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July 01, 1951 - Image 4

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Michigan Daily, 1951-07-01

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: a ..1u [ i JL J Lr.b. Y 1, 1 J J A

__________________________________________________ _________________________________________ I _________________________________________

Citi' 4 Z te
presence at the biennial Young Republi-
can convention being held in Boston is the
most recent in a pyramiding series of in-
dications of the moral bankruptcy and po-
litical desperation of the Republican Party.
Thrown into a state of complete confu-
sion and despair by President Truman's as-
tounding 1948 victory, the middle of the
road majority in the Party have allowed the
vociferous "lunatic right" element to assume
leadership in the hopes of procuring an
election victory, regardless of the cost to the
national welfare.
Now, heartened by the success of their
tactics in the 1950 Congressional elections,
Republicans are giving free rein to the
Wherry-McCarthy crowd hoping to liter-
ally 'scare-up' a victory in 1952.
Senator Joe, of course, is more than
willing to oblige and last night in Boston,
he was in fine fettle. His speech, a slan-
derous attack on George Marshall and
Dean Acheson, marks the Wisconsin Re-
publican's complete emergence fron his
"period of prudence" brought about by
Drew Pearson's libel action.
The MacArthur hearings have apparently
given McCarthy added courage and he is
going his reckless, defamatory way at full
throttle once again.
McCarthy spoke at length on "the plan-
ned betrayal of 1951" which of course, is the
Korea war in McCarthy parlance. "For the
first time in the history of this great na-
tion," he declared, "we have lost a war.
History does not just happen," Joe explain-
ed, and "recorded facts" will show "whether
we lost because we are so weak or because
it was planned that way."
"In examining the record," he said, "it
will be necesary to discuss the action of
certain individuals . . . men who have al-
ways been found at the time and place
where disaster strikes America and success
comes to Soviet Russia."
These implied traitors are, of course, solid,
hard-working George Marshall and Dean
Acheson,, about the best Secretary of State
this country has ever had.
*.* *
IMPUGN the motivations of two great
Americans in this manner, before a
group of supposedly intelligent college men
and women, would test the gall of a more
intelligent man, but it does not bother Joe
McCarthy, nor the Young Republicans either
The MacArthur controversy is another re-
cent example of the frantic Republican ef-
forts to achieve victory by the two-pronged
technique of slander and confusion. Only
courageous Wayne Morse, Republican Sen-
ator from Oregon and a few others have
possessed the decency to disown McCarthy's
disgusting character assassination, and
Morse was almost the sole Republican Sen-
ator to disavow MacArthur's assault on our
democratic form of government.
Because of the Administration's well-do-
cumented defense of its foreign policy, the
MacArthur hearings have boomeranged on
the Republican opportunists who hoped to
turn them into .political capital, and even
on MacArthur himself, who has discreetly
decided not to ask for another hearing since
his foes now have some ammunition of their
own and might be disposed to ask embarras-
sing questions.
The fact remains, however, that this is
the sort of vicious, negativistic program up-
on which the Republicans are basing their
campaign for 1952. But if they think that
they can duplicate their 1950 success in this
manner, they are mistaken. For, barring
some unforseeable situation which would
completely discredit the Administration,
men like Taft, McCarthy and MacArthur
are bound tq prove liabilities in a lengthy
campaign during which their records and
views can be laid open to. close public scru-


MA77ER Or FA 7

The Week's News

Fiscal Year's Close Reveals
Government Boasting Surplus-


WASHINGTON-Already, an odd dimness
surrounds the three men -Mobilizer
Charles Wilson, Stabilizer Eric Johnston and
Price Controller Michael DiSalle - who
should be towering figures on the Washing-
ton scene. If the fighting ends in Korea,
moreover, it will be surprising indeed if
these three men do not simply fade away,
and the whole national mobilization pro-
gram with them.
A plaintive rhetorical question asked by
one of the endless stream of business men
who daily track Wilson to his lair in the
old State Department building, to complain
about "government interference," is worth
repeating. For it tells a good deal about the
blind complacency which accounts for the
dimness which surrounds Wilson, Johnston
and DiSalle. For his pains, this business-
man had received from Wilson an impas-
sioned lecture on the need for high taxes
and strong controls. "What gets into a
man like Charlie Wilson," he asked after-
ward, "when he comes to Washington?"
The same question could be asked about
Eric Johnston, who has been lambasting
"the selfish interests" in a manner unusual
for a former chief of the Chamber of
Commerce. What gets into men like Wil-
son and Johnston is rather obvious. They
are able and highly intelligent men, and
they can recognize a hard fact when they
see one. And the hard fact they now
see is that, unless painful measures are
taken soon to prevent it, the national
economy is quite likely quite soon to blow
up in all our faces.
The reasons for this conviction are rather
simply explained. Inflation is caused, of
course, by the gap between the amount of
goods the country makes, and the amount
of money the country spends for these
goods. If there is more money than goods,
money progressively loses value.
Since the Korean war started, national
production has gone up a remarkable 9.
per cent. But at the same time spending
has increased about 15 per cent. This
difference accounts essentially for the
loss in value which the dollar has already
suffered. But without effective controls,
much worse is certainly coming.
One reliable official forecast is that, with-
out effective stabilization, spending may in-
crease as much as 25 per cent in the next
Editorials published in The Michigan Daily
are written by members of The Daily staff
and represent the views of the writers only.

year, against a production increase of an-
other 8 per cent. This means sudden, sick-
ening inflation. An official guess is that,
if Congress achieves its apparent intention
of cutting the liver and lights out of the
defense production program, "we shall have
a thirty cent dollar by the end of 1952."
* * * *
THE CONSEQUENCES are of course pre-
dictable-industrial unrest, loss of confi-
dence in the dollar, tremendous increases
in political tension, and above all a disas-
trous gutting of the . defense effort. It is
when one examines what those best quali-
fied to judge believe is needed to get the
national' economy under effective control
that the herculean nature of the problexi
confronting Wilson, Johnston. and DiSalle
becomes clear.
What is needed, in' effect, is a whole series
of measures which in other circumstances
would mean a sort of artificially induced
depression. By definition, each one of these
measures contains political dynamite. One
requirement is a tax increase of at least
$10,000,000,000 this year, with further in-
creases to come, to take money out of the
spending stream.
Another requirement is. a doubling of
the rate of personal savings, to more than
$20,000,000,000, to take a lot more money
out of the spending stream. But people
are not going to save dollars which are
constantly losing value. To prevent the
dollar from slipping, really tough price
and wage controls are needed.
So are a tightening of the credit restric-
tions which are the special object of hatred
of every retail merchant in the land, an
increase in bank reserve requirements to
tighten bank credit, and a sharp cutback
in non-defense business spending.
It is enough to compare this partial list
of necessary measures with what Congress
has voted or is at all likely to vote, now while
the fighting'in Korea continues. When mob-
ilization officials are asked what Congress
will probably do if the fighting ends, they
are apt to throw up their hands in despair.
There is not much danger that Congress
would then heavily cut defense appropria-
tions-no politician likes to risk responsi-
bility for defeat. The danger is, instead,
that Congress, obedient as usual to the
lobbies and pressure groups, will simply
destroy the totally inadequate existing mea-
sures designed to make it possible for the
national economy to bear the rearmament
strain without disaster. This is one reason
why it is no exaggeration at all to say that
a truce in Korea will be a greater test of
American stamina than the Korean war
(Copyright, 1951, New York Herald Tribune, Inc.)

Associatel Press Writer

Daily-Bi Hampton
SUMMER LIBRARY HOURS: "Hey, open up' I left an Ibid in
my carrell!"
* * * *
W HILE MOST campus regulars busied themselves with such arduous
endeavors as tennis and swimming, 7,648 non-vacationers arrived
on campus for six or eight weeks of hot and intensive studying.
In spite of a slight decrease in enrollment from last summer, the
University's 58th Summer Session promised to be the same as usual.
While library doors were locied tight during the evening hours, jroves
of daytime text enthusiasts took advantage of the relaxed car regu-
lations to take part in "outdoor sports of a group nature."
* * * *
RENT CONTROLS-The controversy over rent ceilings in Ann
Arbor, which brought forth loud and numerous student opinions last
spring, reached the nation's capital.
Housing Expediter Tighe Woods ordered a survey to determine
if rent controls should be abolished here. The order came after the
local City Council had passed a resolution asking Woods to decontrol
rents here on his own initiative-which would allow reinstatement
at some future time, if needed.
Reaction here to the upcoming survey was split generally along
party lines. Republican Council President Cecil 0. Creal called the
inquiry "unnecessary" and a "political play for votes."
IHowever, local Democrats, although declining to comment on the
likelihood of extension of controls, could hardly conceal their exub-
erance at the federal move.
* * * 1'
PHOENIX ENDS-The great bird of Phoenix, after three years
of strenuous flight throughout the nation and in some parts of the
world, finally alighted on its nest-but, some 1,500,000 eggs short of
The University's project for peacetime atomic research to honor
alumni war dead was donated $5,000,000. A strong campaign among
mid-western industries was still in progress, and Phoenix officials
remained on the job to mop up last-minute glfts.
MALIK MOVE-Despite the apparent willingness of the Soviets
to see a cease-fire take place in Korea, as expressed by United Nations
USSR delegate Jacob Malik, the cold war got chillier.
Thespi eofaestih ee s inten ton l cersgametinomhistry becme the
scener f m ethcauti os p opaganda statem ent s f o esa eta e t .
UN Secretary-General Trygve Lie called the Russian peace pro-
posal sincere and urged the Allies to take it in a serious vein. But
the UnitedC'States State Department was skeptical.
Secretary of State Acheson called on Red China to pull her troops
back into Manchuria as evidence of good faith in case of a cease-fire.
And President Truman, while expressing hope for the success of any
cease-fire talks, said he wasn't certain that a satisfactory agreement
would be reached. He also declared that a Korean settlement would
not justify a slowdown in America's defense program.
Thursday, the Kremlin told United States Ambassador Alan G.
Kirk that moves toward a truce should involve military negotiations
between the belligerents in the field. Accordingly, two days later UN
Commander Ridgway called on the Communist war lords to name
a representative to attend an armistice conference.
The world waited. Some thought it was too good to be true.
Others were optimistic. Practically no one saw in a Korean cease-fire
the end to the struggle between Communism and democracy.
PHONI EDS-Th gea brdof honi,*fte*tre*yar

WASIHINGTON--The Fiscal Year 1951 ended yesterday with the
government assured of the 76th budget surplus in its history, and,
the second biggest of the lot.
Prospects are that the surplus-the excess of income over ex-
penditures for the last 12 months-will be about $3,300,000,000 when
the final tabulations are finished by the Treasury late tomorrow.
That is far short of the $8,419,000,000 record-high surplus of 'fis-
cal 1948, but it doubles the $1,111,000,000 second-high surplus of the
past, recorded 24 years ago, when Calvin Coolidge was President.
However, this may be the last surplus for some time. Billions of
dollars of red ink spending are in prospect for the years just ahead
unless Congress boosts taxes higher, than it now seems disposed to d%
or unless the Administration's planned expenditures are changed.
A budget surplus always is more novel than a deficit-the govern-
ment has run in the red 81 years compared with 76 in the black. But
this one has the added novelty of having been run up during a war, to,
use, the popular word for the Korean fighting.
The Administration hadn't expected a surplus. When President
Truman laid down his original budget program for fiscal 1951 way
back in January, 1950, he figured the government would spend $42,*
400,000,000, take in $27,300,000,000, go $5,100,000,000 in the hole.
Of course he didn't forsee the Korean situation then, or the huge
and rapid rearmament program it gave rise to.
The happy ending for fiscal 1951 is chiefly the product of theses
circumstances :
1. Revenues were increased not only by hikes in tax rates, but also
rose markedly as inflation gave individuals and corporations more in-
come on which to pay taxes; also, inflation pushed up the dollar Vol-
ume of sales of goods from which the government takes a cut thro 'h'
excise taxes.
2. Inflation, although it added to some government costs, sharply
cut others-supporting farm prices cost around $1,000,000,000 less than
a year ago because prices didn't require propping; veterans' benefit,"
programs cost about $750,000,000 less, partly because prospering Vets
didn't need as much aid.
3. Some Federal outlays were deliberately curtailed: the governe
ment spent less money to buy up mortgages,, for example, because Its
own anti-inflation program includes an attempt to reduce mortga
credit rather than increase it.
4. Military expenditures-and this was important--never got ieat
high as anticipated. The orders were placed for military goods, bud
deliveries lagged behind expectations, and expenditures dragged ter ,
cause the government doesn't pay before delivery.
The Daily welcomes communications from its readers on matters of
general interest, and will publish all letters which are signed by the writer.
and in good taste. Letters exceeding 300 words in length, defamatory or
libelous letters, and letters which for any reason are not in good taste will
be condensed, edited or withheld from publication at the discretion of the



To the Editor:

* *

At The Michigan .. .
bert Walker, Farley Granger, and Ruth
AFTER SOME fifteen years in the busi-
ness of directing movies, Alfred Hitch-
cock, it becomes clear, is just about as good
as the plot with which he has to work. In
the case of "Strangers on a Train," his ma-
terial is a reasonably good mystery novel by
Patricia Highsmith, and of it, Mr. Hitchcock
makes a reasonably good movie.
The novel-is, in fact, tailor-made to the
Hitchcock touch. It deals with two strangers
who meet on a train and conceive the idea
of switching murders. That is, each is to
dispose of the person the other one would
like to get rid of. The plan, however, de-
mands two homicidal maniacs, and Mr. Wal-
ker, on carrying out his part of the bargain,
discovers Mr. Granger was only joking and
wishes to live his life with clean hands.
From this springboard, Hitchcock
squeezes in all his customary devices and
contrivances, some of which are effective
and some which seem a little heavy-
handed. There is frequent resort to coin-

WASHINGTON - They won't tell where
they got their sun tans, but 14 Con-
gressmen took a free, two-week cruise to sun-
ny Panama - at the taxpayers' expense.
The Congressional vacationers sailed on
the government-owned Panama Line which
operates three trim little ships between New
York and the Canal Zone. Each ship is out-
fitted with swimming pool and bar.
Any member of Congress cap take a free
cruise on the Panama Line just for the
asking. He can also bring his family along
by paying $92 round fare for each person.
The cheapest anyone else, not, related to a
Congressman, can make the trip is $288
round fare.
In the opinion of this columnist most
Congressmen work hard and deserve an.
occasional vacation. Furthermore they are'
underpaid and there is no reason why
they shouldn't be permitted a free trip
or two. On the other hand some of the
Congressmen who took this free Junket
are the loudest economy-howlers. Appar-
ently they want economy for everyone
but themselves.
Furthermore the taxpayers are entitled
to know dollar-for-dollar how their money
is being spent. Yet the names of those who
go on these free cruises are about the big-
gest secret in Washington. No one on Capi-
tol Hill seems to have any idea. B. F. Bur-
dick, Chief of the Panama Canal Office,
simply sends the names to the Panama
Line, but doesn't keep a record and can't
remember who they are. W. R. Pfizer, vice
president of the Panama Line, won't talk.
He says the information should come from
the Congressmen. The Congressmen, how-
ever, have not been enthusiastic about vol-
unteering their identity.
In spite of the secrecy, this column has
obtained the names of the congressmen who,
took the last cruise. They are: Congressmen
Lindley Beckworth, (D-Tex.), who brought
along his wife and four kids; Carl Curtis,
(R-Neb.), who took his wife and two chil-
dren, though he is always preaching econ-
omy; Thaddeus Machrowicz, (D-Mich.), ac-
companied by his two sons; Louis Heller,
(D-N.Y.), who brought his wife and two
+hildren; Carl Albert (D.-Okla.), who
brought his daughter; Jere Cooper, (D-
Tenn.), who took his sister-in-law; and.
Cecil Harden, (R-Ind.), another great

of a little-known U.S. weapon in Korea.
For some reason, never explained at the
MacArthur hearings, General MacArthur
failed to use this weapon in the early stages
of the Korean war. More recently, however,
it has caused terrific Chinese casualties.
The weapon is the radar-controlled prox-
imity fuse, now no longer secret. This
amazing device explodes artillery shells just
as they hit the target, giving them a devas-
tating effect. Previously shells exploded as
they buried themselves in the ground, which
detracted from their effect.
The proximity fuse was used during
the end of World War II, but it has been
a major mystery why MacArthur failed
to use it in the early stages of the Korean
war. If he had done so, the back of the
Communist offensive might have been
broken early with countless saving of
American lives.
To solve the mystery of MacArthur's fail-
ure to use the proximity fuse, the Pentagon
finally sent ordnance expert Col. C. H. Rob-
erts to Korea. He came back with .the
explanation that MacArthur had failed to
train artillery crews in the use of the fuse.
Under Gen. Ridgway, however, the prox-
imity fuse has become the key to American
firepower, and the chief reason the Chinese
have suffered such devastating casualties.
Undoubtedly also it is one reason why Malik
has thrown out overtures for peace.
Note-Illustrative of the Army's present
policy of admitting and correcting mistakes,
Maj. Gen. Floyd Parks' press branch in
Washington was willing to make public the
facts regarding the proximity fuse error.
However, the Far Eastern Command over-
ruled Parks.
WHILE MILLIONS of Reserves in the
armed forces are clamoring for action,
the Joint Chiefs of Staff continue to sit on
a bill to give Reserve officers a greater share
of promotions; also to provide a fairer sys-
tem of mobilizing reserves for active duty.
Though the Department of Defense
promised to send the measure to Congress
on March 1, it is still gathering dust in
a Pentagon pigeonhole-chiefly because
West Point and Annapolis officers don't.
want to give up their toehold on promo-
Another result of this Annapolis-West

j'4HIS LETTER is written in
wonder of the meaning the ;
Daily editors ascribe to be good 1
taste' according to which letters
to the editor' are accepted or re-
jected, y
Near the end of last semester a
former managing editor of The
Daily submitted a letter which
criticized the paper's advertising
policy. It was argued that, the
printing of advertising copy from
the Dascola Barbers, who like all
white Ann Arbor barbers (exclud-
ing those in the Union) refuse to
cut the hair of Negroes, consti-
tuted by The Daily an indirect
sanctioning and aiding of racial
discrimination. This, letter was
In the present semester one Ar-
thur Huntington has written a
letter concerning his sex problems.
He complains that he cannot find
a real COED' amongst a student
body which he characterizes as a
motley array of draft dodgers,
probation students, and old maid
school teachers that have just
dragged themselves onto the cam-
pus'. This letter was printed.
Thus under the same policy of
printing all letters in good taste'
and not defamatory or libelous'
The Daily editors have seen fit
to refuse to publish a serious let-
ter which reasonably argued that
Daily advertising policy is indir-
ectly instrumental to barber shop
discrimination, while on the other
hand they have given space to Mr.
Huntington's frivolous and de-
famatory sexual whinings. I think
some clarification is called for.
--J. Arthur St. John
(Editor's Note: The letter referred
to was withdrawn for publication at
a later date by the author.)
Mr. Huntington , .
To the Editor:
MR. HUNTINGTON, since you
seem quite inexperienced about
life, as indicated by your letter to
The Daily in which you refer to
the "motley array of draft dod-
gers, probation students and old
maid schoolteachers that have
just dragged themselves onto the
campus," I would like to point out
one or two things :
First, "draft dodgers" might
better stay out of summer school
and thereby delay graduation.
Anyway, to use such a term for all

men who delay entering the'serv
ices by staying in school would
seem to indicate a lack of sym-
pathy and understanding for the
! stresses and strains young men,
are under these days, and 0 show
that you forget that government
policy is to keep men in schools.
Second, women (and men) do)'
not retain their youth forever.
When youth passes, sensitivity
and ability to enJoy does not. Zr-
go : some of the "old maid school-
teachers" who read your letter
might have been offended, and
have felt misunderstood.
Third, summer school is intend-
ed as an educational experience,
and the matching up of Joe Col-
lege and Betty Coed is not its pri-
mary purpose.
I hope you find your rharming
coed, but is such an unkind let-
ter the thing to attract her?-Lenore Fra n*

j ick igttn ttilg



KOREA--On the small battlefield where the hopes of East and
West are temporarily centered, the first anniversary of the UN
"police action" passed with little time for celebration.
In central Korea, the Allies made slight advances, then stabilized
the line as Communist forces effected strong probing attacks and
heavy artillery showers. Despite "small" engagements, the front
settled into a general lull as news of possible peace talks spread from
man to man on both sides of the conflict.
-IRANIAN HOTSPOT-Iran, the real battleground of the cold war
in the opinion of many experts, featured more voices than bullets-
but just as dangerous.
The British Royal Navy ordered a cruiser to Abadan in order
to protect the King's subjects in their precarious location in the midst
of the oil row. In the Aghajari oil field, theBritish-owned Anglo,
Iranian Oil Company shut off its pumps and started evacuating the
700 British technicians there to Abadan for another twentieth century
"operation"-"operation exodus."
The Iranian government, in the wake of its nationalization of
British oil in the country, made a slight concession. It offered to
drop a pending anti-sabotage bill if the technician& would stay on
the job as part of the new Iranian National Oil Company.
Whether or not the British would choose to. dispatch troops to
Iran, it was clear that the growing anti-West feeling irr the country
gave moderation attempts small chance for success. If troops were
sent, Russia could move in her formidable force stationed across the
Iranian border to "protect" her neighbor by a 1921 treaty. If this were
to become the spark to ignite a global conflict, the legal position of the
Allies would be dubious.
Barnes Connable

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t didn't see a'Pixie and a Ghost waiting
for us to pick them up, did you, Albert?

My. goodness. Do you ALL believe in

. Cretartc a asvs,
But we tan't help seeing him
it 'he's really. there, can we?



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