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Show i WEEKLY NEWS ANALYSIS Johnson Resigns U. S. Defense Post; ; Truman Requests Increased Taxes; 1950 Crop Prospects Above Average (EDITOR'S NOTK: Whn opinion! are expreaarii In then eolumn, they are thoaa of Western Newspaper Inlon'a newt analyala and nol neeeaaaritjr of thla newapaptr.) Assault Fails FOREIGN MINISTERS: Important Discussions The foreign mlnisterj of Britain, France and the United States held talks In New York concerning thi defense of western Germany in case of a Russian attack. Early reports indicated the three Ernest Bevin of Great Britain. Robert Schuman of France, and Dean Acheson of the United States were in some agreement on the question of arming western German units. Acheson had previously exchanged views with members of the congressional con-gressional foreign relations committee. commit-tee. Those present at the meeting agreed unanimously to pledge support sup-port to the "general line which the secretary would follow" evidently meaning the administration's aim at arming western Germany. The three also appeared to be in agreement on President Truman's proposal to send more American troops to Europe as an important contribution to the common defense of the continent. Schuman indicated that France was prepared to make comparable contributions and Great Britain was expected to contribute also. Acheson In a statement shortly before the meetings began said that he was "confident that our frank discussions will result in agreement on practical conclusions which will contribute to preserving peace." JOHNSON: Resigns Defense Post In a move that caught much of the nation by surprise, President Truman accepted the resignation of Louis A. Johnson as secretary of defense and nominated Gen. George C. Marshall to succeed him. The move was surprising in that the President had insisted up until a few days before the announcement announce-ment that he would not ask for Johnson's resignation. Johnson had been under attack on Capitol Hill and elsewhere on the ground that he was fundamentally fundamen-tally responsible for defense weaknesses weak-nesses brought into glaring focus by the Korean war. There were rumors also of a wide breech between the defense chief and Secretary of State Dean Acheson Ache-son which added to the confusion and demands that Mr. Truman ac- Although Communist troops continued to apply pressure on the northern front near Yong-chon Yong-chon (1) and In the vic inity of Schuman, however, ruled out the rebuilding of German armament factories. He said Germany could contribute raw materials and steel for the rearmament program and that France has sufficient factories for arms production. Candidates for. Mt-A cept his resignation. Under the existing unification law, no person who had been on active military duty within the past 10 years was eligible for the post of secretary of defense. President Truman Immediately asked legislation legis-lation to enable Marshall to accept. Although ojfosition to the waiver arose Immediately after Marshall aid he would come out of retirement retire-ment to accept the post, there was little doubt from the first the law would be changed and the general confirmed. TRUMAN: A Tough Speech President Truman in a second report to the nation In as many weeks said cost of defense could soar to a rate of $30 billion annually by next June and that inflation was Inevitable "unless we do something about it." The chief executive also announced announc-ed the creation of a stabilization agency to hold prices in check during dur-ing the war emergency or to impose im-pose price controls "when they are needed." He named W. Stuart Symington, chairman of the national security resources board, to coordinate the administration of these new powers. Observers reported the President's speech a tough one, much stronger than had been anticipated. Without With-out mincing words he called for new tax increases "as soon as possible", pos-sible", on top of $4,508 million Increase In-crease now in process. Shortly before his radio talk he Issued an executive order designating designat-ing agencies to enforce priorities, limit civilian goods output If necessary, nec-essary, lend money for defense plant expansion and allocate scarce materials. "For the consumer," he said, "the guiding principle must be: Buy only what you really need and can not do without." If the housewife follows that rule, he promised, "there will be enough of the essentials in fact, enough of almost everything to go around." Pohang (3) their all-out offensive has stalled again. New attacks were reported In the area of Tacgu (2). In the south U.N. troops made slight advances In the area of Changnyong and Yongsan (5). CROP PROSPECTS: In Line With Average The department of agriculture predicted a harvest volume higher than in five of the past eight years and In any year prior to 1946. It forecast the volume at 125 per cent of the 1923-32 average. Up until the latest report, a drop In farm production had been predicted pre-dicted all along the line. Now the department was reporting only cotton, cot-ton, peanuts, peaches, apricots, pecans, pe-cans, rye, and dry peas appear smaller than average. Corn remained virtually unchanged unchang-ed at a bumper crop level despite unfavorable growing weather. Wheat total climbed above the billion-bushel mark to 1,012,000,000 bushels. This was an increase of about 15 million bushels over the August 1 estimate. Other crops for which production prospects improved included oats, barley, flaxseed, sorghum grain, hay, soybeans, potatoes, sweet potatoes, po-tatoes, tobacco, sugar beets, hops, apples, pears and grapes. Soybean and sugar-beet production produc-tion was Indicated at a record level. The department said prospects indicated production of grains will provide amply for the nation's expanding ex-panding livestock Industry. KOREA: Situation Dangerous Military observers reported the situation in Korea still dangerous, but not critical, with the entire front the quietest in a long time. North of Taegu, U. N. and Communist Com-munist troops engaged in a heavy artillery duel wih the invaders building up their forces for a possible pos-sible new offensive in that area. At the east-coast end of the north- New York Gov. Thomas E. Dewey (right) and Lieut. Gov. Joseph E. Hanley, arrive at Saratoga Springs for the opening open-ing of the Republican state convention. con-vention. Dewey seeks re-election as governor and Hanley seeks nomination for U.S. senate. ACHESON: West Can Hold Reds Secretary of State Dean Acheson, In a major radio and television speech, asserted that modern weapons weap-ons and ingenuity can build outnumbered out-numbered western allies a defense that will stand firm against the hordes of communism. Observers saw another important move in Acheson's radio talk. He warned the Chinese Communists against getting into the Korean war. "There is nothing in it for them," he said. The secretary went on to explain that the Chinese Reds are "undoubtedly "un-doubtedly under heavy pressure from the Communist movement to get into this Korean row." T Ik... 1 . .. For businessmen, he said, the operating op-erating rule should be: "Do not pile up inventories; hold your prices down." And for labor he set forth this guide: "Do not ask for wage increases in-creases beyond what is needed to meet the rise in the cost of living." Apology ja.uiaa.ii.ii u ,...a...i....wwm', '. em rroni, u. in. rorces were striving striv-ing to seal a trap around an estimated esti-mated 3,000 Communists who had tried to surround the air base six miles southeast of Pohang. On the southern front American troops recaptured a ridge from the Reds four miles south of the confluence con-fluence of the Nam and Nakton rivers. riv-ers. In the air, fighter planes of the Far East air force continued around-the-clock aerial assaults that hit a record of 670 sorties in one day. But the big news from Korea was that nobody talked anymore of an American "Dunquerque". Predictions Predic-tions of early victory, however, were hard to find. The period of optimism returned because U. N. forces smashed the Red's largest offensive, the 50.000-man 50.000-man attack on the southwest front toward Pusan which began September Septem-ber 1. Other counter-attacking U. N. forces succeeded in closing the gap torn in the northeastern defense wall by a Communist break-through toward Yongchon, gateway to Taegu. Tae-gu. On the front itself the general opinion persisted that the U. N. troops in Korea were there to stay even though they might have to give up more bloody ground. Even the pessimists seemed to believe that. Miss America The nation, like a boy playing hooky from school, took time from the grind of mobilization, war and rising prices to name a new Miss America and chuckle while doing so with pleasure. She is brown-haired Yolande Bet-beze Bet-beze of Mobile, Ala. And for those who want the statistics she weighs 119, is 5 feet 5, and has a 35-lnch bust. 24-inch waist, and 35-lnch hips. in uiese rtfinurKS observers saw one of the major tasks the state department has set for itself. An all-out effort to keep the Chinese from giving the North Koreans aid in their fight against U. N. forces. The department is undoubtedly making mak-ing every effort to discourage the Chinese from sending troops into Korea. Acheson also hit at reports of a defensive war, calling such talk dangerous and "immoral." "I think we must put our major effort at the present moment," he said, "into creating strong North Atlantic defense forces. If we have those forces united, balanced, collective col-lective forces strong, well equipped, equip-ped, able and ready to deter aggression, aggres-sion, then problems all over the world take on a different shape." CONTROL BILL: Curbs Consumer Credit President Truman signed the economic eco-nomic controls bill which imposed general consumer credit curbs in an anti-inflation move that makes it harder to buy automobiles, television televi-sion sets and many other everyday items. The new regulations went into effect September 18. Government officials said the action ac-tion was aimed at heading off a dollar-down-and-dollar-a-week credit splurge that had pushed installment credit buying to a record high of j $20,340 million as of July 21. The new regulations require one-third one-third down on automobiles and limits lim-its payment of the balance to 21 months. Purchasers of household appliances, such as TV sets and refrigerators, re-frigerators, will have to pay 15 per cent and complete their payments within 18 months, according to the new law. Furniture and rug purchases call for 10 per cent down and 18 months to pay, while home repairs, alterations altera-tions and improvements can be handled han-dled for 10 per cent down and 30 months to pay, Instead of the present pres-ent 3fl months. President Truman grins broadly broad-ly as he displayed a distinguished distinguish-ed guest medal presented to him by the Marine Corps League following a surprise personal appearance ap-pearance before the marine vets to amplify his apology for saying say-ing the USMC has a Stallo-type propaganda machine. WRECK: 33 Soldiers Die A tragic and unexplainable train collision claimed the lives of 33 soldiers and seriously injured many others near Coshocton, O. A troop train, carrying 700 members mem-bers of the Pennsylvania national guards, was rammed by the crack Spirit of St. Louis. The huge Diesel, Dies-el, pulling 17 cars, knocked the rear coach Into the air, smashed .tie second car aside, and plowed into the third. |
