European Stars and Stripes (Newspaper) - September 22, 1967, Darmstadt, Hesse                                Page 4 the stars and stripes Friday september 22, 1967 go pay raise inches toward Congress of by Marc ii ets a Washington Bureau Washington is the5.6 per cent military pay raise and other pay adjustment moved another step closer to reality this week on Capitol Hill but it appears unlikely that the measure will win con Gressional approval by the pro posed oct. 1 starting  than Likely the raise will go through Congress sometime in Early october and made retroactive to the first Accord ing to informed defense  the defense depart ment Hopes the pay Bill will go through by oct. 1 rep. L. Men Del Rivers chairman of the House armed services com Mittee will not Send it to the House before he sees what the House Post office and civil service committee does with regard to a Federal civilian pay raise. He wants the Mili tary to have the same size raise As civilians. A 4.5 per cent civilian raises equal to a 5.6 per cent Mili tary increase because the Mili tary pay boost Only affects base pay. The House Post office an civil service committee tues Day recommended a 4.5 per cent civilian raise tied to higher in creases for postal workers an higher postal rates. The out come of this Compromise is not  House committee heard the testimony of Only one official on tuesday assistant de sense Secretary for manpower Thomas d. Morris before it went into executive session on wednesday to await word from the Post office and civil serv ice committee. Besides the pay raise mor Ris said the defense depart ment also Hopes with congressional approval to establish a base pay of$844.20 a month for the four senior enlisted men of the serv ices the sergeant major of the army master chief Petty officer of the Navy chief master sergeant of the air Force an sergeant major of the Marine corps. Adjust dependents assist Ance allowances for enlisted men with less than four years of services in grades Al through e-4, who do not have government quarters for them selves or their  quarters and dislocation allowances for bachelors inthe senior enlisted and Junior officer grades who will be Al Lowed to live off base. Increase the Cash com muted ration allowance for enlisted men and women authorized to mess separately. Authorize a special continuation pay for career Mili tary physicians in critical Spe Fialty categories. Remove unintentional in equities in the system of adjusting retired pay to reflect changes in the Cost of living or the consumer Price Index Chi. Originally the Pentagon wanted to hold off on an changes in the pay of doctors until the military compensation study group had completed a comprehensive review of the whole subject Morris said. Recently however the surgeons general became con Vinced that any further delay could result in unacceptable losses particularly in senior military doctors Morris pointed out. This would eventually affect the career Structure of the medical corps of the army Navy and air Force where serious imbalances already exist. Under the defense proposal some 1,500 selected career physicians would be offered continuation pay equal to one two three or four months of base pay depending on their value to the service for each year of additional obligated service they agree to serve. At the Start the Pentagon Hopes to offer the top amount to colonels and Navy captains with 20 or More years of service. As for the retirees present Law requires their pay to be adjusted when the Chi shows a increase of at least 3 per cent Over the base Index figure for three consecutive months. An adjustment is expected shortly because the Chi is showing just such a Rise. Morris said this is unfair be cause those who retire just be fore an adjustment receive the full Benefit of the change while those who retire later on receive no Benefit at All. As a result men with equal service and base pay before retirement receive different amounts of re tired pay and those who leave the service with More service end up with less Money. This penalized unfairly som members who either elect to serve longer on Active duty or who Are involuntarily held on Active duty in the interests of the service he said. For example the annual re tired pay difference Between two e-8s, both retired with 22years of service and the same Basic pay is $129 per year. Between two o-4s the Dif Ference is $184.21. In each Case the Man who retired on or after dec. 1, 1966 is getting the lower retired pay. We estimate that54,500 retirees Are having their retired pay unjustly depressed on this  the _ defense department Hopes to change All this through a one time adjustment for those who have retired since dec. 1, 1966, and before the next pay raise takes effect. In the future those retiring would receive Only part of the Chi increase so All retirees will have equal treatment. It could mean your Job Cut ninth invisible9 Money editor s note before Long a new and highly sophisticated kind of Money will be helping to keep the world prosperous. Followings the second of a two part series on the meeting of free world nations starting this weekend in Rio to polish up the plan. Up by John Pierson Washington up you Lynever see the new world Money. It won t be made of Silver or Gold or even paper. But it could mean your  s because the new world Money which 106 nations Are expected to approve at next week s meeting of the International monetary fund if in Rio de Janeiro Brazil is designed to help finance world Trade. If Trade Falls off so do . Sales to other countries. Workers in Export industries lose their jobs. The labor department Esti mates that the jobs of some 3 million americans depend on exports. Nations like people need monetary reserves like savings accounts to tide themselves Over times when they Are spending More than they relearning. Without reserves countries would be forced during such deficit periods to reduce their purchases from other countries perhaps More than is necessary in the Light of their Long term earning prospects. When one country Stop buying from another the other earns less and has to curtail it sown foreign purchases. The cutbacks spread As they did inthe 1930s, and before you know it a lot of people All Over the world May be oat of work. The new world Money is in tended to provide countries with enough reserves so that they can ride out temporary deficits while still pursuing Liberal Trade policies with other nations. Countries now hold their re serves in the form of Gold . Dollars and perhaps British pounds. The trouble is Gold miners have not been Able to keep up with the demand for More reserves As Trade has grown. The deliberation will take place when the Board of governors of the if gets to Gether to decide How Many special drawing rights Areto be created for the coming period. Special drawing rights sir is the formal name of the new Money. At the insistence of the europeans a decision to go ahead and create sir and a decision on the amount will require 85 per cent of the fund s  will give veto Power to both the United states and the european common Market France Germany Italy Bel Gium the Netherlands and Luxembourg. Assume the if governor agreed to create $1,000 million for sir a year for the next five years. The United states with 24.6 per cent of in quotas would get $246 million of sir a year Over the five year period. Each country s so would be according to its fund quota. The if will not Dole out Silver or Gold or currency to countries receiving sir. The fund will simply enter each country s allocation on it books. A country finding itself indeed of reserves will notify the fund that it intends to use Allor some of its sir to buy regular currency from a coun try that is in balance of pay ments surplus at the time. The fund will debit the account of the country that is Selling its sir and credit the account of the country that is giving currency in return Forstr. In such cases the fund will act As a sort of traffic director steering the sir from countries that Are in weak pay ments positions to countries that Are in Strong payments positions. Or for example the unite states could Deal directly with another country. Assuming theother country was agreeable the United states would give Isdr in return for its surplus dollars which otherwise might come Home As a claim on the . Gold Stock. But in no event will the United states be relieved of its obligation to Exchange Gold for dollars at the rate of $35 an ounce if the country with Dol Lars wants Gold. In that Case the unite states will have to sell its sir through the if which will decide which country or coun tries gets them. A Rose of a Fella Senate Republican Leader Everett Dirksen is presented with a unique Floral caricature of himself in a Cere Mony at the Capitol As he was proclaimed the grand marshal of the 1968 tournament of roses at Pasadena Calif. Up photo european edition Cou. James w. Campbell Usa editor in chiefly. Col. F. 6. Michael jr., u8af Deputy editor in chief Arnold Burnett managing editor Elmer d. Frank production manager Henry 8. Epstein circulation manager an unofficial newspaper of and for the . Armed Force printed Dally a Darmstadt Germany under the auspices of the office of the chief of Public affair he u8areur. Military address the Star and stripes Apo 08179. International malls the stars and stripes Postrach 1034, 61-Darmstadt, Germany. Tell Gale Shell c prefix 06165 2071 m Darmstadt air strip prefix 2376 741. New York office 641 Wash Noton Sti new York 10014, Tell area Coda 212 020-5771. Second class postage paid at Mew York . The United states is an open society in which the people s right to mow is cherished and  president Lyndon b. Johnson