Business ii Jilillﬂieﬂli i if, FINANCE

 

Vii. LXXV

Grinnell, Iowa, Friday. March 8. I968

No. 20

 

Wall St. War

Bulls Are Doves
Bears Are Hawks

VC Bomb Market

By DAVID HORWA'IT
5&3 Business Writer

One at the more recent ad<
ilitious to the ranks of anti-war

wriisans in this countiy is
. all Street.

The dovish sympathies ol the
nations investors are reflected in

the stock price drops accom-
panying each intensification of

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A A

RUMDRED IN HIGH Fla
NANCIAL Circles is that
Stephen Warsli, b u sin e s s
manager of the Oldest Col-
lege Newspaper West of the
Mississippi, may be among
nominees for the “Ad Man of
the Year" award. The award
is made to the business man—
ager who sells the most ads
per issue at the least proiit
to his newspaper.

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our Vietnam war effort, and
the corresponding sharp in-
crease in stock prices With the
Infrequent rumors of peace ne-
gotiations.

Wall Street‘s explanation
tor this pattern recalls one oi
the major objections to the
war by dove politicians H
that in our concentration on
the Vietnam conilict, we are
neglecting worsening domes-
tic strains.

As a result. of our tremendous
expenditures on the war, the
nation is suffering an increased
balance or payments deiicit and
expanding inﬂation, The eco-
nomic situation further threat»
ens Government wage-price con—
trols. which is the greatest
danger anticipated by investors
at the moment, according to
The Wall Street Journal.

Some Wall Street investors
predict that stock prices would
go up dramatically should
there be a peace settlement.
Their reasoning is that gov-
prnment iunds not tied up in the
Asian conflict would be released

DOVE smear—
(Continued on Page 2)

 

 

I—BUCKLEY RAPS FEDERAL BUDGET

By Wm. F. BUCKLEY, Jr.
5&8 Staff Writer
Mrr Wilbur Mills, the chairman of the House Ways and Means Committee, is being held re

sponsible ior having forced upon President Johnson some of those economies reﬂected in the Bud-
get.

Nothing dire, but it does add up, or rather cut down: fewer new merchant ships, fewer new
buildings on college campuses, iewer free boolu lor the schools, a little less reclamation, fewer
new federal buildings, quite a little retrenchment in the space program, 2 little less agricultural con~
servation, the toregoing adding up to about a billion dollars. You would think, to judge irom the
apparent weeping and gnashing or teeth within the White House, that every one or those dollars was
a pet.

The quid pro quo is supposed to be the new sunax.

Everybody is supposed to he in tavor of the new suriax, which would bring in twelve-billion dol-
lars in additional revenue, reducing the projected detieit irom twenty-billion to eightrbillion.

The surtax is defended by much of the conservative community simply because it takes us in
the direction of a balanced budget, and almost anything that does, the conservatives tend [0 think
of as a step in the right direction, The liberals iavor the surtax because they are beginning to fear
(high time) the results of runaway inﬂation, both politically and intellectually; because they ap~
prove the graduated nature of the onus — the surcharge accentuates the progressive ieatures ot the
income tax.

It is a pity that the liberals didn‘t show a concern for unbalanced budgets earlier in the history
at the republic.

And of course even now we are continuing to add to the national debt, so that iiscal 1911] will
show an increase in the cost of debt service.

. And so the taxes rise and rise, and get more and more complicated. At this point, a commuter
to New York City who resides in Connecticut, linds himseli paying a property tax at home, a com-
muter tax in New York City, a state tax to New York State, on top of the federal income tax. Every
one of these taxes is in the process of being raised White Collar workers in New York City are
worse on this year even if Ihey received a live per cent salary raise at the turn oi the year: it you
count, and you must, the rise in the social security payments, the projected rise in the income tax,
federal and state, and the rise in the cost of living. oiiicially put at 3% but much, much more
titan that in many of the cities.

What shall we propose for the Democratic Pladnnn of 19687 Subsidies for the middle class?

There is a lot of talk about the loopholes How much money could be saved here, there, and
elsewhere, it only loopholes a, b, and c, were closed up. It is seldom observed that loopholes in
America, like black markets in Soviet Russia, are the cracks through which the electricity charges
the system.

If, for instance, the effective rate of taxation were as high as the 77% now proposed — or
had been as high as the 91% of a few years ago — the prosperity necessary to finance the Great
Society‘s jumbo budgets would simply not exist.

Reflection on the taxes, the loopholes, the deductions, the ellipses, the sheer Crushing complex-
ity of it. all brings to mind the quiet Sanity of such as Professor Milton Friedman, with his stress
on simplicity, and disentangllng taxes for revenue for piutophobia.

Dr. Friedman begins by observing that existing deductions for children are wildly unrealistic
and should be instantly doubled. Then he favors the elimination] of all exemptions.

Then — brace yourself — he calculates that a uniform rate of 19% would yield as much rev-
enue as the crazy graduated rates with the exemptions and the loopholes and the rest of it. Throw in
his negative income tax and even then you would go no higher than 25% tax.

And if you were to deduct from the cost of living the tax accountants and tax lawyers, no longer
necessary, who knows what a rise there would be in the general afﬂuence, perhaps even suilicient
to return to poor Mr. Johnson the merchant marine ships, the school buildings, and the tederal
buildings that bad Wilbur Mills has taken from himi

 

Cay Nineties Ads

“Caiurrh Cure"
“Fresh Lettuce”

“Tonsoriul Baths"

Ever since Satan made tho
first plug for one or nature's
most perfect products, the me
dium and the message have been
prodding man's passage to Par-
idise Regained.

However, the dervlshes a!
profit have never attained the
graceful [arm and pristine ele-
gance they captured during
these wonderful ﬁscal years—
the Gay Nineties in Grinnell.

For those plagued with phy-
sical fitness fetishes, a copy
of the 1890 5&3 carried this
guarantee —- “We offer one
hundred dollars reward for
any case oi catmali that can-
not be cured by Hall‘s Catnrrlt
Cure — 75 cents a bottle.”

in the unlikely case the catarrti

cure tailed, local merchant-
tempted readers in subsequent
issues with the only medically
proven packaged panacea for
uncured catarrh —- “Tonscrial
Baths — Especially Fine for
the Ladies"

Foliage seemed in be the
major agency promotion dur-
ing the period, and Grimel-
liens were exposed to such
Vegetable verbage as ”Fresh
Lettuce at Hulsizer’s Green-
house ioi- Thanksgiving,” and
“At the Met, Jonathan Eat-
ing Apples."

Unfortunately, even in the best
or capitalistic times, somebody
has to lose in the free market.
But as a wiseman once said,
entrepreneurs never die, they
merely switch lines; and the
58:3 was proud to print their re-
vived message —- “Order hacks
for Concerts or parties.”

 

Fill? Tﬁi’s 0?
IN ART MART

Grinnell Weekend _ the poor
man’s answer to Convocation,»-
promises to be a capital invest<
menL

On April 11 and 12, experts
on supply and demand in the
art market will be at Grinnell
to lecture on “The Museum as
Tasiemaker in Contemporary
Art.”

The speakers will include Hen-
ry Geidzalller, Curator of Con-
temporary Arl at the Metropol-
itan Museum of Art, N.Y.; Fete
er Selz, Director of the Univce
sity ot Cant, Art Museum,
Berkeley; and Sam Hunter, Col-
lege of Architecture, Cornell
University, lthaca New York.

Professor Richard Cervenc,

Chairman or the Art Depart-

ment at Grinnell, secs “large

metropolitan areas like New

York and San Francisco” as

being the hirthplaces or

trends in contemporary art.

"Once this art receives the

TASTEMAKERS—
(Continued on Page 3)

AD lNFINlTUM — Advert

business manager,

 

ing) of the 1920’s, see PAGES 4 8t 5a o . .

Steve Warshr For an editorial column on Advertising and the
College Newspaper in a world of Change, see PAGE 2; tor two classic ads (suitable tor tram-

ing makes the world go ’round, at least youmallsm-wise. Public
notices, want ads, and commercial national advertising pay for the production or most dolly
newspapers This week the son — by necessity —- puts the spotlight on its advertisers and it!

Liberal Ari:

 

