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Show Friday, March 27, 1959 THE UTAH STATESMAN Page 3 WASHINGTON ROUNDUP by Senator Wallace As I am writing this, I have just returned from a trip to Senate Detroit, where Sen. Paul Douglas and I, as a two-ma-n Subcommittee, held hearings on The Area Redevelopment Bill. It was an experience. I had the privilege ot questioning at great length Gov. G. Mennen Williams, who appeared before us, and who attempted to show that the way to cure financial problems caused by too much borrowing is 3imply to borrow more. The Michigan sicry is a revealing one. Americans everywhere can profit by studying what is happening there. On Feb. 15, Michigan was broke. The state had been unable to supply funds for operation of its universities since November. The universities had been borrowing frojn banks to pay 'profes-- . 3ors and keep their buildings heated. Michigan residents had oeen dreading the approach of Feb. 15, which they referred to as "Collapse Day." and jokingly said that the official state cock- To All Members Of UFW&C eye-openin- tail should Plan of action for Precinct Woman d be g rocks." Free enterprise, fortunately, came to the rescue of the state, md manufacturing concerns handed over to Michigan $35 mil-io- n in taxes from two to four months ahead of their due date. Thus, the state has avoided financial collapse temporarily. Gov. Williams' solution to this problem is a simple one. He doesn't ask for lower state expenditures; he simply advocates nore borrowing and more taxing. Sen. Douglas and I were there to conduct hearings on a Dill introduced by Sen. Douglas to help areas such as Detroit Dy lending them Federal money to use in attracting and building lew industry. I opposed the bill not only because of the $389 Diice tag, but because it wouldn't do the job. To create one new job in the automobile industry requires he investment of about $18,000. At this rate, to put Michigan's 100,000 unemployed back to work would require the investment if more than $6 billion! There are many things Michigan must do. One is to over-laits tax structure; another is to make a real effort to attract investment capital. But most of all, the state must make up its nind to spend less, to cut hack on some of the burdensome welfare programs which have been responsible for much of its Available soon to all Club Presidents will be a newly-revise- F. Bennett "Michigan-on-th- e , Power to aid the Republican Party for '69" program. This plan will1 outline in six in its "Recruit : steps how we can expand our forces into greater numbers, how we can have Club member representation and uampaign ul i activity in every precinct. Federation members have a vital part to play in building party strength at the financial difficulty. with a per capita debt of only $5.08, is lucky. Only two states have lower per capita debts. In some states it runs as high as $336 for every man, woman, and child! The experience of Michigan, which I saw at first hand this week, impressed upon me more than ever the need for living within our means. And this principle must be applied not only to states and individuals, but to our Federal government as well. It seems to me that the principle is generally a sound one for both state and local governments. Of course, some things must be financed by bonds, and there may be emergencies when a balanced budget is impossible. But over the long haul, a state or a nation is going to pay a heavy price if' it lives beyond its means. Senator Douglas and I appeared on a nationwide television show, CBS's "The Dollar Debates" shortly after our return from Detroit; and again we clashed on the issue of deficit spending. As I pointed out, since 1932 we have had only five years when the government lived within its income. Every year we have rationalized our deficits, and put off the inevitable day of reckoning. We can never establish an effective base for a sound permanent tax program until we determine that we will hold our spending to a level which will permit us to move steadily toward both lower tax rates and reduction in the Federal debt. The map above shows the sites which have been selected for recreation areas on the lake behind Glen Canyon Dam, which will be one of the West's greatest tourist attractions a decade Utah', - grass roots level for the all important election of 1960. It will take special plans for Club organiza- tion to be the effective force we must be. We urge "pay-as-you-g- i the full participation of our Clubs to organize in every precinct of their Club's area. Adoption by your Club of a "Plan of Action" will be an effective measure. WATCH FOR OUR PUBLICATION!! o" from now. Work is progressing on the Wahweap site, which will be border. Present plans call for at the dam, on the the expenditure of $16Vfe million over the next ten years. Work on the sites upstream from the dam will not begin for several years, because they will be useless until the water is backed up, Utah-Arizo- Utah Federation of Women's Republican Clubs 1959 APPLICATION CARD na but the general plans are already drawn up so that they can serve as a guide for planning of roads and facilities in the meantime. Name Address (Continued on page 4) I : Mining shares the cost Mail this Application to: MRS. D. CLARK WILLIAMS, President 120 South Third East St. I Salt Lake City, Utah I (Personal contact will be made upon receipt of Application) i meet school, state agency, and building requirements, the Utah legislature voted expenditures greater Than anticipated revenues. This will call for more money from taxes. Part will come from plugging tax loopholes, the rest from a statewide property tax levy of about five mills. Mining will carry a big share of. the increase, because its assessed valuation is 28 of the state's total. To UTAH MINING ASSOCIATION "From the earth comes an abundant life for all" |