Exchange Fluctuations Worry U.S. Cabinet
(N.Z.P.A.-Reuter —Copyright)
WASHINGTON, June 5. Administration officials are relieved by the stock market recovery but are still worried about possible confidence-eroding effect last Monday's sensational drop could have on the United States economy. 1 Some fear the consumer might become cautious about buying and the businessman hesitant about ordering plant equipment because of paper losses suffered on Wall Street. If this happened, then the Administration might approach the Congressional elections in November with a recession on its hands.
Already suggestions are being made in high places about steps being taken to anticipate such a development.
The most popular—it has been made already by the Commerce Secretary (Mr Luther Hodges) and the Democratic Party whip (Senator Hubert Humphrey)—is to cut taxes, both corporate and individual. But there is
reported to be a difference of opinion about this in the Cabinet. The Secretary of the Treasury (Mr Douglas Dillon) testified before the House Ways and Means Committee that there was no immediate need for a tax cut this year to spur the economy.
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Press, Volume CI, Issue 29841, 6 June 1962, Page 18
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176Exchange Fluctuations Worry U.S. Cabinet Press, Volume CI, Issue 29841, 6 June 1962, Page 18
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