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Show Face 2 Friday, May THE UTAH STATESMAN THE UTAH "A STATESMAN Weekly Newipepei Deveted le (Seed Gevsnueeit" HARRY B. MILLER, Publisher 421 Church Street Phone EM fto Comment 49 By James W. Douthat Entered as 2nd Class matter at the Post Office at Salt Lake City, Utah, under the act of March 3, 1879. Subscription rate 31.00 per year The WASHINGTON, D.C, Congressional economy bloc has issued .a new appeal for help from the voters in the crucial Published weekly at 421 Church Street, Salt Lake (Sty, Utah. NATIONAL EDITORIAL ASSOCIATION, Vol. 11; No. 19 Friday, May battle to slash the $71.8 billion budget 1956 17, 1957 Watkinii ArthuriPj ? 4 ' Ji V :n, ','Ah ot.uummm ' . V REPORTS j$W' WASHINGTON X. Am.i The Senate has passed and sent to the House a bill by Senator to Arthur V. Watkins require the Commerce Departe ment to develop data by economic class of farm. (S.405) Senator Watkins commented: The story of the blind men who examined the elephant then gave their divergent individual impressions of what they had seen rather comes to mind when one considers some of the farm statistics we limp along with in our consideration of natonal agricultural policies in Congress. If we can get the new data ths bill calls for, Im sure that well all have a truer picture. In other words, these data are to provide a criterion, not just a crutch. The department of Agriculture in favorably reporting on the Watkins farm data bill remarked that this identification of farms by economic classes will be very helpful in many respects in dealing with the problems of agriculture. As indicated by the Presidents message to Congress on January 9, 1956, and a House Committee on Agriculture report issued March 31, 1956, some of the most difficult farm problems are with e farms. This measure will be helpful in identifying this class of farms. Moreover, from a statistical standpoint, the national and regional estimates of gross and net income that would be obtained would supply useful information for strengthening our regular estimates of farm income, both on a basis. national and In getting the income material (R-Uta- farm-incom- low-incom- State-byStat- e They, are fearful that a letdown in demands from the people for economy will weaken the economy sentiment now prevailing in Congress. The big spenders are using all of the tricks to the legislative trade to defeat the campaign on the verge of success to make substantial cuts in the budget They claim that government services will be crippled. But leaders say all budeconomy-blo- c get proposals are padded. Another trick of the big spenders is to promote defeatism they say any cuts in appropriation bills mere paper will be phony must which be made up savings later. Ah,v But leaders in the economy atwhich this bill would make pos- fight reject such a defeatist sible, there also would be ob- titude. They insist that while tained enough information identi- some savings now claimed may out later, real cuts in be fying the farm population as to the wiped are being made budget aid substantially in keeping track to be made in will continue and of the situation future. the and other related developments. HOW BIG WILL CUTS BE? This would be especially valuable 'the Senate began a crucial As in case of a national defense emerperiod of action on appropriation gency. In its comment on the Watkins bills, these predictions were bill the Department of Commerce made: 1. Sen. Bridges (R., N.H.), Sen. remarked: The Department agrees that ate Appropriations Committee data now available on farm in- leader, foresaw a cut of more comes are inadequate. Since the than $3 billion under budget recincomes of commercial and non- ommendations. 2. Speaker Rayburn thinks the commercial farmers and on large and small farms may differ sub- House will cut $3 to $5 billion stantially, information about in- under the budget. Reductions voted by the House come by economic class of farm is needed. The Department be- at that time amounted to $1.1 billieves that positive, immediate lion, or 7.6 of the total considaction should be taken to supply ered. these data. Some House Apropriation ComSenator Watkins pointed out mittee leaders said the House s that of our family-typ- e will cut the Department of Deand will farms produce so little for fense budget sale that they cannot materially trim $270 million from the Debenefit from pro- partment of Agriculture budget. grams regardless of the level of Presidential Action price support. There exists great Leaders of the economy bloc ranges of income disparity in agri- were genuinely concerned over culture. House plan to have White the Presently, Congress has only launch a Eisenhower President to work with statistically just defense of his effort in e major average and figures, derived simply by budget. Demand for presidential-actiodividing the total number of farms and farm people into a net came from modem Republicans income figure. These are of in Congress, and from departc questionable utility, when Con- mental heads. Thus far economy-blo-to leaders have been able gress is involved in policy deterquote past statements of Mr. Eimination. When we can see where the need lies, senhower inviting Congress to use can apply the specific its judgment in reducing approwe there remedy, for agricultural family priations. The President will have "the ills. Deal support of most New-FaDemocrats in Congress. Political Division farm-manpow- er ; . two-third- $1.5-billio- n price-suppo- rt per-capit- a farm-incom- n . ir Enjoy the light you can s Bourbon with! Both Republicans and Demo, crats in Congress are sharply divided on the economy issue. Senator Knowland, the Republican leader, has advised the White House that many Republicans will not support the huge budget. He himself advocates at least a $3 billion cut. The regular Republicans believe the country is overwhelmthat this ingly for economy must be made an issue in next years Congressional campaign. modem Republicans port big spending plans. Democratic Attitude The KENTUCKY STRAIGHT BOURBON WHISKEY 86 PROOF GLENMORE DISTILLERIES CO., LOUISVILLE. KY. Code Number: 17, 1957 45 Quart 123; PJnt sup- The economy issues has cut just as deeply in Democratic ranks. This was evidence by the meeting of National Democratic leaders over the last week-end- . The Democrats united in assailbut the ing Mr. Eisenhower New-Fai- r Dealers such as former President Truman, and Adali Stevenson, called for huge spend- - Dispersal Stimulus Senator Curtis of Nebraska and I introduced a bill last week amending my industrial dispersal legislation, which was passed last year. The bill would require annual reports by agencies explaining how well they have followed the requirements of the dispersol program. I believe this will increase the effectiveness of the program. Wool Agreement Signed The deal with Turkey for the exchange of three million pounds of surpluss wool in exchange for chrome and other strategic materials has been completed. Work is now progressing on another deal, which would remove even more wool from surplus stocks. - Postal Rate Increase Congress is now studying sev- thdt time. Unless some increase is made, the taxpayer will have to continue making up the deficit out of taxes. The postal deficit now is in the vicinity of $500 million each year. Some economies can be made in the Post Office operation. For example, I have a bill pending which would eliminate the obsolete Postal Savings System, as recommended by the Hoover Commission. But such economies" are only a partial solution. The time has come to face up to the fact that postal rates will have to be increased to put the Post Office Department on a sound business footing. Study of Economy The Finance Committee, of which I am a member, will soon begin a comprehensive study of the nations economy. The potential value of this study is tremendous it will help us chart our future course of action in taxation, government spending, credit controls, and related problems. I am confident that the study will greatly aid our understanding of our current economic condition. eral bills to increase postal rates, and a number of Utahns have written to ask me how I will vote on such an increase; I believe that the cost of handling a magazine, a circular or a letter should be borne by the sending it not by the tax' payer. Thats why I shall suprates an increase in postal port New Farm Loan Formula on second class (periodicals), and Utah, like a number of other third class (the trash western states, is being shortmail), and if necessary, on first changed with respect to farm class mail. funds under the Bankhead-Jone- s loan Rates on periodicals are for Act. These funds are now from realistic. It is estimated that allocated to the states on the the Post Office Department loses basis of farm population and $8 million a year by delivering has a Life Magazine, and similar farm tenacy. Since Utah very low farm tenancy rate (5 amounts on other cent) compared to many ' magazines. Trash mail, per 46 per most of which goes into the waste, southern states (up tominimum get only the basket unread, also pays only a cent) we while some states are amount, fraction of its cost funds more allocated than they Increases on these two classes .4 of 1 Utah use. can gets only probably will not be enough to allocated offset the Post Office deficit. per cent of the funds loans. for Title I First class rates have not been I recently urged the Senate changed since 1932, although posCommittee to approve tal salaries have doubled since Agriculture S. 956, which would correct this ing. The conservative Democratic situation, giving the Secretary of block backs the economy move. Agriculture more leeway in deSen. Harry Byrd (D., Va.) says termining where the loans should our goal now should be to return be made. The State Department our expenditures to the Eisen- of Agriculture has informed me hower level of $64 billion for the that this would be of great benefit to Utah. fiscal year, 1955. per-son- d so-calle- d large-circulatio- n m AMERICA! f.'lining business of risks Before a mine starts operating, money must be risked on expensive prospecting and exploration to locate ore. Still more money is risked in development work to sink shafts and drive tunnels and stopes. Actually, all this may cost more than the eventual mining of ore. Because these risks are taken, Utah's people benefit from the payrolls, supply purchases and taxes of successful mining operations. UTAH MINING ASSOCIATION "From the earth comes an abundant life for all " |