THE MICHIGAN DAILY
Tuesday, August 17, 1971
Page Ten THE MICHIGAN DAILY Tuesday, August 17, 1971
U.S. stocks rise, money falls
Nixon's economic plans
receive varied reaction .
(Continued from Page 1 i
tory. Many blue chip stocks
were delayed in opening due to
Among 1,694 issues traded on
the New York Stock Exchange.
1,503 advanced and only 107
declined. All major groups ex-
cept oils moved up.
The closing of money ex-
changes abroad brought incon-
venience to many American
tourists, who found themselves
paying premiums in dollars to
get foreign currency.
The general reaction was that
it spelled bad news for Euro-
pean exports because of the 10
per cent surcharge Nixon or-
dered on imports. Stock markets
in Europe and the Far East took
a nosedive. Shares of companies
doing business with the United
States took a special beating.
In Bonn, Otto Wolff Von
Amerongen, president of the
German Chamber of Commerce
and Industry said the U.S. im-
port surcharge was "a heavy
blow" to world trade.
Industry sources in Japan,
which exports steel, automobiles,
textiles and other goods to the
United States, were depressed
by Nixon's economic measures.
They feared a loss of imports
and i n c r e a s e d international
pressure to revalue the yen up-
ward. That would bring on de-
flation at a time 'when the,
Japanese economy is already
sluggish, they argued.
Paul Volcker, undersecretary
of the Treasury for monetary
affairs, and J. Dewey Daane, a
governor of the U.S. Federal
Reserve System, came to Lon-
don to explain Nixon's measures.
Volcker met first with An-
thony Barber, chancellor of the
exchequer, and then went into
a huddle with experts from Bri-
tain, France, West Germany and
Informants said Volcker was
sent to London by the President
with a dual mission-to initiate
action looking toward, Nixon's
promise in his television broad-
cast Sunday night that "we will
press for the establishment of
a new international monetary
system" and to try to head off
any retaliation because of the
surcharge on imports.
Despite the shock of the an-
nouncement that the dollar will
be allowed to float in foreign
exchanges, observers in Europe
believed that only a few cur-
rencies will be affected.
With the dollar no longer peg-
ged to gold, because of suspen-
sion of the American commit-
ment to buy and sell gold at $35
an ounce, undervalued curren-
cies should float upward in rela-
tion to the dollar once foreign
That would make their pro-
ducts more expensive and less
attractive in the U.S. market.
The 10 per cent surcharge on
imports should tip the scales
even further in favor of Ameri-
(Continued fronPage 1)
quarterly mark set in the first
Reacting negatively to the
Nixon move, University eco-
nomics Prof. Gardner Ackley, an
economic council chairman un-
der President Johnson, said the
tax reduction and tax invest-
ment proposals would stimulate
the economy but the federal re-
ductions in spending would have
the opposite effect.
Rep. Wright Patman (D-
Tex.), chairman of the House
Banking Committee, said the
new economic plan "simply will
not work unless he (Nixon) is
willing to control the interest
But Rep. Wilbur Mills D-
Ark.), chairnai, of the tax-
writing Ways and Means Com-
mittee, called Nixon's economic
initiatives "an excellent game
Mills' favorable c o m m en t,
along with expressions of ap-
proval from other congressional
leaders of both parties, add$o
up to good prosoects for speedy
congressional action on those
portions of Nixon's program
that require legislation.
Meanwhile yesterday, busi-
nessmen and bankers voiced
praise-some of it cautious-Ar
NixonV economic recommenda-
The steel industry, the major
indirect beneficiary of repeal of
the excise tax on automobiles,
expressed delight at the pro-
Mrs. Nixon visits Battle Creek
Continued from 'ake 3)
The scouts had prepared for the
visit of their famous dinner guest
by forming a circle around the
barbecue upon which blistering
"Don't let anyone, through.
keep your positions there," ord-
ered their scoutmaster.
Uuhr employcs ratify pact
(Contined1 rm Page 1) it. Many workers were dissatis-
Further, he said, the c o m- tied with the cost of living pro-
pany was losing customers be- visions in the contract.
cause it could not guarantee The union had asked for an
any delivery dates for machin- open ended cost of living clause,
ery purchased from the plant. with the proviso that pay would
These two factors, together increase proportionally w i t h
with adverse publicity towards the Consumer Price Index
the company, forced Bendix to (CPI). The CPI is generally
negotiate, Judy said. used by economists as an indi-
Before the strike, the company cator of inflation in the coun-
had planned to eliminate half the try.
workers in the unskilled j o b Union members had also de-
classification, which would have manded a '30-and-out' provision
meant half the black workers which allows any worker hav
at the plant. ing worked thirty years to re-
Out of the 200 Buhr workers, tire with full pay benefits.
All are employed Despite these objections, the
aix are black. All ategoy d workers voted to ratify by a
in the unskilled category. fairly wide margin. Before the
The union charged the com- vote, some union officials h a d
pany with racist practices in predicted a "50-50 situation".
the firing, and the contract pro-
vides for the continuation of all
of the jobs in the unskilled
classification. Series A, B
Members of the union dis-
cussed tle contract 1forI onur Series C subscr
hours before deciding to ratify MENDELSSOHN LOBI
TURNS ON ! T
Alice B. Toklas 6
ongell hallw C
7 & 9:30 p.m. ' a iaomaconC
onn arbor film cooperative
In an interview. Mrs. Nixon
told The Daily that her husband
had "stayed up all night Friday"
writing his speech on the econo-
my which he delivered on na-
tionwide television Sunday rigt
"He wrote it all by himself ,
Mrs. Nixon said.
Asked if delivering the speech
had relieved her husband of a
burden, Mrs. Nixon replied that
he looked considerably better at
breakfast yesterday morning.
Nixon had been "agonizing
over it." the first lady revealed.
Mrs. Nixon said she "didn't
know" whether she would be
visiting the People's Republic of
China with her husband next
year, but expressed a propensity
for Chinese food. "I love it," she
From her arrival at Battle
Creek's Kellog Field, where she
was greeted by an unexpected
crowd of about 200-which in-
cluded Miss Battle Creek, 20-
year-old Leslie Van Deusen -
Mrs. Nixon was protected by
agents of the Secret Service.
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