Covenanter Witness Vol. 55 - Rparchives.org

Current EventsBy Prof. William H. Russell, Ph.D.DEAD BUT NOT FORGOTTENPresident Eisenhower ordered the cancellation of theDixon-Yates power contract after city officials of Memphis,Tenn., told him they would build their own plant ratherthan accept Dixon- Yates power. A forewarning of the cancellation came on June 30, when the President ordered arestudy of the need for the project. Democrats consider thisoutcome a victory for them and for public power. Therestill will be Congressional investigation of various featuresof the contract, especially of the part played by Adolphe H.Wenzell. Senator Kefauver charges that Wenzell recommended the Dixon- Yates plan while serving as an unpaidconsultant to the Budget Bureau, after which his bankingfirm became the projects financial agent. The contract hasbeen a political issue for several months, and the Democratsundoubtedly will try to keep it alive for next year's campaign.NEW WELFARE HEADWashington was not surprised at the resignation ofMrs. Oveta Culp Hobby as Secretary of Health, Education,and Welfare. She was under heavy fire in the recent poliovaccine controversy, but the reason given for her resignation was the poor health of her 77-year-old husband, a former governor of Texas. Mrs. Hobby will return to Texas andresume her duties as publisher of the Houston Post. President Eisenhower accepted her resignation with expressionsof deep regret.Mrs. Hobby was the first Secretary of Health, Education, and Welfare, which was made a cabinet departmentin April, 1953. She is succeeded by Marion B. Folsom ofRochester, N. Y., formerly an Under Secretary of theTreasury. As a businessman, Folsom helped develop unemployment compensation plans for private industry,and servedon the Presidential Commission of 1933 which drafted theSocial Security Act. This is only the second change inEisenhower's cabinet.LIQUOR CRISISThe wicked does not always "prosper in his evil way,"for America's whisky industry is facinga financial crisis.The sale of distilled liquor has declined from 66 millioncases in 1946 to 50 million in 1954. Furthermore, distillingwas increased during the Korean war, and this whisky isnow coming into the market and threatening to breakdown prices. The favorite proposal of the distillers is tolower the federal whisky tax of $10.50 a gallon, but theyhave no hope of a change in the law this year. A split hasdeveloped between the powerful Distilled Spirits Instituteand the Schenley interests, largest single distiller, as towhat should be done with the huge supplies of whiskynow held in bond. We wish them abundant confusion.EASY PAYMENTSOne point in the American economy which is beingwatched with great concern is the level of consumer debt.This now stands at nearly $110 billion, almost four timesthe level of ten years ago. About $80 billion of it is inhome mortgages, due to the construction boom since WorldWar II. But consumer credits amount to over $30 billion,about three-fourths of which is in the form of installmentJuly 27, 1955payments. The average American household now owes $700in such payments, and onlyone-third have bank savingsor bonds greater than their debt. The biggest installmentitem is automobiles, on which Americans owe over $12billion. In the month of May alone, Americans incurred $1.6billion of new debt for automobiles, while paying off $1.1billion. Terms of three years, with little or no downpayment, are quite common, but restrictions maysoon beapplied. Other consumer goods account for $5.5 billion ofdebt, and personal loans another $5 billion. Some economists are alarmed at the rise in consumer debt, but othersclaim that it is not out of line with the increases in incomeand savings.POLIO CONTROLEarly indications are that this summer will show thelowest polio rate in several years. It is too early to saywhether the Salk polio vaccine contributed to the decline,for up to mid-July, only six million persons had receivedthe shots. However, the Public Health Service now is firmlybehind the vaccine, and new lots should be released regularly and rapidly. So far, all vaccine has gone to the nationalpolio foundation to provide free shots for first and secondgraders. But some communities will not be able to uselimited'the vaccine until school resumes in September, so aquantity may soon become available for private distribution.The Public Health Service also has announced a new research program aimed at improving the Salk vaccine.SLAVERY SURVIVESHuman slavery is not extinct, if one can believe reportsof the situation in Arabia. The secretaryof the BritishAnti-Slavery Society recently charged that there were over100,000 slaves in Saudi Arabia, and as many as a million inthe whole Arabian Peninsula. Many of these came to.Arabia as pilgrims, or servants of pilgrims, to Mecca. Theissue was raised by the story of Awad El Goud, a nativeof French Equatorial Africa, who claimed that he washeld in slavery several years after being sold while on apilgrimage. The assembly of the French Union took up hiscase, and the French authorities claim to have proof ofseveral hundred such incidents. Saudi Arabia has denied allsuch stories, but the matter may be investigated by the U*N.REFORMED DICTATORJuan Peron has made drastic changes in his policiesfor Argentina since the recent revolt by the navy and otherdiscontented elements. He has offered to pay for the restoration of wrecked Catholic churches, and made moves forreconciliation with the Vatican. There have been cabinetchanges, with two leaders of the anti-church campaign removed. The head of the state-controlled labor unions alsowas changed. Most recently, Peron announced his resignation as head of the party, and promised to lift the restrictions on opposition groups and returned to full constitutional government. Some think that the army is forcing himinto these concessions. The world is waiting to see whetherPeron will make good on his new promises, and if sowhether he can remain President of Argentina.51