European Stars and Stripes (Newspaper) - May 15, 1968, Darmstadt, Hesse                                Page 4 the Star and stripes wednesday May 15, j968 tax boost spending Cut May fall Short of cure ail by George Taylor new York a enact ment of the proposed tax in crease spending Cut now before Congress m i g h t not restore Complete Confidence in the Dol Lar internationally. A tax increase would be sym Bolic to foreigners that the United states is fighting to control its  the Sticky balance of pay ments deficit a key ingredient in the nation s financial posture would remain even with the proposed 10 per cent income tax surcharge and a $4 billion or $6billion Federal spending Cut. Adoption of the tax increase coupled with the spending Cut in t going to make me whistle and hum from now on said Leif h. Olsen senior vice presi Dent of first National City Bank in new York which has Exten Sive overseas operations. It won t turn around our balance of payments position he said. Some Bankers and economist said the United states was buy ing time to put its economic House in order when the London Gold Pool was abolished in mid  that time the United states and its six european Gold allies shut off the flow of Gold from their stockpiles to hoarders and speculators. Dollars were being cashed info Gold at the  Price of $35 an ounce because of the fear that the value of the Dollar was being eroded by continuing inflation in the United states. Without the Gold Pool the seven Gold partners agreed to keep the Price of Gold at $35 an ounce for official settlement Between nations. But the Price of Freehold was allowed to float according to demand. This Freehold Price currently the Best available indicator of International opinion in the . Economy is Well above $39 an ounce now. In Britain some financial observers feel the tax spending Cut would t be sufficient to re store Complete Confidence in the Dollar. Passage of the tax Bill is vital they say and the estimated $10 billion will Siphon off some inflationary pressures. But said one London banker people Are More sophisticated than they used to be and the would like to see a physical demonstration of an improve ment in the  i t e d s t a t e s balance of payments position before they will be convinced that we Are Over the  London foreign Exchange dealer said internal fiscal measures Aren t a magic Wand which will solve the . Foreign balance of payments problem  we want to see firm Evi Dence that the american people Are fully prepared to accept the financial discipline which the Vietnam War should  in spite of what has Bee done until now the situation is not Rosy said a Swiss Bank Erin Geneva. Some other economists fee the tax increase spending Cut package would Stem erosion of Confidence in the Dollar. It s in the Ballpark of what ought to be done but it s not enough said George w. Me Kinney jr., economist of Irving Trust co. In new  spokesman in West Ger Many s finance ministry said the package is a decisive step toward easing the american balance of payments problem and strengthening of the Dollar in Paris one French banker said the measures contemplated by president Johnson will certainly be Well receive Din foreign Exchange markets and go a Long Way toward checking inflationary pressures in the United  escape Hatch civilian Walter Cunningham air Force maj. Donn f. Eisele and Navy capt. Walter m. Schirra or. From left who will be the Crew of the first manned Moon Craft Mission describe the Craft s escape Hatch at a press conference in Downey Calif. A photo . Decisions seem incapable of enforcement by Max Harrelson United nations a the United nations is grappling wit two widely different problems pointing up one of its major weak Nesses its inability or unwillingness to crack Down on counties that have defied its decisions.  and South Africa perennial headaches Are once More scoring u. N. Resolutions. Although there has been much talk of enforcement action Little enthusiasm for such measures has developed. Both have been condemned and censored Many times South Africa for its policies of racial separation and for refusing to give up the territory of South West Africa and Israel for military action against its Arab neighbors. The two countries however have displayed minimum concern about toe . Activity and have pursued their policies As if the organization had never existed. The general Assembly last week received a report from the 11-nation Council on South West Africa detailing its frustrating experiences in trying to get South Africa to withdraw from the former league of nations mandated territory m Accord with u. N. Re " Otmany military Atud Taai the Fotani and Frlj a Apo wits m Orleigh in the Start and Fri poo Poat Fach 10m, Al Darmstadt oar Nany. I a a part fax m1u 80711 m Darm Udo air Atrip curl in 837� 7-n. � 212, jew York off Leo i Wawn Juton new Volc 10014, toll a.