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Mason City Globe-Gazette (Newspaper) - July 18, 1963, Mason City, Iowa North Iowas Daily Newspaper Hem The newspaper that mokes oil North lowans neighbors MASON CITY GLOBEGAZETTE Home Edition VOL 103 Awoctated Preu UaSUd Pru FuU MASON CITY IOWA THURSDAY JULY II 1W3 Consists of Four ScclJonsSecllon No 137 JFK asks new tax on foreign stocks if Problem Stem flow of money By SAM DAWSON AP Business News Analyst NEW YORK United States is moving hard on several fronts now to stem the steady drain abroad of its dollars and gold Mild measures in the past have not done much good The drain is worse this year than last The effectiveness of the new even the adoption by Congress of the more drastic pro be in doubt But the danger is not Even an economic giant lilct the United States cant take such bleeding year after year Since 1958 the continuing loss in its gold reserves and the buildup of dollars in foreign hands has put a strain on the value of the Amer ican mainstay of inter national finance as well as the domestic economy The new moves now under way include 1 Raising the Federal Reserve discount rate to discourage flow of idle shortterm hot foreign hands 2 Arrangements to draw on the International Monetary Fund up to million this year if need ed to protect the dollar from spec ulative raids 3 Pushing the Kennedy round of tariff negotiations with Europe and others to improve US ex port chances 4 Agreements with central banks of other nations to fightany speculative run onthedollar and to stem unusual demands on the US Treasury for more of its gold gold outflow has ebbedthis year but efforts to halt the bleed ing of dollars has proved inade quate These have included compar atively minor measures such as curbing spending by US depend ents abroad and taxing goods in excess of value brought back by US tourists and urging pri vate business to try to export more So now Congress is being asked to approve a tax on sale of for eign securities in our markets The drain from investments by Americans in foreign securities or in plants abroad has been accom panied this year by a drop in return investment here by for eigners This drain is just one of the many that has built up foreign holdings of dollar assets to a huge total of claims that could become a threat to the dollars integrity if all or a sizable part were called at once The balance of payment drain excess of dollars flowing abroad over those runs like this In 1958 the deficit was billion billion in 1959 billion in 1960 billion in 1961 billion in 1962 The decline in the deficit has Please turn to page 2 North Iowa Weather outlook Variable cloudiness scat tered showers and thunder storms continued quite warm and humid through Friday Lows Thursday night in up per 60s Highs Friday in up per 10s Weather details on page 7 WEARS MISS USA III holds the Miss USA trophy after winning the title at Miami Beach Fla Miss Ozer States in will represent Miss Photofax United Beauty nuclear test ban talks in Moscow an effort could lead to broader EastWest negotiations and perhaps a sum mit conference this year HARRY S TRUMAN Truman puts blame on French chief The West shouldnt ook too complacently at the split in the Communist empire writes Harry S Truman in a copy righted article The West has its own rift caused largely by the blind ness of President de Gaulle of France the former President warns In its next issue the Globe Gazette will publish Trumans exclusive analysis of the rifts 10 cut view m vcatern iveiiimuy s diplomatic experts who caution to create a NATO nuclear however that everything depends missile navy on the outcome of the test ban talks now in their fourth day Negotiators of the United States Britain and the Soviet Union still besetting the slaved worlds free and en 19TH CHILD READING Pa Elizabeth M Millisock 43 gave birth to her 19th child in 23 years of marriage Wednesday at St Josephs Hospital here In this edition You will find some of the many bar gains featured by Mason City merchants The covered wagon didnt get through Indian country with our white newsprint but one of the local traders had some yellow paper which he said we had to use in honor of Wild West Tradiag Day Friday July 19 WJJ4 LY Pageant with the winner beingselected Saturday night Talks may pave way to summit MOSCOW in the most important targets of such tAff Kin French revolt against US leadership of the Western alliance LUIS jciu Vi fcllc Mcai This is the view of Western has hampered face several thorny issues Talk of a summit conference rose last spring US officials dis counted it because no special agreement seemed possible then Bwt if the Moscow conference is successful President Kennedy So viet Premier Khrushchev and British Prime Minister Macmillari could well decide either to sign the test ban treaty personally or to meet soon after its signing to discuss broader disarmament and political issues Kennedy told a news conference in Washington Wednesday the pos sibility of a summit conference had not come up in the Moscow talks If the subject is raised he said it would be considered A threepower communique is sued Wednesday night after the third conference session gave the most optimistic official account of the negotiations It said Soviet Foreign Minister Andrei A Gromyko US Under secretary of State W Averell Har riman and British Science Min ister Lord Hailsham had made progress in drafting some of the provisions of a test ban treaty covering tests in the atmosphere outer space and under water An optimistic note also was sounded by Kennedy Speaking on the basis of reports from Harri man he said we are still hope ful that a limited test ban would be agreed upon Kennedy posed a serious prob lem saying success in the Mos cow negotiations should lead to discussions among other nations He obviously meant attempts should be made to get other na tions to join in the lest most unlikely in the case of France and Communist China the two n o u n c e d Thursday crushed a revoit by civilians and discharged officers A spokesman for Maj Gen Amin Hafez strongman of the Syrian army went on Damascus radio and declared that the re volt was finished and the situ ation wasunder control Report revolt has been crushed Would holt loss of cosh WASHINGTON APIPresident Kennedy in a surprise move asked Congress Thursday to lax Americans on most purchases of roreign stocks and bonds The aim s to help stem the outflow of old and dollars Kennedys recommendation was certain to have an immediate im pact on international financial markets because it would affect American investments currently approaching the rate of billion a year The unprecedented proposal put forth in a special message to ongress on the worrisome US balance of payments problem represented the boldest and mosi controversial attempt yet made by any administration to dea with the payments dilemma To discourage the mounting flow of American savings abroad Kennedy called for a special ex cise tax ranging from ZVz pei cent to 15 per cent on the pur chase price of securities issuec by governments and businesses in 22 industrialized countries Th tax would go into effect Frida and remain on the books unti Dec 31 1965 Admittedly this would be stron medicine But Kennedy said would help prevent pressures fo more restrictive measures A second highlight of Kennedy 5500word message was an an nouncement the fir United States will e ercise its right to draw mone from the International Monetar Fund Starting Monday the Unite States will begin drawing up to million in foreign currencies from the IMF These currencies will be used by the US Treasury to buy foreignheld dollars that otherwise might be used to pur chase American gold Kennedy predicted that enact ment of the excise tax plus other less dramatic moves under way or planned would trim nearly billion from the US balance of payments deficit during the next 18 months Two unhurt as plane falls in river ias Baathist government antheir u wrecked this brick apartment building in Jersey Citv N J injuring 19 persons Half of the fourstory building collapsed into an adjoining vacant lot Cause ot the explosion has not been determined Bobbys 3rd plea Dog is OK not Negro WASHINGTON AP Alty Gen Robert F Kennedy told Congress Thursdaythe adminis trations civil rights bill is aimcc at stamping out the fires of ra Icial discord in our land ALBANY 111 ffi Two men escaped injury Thursday when amphibious airplane it had crashed in the Mississippi River while attempting an emergency landing at the Albany Marina The pilot M K Schneider 55 Galva III told authorities he took off from the Moline Air port for a flight to LaCrossc Wis Ted Hopping 50 of Galva was a passenger in the Aeronca Inside The Globe TRUCKERS inquire about 60 truck routes Page o BRAVES TAKE league lead Page 19 WINNEBAGO scout reser vation gets perfect score Page 21 HANCOCK County budget published Page 28 Society news 8910 Editorials 14 Sports news 1920 North Iowa news 28 Clear Lake news Latest markets Mason City news 30311 Comics 32 In his third appeal on Capilt Hill for passage of the mcasur Kennedy said discrimination i education employment voting and public accommodation lhal bar Negroes from the main stream of our society must be wiped out Giving an example of what he called the intolerable insult faced by Negroes Kennedy said tourist guidebooks list no over night accommodations for Negroes in Danville Va but a dog pro vided he is traveling with a white man is welcome to spend the night in four such places there While Kennedy was testifying before the Senate Judiciary Com mittee on the administrations sevenpoint program another Cab inet member Secretary of Labor W Wiliard Wirtz was telling the Senate Commerce Committee that an end to discrimination in pub lice accommodations would con tribute immeasurably to the na tions economy The Commerce groups hearings e limited to the accommoda f stressed the accommol bill saying discrimination hotels restaurants and the like T 4 Is the wrong that has caused Transport tmetble 34 most of tne reccnt demonstra Classified pages SEC report is critical Wall Street jitters calmed By ROGER LANE AP Business News Writer NEW YORK gave way to relative calm in Wall Street Thursday as the financial capital studied searching criticism of some key stock market prac tices Presidents of the nations two largest securities marts worked on rebuttal to an unexpectedly severe report filed with Congress by Securities and Exchange Com mission investigators Wednesday Amid outcries of dismay from some brokers G Keith Funston president of the New York Stock Exchange held his peace So did Edwin D Etherington president of the American Stock Exchange They said time was required to digest the 2100page installment of SEC inquiry findings sequel to a milder report last April However Etherington promised lo voice his opinions of illad in the report The SEC special study commit tee assailed several timehonored slock market practices mostly concerned with the markets in side workings rather lhan activ ities directly touching the public It called for new curbs on short selling floor traders and stock specialists tighter supervision of trading in unlisted securities in the overthecounter market and an improved system for handling oddlot or small volume transac tions To the financial communitys relief there was no blanket de mand for segregating the broker and dealer functions of many Wall Street firms One section of the report urged elimination of floor traders by Jan 2 1965 It said these brokers who buy and sell for their own account enjoy unfair advantages ever others Of 1366 New York Stock Ex change members a small minor ity indulge in much floor trading turnover deals Fifteen of them account for onehalf the vol ume in this category The SEC said they are unbur dened by the need to pay com missions and favored by knowl edge not yet public Specialists exchange mem bers assigned to manage trading in specific stocks and to steady tendencies toward abrupt price 360 on the New York Stock Exchange All exchange transactions are funneled through them however SEC investigators said their ac tivities were inadequately policed By selling slocks in the sharp market break of May 28 Black seemed to contribute to the pounding down of prices the report said News of the report released early in the afternoon sent stock prices into a fairly lively retreat Wednesday They recovered part of the loss but ended lower Deficit is lower than expected WASHINGTON cnt Kennedy announced Wed cstlay that the federal deficit T the fiscal year just ended as billion less lhan he had xpectcd in January He hold a news conference iat fiscal 1963 ended June 30 villi a deficit of billion in he regular socalled adminis rativc budget In January he ad estimated the deficit would e billion He did nol give a final figure or federal spending but it was upward of billion Kennedy coupled he an lounceinent with a renewed iloa for enactment this year of big cut in income taxes for ndivicluals and corporations The President said the de icit is below the level of the reccdJng fiscal year NEGROES President Kennedy said I ook forward to being in Wash ngton Aug 28 when Negroes lave scheduled a mass civil protest There has been speculation haL Kennedy might be out of own on that date when some 100000 Negroes plan to demon strate here TEST BAN The President said that after three days of nuclear lest ban talks in Moscow we are still hopeful that the United States Britain and Russia will agree on a limited test ban RAILS President Kennedy said Wed nesday he sees no hope for a negotiated agreement in he railroad work rules dispute be fore Monday when lie plans to semi Congress proposed legisla tion to head off a strike BARNETT WALLACE He rejected charges by south rn governors Mississippis Ross Barnclt and Alabamas George Wallace that the racial movements are Com munist inspired and so are their leaders TAX He declined to put a priority on his tax cut and civil rights proposals He said I think the tax bill and civil rights are both very important and complex MOON PROGRAM Said the US will continue with its program to land a man on the moon by 1970 despite newspaper reports that the Rus sians may abandon their moon program He said there was no evidence that the Russians have diverted any resources away from the moon project CUBA He said he does not sec any hope for better relations with Please turn to page 2 TakesX15by seat of pants EDWARDS AIR FORCE BASE Calif UPI Flying by the seal of his pants with the XlSs elaborate aulop i 1 o t s turned off Air Force Maj Rob ert Rush worth streaked over the desert Thursday at more than a mile a second It was the first time the rocket plane had been flown without i t s electronic brains at such speed for so long a time Rushworth switched off his automatic control aids at peak the black aero space dart was going 3818 miles per hour to test the 17 ton crafts reaction to control by mans hand alone SAME ;