The Corpus Christi Caller-Times from Corpus Christi, Texas on August 18, 1971 · Page 25
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The Corpus Christi Caller-Times from Corpus Christi, Texas · Page 25

Corpus Christi, Texas
Issue Date:
Wednesday, August 18, 1971
Page 25
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2C CORPUS CHRIST! TIMES, Wed., Aug. 18, 1971 Events Forced Nixon To Move Rapidly on Economy By DON BACON Newshotisa News Service WASHINGTON - President Nixon decided several weeks ago that he must adopt a whole new economic program; he originally wanted to make the announcement before Congress recessed Aug. 6, but held off because he decided the time was not ripe. · "He couldn't quite get the feel of it," said a high administration source. Administration sources, recounting the events and decisions leading up to the President's dramatic shift in eco- A Special _r-£ /v'^'^\-r "" Him f f f . ' i *. ***e\. . +*.. nomic policies, said that Nixon has long been determined to make his move "at the propitious time." It was important, these sources said, for him to make the announcement at such a, time and in such a way that the nation would be "jolted" out of its economic sluggishness but without creating new fears and instability over the future of the dollar at home and overseas. "He has to be satisfied," said an official, "that he Is not only doing the right thing, but also is doing it at the right time." Word Leaked Out As it turned out, the President was forced to act hastily after a week of tumultous dollar speculation on world money markets and after word leaked to Wall Street on Thursday that a ?6 billion tax cut was imminent. "Increasing uneasiness . . . the speculative t h r e a t . . . the feeling that there was too much money around" -- these were cited by sources as major events of the past week that "triggered" the*Nixon announcement. At the beginning of last week, Nixon had no thought that lie would wind up on Sunday with a whole new economic policy. He had spent a leisurely weekend in Maine, cruising Penobscot Bay in a borrowed motor l a u n c h and eating fresh lobster for every meal. Refreshed, he was back at the White House on Monday, embarking on a full, but routine weekly schedule, starting with a south lawn welcoming ceremony for a group of cross- country bicyclers. Because of previous delays, he was late in planning the fiscal 1973 budget, so the staff frt aside several hours during tfie week for dull but necessary budget discussions with the military. Mercifully, the meeting were spaced out over several days. But by Monday of last week reports of wild foreign speculation on the American dollar were reaching Nixon's ear. A congressional committee, coincidentally, released a staff report which argued the dollar was "overvalued," and the Treasury Department followed quickly with a denial. Last Tuesday, a Wall street Journal headline read: "Dollar battered anew in markets abroad on devaluation fears; g^ld price surges." And Nixon met with his Council of Economic Advisers at 4 p.m. that .afternoon, in what was described then only as a "regular meeting." Congress In Recess Congress was in recess for the month, and with little activity expected for the next several days, Treasury Secretary John B. Connally flew to his ranch at Floresville, Texas, to catch up on personal business and enjoy a little rest. Nixon, m e a n sv h i 1 e, was going into virtual seclusion, with no explanation given. No schedule was announced for him last Wednesday; he was, a White House spokesman said, "devoting the day to meeting with staff and doing a good deal of paperwork." He resumed a light public schedule Thursday, with more budget meetings. A flap over the President's policy toward racial busing and problems in planning this week's three-day cross country trip, for Nixon, occupied Nixon's staff. Even that late in the week, and though the economic crisis was almost certainly Topic A in the President's mind, there was little hint that he was preparing to take immediate action. At his Thursday briefing, White House Press Secretary Ronald Ziegler was asked: '·There is a r u m o r going around the financial community that the President has decided on a big tax cut in the neighborhood of ?8 billion and he may announce it as soon as this weekend. Do you care to squelch the rumor?" Ziegler: "Yes." Question: "The question is: There is no such plan?" Ziegler: "She asked me if I wanted to squelch the rumor, and I said yes." Question: "Is the President planning a tax cut in the near future?" Ziegler: "I think the President addressed the point, an Secretary Connally did, about four weeks ago here. I think he covered the matter at that time. There is no change in the situation since Secretary Connally addressed himself to that matter." Full Schedule Nixon's Friday schedule was full: He planned to discuss the next budget with, the National Security Council in the morning, and was to meet with the military secretaries on the same subject in the afternoon. Federal Reserve Board Chairman Arthur Bums was due to see the President at 4 p.m. It now appears likely that at the N.S.C. meeting they did not get around to the budget after all. Nixon left the session shortly after noon, apparently convinced that a change in his economic policies could wait no longer. He canceled the afternoon schedule, summoned Connally back from the ranch, and grabbed up Burns and his two White House economists, Dr. Paul McCracken, chairman of the Council of Economic Advisers, and George P. Shultz, director of the Office of Budget and Management, and his chief speeehwriter, Ray Price. While Connally hustled back from Texas, the rest helicop- YWCA To Shun Cleveland Area CLEVELAND, Ohio (.« Because of a racial incident here Sunday involving a girl attending a national YWCA student conference, the conference has recommended that no more YWCA conventions be held in Cleveland "as long as the current unfavorable racial climate continues." YWCA officials said formal complaints will be filed with the city's safety director and community relations board, the Greater Cleveland Growth Association and Holy Rosary parish. The incident took place in the city's Murray Hill area, also known as "Little Italy." The YWCA said Ruthann Rountree, a 'olack student from the University of Nebraska, was visiting the Feast of the Assumption on Murray Hill with two friends when a group of junior high school- age youths began taunting her and throwing small sticks at her. She said police offered no assistance, but told her she and her friends should leave the area. People in homes along the sidewalk continued taunting the trio as they walked back to nearby Case Western Reserve University where the conference was being held, Miss Rountree said. The student conference in Cleveland is part of the national YWCAs program to eliminate racism. More than 200 students, campus ministers, faculty and administrators from across the country were attending the conference, which ends tomorrow, to outline areas in which racism exists and plan strategies to eliminate it. NEW ftETHOD CLEANERS Today's Cleaning At Yesterday's Prices! » MEN'S SUITS ·12-41*1 * PLAIK DRESSES 1701 S. BiowxlM I Stnkt TODAY THE NEWSPAPER. TOMORROW YOUR HOUSE!!! ACHTUNG! A lormilr parwrr division may doslroy this v c r v newspaper before you ael n round 10 wrapping the trash in il -thru start waling your house for H^sserl! They fat sports sections alnnp w i t h world news: wal! to u.ill carprlinf along with y o u r floorlionrcls! Put your house in ihr ri.mils of the f.'ople who pioneerrd Irrniite c o n t r o l in 1927. Quirk! C.npy (he Twminii number nff lliis p.-pc . , , ivliilr 11 lasts. F'nr termite pest control call: 853-99S9 tered to the President's secluded m o u n t a i n retreat, Camp David. According to administration officials, trie weekend went with a m a z i n g smoothness. None of the major participants, by their own testimony, was disappointed by the President's sweeping decisions. The apparent ease and dispatch with which so broad a policy change was hashed out at Camp David indicated that the President had much of it al- ready worked out. Administration officials who consult with the President on economic policy recalled Monday that he has been moving toward a comprehensive new policy since at least February. By May, he had decided that broad new action was necessary -- taking in the whole of the economic problem: High unemployment, rampant inflation, balance of international p a y m e n t s deficft, United States competitiveness abroad, and d o m e s t i c economic growth. He was convinced, said these sources, that a piecemeal attack -- such as wage- price controls alone -- would not solve any economic problems. Advisers who met with him during this period -- principally Gonnally, Burns, McCracken, and Shultz -- noticed that his lifelong opposition to wage-price regulation was softening. But in May, and perhaps as recently as two weeks ago, Nixon had not decided specif?- cally what his new policies would be or when he would make the change. Pointing up the degree to which the President's thinking has shifted in three months is the fact that he helped draft a speech, for the treasury secretary to deliver in Munich on May 26, in which this country's existing economic policies were staunchly dafended and suggestions that the dollar was overvalued in foreign markets were flatly rejected. The new course obviously had not come to full flower on June 29 when Connally announced that; after a weekend of secret meetings with his economic advisers at Camp Dav/d, the President was again rejecting proposals for "a wage-price review board . . . mandatory wage and price controls . . . any tax relief . . . and increased fiscal' spending." At his news conference this past Monday, Connally said he saw little inconsistency between the June 29 reaffirm*- tion of policy and the sew policies announced Sunday. Nixon's first public hint of flexibility on the adoption of new economic policy, specifically on wage-price controls, came at his latest press conference on Aug. 4. But then he was implying that change, if it came at au, could wait until at least late September. · Junior fashion basics. At very basic JCPenney prices. The Starchers. No matter which one's your bag. your choice Always a girl's favorite. Shoulder bags in scrft plastic vinyl with the look of leather. Roomy, lightweight, styles galore. Just in time for back to school. Choose them studded in your favorite fashion shade. Charge it at Penneys. Special 99* Cantrece* stretch nylon panty hose with nude heel. Fashion shades; proportioned sizes. Polyester/cotton knit tops. The mock turtle is striped, the crew neck is solid. Fashion colors forsizes S, M, L Special Fancy nylon bikinis in (ourstyles. Terrific fashion colors for sizes S, M, L. Cotton denim jeans in lots of variations. Solid navy or bright fashion stripes. Misses' and junior sizes. JCPenney The values are here every day. Charge These Values At Your Nearest Penneys Padre Staples Mall-Open-10 'til 9 Daily-Downtown Open 9:30 'til 9

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