OCR Text |
Show 1 Yank Dollar Delay Until 1976 Jolts Campaign Tax Plan Shaky as j Rumors Fly Devaluation Hint By Lee M. Cohn Sparks Selling WASHINGTON Bowing to pressure confrom President Nixon, Senate-Hous- e ferees decided Thursday to postpone federal financing of presidential campaigns until 1976 barring such aid to the Democrats in next year's election The compromise, which could destroy the whole idea, p.obably will clear the way for enactment of the aamimsba- - By Louis Kevin Associated Press Writer LONDON A rush to sell dollars swept Europe on Thursday following reports of an impending dollar devaluation. The dollar slumped sharply at the opening of exchange markets but then governments banks stepped in to buy large amounts to head off a drastic plunge. The dollar closed above the days low point in London, Paris and Zurich but at a record low in Frankfurt, despite support buying by the West German Bundesbank. The decline had been triggered by reports from a Rome monetary meeting of finance ministers that Treasury Secretary John B. Connally is ready to negotiate a dollar devaluation in relation to gold as part of a general reaignment of world money values. India Criticizes Fresh Assaults A boom was set off in European stock markets by the prospect of an early end of the crisis in international trading since President Nixon set up import restrictions and cut the dollars ties with gold 15. Prices were higher in all major exchanges, and in London they reached the highest level in ?.y2 years. The hectic foreign exchange conditions had little effect on tourists in Europe. Most banks and exchange agencies have widened their buying and selling range to encompass such fluctuations. Most were exchanging dollars at the same rates as last week. Even though the West Germans have allowed their mark to float freely on the market place since May, the state bank was obliged to intervene to buy dollars because of Thursdays conditions. dollar-carryin- Frankfurt dealers said the Bundesbank was merely stepping in to keep the dollar from dropping too fast. One dealer said the bank was attaching a parachute to the dollar, letting it sink slowly instead of having it plunge down in a free fall. Estimates of the amount of dollars bought up ranged from 3 million to 15 bullion, but the Bundesbank was not saying exactly how much. Far mure were believed to have been siphoned off the exchange by the Bank of England. In Paris between $400 million and $500 million were estimated to have been bought up by the Banque de France since Monday to hold the French "commercial franc closely pegged to the dollar. Swiss banks limited dollar transactions under a voluntary agreement with their government to a million dollars per customer to hinder speculators. The price of free, gold rose in European bullion markets at the prospect of an increase in the price of the metal as a result of any devaluation of the dollar. In Zurich the price rose from $43.67j an ounce to $43,70. In London it was fixed at $43.75, up 19 cents from Wednesday. In Paris it reached $43.78. In Frankfurt, the dollar dosed at a record low of 3.2890 marks, representing an 11.28 percent upward revaluation of the mark since May. r In Paris system, the commercial franc used for 90 percent of foreign exchange dealings closed just above the dollars floor level of 5.5150 francs after having been as low as 5.51126. two-tie- By Associated Press Aims to Spur Economy Prime Minister Indira Gandhi ordered Indian troops Thursday to make a new attack into East Pakistan by Indian account the fourth in 12 days. She accused the West of failing to take steps to halt civil strife in the Pakistani province. The basic tax bill cleared by the conference committee is intended to spur President WASHINGTON and Israeli Prime Minister Golda Meir useful and satisfactory" discusheld sions on military supplies and the need lor furtner peace initiatives in the Middle East, the White House said after the two for two hours leaders met privately Thursday. While declining to say specifically that the U.S would meet the Israeli insistence on renewing the shipment of Phantom F4 jets, both White House and left the Male Department spokesmen impression that the sale would be permitted at a later date. It is recognized that Israel must progress ot maintain its of military equipment. modernization White House press secretary Ronald L. Ziegler said. long-ter- Influence Arab Pnliry The United States was said to believe that by making the aircraft available over a long period of time than Israel has requested, this country could influence Arab policy and also be in a stronger position to discourage Soviet military shipments to Egypt. action came just after the conferees on a tax bill dropped a plan for federal financing of the 1972 campaign hy income tax checkoffs. Butz Confirmed, Swiftly Sworn To Cabinet Post By William M. New York Times Blair Writer - WASHINGTON The Senate confirmed Dr. Earl L. Butz as the new secretary of agriculture Friday by a seven vote margin to signal the revival of the economy by cutting individual and business taxes an estimated $15 8 billion over the next three years. In decisions reached Wednesday', the agriculture as a conference committee eliminated Senate potentially exploPakistan claimed the Indians attacked provisions that would have extended unsive political issue on seven fronts in the biggest offensive for the 1972 presiemployment compensation benefits and of the current hostilites. A Pakistan would have broadened the Presidents audential broadcast said Fierce fighting is continthority to curtail imports through quotas year. and surcharges. uing on ail seven fronts and heavy casuPresident Nix'on the inflicted Indians. were alties They approved tax credits for employon moved swiftly ers hiring persons on welfare; the Seto have 3 to 7 Divisions nates version of a plan to defer taxation Purdue Pakistani reports put the number of of certain export earnings; a slight liberdean University alization of rifles for issuance of Indian divisions committed to the attack sworn in at the industrial development bonds as three to seven. White House less than four hours The new Indian attack order was and a partial rebate of federal taxes on legal slot machines. announced following reports of Pakistani aftei the Senate vote of 51 to 44. Although Nixon wants the tax bill to The Senate debate provided a preview strafing inside India. stimulate the economy, he threatened the of the fight over the Nixon administra- -' Mrs. Gandhi said at a political meetveto unless Congress dropped the plan to tions farm policies in view of sagging ing that India could not prevent East farm prices and rising costs. Democrats Pakistani insurgents from operating finance presidential election campaigns attacked Butz as favoring big agriculture from within Indian territory. She eriti-- i through a tax checkoff system. businesses over family farms and with ized Pakistani army action in Last PakiChanges Considered little sympathy for programs to feed the stan, from where millions of persons Republicans believe Nixon would do have fled to India. hungry and protect the environment. better with private contributions, and Butz, in a personal lobbying campaign India Is Worried they oppose using the tax system to help the Democrats. The administration also Here is how Inferniountain Killing thousands and thousands of Region against the plan on grounds of argued human beings might not be of any consenators voted in the roll call on the and constitutionality. equity cern to the world, but India is worrieo nomination of Dr. Earl L. Butz as secreTo improve the plans chancel, they and that is the reason which has promptof Agriculture. tary said, Mills considered several changes ed India to allow the refugees to come Democrats for none. aimed at picking up tne votes of poteninto India, she said. Len B. Jordan, Republicans for defectors. tial Democratic The prime minister rejected again a Idaho; Clifford P. H. Hansen, Wyoming. One possibility was the elimination of Democrats Against Frank E. Moss, Pakistani proposal to station United Nathe provision for an automatic appropriaAlan Howard in Bible, Water tions observers East Pakistan. She Ifah; saia their safety could not be guaran- tion of money for the campaign fund. Cannon, Nevada; Frank Church, Idaho; Sources said that the changes under Gale W. McGee, Wyoming. teed. consideration were designed solely to None. The U.S. ambassador to New Delhi, Republicans Against gain support on the House floor, not to Not oting (absent because of illness) Kenneth B. Keating, met with foreign make the financing plan acceptable to Wallace F. Bennett, Utah. Secretary T. N. Kaul for 40 minutes Nixon that was considered hopeless. and to believed have were Thursday they discussed a Washington decision to cut (Copyright) on Capitol Hill before the vote, pledged off arms aid to India. to work vigorously to bolster the farm WASHINGTON (AP) Four leading Mrs. Gandhis order for the new economy, preserve the family farm sys- candidates Democratic for the presidenfollowed a a of assault tem and support antihungcr and antipov-ert- v report strafing two announced and attack by Pakistani F86 Sabrejets on the tial nomination programs. two expected to announce signed a airport of the Indian border city of Agar-lalto limit voluntary Support Increase Voted The new Indian operation would be agreement Thursday launched from that city, which is about iheir spending in next springs presidenApproval of Butz came as the House tial primaries. 60 miles due east of Dacca, East PakCommittee voted 19 to 6 for Agriculture istans capital, the New Delhi announcea bill that would raise price supports on ment said. wheat, corn and other feed grains by 25 According to an Indian spokesman, percent. a yet the Pakistani air attack killed A raise in price supports was one way of Claus Santa is the who but civilians man undertermined number only Butz told the Senate Agriculture that had the shows any interest in an empty stocking was not damaged. Committee farmers could be aided. He ' also suggested that the government might buy up corn that has glutted the Midwest after a record harvest and depressed prices, or create a defense reserve to remove surplus farm commodities from the market and bolster prices. Democrats, with considerable Republi-ca- n support, have been pushing for all these actions. Next Targets Property Taxes, Nixon Tells Aging Conference ing burden of property taxes for older Americans, and for all Americans. He indicated this would require pouring large sums of federal money into the financing of public schools, now heavily dependent on local property taxes. We are prepared, however, to make the hard decisions we will have to make, he said. The time has come to step talking about the impact of property taxes on older Americans and to act in their behalf, and in behalf of other citizens in similar circumstances. His property tax proposal was the big surprise in a package of election-yea- r that Mr. Nixon goodies legislative unveiled in an address with the final session of the White House Conference on Los Angeles Times Service - President Nixon WASHINGTON disclosed Thursday that he will ask Conto ease the crush- gress tor legislation Chile Riots Lead To Martial Law New York Times Service - The army asSANTIAGO, CHILE sumed control of public order Thursday in this capital where more than 150 persons were injured in violent political incidents triggered by a women's protest march against the government. Street skirmishes between Marxist and youths, which broke out Wednesday night during the womens "March of the Empty Pots, continued Thursday morning. National Canbinecr riot policp, acting under orders from Gen. Augusto Pinochet, commander of the Santiago army garrison, fired scores of (cargos grenades and arrested more than 10(1 youths as traffic in central streets was disrupted. Early Thursday, after a night of violence in which demonstrators were driven off by gunfire from the approaches m the walled residence of President Salvador Al'ende, the president met with the National Security Council and decreed a anti-Marxi- g state of emergency." (Copyright) . Aging. The President seemed to be serving notice that he is preparing to embrace the sweeping legislative strategy of which his Democratic foes have been fearful advocacy of a huge program of federal aid for education, put forward as a remedy for the deepening bite of the property tax, the most unpopular of all taxes. Some Democrats said privately they believed this would be the most popular move Mr. Nixon could make on the domestic front in advance of the 1972 presidential election. Mr. Nixon also disclosed that he will ask the election-yea- r to congress strengthen pension rights of workers and v eliminate the $5 60 a month premium persons now pay for Medicare's doctor-bil- l insurance. eld-eii- - Today's Chuckle aii-po- Hardin Successor Butz succeeds Clifford J. Hardin, w ho resigned to become a vice president of the Ralston Purina Co. of St. Louis. Butz resigned as a director of the same company when he was named secretary. His ties to Ralston Purina and other agricultural business were used by Democrats to charge that he favored corporate agri- Nixon, Meir Huddle on Mideast Plans Nixon Their Senate-Hous- e the Useful, Satisfactory Talks Washington Post Service The document was signed hy Sens. and George Henry M. Jackson, S. McGovern, D-- D., announced candidates, and Sens. Edmund S. Muskie, and Hubert H. Humphrey, election g Attaching Parachute debt-ridde- n West, Calls Boom Touched Off on Aug. tion's tax bill. Nixon had threatened to veto the measure, which the Democrats used as a vehicle for the campaign financing plan. In addition to postponing the effective dale of the campaign financing provision, the conferees decided only to authorize funds for payment to the parties, instead of providing an automatic appropriation. Thus, even if the plan survives, it could be inoperative if Congress refused to appropriate the money separately or if court challenges or through new legislation. The plan, which the Democrats saw as their financial salvation, would allow taxpayers to earmark cam$1 each to finance presidential paigns. Based on current voting rolls, the Represidential publican and Democratic nominees could have received up to $20.4 million each for the 1972 campaign, with up to $6.3 million for Gov. George C. Wallace if he ran. Washington Star Writer In using the phrase "useful and satisfactory," Ziegler said he was not speaking for Israel but that he was sure Mrs. the President Meir and discussed the statement he would make. Earlier, she lunched with Secretary ol Stale William P. Rogers and State Department otficials for another lengthy review of Middle East issues. Officials said after .that meeting that both sides agreed that neither government should be put in the position of confronting the other on the question of air- craft deliveries. Issue Over-playe- d agreed that relations are put in too crude and incomplete a manner when they are placed solely in the context of Israel's Both governments U.S.-Israe- li request for planes, officials said. Secretary Rogers had told an Overseas Writers dinner Wednesday night ha' he believed the Phantom issue hd been exaggerated. Strong Israeli rrittiism of the United States for delaying jot sales and for trying to extract Israeli negotiation concessions has distressed Washington in recent weeks. Mrs. Meir presumably agreed to try to calm some of the critiusm in Israel, much of which has been directed at Rog- ers personally. culture. After the long private meeting in the President's office. Ziegler emphasized the need for further diplomatic efforts o achieve a peaceful settlement. by 14 Democrats to confirm Butz. Only four Republicans defected to join 40 Democrats against confirmation. Thirty-seve- . were joined Inside The Tribune and the prime minister explored specific ways the two countries can contribute to such efforts. With the United Nations debate on the Middle East beginning in the General Assembly Thursday, officials here hope it the back-dro- p will, as Ziegler said, provide negotiations. The President repeated his assurances made on previous occasions that the, U.S. would not permit the military balance to shift against Israel. Ziegler said. The President alo repeated what he has said previously that simply maintaincannot bring peaceing the balance . ful negotiations that also are needed, Ziegler said. The tao leadeis reviewed wajs by which realistic negotiations can !e initiated, Ziegler said. Republicans (Copyright) Knckdmp for U.N. He said the President n Friday's Forecast . Secretary of State William P. Powers steps into the picture I at the State Department as he greets Israel's Mrs. Gold a Meir. t 4 t i 4 Salt Lake City and vicinity An 80 percent chance of sr.ow, decreasing to 40 percent at night. Highs 30. Weather Map, Page C-- |