The Farmville Herald

It will depend, it appears, largely upon the
fortitude of the Eisenhower administration
and the congressional
champions of free enterprise both
Democrats and Republicans.

The Eisenhower administration
position continues to be that the
present recession will be short
lived that there will be an upturn
during the year that the economy
will spiral upward to new heights.

The Administration position is
that the budget can and should re-
main in balance and that there
should not be a resort to a new era
of deficit financing.

Some Remedies Proposed

The New-Fair Deal groups, however,
are now gathering forces for
an extension of federal control
and spending in many directions.
These include

Demands that federal public
works be stepped up including the
building of federal hydroelectric
power plants accelerated road
building, more public assistance,
higher social security benefits, and
the like.

A concerted drive has opened to
enact legislation to force states to
increase unemployment insurance
benefits to 52 weeks and to a level
equal to two thirds of the state's
average weekly wage.

Others redoubled efforts to per-
suade Congress to embark upon
huge school building programs and
to enlarge housing subsidies.

Radical Methods Feared

Some members of Congress and
economic advisers are fearful that
resort to radical methods to un-
limited deficit spending, to "pump
priming" schemes, to encourage-
ments of higher wages and labor monopolies
will make recovery more difficult.

Two questions have arisen whether
Congress will inaugurate them
even in the face of administration
opposition.

Tax Reduction Sentiment Gains

One big change in congressional
sentiment is the increasing demand
for tax reduction.

This sharp change in attitude has
taken place in a six-week period.
Whether the demand will now
build and force congressional action
before adjournment is at this time
uncertain.

A possibility was foreseen of an
all out battle between advocates of
the principles of the Sadlak-Herlong
tax reduction bill, and the pro-
posals of self styled ultra liberals.

The Sadlak Herlong bill calls for
tax reduction for both corporate
and individual income taxpayers. It
would reduce the high and discrimi-
natory rates and thus free funds
for investment in business expan-
sion.

But the
ultra-liberal proposals
call chiefly for a reduction either
in the lowest brackets of the income
tax, or a raise in the exemption
with the intention of aiding only the
small taxpayer.