Carrol Daily Times Herald from Carroll, Iowa on June 24, 1974 · Page 8
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Carrol Daily Times Herald from Carroll, Iowa · Page 8

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Carroll, Iowa
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Monday, June 24, 1974
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Page 8
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Finally, Order Out of Chaos? How Congress May Spend the Public's Money WASHINGTON — (LENS) — After 20 months of study and wrangle, the Senate and the House of Representatives agreed on June 5 on a final version of a bill to reform the chaotic way in which Congress goes about the apportionment of public money. Past presidents have, with some truth, portrayed Congress as having all the fiscal responsibility of a drunken sailor on a binge. But Mr. Nixon has gone well beyond mere criticism by systematically impounding or withholding funds which have been duly appropriated by Congress. As a device for deferring certain expenditures, impoundment can be a useful tool of economic management by the executive. But, before his Watergate defense started to consume all his time and energy, Mr. Nixon seemed to be using it as a kind of pocket veto to kill programs that he disliked such as vocational rehabilitation, to take an example among many. All too conscious of its fiscal shortcomings. Congress felt helpless to mount a frontal challenge to this. One of the most important results of the budget reform is that it destroys the President's rationale for impounding funds. The bill sets out a clear procedure for dealing with future impoundments. It obliges the President to report any impoundment of funds to Congress, which will then have the power to negate his action by a simple resolution of either house. If the President wants to kill a particular program, then he will have to get a law through Congress to that end. This may lead to some skirmishing between the executive and legislative branches, but the reform should have the important side effect of making budget surpluses and deficits less unpredictable. Successive administrations have used deficits and surpluses to regulate the level of economic activity. Reform was badly needed. If Congress were a private company, no reputable auditors would ever put their name to its books. Early each year the President sends his budget to Congress. It is then dismembered into 13 pieces, and each is entrusted to an appropriations subcommittee concerned with a particular area of government. But until an authorization bill covering Times Herald, Carroll, la. Monday,June 24, 1974 8 that area has been passed (authorization is merely Congress' statement of intent) no appropriation bill can be acted on. The standing committees dealing with the different fields of policy seldom hurry themselves to pass the authorizing bills. Thus the appropriation bills pile up behind authorization bills, like aircraft waiting to land on a crowded field. It is the exception rather than the rule for an appropriations bill to be passed before July 1, the start of the fiscal year for which it has to provide. The government then has to resort to continuing resolutions and stop- gap financing. The whole process is further drawn out by the fact that tax legislation, by law, and spending legislation, by custom, are considered by the Senate after the House. But the real weakness is that Congress does not relate one piece of spending to another or spending as a whole to revenue. It is usually considered bad form for the full appropriations Don't Go To Work SDAY You'll Save More Money Than You Could Make! WEDNESDAY, JUNE 26th will be the best day of 1974 to Shop BIERL'S PARKWAY FURNITURE CARROLL, IOWA There's never a Bad Day to Shop B/er/'s, but Wednesday will be a Humdinger! On this day we will reduce priees and we really mean reduce ... on Living Room Suites, Sofas Chairs, Bedding, and Dining Room Sets. There will be whopping reductions on Bedroom Suites Desks Storage Cabinets and Carpeting. ' NOW FOR SOME EXAMPLES OF WHAT WE MEAN BY "WEDNESDAY WILL BE A HUMDINGER" . . . — - - — i«"i --•-•• f^ •!-•• v. » ...^ » \_ « lui i *vw\/ Aivyif qji.it/. i*iai IV 111U1 C k_/Ul flo LU go, too numerous to mention. And then we have :i Croups of CHAIRS . . . Smart, attractive, good looking chairs hut we're closing them out One group CHAIRS $69.00, these Chairs regularly soil from $140 to $200. Om> group of CHAIRS $59.01). these si-ll regularly from $130 to $180. One group of 12 CHAIRS out they go at $49.00. In this group we have savings up to 707. And here's some-thing: a group of ORIGINAL OIL PAINTINGS on canvas, a colorful selection, regularly sold at $30 to $90. And they're 1 yours at 50'; Off. \o\v that's a real deal. DON'T STOP HERE! LOVE SEAT to go at greatly reduced prices — What Savings . . . And here's a buy. One Kroehler Med. Love Seat all black vinyl $220. NOW $99.00. You'll think we're crazy for selling them so low! We have really sharpened our pencil and we're going all out to move many items that are truly beautiful pieces, but of which we have too many. For instance, in bedroom furniture 3 only Spanish bedroom suites all with big triple dresser and decorative mirror, regular or queen size headboard, and 5 drawer chest on chest. Your choice of any group for only $249 you save $131. And mattress sets for example, we have queen size, regular size or twin size, some mismatched sets, some slightly soiled, all by SERTA, reduced up to 707. Some sell as low as $24. Many odd chest, headboards, dressers and chest. Boy, do we have bargains in Early American too! Fpr example we have two AMERICAN SOFAS and we are selling them out at $199, Reg. $340. What a buy. You'll want to be on hand early for this won't last long. We've got DINING ROOM FURNITURE at real bargain prices, and we mean bargains, up to 707. off. They are beautiful sets but there are just too many of them to list here. We have a five piece Chromecraft set, Chrome pedestal base table with swivel chairs Regularly selling for $650 going for $299. Just to give another example, one five piece Spanish,oak table and chairs regularly $250, out it goes $139. Come early to get one of these. Now, we can't list every single one of these WOW BARGAINS that we've marked-down for you, so if there is something you've been looking for, just come in and ask for it. You might find it at a deep cut price. But in reading this we find we missed a lot of goodies that we should tell you about! This is where you can buy a houseful for a handful. One table drapery bolts regularly $4.00 per yd. pick them up from 1.00 to 1.50 per yd. We have LOTS OF OCCASIONAL TABLES, one or two of a group left, and you save 607, on every table. Like a $40 table on which you save $24 and buy it for $16 . deals like this. And one group of LAMPS which we've stacked in a pile and you find what you like at 70% off regular price. That means on a $30 lamp we knock off $21 and you buy it for $9. There are lots of odds and ends like this so you better just come and have the time of your life with all of these bargains. This is merchandise taken from our regular stock not something that is slipped in for a promotion. You have seen it before when you have shopped Bierls. Now you can get it at a bargain. See you Wednesday. Be Sure to Shop Bierl's Wednesday . . . It Can Be One of the Nicest Days of Your Life! 12 HOURS ONLY! Wednesday, June 26,9 a.m to 9 pm trS Bring Your Pick-up or Trailer (DBCJCf; SflBPt 712/792-4318 committees to alter the amounts passed by their subcommittees. Spending used to be tailored to revenue in the simpler days of the early Republic when both subjects were considered by the same committee. But for more than 100 years both the House and Senate have had committees solely concerned with tax matters. The House Ways and Means Committee and Senate Finance Committee have almost no idea what level of appropriations they are supposed to finance until a fiscal year is virtually over. Then there is the abuse of "backdoor" spending, or money that the standing committees decide to authorize, irrespective of the appropriation process. From 1968 to 1973 this added $30 billion to presidential budget requests. It is in that way that much "pork-barrel" federal aid finds its way to congressmen's constituencies. In part this muddle is the price that has to be paid for detailed legislative oversight of public money. The President has usually had the last word on the budget since the Bureau of the Budget was set up in 1921; now it is called the Office of Management and Budget and is 650 strong. The new reform proposes drastic changes. It sets up two budget committees, composed of 23 members in the House and 15 in the Senate, drawn from the various bodies that now deal piecemeal with the budget. It also proposes to set up a congressional budget office with a staff of 70 or 100 people to provide budget analyses. To prevent the old slippage of budgetary deadlines, fiscal years will start on October 1. This means that the 1976 fiscal year will be 15 months long and the 1977 fiscal year will begin on October 1,1976. By May 15 each year Congress will pass a concurrent resolution, setting the spending totals and, in broad terms, the subtotals, and fix a target surplus or deficit. The usual appropriation process will occupy Congress until September 15, when Congress will take another bird's eye view by passing a second concurrent resolution, setting the total spending targets anew in the light of economic developments at the time. If the sum of individual appropriation bills exceeds this target, Congress will then have a choice of several courses: cutting appropriations, increasing taxations or going further into deficit. Will the reform work? The same idea of budget ceilings was tried in 1946, and within two years it was ignored as a farce. But the backers of this new reform are encouraged by the broad support it has received: the Senate passed it unanimously and the House by a vote of 386 votes to 23. Some liberals fear that the budget committees will become a haven for fiscal conservatives whom they foresee paring their cherished social programs. The reform does, however, permit budget deficits, merely providing, so far as procedural changes can provide, that they will be deficits related to a general economic policy need. For his part, President Nixon may dislike the restriction on impoundment that is part of the reform, but he will hardly be able to claim that Congress has not met his general criticism of its fiscal behavior. ici The Economist of London Vietnam: a Fight to the Last Bullet? SAIGON — (LENS) - The non-existence of the Vietnam ceasefire has never been more apparent than in the flat, open scrubland 25 miles up the road north from Saigon. The battle that has been raging for about three weeks around the district town of Ben Cat has developed into the biggest confrontation between the South Vietnamese army and the regular battalions of the North Vietnamese army since the "ceasefire" came into force in January, 1973. The destruction the fighting has wrought to this formerly placid area close to South Vietnam's capital is incontestable. Hundreds of soldiers from both sides have been killed or. wounded. A village called An Dien has been battered into a smoking ruin. Fighting on this scale is also a heavy financial drain on both sides, but particularly so for the highly-mechanized South Vietnamese army, which with 1.1 million men in arms is the fourth largest army in the world, and which is having great difficulty in shedding its extravagant American military tactics. In its efforts to throw back the North Vietnamese troops infiltrating into the Ben Cat area, the army has mustered a considerable force of infantry and airsupported armor. South Vietnamese jets have been regularly flying more than 50 sorties a day, and the artillery booms day and night sending thousands of shells, costing at least $75 apiece, crashing into the communist lines. What will happen if the North Vietnamese manage to continue this level of fighting for six months or more? A planning officer in Saigon shrugged his shoulders helplessly. This question-mark hung over President Thieu's recent speech, the most forceful he has yet made on the delicate topic of American aid. The president compared American generosity to war-ravaged Europe after the Second World War, and in the 1950s to South Korea, with what he termed an abdication of responsibility towards South Vietnam. The trouble, he said, stemmed from domestic difficulties within the United States and from the powerful anti-Saigon lobby in Congress. But the United States, he went on, should accept its responsibilities and not make its help to South Vietnam- conditional on the signing of this or that coalition agreement. ic) The Economist of London Wall Street: It is Miserable, Unloved East Edge off CARROLL Hwy. 30 NEW YORK - (LENS) The New York brokerage community is going through its worst pangs since the 1930s. The remaining 518 member firms of the Big Board are suffering from an excruciating exercise in consolidations, recapitalizations and hardnosed cost-cutting to cope with the bear market's low turnover, and they all live in the fear of worse to come: fixed-rate commissions on all transactions must end by next April 1. The revolution on Wall Street will not be bloodless. Already, duPont Walston has been divided up and has disappeared. Now, Hayden Stone's merger with Shearson, Hammill will show whether greater size and massive cuts in overheads will work. Ironically, the largest saving will be in the paperwork end of the business. This is where costly computers were installed to prevent the recurrence of the back-office seizure of 1968. The computers were expected to deal with a steady dose of 20 million share trading sessions, but volume is down from an average of 16 million shares daily last year to 14 million so far this. Much capacity has already been reduced. Brokerage house losses of the 1973 kind were avoided until April, when $48 million was lost, wiping out the black ink of the first three months and setting off a new wave of merger talks. Kidder, Peabody intends to swallow Clark, Dodge; Shields intends to acquire Model, Roland. So far this year 13 firms have gone out of business and five have been merged. Last year, 73 firms shut their doors, and 33 were taken over. (c) The Economist of London

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