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October 01, 1953 - Image 4

Resource type:
Michigan Daily, 1953-10-01

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Manufacturers' Excise Tax

Against .. .
take may well turn -out to be the pro-
mises he made to cut taxes if elected. Al-
though such pledges no doubt garnered Re-
publicans many votes, the GOP is now faced
with the difficult problem of making the
promises come true.
According to schedule, excess profits
taxes will go out of effect and income tax-
es will be reduced as of Jan. 1. Because of
Congressional reluctance to increase the
national debt limit and the continuing
need of large military expenditures, how-
ever, Treasury Secretary Humphrey must
submit new kinds of taxes to replace the
old ones. Of the 40 new tax plans under
present consideration, the most likely to
be submitted to Congress in January calls
for a manufacturer's excise tax, which is
essentially a sales tax levied at the pro-
ducers' level. It is expected that such a
tax would be even more of a burden on
consumers than a retail sales tax because
the actual tax cost would be pyramided
by middlemen and retailers in marking up
profits on a percentage basis. Passage of
either kind of tax, which would hit the
poor and low-income groups far out of
proportion to their incomes, would be a
drastic backward step in the theory be-
hind government economics.
All previous post-depression administra-
tions have agreed that ability to pay is the
prime factor to consider in levying new tax-
es. During World War II, with an excessive
government need for dollars and the neces-
sity of cutting the public's buying power, it
was found necessary to impose ertain re-
gressive taxes which ignored the ability-to-
pay principle.
Among the regressive taxes then initiated
were retail excise taxes on so-called luxury
items, travel facilities and communications.
They were, to a certain extent, unfair be-
cause they ignored the income status of in-
dividuals who paid the tax. However, these
excises were put on goods like cosmetics,
i omens' handbags, long distance phone
calls and telegrams-none of which are b-
solutely necessary to maintain a high indi-
vidual standard of living. Had it not been
for continuing security needs, these taxes
would undoubtedly have been removed im-
mediately after the war.
Treasury Secretary Humphrey, however,
apparently believes that "ability to pay
is an inconsequential factor in consider-
ing new taxes. For not only does he plan
to decrease two progressive taxes-excess
profits and income types-but he now
seems to be planning to add one which
would be levied on nearly all vital neces-
sities as well as on luxuries, and would be
an extremely severe blow to low-income
Too late, the administration has realized
that taxes can only be changed, not reduc-
ed. At. present more than 70 cents of every
tax dollar is spent on national security
measures. Twenty cents is either already
committed to states or is required for pay-
ing interest on the national debt, an expense
which was increased last month by Secre-
tary Humphrey's issuance of a new series of
government bonds at the highest interest
rate ever paid. These expenses leave 10
cents of each tax dollar for all other govern-
ment appropriations-expenditures which
cannot be substantially diminished. Repub-
lican budget-cutting has already reduced
appropriations for the military past the
point where we can expect effective nation-
al security, yet the country is still expected
to pile up nearly a four billion dollar deficit
this year.
Apparently the GOP did not realize
what government expenses were when
they made tax-cut pledges last fall.
Fortunately, the Republican plan for sub-
stituting a sales tax at either the retail or
manufacturers' level has met with serious
disagreement throughout the country. There
are already signs that the public realizes
suh substitution is merely a switch from
obvious to hidden taxes and from slightly
regressive to moi'e regressive ones. It is to

be hoped that the majority of Congressmen,
either because of a sincere public interest
or because they- fear the anger of their con-
stituents, will vote to reinstate tax cuts al-
ready passed and will soundly reject the
proposal for a manufacturers' excise tax
if it is placed before them in January.
-Dorothy Myers
Conformity in the Arts
THE ENTERTAINMENT industry is sus-
ceptible to pressure by the majority as
well as by minorities. And members of mi-
nority groups can bring pressure to bear
upon their own leaders to desist from at-
tempts at suppression; for often those lead-
ers speak only for themselves or for a small
fraction of those they claim to represent.
It is about time we stopped having the jit-
ters about every breath of adverse doctrine
or criticism; about time we recovered our
courage and our sense of humor (maybe the
two are not unrelated); about time we re-
discovered the good, old American practice
of free and unlimited discussion, and awoke
to the fact that you do not effectively fight
the other fellow's absolutism by setting up
one of your own.
I remember, during World War I, hear-
ing a professor remark plaintivtly: "Must
we choose between a world run by the Ger-
mans and a world run by the YMCA?" You

* * * *
PASSAGE OF a manufacturer's excise tax
may well be the course Congress chooses
in January as a step toward solving the
enormous problem of a government peren-
nially in the red. The new tax is one of 40
proposals under study by the Treasury to
help erase an eight billion dollar loss which
will be created by expiration of the excess
profits tax and post-Korea increases in in-
dividual income taxes. These taxes are
scheduled to come off Jan. 1.
As a result of the President's news con-
ference yesterday in which he denied that
the Administration was considering pro-
posing a retail sales tax, it would seem
as though the emphasis will be on a closer
study of the manufacturers' tax by the
Treasury. Previously the Treasury had
been known to express considerable in-
terest in the idea of the national retail
sales tax despite its awkward political
The manufacturers' excise tax 'would in
fact be a sales tax on the volume of whole-
sale transactions. It would, however, be
nothing new in taxation since such levies
have existed in certain industries for some
time. unlike the previously suggested re-
tail tax it would be much easier to collect
with lower costs in administering the tax
probably offsetting the larger revenue pos-
sible f.rom the retail levy.
It is charged that the proposed levy-a
regressive tax-would hit hardest at lower
income groups whose expenditures for the
necessities of life are higher in proportion
to their total income than those in higher
income groups. Actually the tax would not
hit at the largest item in the lower income
family budget-food-and would in no way
effect the cost of medical services and sup-
With present income and corporation
taxes, which produce the largest portion
of government revenue, levied on a pro-
gressive basis, the sales tax would be jus-
tified as the only regressive tax collected
by the federal government.
Most important consideration in favor of
the tax is the plain fact that governmentf
must have additional revenues to maintain
an adequate military establishment and pay
interest charges on its debts as well as to
provide all the services which people in this
country are used to receiving. A sales tax
at the manufacturers' level probably repre-
sents the least painful way of raising such
needed revenues.
With general business trends in the na-
tion illustrating the effects of the post-
Korean slowup, the manufacturers' tax
could serve as the incentive business needs
to start it on the upswing once more. In-
creased profits and greater efficiency in
production could be the break industry
will need early next year.
For the most part the present hue and
cry over the issue of a national sales tax at
anylevel of production represents exagger--
ated fears and ignorance of the fact that
something cannot be had for nothing even
in the government.
--Gene Hartwig
TWO BIG ATOMIC explosions and some
small ones are to take place at Woomera
in the autumn. The experiments will be
carried out by British and Australian scien-
tists, but no Americans are being invited.
The duplication of effort (already expend-
ed in American experiments) is senseless.
Why should the Commonwealth countries
spend millions to discover the effect of an
atomic explosion on ships, cities, and peo-
ple when the Americans have already done
it? Why should the U.S. have to devote
millions of dollars to discovering certain
mechanisms which the Commonwealth al-
ready has? It is sheer waste. The Russian
explosions and the British progress have
given two spurs to the notion in the U.S.
that perhaps atomic secrecy has been ex-
cessive. A sharper jab is needed before a
change of policy can come.
-Manchester Guardian

AN EDUCATION PLAN, which if put into
practice would have drastic effects on
this country's schooling system, was pro-
posed Tuesday by Yale University's Commit-
tee for General Education.
In a sixty page report two years in pre-
paration the Yale group outlined an entire-
ly new program for the first two years of
The group contends that under the
present educational system a student may
be graduated knowing a great deal about
specific fields but relatively little "about
the disciplined use of the mind." It is
toward developing this discipline that the
Yale plan is geared.
The report actually proposes two plans;
one of which would serve as a transition
from the existing system and another which
would be the final blueprint for the entire
system. The main feature of both plans
is abolition of the traditional marking sys-
In its place a comprehensive examination
in the student's field of concentration will
be given at the end of the two year period.
Under both plan A and B students ad-
mitted from high school would take achieve-
ment tests in many fields including science,
literature, language and history. These tests
would help to determine at what point the
freshman would start his studies. Also, un-
der the plan, promising high school students
could be admitted to Yale after completion
of their junior year.
Once admitted under plan A the student
would find his studies divided into four
main areas: natural science and mathema-
tics, history and social sciences, the arts
and training subjects which would include
elementary work in languages and ROTC.
He would be required in the two years to
choose four courses from one area and two
from each of the other three fields. ,
Plan B is a more complete break with
the existing system. Under it, studies in
each field of concentration would be bas-
ed upon a specific syllabus, eliminating
the course system in favor of discussion
classes augmented by optional lectures.
Discussion leaders would file with the
Dean a report on the student's progress
based on his class participation and on
assigned papers.
It is obvious that this plan could have
far reaching implications in schools and col-
leges throughout the country.
If instituted i, would change the present
fragmentary plan of studies into an inte-
grated whole. No longer would a student
have the vague feeling he is studying in a
vacuum and that the relation of one course
to another is extremely tenuous.
After two years of such broad preparation
the student would then be ready to receive
specialized training in his major. Thus a
graduate would not only have the training
necessary in a world that places emphasis
on specialization, but would also have the
broad background to interpret problems
other than those in his immediate field.
There are, of course, drawbacks to the
proposed plan. Undoubtedly high schools
would experience considerable difficulty,
under existing programs, in preparing stu-
dents for the system. Also, it is probable
that many students would suffer acute
adjustment problems. But this surely
would be of little consequence in view of
the more intimate teacher-student rela-
tionship that could be established and
the challenge to the student of partially
assuming the responsibility of educating
Such an experimental plan will involve a
financial risk impracticable for state or
small universities to incur. It is therefore en-
couraging to see that a great-and wealthy
-university such as Yale is willing to sacri-
fice money and time in an effort to improve
American education.

-Arlene Liss

Championship Fight
fvL ( /;0"
\ .g o .2\
-- -


WASHINGTON-President Eisenhower hit the ceiling the other day
when Foreign Operations Administrator Stassen told him that
of the $100,000,000 worth of wheat the United States sent to Pakistan,
not a bushel had reached Pakistan refugees-as the United States had
officially specified.
Furthermore, 10 per cent of the wheat had been stolen, and 25
per cent had been used by Pakistan officials for speculation.
Stassen had heard this report from a representative of CARE,
following which he cabled the American ambassador in Karachi,
who confirmed it,
The wheat had been dumped in Pakistan by the U.S. Department
of Agriculture and the foreign operations administration without mak-
ing any provision for distribution, and with only the assurance of
Pakistan officials that it would reach the needy-especially the
refugees. The latter are Mohammedans who fled from non-Moham-
medan India after British India was chopped up into Mohammedan
and non-Mohammedan nations.
Stassen asked Paul French, efficient director of CARE, to see if
he could work out a plan with the Pakistan embassy for more effi-
cient distribution of the wheat, and it looks aas if some of the wheat
program might now be saved. The Pakistan government flatly op-
poses any supervision by U.S. officials in distributing wheat but has
no objection to supervision by private Americans such as agents for
CARE. A plan somewhat like this was worked out in Yugoslavia
when the United States sent wheat to that country.
NOTE-U.S. wheat has frequently been dumped in foreign coun-
tries, steamer after steamer, without the American people getting
credit for their generosity. It was the manner in which the Soviet
unloaded only one cargo of wheat in Marseilles with parades and ac-
claim while American ships were unloading unnoticed beside it that
inspired this writer in 1947 to suggest a friendship train of food which
would be genuinely people to people.
PRESIDENT EISENHOWER, unlike Harry Truman, has a keen
sense of what is or what is not good press relations for his cabi-
net. His press relations having been of the best during his entire
army and political careers, he takes time to keep a weather eye on
what makes a good press for his official family.
At one cabinet meeting he remarked: "I don't want any of you
appearing on this 'Meet the Press' program."
"But Mr. President," spoke up Secretary of the Interior Douga
McKay, "It just so happens that I've recently agreed to appear
on 'Meet the Press' and it may be a little awkward if I back out
at the last minute."
"All right," replied Ike, "Go ahead. But look out for that fel-
low Spivak."
NOTE-Lawrence Spivak is the chief cross-examiner on "Meet
the Press."
* * * *
VOU CAN WRITE it down as certain that military budget-cutting
by the Eisenhower administration is out the window at least for
the next couple of years. Along with it will probably go the new
hard-money policy.
Signs of scrapping the hard-money policy were evident even last
week when the Federal Reserve Board poured $110,000,000 of govern-
ment money into the market to support the price of government
bonds; and when interest rates on treasury certificates were slightly
decreased. It has been the upping of interest on U.S. Government
bonds by the treasury which has helped tighten money all over the
Reason behind the tapering off of the hard-money policy is
hydrogen bomb and fear that the Republicans will be blamed
for cutting too deeply--especially the Air Force.
Reason behind the hapering off of the hard-money policy is
warnings from White House economic advisers that business is in for
a downward skid if the policy continues.
This does not mean that the budget is going to be deliberately
thrown out of balance. Heroic efforts will be made to get it in bal-
ance. But at the present moment, the means of doing so are neither
decided nor apparent. The chances are, however, that it will mean
continued high taxes.

(Continued from Page 2)
Oct. 2. President Hatcher will preside.
Honorary degrees will be conferred and
R. E. McArdle, Chief, U. S. Forest Ser-
vice, will speak on the subject "Public
Service in Forestry."
Attention All Colleges and Schools.
Will departments in the University
kindly excuse Natural Resources stu-
dents from their classes betweep 10
and 12 a.m., on Fri., Oct. 2, so that
they may attend the School's 50th
Anniversary Convocation.
S. G. Fontanna, Dean
Applications for Phoenix Project Re-
search Grants. Faculty members who
wish to apply for grants from the
Michigan Memorial-Phoenix Project Re-
search Funds to support research in
peacetime applications and implica-
tions of nuclear energy should file ap-
plications in the Office of the Graduate
School by Mon., Oct. 12, 1953. Applica-
tion forms will be mailed dn request or
can be obtained at 1006 Rackham Build-
ing. Telephone 2560.
Attention Veterans. Any veteran who
is eligible for, and wants, education and
training allowance, under Public Law
550 (Korea G. I. Bill) MUST report to
the Office of veterans' Affairs, 555 Ad-
ministration Building, before 5 p.m.
Mon., Oct. 5, if he has not already done
so since registration. He must have
with him his tuition receipt and any
veterans Administration forms he may
have received.
LS and A Students. No courses may
be added to your original elections
after Fri., Oct. 2.
Attention Entertainers. All bands and
other talent interested in working sign
up at the I.F.C. offices, 3C of the union,
any week day from 3 to 5 p.m. This
information is urgently requested.
Personnel Request. The Wright Air
Development Center, Wright-Patterson
Air Force Base, Ohio, will accept ap-
plications until Oct. 15, 1953, for the
position of Attorney Adviser, GS-12,
in their Patent Division. Applicants
must have been admitted to the Bar
of a state or territory of the U.S. and
must have acquired at least 3 years
of professional legal experience. For
further information contact the Bur-
eau of Appointments, 3528 Administra-
tion Building, Ext. 371.
University Lecture, auspices of the
Department of Political Science, "Prob-
lems Confronting Australia as an Out-
post of Democracy in the Southwest
Pacific," Dr. George Browne, Dean,
School of Education, University of Mel-
bourne, Thurs., Oct. 1, 4:15 p.m., Audi-
torium A, Angell Hall.
Academic Notices
Anatomy Seminar. Diabetes inspididus
in the rat-by Dr. I. Chester Jones,
University of Liverpool, England, 4 p.m.,
Oct. 2; 2501 East Medical Building.
Mathematics Colloquium will meet
on Fri., Oct. 2, at 4:10 p.m., 3011 Angell
Hall. Professor Frank Harary will speak
on "The Dissimilarity Characteristics
of Linear Graphs."
Music Literature 42. Recitation sec-
tions (labs.) will not meet this week.
Lectures as usual.
Doctoral Examination forhFrancis
Lloyd Whaley, Education; thesis: "A
Study of the. Relationship of the De-
velopment of the Child as a Whole at
the Elementary Level to High School
Achievement and Activity Participa-
tion," Fri., Oct. 2, 1439 University Ele-
mentary School, at 8 a.m. Chairman,
W. C. Morse.
Seminar in Applied Mathematics will
meet Thurs., Oct. 1, at 4 in 247 West
Engineerig. Speaker: Professor C. L.
Dolph. Topic: The Conjugate Gradient
Method for Solving Linear Algebraic
Course 401, the Interdisciplinary Sem-
inar in the Application of Mathematics
on the Social Sciences, will meet on
Thurs., Oct. ,,at 4 p.m., in 3409 Mason
Hall. Dr. David Birch of the Psychology
Department will speak on "Some Mathe-
matical Similarities of Some Learning
The University Extension Service an-
nounces :that enrollment may still be
made in the following classes:
Meeting Thursday October 1:
Positive Citizenship. A series of lec-
tures and discussions by University of
Michigan specialists in the fields of
political science and health and by
experts in the local government of Ann

Arbor. Topics to be included are: Form
and Functions of Government; Tife
Work of the City Council: General Sur-
vey; Ann Arbor's Revenues and Expen-
ditures; The Budget Today; How a
Council Committee Works with Admin-
istrative Boards and Officers, with par-
ticular reference to Police and Fire ad-
ministration; Coordination of Public.
Health Service: Ann Arbor and Wash-
tenaw County; Comparative City Gov-
ernment; Four Fundamental Forms of
American City Government. This course
offered with cooperation of the Ann
Arbor League of Women Voters. Open
to all interested citizens. Six weeks,
$5.00. Instructors: A. W. Bromage, Co-
ordinator; John .9. Dobson; Otto K.
Engelke; Gene D. Maybee; George Sal-
Ceramics, Advanced. The materials
and forms of pottery. Basicrceramic
design applied to the potter's wheel
and uses of glazes. Designed for stu-
dents who have had some previous
work in ceramics. Class limited to
twenty. Noncredit course, sixteen weeks.
$18.00. Laboratory fee, $5.00. Instruc-
tor: J. T. Abernathy.
Astronomy for the Layman. For those
who wish a general knowledge of the
constellations, and a survey of the
elementary facts of astronomy. Lectures
will be supplemented by lantern slides,
demonstrationswith the planetarium,
telescopic observations, and identifica-
tion of constellations from the sky.
Eight weeks. $8.00. Instructor: Hazel M.
Introduction to the Fine Arts: The
work of art has both its own personal

essay and poetry, for beginners and in-
termediate students, emphasizing the
reading and criticism of students' writ-
ing. Sixteen weeks. $18.00. Instructor:
John F. Muehl.
Industrial Electronics. Theory and
practice of electronics for measure-
ment and control. Subjects include
vacuum tubes as circuit elements, am-
plifiers, oscillators, and oscilloscope
circuits. Applications to motor speed
control and welding control. Labora-
tory periods will be held in connection
with the course. Films, slides, and
demonstrations will supplement the
lectures. Sixteen weeks, $18.00. Instruc-
tor: Stephen Hart.
Events -Todayv
Men's Glee Club will hold its first
meeting of the year tonight at 7:30
p.m. in Room 3-G of the Union.
Michigan Crib, pre-law society, will
have an organizational meeting to-
night at 8 p.m. in the Hussey Room
of the League. The first speaker will
be Dean Stason of the Michigan Law
School. There will be a coffee hour
following the meeting. Everyone is in-
Ukrainian Students' Club. Meeting
will be held tonight at 7 p.m. in the
Madelon Pound House (1024 %111).
Talk: "Our Ukrainian Heritage." Guests
are welcome.
Attention all Orthodox Students.
There will be an organizational meet-
ing at 7:30 p.m., in the upper room of
Lane Hall,
The Kaffee Stunde of the Deutscher
Verein will have its first meeting in
the taproom of the Union this after-
noon from 3:15 to 4:30. All who are in-
terested in speaking German will be
welcomed by old members and Ger-
man faculty.
Hillel. The Interfaith Committee will
hold its first meeting today at 4 p.m.
in the Hillel Music Room. Everyone in-
terested is asked to attend.
Christian Science Organization. Tes-
timony meeting this evening at 7:30,
Fireside Room, Lane Hall. All are wel-
Baha'i Students' discussion group will
meet this evening at the League at 8
p.m. The topic for discussion will be
"Science and Religion." All interested
students cordially welcomed.
International Center Weekly Tea will
be held this afternoon from 4:30 to
6 at the International Center.
U. of M. Sailing Club. Meeting to-
night at 7:30 in 311 West Engineering
Building. Plans for the week end will
be discussed.
Young Democrats. First meeting this
semester at 7:30 p.m. Room 3R.
Michigan Union. Frank Blackford, Leg-
islative Secretary to Governor Williams,
will speak on "National and Michigan
Politics." Plans for the year will also
be discussed. All interested students
are invited.
IAS., Meeting 7:30 p.m. tonight In
Room '3-R,Michigan Union. Discus-
sion of summer employment; meet new
members; refreshments.
Congregational-Disciples Guild. Mid-
week meditation, Douglas Chapel, Con-
gregational Church, 5 to 5:30 p.m.
Arts Chorale, A Capella Choir. Newly
re-organized choir, directed by Maynard
Klein. Rehearsal time 7 p.m. tonight in
Aud. D. Auditions at rehearsal.
La p'tite causette meets today from
3:30 to 5:00 p.m. in the wing of the
north room of the Michigan Union cafe-

Gilbert and Sullivan rehearsal
"Patience" at League at 7:15 p.m.


Architecture Aucditorium I At the State .

JANE EYRE, with Joan Fontaine and Or-
soni Welles.
IF THERE is any disappointment involved
in seeing this picture it must come not
from the film itself but from the story it
was based on. Whatever else they were, those
Bronte girls were not inclined to emotional
reserve; here is a fine example of the ulti-
mate in the sentimental novel and movie.
Miss Fontaine of course has the role
of Poor Jane, the long, long suffering
heroine. Being a girl of few attachments,
she goes to live in a romaptic country-
house as the governess of precocious Mar-
garet O'Brien, the illegitimate child of
the lord of the manor (Orson Welles).
Poor Jane has patience, charity, kindness,
dignity, and beauty; she is virtuous. Orson
Welles has lived an unfortunate life, and
suffers even more than the good, good
governess. Her mission (such women must
always have a mission-the tougher the
better) is to be his comfort and guide. The
ending is happy.
For their roles no two other people would
have done. Miss Fontaine can suffer like

ALL I DESIRE with Barbara Stanwyck
"WILL NAOMI return home to face the
gossip of Riverdale or will she go back
to the bright lights of vaudeville? To find
out tune in tomorrow for another thrilling
episode in the life of Naomi Murdoch, On
Stage Wife."
With this film Hollywood has managed
to transfer onto the screen the housewife's
bane, the soap opera. Every scene reeks
of violet scented sachet bags. Tearful
winces convey each emotion. It seems
that Naomi has returned home to her
school teacher husband after an absence
of ten years. But the townspeople won't
let her start life over. And then there is
Dutch, her old lover, who tries to renew
their extra-marital activities and gets shot
in the process. But in the end all is for-
given, past sins forgotten. Love conquers
every obstacle.
In this picture Barbara Stanwyck, who
plays Naomi, the errant wife, has probably
reached the nadir of her career. Although
the script is poor. Miss Stanwvk's torturedl

Coming Events
Episcopal Student Foundation. Fri-
day from 4 to 6, Tea at Canterbury
House. Saturday, after the game, cider
and doughnuts at Canterbury House.
Psychology Club. First meeting of
the year will be a discussion and plan-
ning for future activities, at 3:15 p.m.,
Fri., Oct. 2, Psychology Graduate
Lounge, 3417 Mason Hall. All students
interested in psychology are invited.
Congregational Disciples Guild. Sup-
per hike, Fri., Oct. 2, 5 p.m. Meet at
Guild House. Everybody's-birthday par-
ty, 8:30 p.m., Sat., Oct. 3, Pilgrim Hall,
Congregational Church.
Roger Williams Guild. Meet at the
Guild House Friday evening at 8 o'clock
to go on a hike and weiner roast. Wear
your old clothes.
Sixty-Fourth Year
Edited and managed by students of
the University of Michigan under the
authority of the Board in Control of
Student Publications.
Editorial Staff
Harry Lunn.........Managing Editor
Eric Vetter.................City Editor
Virginia Voss.......Editorial Director
Mike Wolff...Associate City Editor
Alice B. Siiver..Assoc. Editorial Director
Diane Decker,.......Associate Editor
Helene Simon...... .Associate Editor
Ivan Kaye............Sports Editor
Paul Greenberg.... Assoc. Sports Editor
Marilyn Campbell.....Women's Editor
Kathy Zeisler...Assoc. Women's Editor
Don Campbell.......Head Photographer
Business Staff
Thomas Treeger......Business Manager
William Kaufman Advertising Manager
Harlean HFankin. . Assoc. Business Mgr.
William Seiden......Finance Manager
James Sharp.....Circulation Manager
Telephone 23-24-1


', * ',



AT ANY RATE, the decision to quit cutting has been in the works
both in Denver and in Washington for about a month.
The original worry about too much cutting began with Secretary
of Defense Charles E. Wilson. Last August he received a letter from
Budget Director Joe Dodge informing him that his budget for next
year was to be chopped to $30,000,000,000. This meant a further cut
of $4,500,000,000 on top of the drastic cuts already accomplished. So
even a hardened old ,economizer like Wilson balked.
He worte to the Budget Director asking if he was sure his "cir-
cular letter" applied to him. Dodge replied, after getting Ike's okay,
that it did.
Meanwhile came news that Russia had the hydrogen bomb.
Ike got the full details and import of this news during his trip
to New York to dedicate the Baruch Housing Project.
Afterward, Ike rescinded the Joe Dodge order. He ruled that the
Pentagon was exempt from further cuts next year.
On top of this, it's almost certain that the Pentagon's budget will
be upped. Present talks indicate there may be $2,000,000,000 more for
the Air Force. For Ike's advisers point out that he can't very well

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