Northwest Arkansas Times from Fayetteville, Arkansas on July 27, 1974 · Page 4
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July 27, 1974

Northwest Arkansas Times from Fayetteville, Arkansas · Page 4

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Fayetteville, Arkansas
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Saturday, July 27, 1974
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Jlortfjtoegt Editorial-Opinion Page ·Me Public Interest Is The First Concern Of This Newspaper 4 · SATURDAY, JULY 27, 1974 Ambassador Bill? Not Likely One of the drearier aspects of upper echelon politics unveiled by Watergate disclosures is the regular practice of bartering off of ambassadorial assignments for campaign contributions or political advantage. Just now the rumor mill has it that President Nixon is weighing the possibilities of handing Sen. Bill Fulbright the ambassadorship to Great Britain in return for his vote in the impeachment showdown. As luck would have it, the present ambassador to the Court of St. James is Walter Annenberg, a conservative, eccentric, millionaire publisher who has kicked in untold reams of money for the political pursuits of Richard M. Nixon. Sen. Fulbright says he isn't negotiating. (Indeed, he said while here recently, that he wasn't entertaining any definite future assignments until ha has disposed of present responsibilities in the Senate.) On top of that, it is about as certain as death, taxes and the morning sunrise that the Arkansas junior senator won't "deal" with the present administration on any grounds that this President is likely to dream up. There is this to say about the art of ambassadorial appointments, though. If memory serves, me famous Washington hostess Perle Mesta contributed about §30,- 000 to the campaign of Harry Truman, and won an ambassadorial appointment to Luxembourg. Last time around, it cost the lucky Luxembourg recipient $300,000. That's a case of Nixonian inflation, with a capital I. Arkansas' Senatorial Representation The enduring contrast between Arkansas' U.S. senators is notable in recent votes -- emphasizing, we might add, the values represented by choices of the state electorate in the last two senatorial campaigns. On a vote to repeal the no-knock provision of the federal criminal code, a threat to individual freedoms in this country, Sen. . McClellan who helped write the original bill, voted in favor of keeping the provision. Sen. · Bill Fulbright voted with the sizeable majority, 64-31, to repeal. On a move to table, and thus kill the Art Buchwald extremely significant Consumer Protection Agency bill, a measure designed to give the private citizen a degree of legal leverage in his own economic defense, Sen. McClellan voted in favor and Sen. Pulbright joined the considerable majority against, 25-66. On ?n amendment to the Consumer Protection Agency bill, designed to seriously weaken its effectiveness by limiting its coverage for union members, Sen. McClellan voted for and Sen. Fulbright joined a majority opposing it, 40-57. Ronnie Ziegler And Disneyland WASHINGTON -- The big question everyone in Washington is asking this week is, "If for some reason President Nixon'has to leave office, will Ron 'Ziegler be able to get his job back at Disneyland?" The consensus among most Ziegler-watchers is that he will. One watcher who asked not to be mentioned by name because he still has relatives in Orange · .County, Calif., told me, "I've been watching Ziegler now for ,five years, and as far as I'm .concerned he never left Disney! land. Ron is a born believer in fantasy and he knows how to treat everyone like children. The very virtues that made him ' one of the best guides at Disneyland are now paying off for . him as spokesman for the Pre- ; sident of the United States." "But wouldn't the Disney peo- -ple be hesitant about rehiring · someone w h o worked in the White House?" The Ziegler-walcher shook his head. "Ron was never involved with Watergate. He's clean as ·· a hound's tooth. You want to "know why?" "Sure," I said. .' 'Because they didn't trust ; him. They were afraid if they ·· told him anything, he'd spill it. ', Everyone else in the White '.House apparently knew what : the hell was going on except ', Ziegler. They treated him like · a dum-dum and now they're all ; going to jail, and Ron has the ;last laugh." "I've never seen Ron laugh," ;I said. · "IT WAS JUST a figure of .'speech," my friend replied. "Do ;you realize that next to Al ' Haig, t h e President depends ·more on Ziegler than any other person in his Administration?" ; 'Why-is,·that?" "Because : Ron ,,still believes everything the President tells him." 'You mean Ziegler's not putting us on when he says now th/it we have all the facts t h e only conclusion we can arrive at is that the President knew nothing about the coverup?" "In his heart he really be- Bible Verse "For ever, 0 Lord, thy word is settled in heaven." Psalms 119:89 His word is what He has promised to bless, we ought to make the most of it. "My word shall not pass away . . .My word shall not return unto me void." "Why should it be thought a thing incredible with you, that God should raise the dead?" Acts 26:8 What He has made He can raise. What He has saved He can Keep. God can do anything. "Is there anything too hard for me?" "And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity; the sea and the waves roaring; Men's hearts failing them for fear, and for looking after those things which are coming on the earth:for the powers of heaven shall be shaken." Luke 21:25,26 No one has to be a student of prophecy to see that the most important part of it is about to be fulfilled. lieves it." "How could he?" I asked, "Because he worked at Disneyland. Anyone who believes in Mickey Mouse, Snow White and Donald Duck is going to believe Mr. Nixon's story. You can say what you want to about Ron, but lie does have a lot of faith." "Does he believe in the Easter Bunny?" "I don't t h i n k the Easter bunny was a Walt Disney creation," he replied. "You know, sometimes when I watch Ziegler on television, I get the feeling he isn't telling the whole truth . . . that he's making things sound better than they really are," I said. "And where do you think he learned that?" my friend asked. "Disneyland?" "WHERE ELSE? Disney created a world of make-believe and illusion. When Ron moved to Washington he just took that world with him." "You seem to have a grudging admiration for Ziegler," I said. "I do. When Ron first started in his job he didn't know very much, and he said whatever they told him to. But now he's adding his own fantasies to Watergate and they are as good as any being put out in this country." "So you think that no matter what happens to President Nixon, Ziegler won't have to worry about a job." "I know it," my friend replied. "How can you be so sure?" "No one knows this, but Ziegler never quit his job at Disneyland. He just took a leave of absence." (C) 1974, Los Angeles Times Expanding Nuclear Fraternity WASHINGTON (ERR) -- Th» nuclear "club" was long considered the world's most exclusive: only great powers need, apply. But the old membership barriers are toppling. ; Before long, the nuclear club will be about as exclusive as the Book- of-the-Month Club. With its explosion of a nuclear device on May 18, India became the sixth nation to crack the charmed 'circle. As. many as two dozen additional countries could acquire nuclear weapons in the next decade, according to U.S. arms control officials. They include Japan, West Germany, Egypt and South Korea,'which have signed but not yet ratified the nuclear non-proliferation treaty. Future members of the nuclear club probably will travel the same path taken by India. The plufpnium .used in^ the Indian device''was'a'byp'ro-'" duct of a' nuclear reactor supplied by Canada. When the two countries. concluded the reactor deal in 1956, India claimed it had only "peaceful purposes" in mind. OTHER NATIONS clambering aboard the nuclear bandwagon have given similar assurance. And the supplier countries say they will insist on "safeguards" against non- p e a c e f u l use of nuclear materials;^But "safeguards are not the real issued" says Ciro Zoppo, "executive director of the California -Arms Control and Foreign Policy Council. "The essential point is that the most effective way to prevent or delay nuclear weapons in a non- nuclear country is to prevent the accumulation of nuclear fuels and facilities that provide the ingredients for later development of weapons." That may well be impossible, for every nuclear. reactor produces plutonium as a byproduct. According to .Paul L. Levanthal, special counsel to the Senate Subcommittee on Reorganization, Research and International Organizations, the ni'^'ear nower plants that President N i x o n wants to sell Egypt are each capable of producing 352 pounds of plutonium - a year. "After reprocessing, this plutonium will amount to more than 700 pounds of weapons-grade material suitable for the fashioning of dozens of bombs of the size of the one · dropped on Nagasaki." The long-range outlook for the entire world Is even more ominous. "By 1985, the world.will be producing 220.000 pounds of...(nlutonium) every year, enough for 10,001) bombs with a force of 20 kilotons each," Washington Post reporter Thomas O'Toole wrote. "By the year 2000, plutonium will, be a commonplace metal and part of the world's nuclear energy economy." THE PROSPECT disturbs many government officials. Testifying before the Senate Subcommittee on International Finance, Rep. Bill Gunter (D- Fla.) said: "The very notion that nuclear technology is an article of prestige in some fashion, something to display like a shiny new Cadillac, shows the nuclear immaturity of both the nations desiring It and the nations providing it." Gunter- was especially critical of supplying nuclear materials to nations in the oil-rich Middle F.ast. He suggested that the United States help Egypt develop a solar instead of " nuclear energy program. "Egypt is situated in a climate which is calculated to provide optimum exposure to the sun," he said. "It has a long coastline adaptable to an oceanic ene-r" conversion project. Its...hinterland might easilv bear wind-powered generator stations...." If such a deal were offered, Eavpt no doubt would reject it. Several other nations, nntab'v Cnnnda and France, would gladly fill the void. The familiar phrase, "nuclear balance of terror," is rapidly acquiring a new dimension. Jump How Stable The Lenders? By MARY W. COHN (Editorial Research Reports). WASHINGTON -- The stability of the U.S. banking system, has been taken for granted for decades, since the banks recovered from the collapse of the 1930s. But concern about the system nas been building up behind the scenes, and now the assumption of stability is being questioned openly. Among bankers and their critics, concern has centered on three broad areas: aggressive expansion of the banking system, which has resulted in questionable practices; monetary and credit restraint imposed by the Federal Reserve Board in its fight on inflation, which can expose flaws in bank practices that might otherwise be obscured by easy bank credit; and international monetary and financial instability, aggravated by the oil crisis. Potential weaknesses, previously see mainly by the experts, were brought to public attention in May by the disclosure that Franklin National Bank in New York, the nation's 20th largest, was in financial distress. The well-publicized troubles of Franklin National have sent tremors through the financial community and shaken the public confidence on which the banking system depends. Although banking leaders have said Franklin's problems are isolated, jittery money markets have been swept by rumors that other banks and businesses are bordering on failure, reviving memories of , w i d e s p r e a d bank closings, financial collapse and economic depression in the 1930s. BANKERS DISMISS fears of another debacle. They point to safeguards built into the financial system after the 1929 crash and to quick action taken by banking authorities to rescue Franklin National. The comment of David Rockefeller, chairman of Chase Manhattan Bank, was typical. "I have no reason to believe the banking system in general is in jeopardy," he said shortly after Franklin's difficulties were made public. But confidence in the financial system suffered another blow June 26 when one of West G e r m a n y ' s largest private banks, Bankhaus I.D. Herstatt, was forced into liquidation. H e r s t a t t , . like Franklin National, had suffered major foreign exchange losses. Us failure disrupted international markets and involved losses for other banks and businesses through out the world. In the United States, the Federal Reserve Board's fight on inflation has imposed severe strains on an American banking , system that has expanded rapidly in the last,two decades. The Fed, the nation's money manager, has tried to restrain excessive expansion of money and credit, which it views as a major factor in the current "double-digit" inflation. Fed action has raised interest rates and squeezed financial liquidity -- the ability of banks and other businesses to raise short-term funds. The Fed has assured that it will not permit a credit crunch or liquidity crisis to develop that would destroy the ability of sound banks and other institutions to raise money to meet t h e i r obligations. It has declared, however, that it will not allow high interest rates and financial jitters to deflect it? tight money policy, merely to avoid some painful dislocations. While recognizing that severe, widespread distress would compel, it to. relent, the Fed feels it must take some risks to curb inflation. Warning that "the future of our country is in jeopardy" because of inflation, Fed Chairman Arthur F. Burns said on May 26 that the Federal Reserve was firmly committed to continued resistance to swift growth in money and credit. Burns conceded that the Fed policy would result in high interest rates, particularly on short-term loans. THIS TIGHT MONEY policy has made it difficult and costly for banks to obtain funds to meet loan demand. In recent years banks have relied Increasingly on short-term borrowing to support their lending and investment. Rising interest rates mean that they must pay more to attract money and charge more on loans. Banks can get into trouble if the short-term money is withdrawn or stops coming in, or if the rates they must pay to borrow money exceed the fixed yields ori their · long-term loans. Savings and loan associations, which hava most of their money locked up 1 in · long-term mortgages, are more vulnerable to this problem than commercial banks. High interest rates also have caused an outflow of savings d e p o s i t s from commercial banks and thrift institutions -savings and loan associations and mutual savings banks -as depositors transfer their savings into higher-yield market instruments. The deposit outflow has hit thrift institution? particularly hard, forcing them to curtail home mortgage lending. Financial experts warn that some institutions may go under unless competitive market interest rates come down. The financial community is concerned that many banks, in their rush to expand, may have overreached .themselves, On.e cause of uneasiness is the fear that lending practices have become too loose, leading banks to take on too many risky loans. Underlying the concern aboflt bank lending practices is the question of capital adequacy. Some experts question whether banks, aggressively building up their income-earning asse'ts, have sufficient capital to cushion potential losses. The risks may be heightened by ths growing reliance of banks on relatively unstable, short-term funds. Arkansas Editors Comment On The M utt Jones Affair And The Environment MALVERN DAILY RECORD At the ArkansasPressAss o- ciation (APA) summer convention in Jonesboro recently, the invited guest speaker was Governor Dale Bumpers. Mr. Bumpers had been invited to APA meetings previously but had not attended. It was gener- · ous of APA to keep extending ; the invitation. · But as an invited guest, the : Governor was somewhat critical of APA for allowing various firms, mostly paper and .printing supply houses, to sponsor meals and social events at the press meetings. The names of the firms were listed on the program and the more than 100 APA newspaper members are big customers of these organizations. Therefore, this is a way for these firms to say "thank you" to their year around customers. In the criticism, Mr. Bumpers remarked that he wondered what kind of an editorial an editor would write should these same firms sponsor an event for politicians. On the same subject, the editors present --· and those not present for that matter -- could wonder just what to expect from public officials that received big campaign contributions from business f i r m executives. Mr. Bumpers had many of these as were listed on page 10A of the May 13 Arkansas Democrat, and on page 8A of tha May 14 Arkansas Gaz- ette that helped finance his successful campaign to win nomination to the U.S. Senate. The sponsorship of events by the firms is in no way to attempt to buy the editorial opinion of the editors -- they couldn't if they wanted to do so. The newspapers of the state spend lots of money with the great majority of these companies and these sponsorships are a way of expressing their appreciation for the business. This has been a tradition for more than a quarter of a century. Mr. Bumpers was completely out of line... ARKANSAS DEMOCRAT Hearings before the s t a t s Public Service Commission resumed Thursday on Arkansas Power Light Co.'s proposed White Bluff power plant at Redfield, and APL has set a commendable mood of compromise. Though its proposal had to be officially withdrawn, APL has offered to install two 1,000- foot smokestacks, rather than the four 750-foot stacks that were called for in the firm's original plan. The proposal was made, then withdrawn , after attorneys for the stale Planning and Health Departments and the Arkansas Ecology Center t h r e a t e n e d to delay the hearings so they would have time to review testimony relevant to APL's new proposal, APL said it did not want to delay the hearings. The proposal, nevertheless, has been made, and the stale and private agencies that have opposed White Bluff on ecological grounds now know where APL is willing to bend. In making this concession -rather, o n e would now say APL has indicated its willingness to make the concession-- APL has followed one of the suggestions of Jarrel E. Southall, Air Division chief of the state Pollution Control and Eco- 1 o g y Department, another agency that has opposed White Bluff. However, Southall n o w says he still doubts that he can recommend a construction permit to APL, even though a m a j o r concession Southall asked for has been made. That kind of reservation, as well as . the point raised by the attorneys for the Health and Planning Departments and the Ecology Center, is all right -but only if Southall and the others will now show us some point on which they, too, will bend a little. We hope the hearings continue in the conciliatory mood APL h a s set. Obviously all sides in the .White Bluff deoate will not be able to go home with the whole cake. There will have to be some judicious swapping out. APL apparently realizes this, and has made a move. It is now time for the other parties in the debate to make theirs. MORRILTON DEMOCRAT There was a time when most people believed the only reason Guy H. "Mutt" Jones was not ousted from his State Senate position was because a formal sentence had not been pronounced. That waa during the 1973 Legislative Session. But last week, senators acted on the Jones' matter and provided the means under which citizens of District 21 (including part of Conway County) will continue to be represented by a convicted felon. It is a history now that Jones was accused, and convicted, of four felony, counts in Federal District Court. And it is history that the Arkansas Constitution slates most clearly that a person may not serve in such position (the Senate) when and if convicted of "an infamous crime..." ...But last week, more history was made. The Senate set up ground rules that made it almost impossible to expel Jones. And then, following those ground rules, proceeded to help the ^ shortcake i senator settle most comfortably in that District 21 seat. It was an incredible disgrace. It cannot be said the Senate action was a total surprise. Perhaps it was no surprise at all. For the Senate has been functioning, or failing Its mission, for a long time. Last week provided another historic failure. SPRINGDALE NEWS ... We don't know what the legislators have in mind or why they take exception to the idea of creating wilderness land. They more than anyone else, should understand that Arkansas has areas that should never be distrubed by human hand. By that we mean chopping down trees, building highways and erecting houses. One of Arkansas' major assets is its scenic beauty, much of which remains in a relatively natural state. That's one of the major reasons people come to this slate - either to live or in the role of money- spending tourists. They're eager to get away from the freeways, crowded resorts and recreation spots and ugly metropolitan areas. If we don't preserve some of our natural areas, then one day we will wake up and it all will be gone. If the legislature feels the law regarding purchase of wilderness lands needs to be altered, then that should be studied and worked out. But to ignore the entire situation, particularly in light of the comparatively small amount ot money being asked, is foolish,' DR. O. E. JONES (In the Batesville Guard) It appears t h a t Arkansas Power and Light is attempting to coerce the Arkansas Public into accepting its proposal to construct its new gigantic, coal powered, electric generating plant at Redfield, Arkansas without proper pollution control devices. The coercive force being used is a Ihreat that rates for residential, commercial, and industrial users will be increased greatly, if their proposal is not accepted as offered by the utility. . . . The utility claims that the 'scrubbing devices' used to control gas cmmissions are too costly, and have not proved to be as effective or reliable as the utility would like, so what do they propose? Tall smoke stacks, and low sulphur coal. If you would imagine this situation which might exist any summer in Arkansas, you might see the results of a decision by the Arkansas Public Service Commission, which is now meeting to consider this proposal-, to allow the utility to proceed vyith construction as outlined in their application. An atmospheric condition called thermal Inversion has gripped the stale for several days. Temperatures are in excess of 100 degrees Fahrenheit. Because of this condition all air and gasses are hanging heavily'in the sky over the area in stagnant condition with no circulation to moyt the air or gasses away. At Redfield, the Arkansas Power and Light Company's generating plant is experiencing peak demands on its energy producing capabilities because of normal industrial demands plus excessive air conditioning usage by thousands of Arka'nV sans fighting the heat. The plumes of smoke are hanging limply in the sky or are falling heavily back to the earth. The pungent odor of s u l p h u r dioxide burns your eyes and nostrils. '[' Now what is A.P.L. to do? Are they going to shut down power production and let Arkansans suffer in the heat? Will they cut off the industrial users? Or, will they go ahead and generate and suffocate the residents of the area? It is an impossible decision. , . It seems to us that coal is th logical choice of fuels for any new generating plant, As environmentalists we know that there is a greater supply of coal than any other fossil fuel. But it also occurs to us that If Ai P. L. would show good faith by placing t h e 'scrubbers, using tall smoke stacks, and, yes, even burning low sulphur coal, that they could say without shame that they did everything possible (o keep the air clean, and they could save themselves a lot of headaches and law suits, if not money,

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