CORPUS CHRSSTI TIMES, Tues., Aug. 17, 1971 3-B Â· Mills, Long Key to Nixon Plan Traffic Afloat A youngster paddled his canoe, down a highway leading into Halifax, Nova Scotia, yesterday after heavy rains battered the area as Hurricane Beth swept along the east coast. Damage is expected to total millions of dollars. (CP Wtrephoto) By MILES BENSON Â© Newhous* Newt S*rvic* WASHINGTON - President Nixon is counting on close teamwork from two key Democrats, Hep. Wilbur D. Mills and Sen. Russell B. Long, to pull off a triple play in Congress which is crucial to his new economic plan. Mills, the powerful chairman of the House Ways and Means Committee, already has agreed to play ball with, the President, and Long seems to be shifting into position. _The two chairmen will handle three key elements of the President's sweeping new program to fight inflation and unemployment which need congressional approval. All three will come first through Mills' Ways and Means Committee. After House action, they go to the Senate Finance Committee, where Long presides. Although the President said he will take other major steps on his own authority and un- der stand-by legislation previously enacted, he requires new congressional approval for these features of his program: -- Job-makiJig via renewal of the investment tax credit for industry. Discontinued in 1969, the old credit of 7 per cent was an incentive for industry to expand. Nixon's proposal calls for a new credit of 10 per cent for one year, and 5 per cent thereafter! -- Repeal of the 7 per cent excise tax on automobiles, lowering the price of an American-made car about ?200. -- Delivery next Jan. 1, a year early, .a $50 increase in personal income tax exemptions previously enacted. The support of Mills of Arkansas and Long of- Louisiana is vital to the swift action the President has asked on his program when Congress returns Sept, 8 from summer recess. Europeans Fear U.S.Japanese Trade Struggle taP W? By LOUIS NEVIN! LONDON (Â£1 -- There was a growing fear among West Europeans today that they might become the victims of a trade and monetary struggle between a prosperous Japan and the United States, struggling to pull out of a recession. Government officials and economists foresaw a real danger of monetary chaos and a trade war arising from President Nixon's efforts to slow the flood of Japanese goods into the United State? and Tokyo's decision to fight, his policies. West European governments sought to coordinate their policies in the face of the growing threat. The European Common Market's monetary committee met in Brussels to prepare for a full gathering Thursday of the community's foreign and finance ministers. The British government was urgently trying to arrange Aid Cut Alarms Saigon ^|F By KEYES BEECH Â© Chicago Daily Newt SAIGON -- The South Vietnamese, who have a heaithy respect for the Yankee dollar, reacted with alarm to President Nixon's stern economic measures. "How is it going to affect us?" was the main question in government circles. To this there was no ready answer as U.S. officials here were still studying the President's message. The main question was how the 10 per cent cut in foreign aid ordered by the President would affect' Vietnam. The best guess was that South Vietnam would get off lightly since the country would be an economic basket case without U.S. aid. The U.S. finances Vietnamese imports to the tune of $700 million a year, although the amount of appropriated econmic aid requested for the current year is $565 million. Additional U.S. spending totals another $100 million, making a total of $800 million. Not classified as aid is the $340 million a year the United States pumps into the local economy through troop spending, rent and salaries of Vietnamese employed by the United States. talks with European Common Market leaders to 'align its policies with London. Foreign exchanges around the world except in Japin remained tightly shut. The London and Zurich gold markets cautionsly opened their doors to business for the first time since Friday. The price of gold was virtually unchanged from Friday and dealers reported trading was practically non existent because of general uncertainty. Governments and market operators studied implications of the American and Japanese monetary and trade conflict. European officials see in a Japanese - U.S. cpnflict a threat of monetary chaos and a trade war that could drag in many other countries. The Nixon alministration severed the dollar's link with gold Sunday in a move to persuade Japan and some West . European countries to let their money, which the United States considers undervalued in relation to the dollar, float up in value on the open market. This would make more expensive tfie exports from those countries Hooding into the United States. A .10 per cent surcharge on import duties also makes foreign imported goods more expensive in the United States. Noboru Takeshita, government spokesman and chief Cabinet secretary, served notice yesterday that Japan will fight Nixon's policies. He said Japan has no intention of in~ creasing the value of the yen in relation to the dollar as Nixon wants. The Bank of Japan was ordered to buy up whatever dollar^ were offered on (lie Tokyo market at the normal exchange rate. If the yen maintains its present position with the dollar while some European currencies, notably the West German mark, the Swiss- franc, the Dutch guilder and possibly the French franc, rise in value against the dollar, the yen will in effect be devalued in West Germany, Holland, Switzerland and France. Japan's already cheap exports to Europe would b e c o m e even dheaper. Western Europe could not permit such a situation to continue without retaliation. In Tokyo, the Japanese government debated ways of resisting foreign pressure for an increase in the dollar value of the yen but no decision was announced. Finance minister Mikio Mizuta. told his colleagues the g o v e r n m e n t should await developments in Europe. Setting the triple play in motion, Mills already has. called a Ways and Means Committee hearing on the President's proposals for Sept. 8, and he declared to newsmen yesterday: "I have committed myself to all -three bills." Mills added that he did not think there would be any significant opposition among other members of the committee. Mills, who has garnered a small but reportedly growing following as a dark-horse Democratic presidential possibility, also pointed up that most of the new Nixon initiatives were proposals he himself had been making in recent months. On the Senate side of the Capitol, Long also reacted warmly to the President's program, calling it "a bold, wise move," but the Louisianan left himself room to maneuver."I personally agree with most, but by no means with all, of the President's recommendations," Long said. He did not specify which items he disagrees with. The priority placed by the President on the economic measures relieves both Mills and Long of legislative headaches that would otherwise have faced both men when Congress resumed. Mills and the Ways and Means Committee have been grappling with the President's revenue-sharing plan, which the chairman opposes. But a six-month postponement of revenue-sharing is part of Nixon's overall economic plan, and Mills can now shunt the matter aside. He contends it "wasn't going anywhere anyhow." Long has welcomed the chance to lay aside welfare reform, which has tied up his Finance C o m m i t t e e for months. A one-year delay in welfare reform was part of President Nixon's plan, too. The postponement, L o n g said, will allow experimentation with "two or three alternatives to put people to work." Long said he would probably seek separate action, however, on increases in Social Security benefits which have been tied to the welfare reform bill. In recent months, just, about every one of the steps the President has decided to take has been urged on Mm by one or .another faction in Congress. Since his announcement, broad support has come from such widely diverse quarters as Sens. William Proxmire, D-Wis., John Tower, R-Texas, Jacob K. Javits, R-N.Y., and Robert C. Byrd D-W.Va., the Senate majority whip. Given this warmup, the timing seems right for a display of bi-partisan cooperation yet to be seen since President Nixon took office. REAL DRAMA Action on Market Like Wild Dream By DICK GRTFFIN Â© Chicago Dally News You find the key to the front gate of the Schlitz brewery and since you only go around once in l i f e . . . . You're haying a dinner party and you invite a bachelor friend to bring a date. He brings Raquel Welch. (Or you invite a girl to bring somebody and she shows up with . . . Joe Namath? Ralph Nader? J. Edgar Hoover?) Your diabolic uncle leaves you $1 million and dares you to be happy with all that money. The surprise and delight the above might produce couldn't be greater than what the stock market did yesterday for those lucky people with a piece of the action. The market turned In Its greatest performance in history by at least two measures. For living theater, it was really alive, tlianks to President Nixon's sweeping new economic plans. It set a new record in the important Dow Jones Industrial average -- the biggest one- day rise ever, 32.93 points, to close at 888.95. The old record for a day was 32.04 set May 27,1970. This was only the 8th time the DJI gained 20 or more in a single day. And it set a new volume record on the New York Stock E x c h a n g e -- 31.7 million shares, up from the old record of 28.3 mjllion of last Feb. 9. Winners outnumbered losers by an incredible 14 to 1 on the NYSE and more than 7 to 1 on the A m e r i c a n Stock Exchange. Mlbii^IS^^^^-iB^T^ *83$?~Â«j? Â·"" V f * ' _ ~ "- 'i * -- " ajfiiC^v^ Â»*Â»*-Â·'Â»*i ^?^,WU~^,''*hf*Â«rr *** v^Ks*. f Â· r Â·*Â« r-jr^^w-^TM , - - -~ -f I intcrim f . ^ . - . R ' Vice-president of Corpus Christi Bank and Trust arranged | ' ^ 1 ,f th^ S C v?, f0rnGa i; ner n Fu " er ''. ( . L) '. and W " Scott Frost - Buildei * an ^ Developers L . ^ . of the new Villa De La Pesca Marina and Condominium at Port Aransas. ftT%V ',,?, Â» ' -" " r TM ""'" -v." '" ^-\ *"Â»'- 7- '" "" aÂ»ME --jK.-t^sv*' ~, -s^rr^-w, tv-^^ . Â· "' .*^,.*Â«^Â«. "-. ,. .Â· *:*Â£" - -*^Fn:,^-^is^ .",-i- -' Â·* ^5 When you want to open your own business. s v :^--^ e v^*.-.Â»i.v,.Â£ Â«/ en our We're the Opportunity Bank. We j make things happen in a hurry when a commercial loan can turn your opportunities into realities. We feel times have been hard enough. And money has been tight j long enough. So we're going to j start opening a few doors, n One f other very important point. ;; At Corpus Christi Bank Trust, we'll go to work immediately on your loan. Our commercial loan officers are experts at cutting through those banking details that used to slow things down for so long, n So, when you want to open your own business, open our doors. The opportunity is waiting--for you. Corpus QiristiBank Trust the opportunity bank The Â· - , . , ^Financial Center of Sooth texas V^gp^ Â© 8 0 1 L E O P A R D Â· 8 8 4 - 3 0 5 1 Â· M E M B E R F . D . f . C .
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