The Minneapolis Star from Minneapolis, Minnesota • Page 9

Apr. 24, 1973 THE MINNEAPOLIS STAR 91 BflgJ5)fi)BgaBCDQ f- T'l r----3St', -mm-' THAT ELEGANT STRAIGHT (A distinctive mark of good taste 'CAtf rO(7 AK ME, 1 ft 'V rVffyfr mnttm-f 8 'third force' Indians seized at roadblock we decided to file assault, charges against them." The eight Indians were taken to Rapid City, S.D., where they will be arraigned, Hellstern said. Dick Wilson, chairman of the Oglala Sioux, said he has called on "all able-bodied Oglala Sioux" to head toward Pine Ridge with their rifles today in order to establish another roadblock at the same site. Hellstern said Wilson and his supporters would not be allowed to establish another roadblock. The Indians who established the roadblock contended they were original residents of Wounded Knee and were protesting the government's failure to end the armed confrontation that began Feb.

27. The Car: a 1931 Chrysler CG Sports Roadster with L-head engine, 4-speed transmission and custom body byLe Baron. The Whiskey: the elegant itraizht-8 bourbon by Hiram Walker himself. Aged 8 years in the oak. A distinctive mark of good taste.

Economy needs cooling now PINE RIDGE, S.D. (IPI) A federal official said today eight members of a "Third Force" Indian roadblock outside the government's perimeter around, Wounded Knee were arrested last night for assaulting federal officers. Richard Hellstern a deputy assistant attorney general and chief negotiator, said the arrests came after the Indians would not let Community Relations Service workers of the Justice Department through the roadblocks. "The roadblocksno longer exist," Hellstern said. "They were interf erring with federal access, suddenly backing off their commitment to allow service people to pass through a problem we thought had been straightened out." He said Wayne Colburn, director of the U.S.

marshal's service, and two of his men went to the roadblock to discuss the halting of the workers. He said there were "no fisticuffs or firing," but the discussion became "so belligerent and rough that WALKER'S DELUXE That elegant straidit-8 Ex-lawmaker dies HOLLYWOOD, Calif. UP) Dalip S. Saund, 73, Riverside County's first Democratic congressman and the first native of India elected to public office in the United States, died Sunday. He lost his bid for a fourth term in Congress in 1962., STRAIGHT BOURBON WHISKEY 86 PROOF HIRAM WALKER SONS INC, PEORIA.

IU. "The House Doctor" provides project ideas and home repair tips with illustrated explanations every Friday in The Star. plants and equipment will be brought into use, raising production costs. Labor shortages will develop some industries already are experiencing them and costs will get an upward push again as newer, less experienced workers are hired and productivity declines. For the moment, inflationary pressures are primarily caused by spurting demand.

When the Phase Two controls which were successful in keeping and price increases within bounds were replaced by the voluntary guidelines of Phase Three, there was a great surge of inflationary expectations. Consumers went on a spending spree, opting to buy at high prices now rather than wait for higher prices tomorrow. Capital spending rose sharply, as did purchasing of industrial commodities by businesses fearing there would be an administration crackdown on prices, and therefore widespread scarcities. Inflation breeds expectations of more inflation, so unless the administration does something soon to "cool it," demand pressures on the economy will continue. And as rising prices pinch pocketbooks even more severely, labor will demand catch-up wage increases, thus reviving cost-push pressures.

What can the administration do to cool the economy? There is increasing talk of imposing restrictive measures. A rollback of prices and interest rates, sought by Democrats but rejected by Congress, would be chaotic. A wage-price freeze, similar to the 90-day one imposed by President Nixon in August 1971, is argued against by top-level officials. Some of those same officials, however, were ridiculing the notion of such a freeze before August 1971. The President, as he proved then, is not averse to making a sharp reversal of course.

A freeze, then, cannot be ruled out. There are monetary tools available to cool the economy, and the Federal Reserve Board is already using them. It is restricting' the supply of money, and probably will get even more restrictive. There also are fiscal tools at hand to ease demand pressures. The administration is applying some of them through its spending ceiling on the federal budget.

A ceiling can be helpful, but it is not as potent a tool as tax policy, which the administration is reluctant to use. This reluctance probably can be traced to the President's pledge in the 1972 campaign against raising the overall level of federal taxes. But campaign pledges are not engraved in stone, and they can be broken when the need arises. A surcharge on personal and coroorate When Sears says Frostless, we mean completely frostless. You'll never have to bother with defrosting because visible frost never forms.

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For anyone holding out hopes of a slowdown soon in the rate of inflation, it was as depress ing as a snopping trip to a supermarket. The week saw confirmation of fears that the country is on the verge of a runaway boom. Checking on the Economy During the first three months of 1973, it was announced, the economy expanded at the breakneck pace of 14.3 percent. The gross national product grew by a record $40.6 billion in the quarter, topping the strong gain in the fourth quarter last year by almost $10 billion. Separating inflationary growth from "real" output, it was found that the rate of inflation climbed at a 6 percent annual rate in the first quarter, while "real" GNP grew at an unnual rate of 7.9 percent.

This kind of growth cannot he sustained. It is punishing to consumers the cost of living jumped nine-tenths of 1 percent last month, the sharpest increase in 22 years and it means serious trouble for every other sector of the economy. Fears of a "bust" by year-end undoubtedly are exaggerated, but talk of a recession unless measures are taken quickly to cool the economy is no longer considered idle chatter. Harvey N. Daniels, economist for First National Bank of Minneapolis, issued a revised forecast for 1973 last month, more than a month before the first quarter figures were available.

He noted then that "growth is at an almost feverish pace." With the economy approaching full utilization of its resources, "the quality of growth comes into question," he said. Daniels saw increasing concern about an economic slowdown, and forecast that a reversal of the current economic trends would be a "major surprise" if it were to occur before the fourth quarter this year. The trends that could lead to trouble are clearly visible. Many industries are close to operating at full capacity; some are already there. This means that as the economy continues to expand, obsolete GRIN BEAR IT By Lichty "Any suggestions, gentlemen, on how we'll scare the daylights out of the consumer this week?" Needed: Prompt Editor's Note: Following Is a letter to the editor of the Wall Street Journal by Harvard economist John Kenneth Gal-braith.

Anyone who has urged the necessity of wage and price controls for effective economic management has, no doubt, a special obligation to draw attention to their frivolous or irresponsible use. Such is true of the controls imposed recently on meat. The purpose of control is to arrest the interaction of wages on prices and prices on wages in that part of the economy characterized by strong unions. As such it is an essential supplement to fiscal and, in its more limited role, monetary policy. It is nowise a substitute for such action.

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But quick action is called for, since both would have to be submitted to Congress, and a lengthy and bitter debate over Nixon's economic policies would likely delay approval. Unfortunately, there is a lag between the time a tax is changed or imposed, and its effect on the economy. If such action were taken within the next month or two, its full effect might not be evident until the economy is beginning to turn down. With perfect hindsight, it is possible to say that such fiscal action would have been most appropriate and effective if taken early this year. increase in taxes The present behavior of meat prices, as of numerous other prices, shows every indication of being caused not by wage and cost increases but by the pull of demand.

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