The Daily Herald from Provo, Utah on April 6, 1975 · Page 25
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April 6, 1975

The Daily Herald from Provo, Utah · Page 25

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Provo, Utah
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Sunday, April 6, 1975
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Page 25
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But How Much? Sunday, April 6, 1975, THE HERALD, Provo, Utah-Page 25 Deficit Spending WASHINGTON (UPI) - In an unprecedented exercise, President Ford and the Democratic Congress are about to debate how much deficit spending is required to run the government and revive the economy. Ford opened the debate a week ago on television. After signing into law a tax cut larger than he wanted, he stood before a chart and, with a graphic sweep of the arm, drew the line on a deficit of $60 billion. He said neither he nor the economy could stand for more. Now Congress, using a procedure never before tried, is about to decide where it thinks the line should be drawn. Congress is almost certain to vote for more deficit spending than Ford says he will to tolerate. The best guess is that the congressional deficit will exceed Ford's $60 billion by $10 billion to $20 billion. Ford has already agreed to nearly $10 billion more than he originally proposed in his Feb. 3 budget. To combat the recession, he accepted a larger tax cut and heavier spending than he first wanted. No economist in or out of government is disputing the inevitability or the need for a deficit in fiscal 1976, which starts next July 1. Any attempt to limit spending to match receipts, shrunken by the recession, would trigger a depression —and result in a still bigger deficit. Until now, Congress has never debated how 'large a deficit the country needs to improve the economy. In its customary way of operating, Congress lias appropriated funds piecemeal, without any consideration to the overall total or to its effect on the economy. Not until a fiscal year eneded could the size of the resulting deficit even be seen. Under a reform enacted last year, Congress agreed to fix spending and deficit (or surplus) totals in advance. Starting Monday, the House and Senate Budget Committees, under the leadership of Rep. Brock Adams, l>Wash., and Sen. Edmund S. Muskie, D-Maine, will draft resolutions proposing spending and deficit targets. If the act works as intended —and skeptics question whether Congress can exercise such self-discipline —a second resolution must pass Sept. 15 trimming away at excesses. If appropriations exceed targets, the resolution would instruct spending committees to make cuts or tax writing committees to enact laws to raise new revenues. If neither course were followed, members of Congress would be compelled to vote to Despite Elections increase the deficit, a politically difficult vote to cast. Such votes were avoided in earlier days, when deficits just "happened." The law is being put through a trial run this year. Since there wasn't time to undertake a wholesale revision of Ford's proposed budget, the resolutions will focus on overall totals rather than their components — the size of the pie rather than the size of the slices. But the committees will make recommendations on shifting some spending —less for defense than Ford recommends and more for helping the victims of recession. Tentatively, the House panel has voted for a $366.9 billion budget instead of the $349.4 billion Ford proposed. The committee's deficit would be $71.9 billion instead of the $51.9 billion Ford proposed, later revised to $56 billion and then, on television, revised again to $60 billion. The committee suggests slashing $4.3 billion from Ford's $89.7 billion defense budget and $1.4 billion from his $6.3 billion for foreign military and economic aid. Seeking to create jobs, the panel would spend $6 billion more than Ford proposed for housing and highways; nearly $6 billion more on public service jobs and training, and $3.6 billion more on public works projects. In a surprise compromise, the committee, voted to accept Ford's proposed 5 per cent ceiling on federal military and civilian pay raises and to fix a 7 per cent ceiling on retirement and Social Security increases. Both are below the automatic cost of living increases provided by law. The Senate committee hasn't made these dollar level decisions yet. It starts this week. By law, House and Senate resolutions are to pass by April 15 and a reconciled compromise is to be agreed upon by both chambers May 15. Ford, at his San Diego news conference Thursday, asked Congress to amend the 1974 law to make the budget exercise mandatory, instead of voluntary, this year. But spokesmen said both committees have agreed to implement the law to the fullest possible extent. The measure, the Budget Reform Act, provides for starting the fiscal year Oct. 1 instead of July 1. That will give each session of Congress nine months to consider spending totals, pass appropriations bills and then cut them or raise revenues before the fiscal year and the spending actually begins. If it works, Congress will have more control over the government's priorities and the state of the economy than it ever had in its days of haphazard spending. Sentence Goin Concession* Of Death Egyptians Return Pronounced 39 | srae |j Bodies MOST WINTER PICTURES show piled up snow, but this one Illustrates another phase of the storm which blasted the east coast over the weekend. It's a boat left high and dry on the Maryland Coast when gale force winds blew the ocean away from the shores, causing such low tide levels that moored craft were stranded all up and down the coast. UPI Telephoto Storm Tapers Off In Northeast Area Military to Control Portugal LISBON (UPI) — Guidelines for Portugal's new constitution laid down by the ruling Armed Forces Movement will place the leftist military in complete control regardless of the outcome of the April 25 election, press reports said Saturday. Major political parties have agreed to go along with the military's plans for the constitution, Expresso magazine said. The April 25 polling will elect an assembly to write the document and politicians said the election appeared to make even less sense now since the military was dictating its own terms in advance. The Revolutionary Council of the Armed Forces Movement already had taken over executive and legislative powers following an unsuccessful coup March 11. On Thursday, the movement issued a draft constitution to the parties. Speaking of the parties' reaction to the draft, Admiral Rosa Coutinho said he was "very pleased with the results which showed that in a general way all parties understood the reasons why this pact was presented and that it is going to be carried out." Coutinho is a member of the 24- man Revolutionary Council set up after the March coup attempt which has gone ahead with nationalization of banks and the insurance business without waiting for the new constitution. Expresso published what it said were the main points of the guidelines laid down by the military. These were: —The Revolutionary Council will not take orders either from the legislative assembly or the government. —All military and defense legislation is to be placed under the exclusive competence of the military, and the Revolutionary Council will control the legislative assembly and the government in economic and social lawmaking. —The Armed Forces Movement must approve all candidates for president of the republic who is to be at the same time president of the Revolutionary Council and chief of staff of the armed forces. Campaigning for the constituent assembly election got underway Wednesday and hundreds of party meetings have Belfast Bombing Kills Two BELFAST (UPI) - A bomb exploded in a Belfast bar Saturday afternoon, killing two persons and injuring another 15 as they watched the Grand National horse race on television. Witnesses said a lone man opened the front door of McLaughlin's tavern, in a Roman Catholic area of the city, and tossed the explosive inside without giving a warning. been held. The liberal Popular Democrats scheduled their first major rally for Sunday afternoon at Lisbon's bullring. Before the campaign began, rallies by the liberals sparked clashes between police and left-wing demonstrators that killed one person and injured 40. Since the right-of-center Social Democratic Center party cancelled its campaign meet-' ings because of violence and alleged intimidation, the far left- wing has shifted its verbal attacks to the liberals. By United Press International Snow tapered off in the hard- hit northeastern states Saturday and a winter storm that brought it left gale warnings along stretches of the mid and north Atlantic coasts. The winds that had brought damage and death across the northern part of the nation since midweek stranded more than 500 travelers overnight around the village of Bath in Steuben County, New York. State throughway officials were able to Ships Stay Clear of Wreckage NE YORK (UPI) - The Coast Guard cutter Alert stood by Saturday to warn shipping away from the area where a 557-foot Liberian tanker broke up in heavy Atlantic seas Friday. The two sections of the Spartan Lady were floating about four miles apart 165 miles south of New York Harbor. The vessel, carrying 36 crewmen and more than six million gallons of crude oil, broke in half while en route to New York from West Africa. • Four Coast Guard helicopters, fighting winds gusting up to 80 knots, plucked the crew from the ship and flew 20 seamen to Governor's Island and the rest to Hyannis Airport on Cape Cod, Mass. An unidentified seaman died aboard one of the rescue craft bound for New York, a Coast Guard spokesman said. None of the surviving crewmen was seriously injured. SHOW 8:15 'A monster riot." N.Y. TIMES THI FURTHIR PWU of UUill & HARDY" reopen a 55-mile stretch of the high speed highway closed for 11 hours by windwhipped snow. "Everybody has been just great," said Bath police dispatcher Gene Olynyk, telling of the efforts of townsfolk to care for the stranded travelers. Churches, he said, put up most of them, and many residents donated food. Buffalo, N.Y., reported its heaviest April snowstorm since 1894. About 165 miles south of New York harbor, a Coast Guard cutter stood by the two halves of a 557-foot Liberian tanker which broke up in heavy seas Friday. One crewman died aboard one of the four Coast Guard rescue helicopters which took the 36 crewmen off the^ shattered vessel. Across much of the midwest and southeast, the sun was shining for a change. It began to melt the snow cover that plagued midwesterners, hoping for a shot at spring warmth. Chicago had its coldest April 5 of the century, with readings of 19 at Midway airport, tying an 1898 low mark. HOUSTON (UPI) - Ignacio Cuevas, an illiterate Mexican national, stared straight ahead. His brow furrowed but he showed no other emotion at the jury sentence of death in the electric chair for the slaying of a woman hostage during a prison escape attempt. Cuevas, 43, sat with his head bowed as the jurors and spectators left the courtroom Friday. Finally, when only the security guards and attorneys remained Cuevas stood up, shook hands with his lawyers, smiled and walked rapidly from the courtroom under heavy guard. Irie jury spent 20 hours deliberating before it handed down the sentence. Cuevas' attorney Will Gray, who tried several times during the two- day deadlock to have a mistrial declared, said he would appeal. Prosecutors admitted Cuevas did not fire the shots that killed librarian Julia Standley but demanded the death penalty anyway. The nine-man, three-woman jury needed only a few hours Tuesday to convict Cuevas of capitol murder for his participation in the Aug. 3, 1974, battle with prison officials and Texas Rangers inside the prison compound. U.N. POST 512, Sinai (UPI)To taps played by Egyptian army buglers, Israel received the bodies of 39 of its soldiers from Egypt in the first formal field contact between the two countries in 14 months. In exchange for the transfer, called "a bitter experience" by Israeli Defense Minister Shimon Peres, Israel pledged to free 20 Arab prisoners and grant medical, religious, and food concessions to Arabs living in the occupied Sinai. Egyptian soldiers Friday set down the gray-painted coffins in the Sinai desert outpost near where Israel and Egypt last met in January, 1974, to sign the disengagement of forces accord negotiated by Secretary of State Henry Kissinger. Israeli soldiers immediately stepped up, placed the blue and white Israeli flag over each pine coffin and after a prayer loaded them onto flatbed trucks for the trip home. The 1974 accord separated Egyptian and Israeli forces from their positions at the end of the Return Bid Given to Republicans WASHINGTON (UPI) Miami Beach, which has hosted the last two Republican National Conventions, says it is eager to have the party back next year. "It's something like a woman who has gone through the pain of childbirth," said Miami Beach Police Chief Rocky Pomerance. "She may say 'never again,' but there are a lot of second children born." A delegation from New Orleans and the Democratic mayors of Los Angeles and Kansas City, Mo., accompanied by GOP escorts, also presented their cities' bids for the 1976 Republican convention Friday. LIMITED ENGAGEMENT! HURRY! = CONT. TODAY FROM 1:50 [RTFINNEY LAUREN BACALL ACATHA cnwviirj JACQIBINEBISSEI m PIERRE CASSEl MURDER ON THE ORIENT EXPRESS CONT. TODAY FROM 1:00 Sheila Levine is every single girl who ever had to attend her younger sister's wedding. 25 EAST CENTER is dead and living in New York Produced by Harry Korshak On ui-ted by Sidney J. Furie S< i ucnpioy by Kenny Solnis und Gail fiircnt I.... H. .-i, Gail Harem •.w,..,,.,ii. r Michel I. I IN IW I MMKMH MAM. DAILY INCL SUNDAY l:15-3:15-5:20-7:25-9:25 YOU'VE SEEN THE DUKE IN ACTION.. NOW WATCH HIM LOSE HIS TEMPER. LAST FEW DAYS! lft7*J^ar 7fc «S#W "^2^** O»»* P * JOHN WAY[ ^ WAYNE "BRANNIGAN" c.s.1 ,RICHARDATTENBOROUGH JUDY GEESON • MEL FERRER -JOHN VERNON • RALPH MEEKER • DANIEL PILON . iitculivePiixluceiMICHAEL WWNE • ProducedOy AHlHUflGAHONfHM JULfSUVY Sc'C'dHMj!l| CHRISWH[R IRUMBO8 MICHAEl BUUERMO WUIAM P McGIVIflN inrj VUlllAM NORION SWy tt, CHHISIOPHFR 1RUMBO« MICHAEL flUHfH • OnecleOCy DOI1GU5HlCKOX • Must 6| DOMINIC rnONIIERf -caw United Artists UNIVERSITY • DAILY INCL SUNDAY AT—i 2:00-3.50-5.55 8iOO-10tOOP.M. IN THE UNIVERSITY MALL ^ , | Alice has a 12-year-old kid. She hasn't got a job and she son her own. How come she has such a good time? ELLEN BURSIYN KRIS KRISTOFFERSON AVCE DOESN'T UVEHERE ANYMORE Yom Kippur war in which the 39 soldiers Egypt handed over today died. The bodies were found by the Egyptians along the Suez Canal following the Israeli troop pullback from the waterway under the disengagement agreement engineered by Secretary of State Henry A. Kissinger. Peres told newsmen the solemn ceremony was marred by Israel having to grant concessions it would have given without getting back its dead. Israel agreed to give food to Bedouin tribesmen and city dwellers in the Sinai, to aid churches whose headquarters are in Cairo and to set up a branch of the Red Crescent — the Arab Red Cross —in the city of El Arish. El Arish was taken by Israel during the 1967 Six-Day war. Cairo diplomatic observers said Egypt's transfer of the dead may be a signal it still wants to negotiate a peace settlement with Israel despite last month's failure of Kissinger's shuttle diplomacy. INDS TUESDAY DRIVE-IN THEATRE Orem 225-1740 NOW PLAYING! SHOWTIME 8s 15 •" •!'•'•'; Alan Arkin James Caan Freebfe and the Bean CO-HIT JOHN MANN THEATRES NOMINATED 6 ACADEMY AWARDS HURRY! ENDS SOON EVES: 7:30-9:30 SAT.-SUN. MATS 1:00-3:10-5:15 "Cona Rowland* is brilliant in the most Important icreen role there has been for women M i a JMJJW "The spwl of the film is the strange intense emotionally darlnf performance by tiena Rowland*. lt'» a performance that women understand and respond to wnreservedlyJ'-Moi'y H.** ww "Sena Rowlands 1 portrait the most breathtaking § creen performance I can rwM«nil«rf ' .. acapEMV IVII: 7,00-9,30

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