 1925
with only one overhead and one
wall outlet and the plumbing
which is clogged with lime and
calcium from "pre-soft water
days."
The other project is to replace
the terrazzo floors with asphalt
tile and remove the covering that
extends a few inches into the
room.
With the addition of modern
furniture, "our feeling is that it
will be in very high demand in-
deed," since there is a "very high
proportion of single rooms" in the
half to be closed next year, Miss
Bacon noted.

GERMANY f
Chancellor
Asks Zone
Unification
SAN FRANCISCO (A)-Self-de-
termination of peoples should be
applicable to the Germans, Chan-
cellor Konrad Adenauer told a
Charter Day audience of 10,000
at the University of California
yesterday.
"Reunification of Germany will
be touched upon certainly at the
summit conference coming up in
Paris in about eight weeks," the
84-year-old West German leader
said.
"But I must say that I am
skeptical about anything coming
out of it regarding reunification
of Germany, even though Soviet
Prime Minister Nikita Khrushchev
has said he favors self-determina-
tion of peoples."
Adenauer received a tremendous
ovation when, at the conclusion
of his 20-minute speech, he said:
"Resistance to dictatorial com-
munism not only is a matter of
diplomacy or weapons and arma-
ments. It is a moral issue, and edu-
cation in the coming years in all
free countries will have to provide
the youth with the knowledge they
require in the moral struggle
against Communism."
Adenauer said the Soviet-con-
trolled zone of East Germany has
been made into a colony.
"Everything is ordered by Mos-
cow," he asserted.
"There is ever-increasing perse-
cution of churches, farmers and
artisans to take away the last bit
of their freedom.
"Nobody could believe a thing
like this could be happening to-
day in this century in the very
heart of Europe."

Asks House
For Grants
To Colleges
WASHINGTON (R) - Urging
speed, the Eisenhower administra-
tion yesterday prodded Congress
to vote loan guarantees and a half
billion dollars in grants so the na-
tion's colleges can absorb a million
added students.
Saying such institutions face a
major crisis by 1964, Secretary of
Welfare Arthur S. Flemming told
a House education subcommittee:
"I would plead with this Con-
gress to deal with this problem at
this session."
Action Doubtful
But despite Flemming's tone of
urgency, it appeared doubtful
Congress would act this 'year on
the administration's five-year pro-
gram for helping colleges and uni-
versities build new classrooms,,
laboratories and other teaching
plants.
A big, reason for this is a de-
veloping fight over Democratic-
backed legislation to provide 975
million dollars in aid for below-
college-level schools.
The Administration plan to sup-
port the college building program
would provide:
Guarantees Loans
1) Government guarantee of
private loans to independent col-
leges and universities. State uni-
versities and other publicly sup-
ported institutions-would not need
this guarantee because they al-
ready may issue tax-exempt bonds
having a ready market.
2) Cash grants equal to one-
fourth of loans obtained by col-
leges. Such loans, eligible for fed-
eral aid, would be limited to five
million dollars each. The grants
would be paid to the institutions
over 20 years and would be applied
to annual charges.
In his testimony before the
House group, Flemming forecast
about a million more students will
flood into the nation's colleges by
the fall of 1964. He attributed this
increase to a higher birth rate
after World War II.
To handle this wave of students,
Flemming estimated, institutions
of higher education will have to
spend nine billion dollars on new
Olants. But he said he doubts the
schools can finance more than six
billion of the cost on their own.

STUDIES CONSUMER-In a book just published, Prof. George
Katoma of the Survey Research Center describes "The Powerful
Consumer." He says they stabilize the American economy.
DISARMAMENT:
West Proposes
To En Military
GENEVA, (P)-The last stage of the West's disarmament plan
would abolish all bases, general staffs and military schools such as
West Point and the United States Naval Academy, the West dis-
closed yesterday.
But, the Soviet bloc was told at the 10-nation disarmament
conference this stage would be reached only after rigidly controlled
worldwide arms reductions made such installations unnecessary.
The United States, Britain, France, Italy and Canada defined
their position in answer to questions of the Soviet Union, Poland
Czechoslovakia, Romania and Bulgaria of the Eastern bloc.
Speaking for the Western five, ex-Foreign Minister Gaetano
Martino of Italy thus served notice the Western world's defenses in

Western Europe and

elsewhere

will be scaled down only in con-
junction with a corresponding re-
duction in the military might of
the Communist world.
Plan Elimination
Elimination of Western overseas
bases-in particular a withdrawal
of United States forces from Eu-
rope--is a major aim of Soviet
policy.
After hearing Martino's state-
ment, Soviet Deputy Foreign
Minister Valerian Zorin at once
took up the question of military
bases. He.asked the Western pow-
ers if they would write a provi-
sion for liquidation of bases in a
general disarmament treaty. The
West is expected to answer at a
later session.
The Italian diplomat said the
elimination of all bases, both do-
mestic and foreign, the abolition
of general staffs and military
training colleges would come in
the latter part of the third and
final stage of the Western dis-
armament plan.
He visualized a world in which
reductions in forces and weapons
had reached such a point that an
international police force would
maintain world peace.
Ask No Bases
In such a world, Martino said,
"There will naturally no longer
be any real need for bases." They
would wither away since there
would be neither arms nor men
to maintain them.
British Minister of State David
Ormsby-Gore said any worldwide
disarmament treaty should auth-
orize inspection flights and aerial
photography over all signatory
nations. This idea was first ad-
vanced by President Dwight D.
Eisenhower in his "Open Skies"
plan presented to the 1955 Sum-
mit Conference here.
Ormsby-Gore noted the Rus-
sians had approved aerial inspec-
tion in the futile London disarma-
ment talks of 1956- 7 but made
no mention of this control meth-
od in its new total disarmament
plan.
Zorin said he would explain de-
tails of the Soviet plan later.
Elections Fail
In Assembly
Assembly Association failed to
ect a new nresident visterday

Ike Offers

o Back Bill
WASHINGTON (R) - President
Dwight D. Eisenhower offered yes-
terday to throw full support be-
hind a new natural gas bill.
He put it up to the Democratic-
controlled Congress, but early re-
action there was cool.
Replying to a letter from Rep.
Page Belcher (R - Okla.), Eisen-
hower said he still favors strongly
"elimination of public utility-type
regulation of producers of natural
gas."
Four years ago, Congress passed
a bill to .free gas producers from
direct federal price regulation at
the well. While declaring himself
for this, Eisenhower vetoed the
bill on the ground a small segment
of the industry had, engaged in
"highly questionable activities" in
its behalf.
Figuring in Eisenhower's decis-
ion to veto that measure was a
disclosure by Sen. Francis Case
(R-S.D.) that he had rejected a
campaign contribution he re-
garded as a possible bid to iWflu-
ence his vote.
Eisenhower made his present
position known after Belcher had
written the 'President asking a
message to Congress on behalf of
a new gas bill.
The President told Belcher "a
mere reiteration of my viewpoint.
on this matter would probably
serve no useful purpose."
Northwestern
Names New
Curriculum
An all-new curriculum was an-
nounced Monday for the North-
western University Medical school.
It will cut the program from
eight years of study to six.
In addition, the new program
will admit especially talented stu-
dents directly from high school.
A pilot study of the curriculum
will be undertaken in the fall of
1961, Prof. Richard H. Young,
dean of the medical school said.
At that time, the remaining medi-
cal students will still enroll in the
, .t~ .. ,,

OBSCENITY THREAT:
PostalAide Cites Social Dan ger

By ANDREW HAWLEY
Concerns making use of the United States mail to solicit the
purchase of obscene material constitute a "serious moral and social
threat to the community," Mrs. Richard Simpson said at a public pro-
gram at Tappan Junior High School last night.
Mrs. Simpson, who is special consultant to the Office of Post-
master General, said that the sale of such material is presently esti-
mated to be a one half billion dollar business. Approximately one mil-
lion individual pieces of obscene literature have been distvibuted in
the past year alone.
Last night's program was part of a nation-wide anti-obscenity
drive, headed by Postmaster General Summerfield, to crack down on
firms sending obscene literature by first class mail.
Inspection Necessary
"Material sent by first class mail cannot be opened by anyone
except the receiver. Thus it must reach the addressee without having
been inspected by the postal authorities," Mrs. Simpson explained.
The pornography has been sent to boys and girls as young as
eight, but prior to the Post Office department's campaign very few
complaints were received. Most people tend to destroy the material
on receiving it. Mrs. Simpson said.

r f MI,

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