(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00450R000100260019-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 11, 2016
• Document Release Date: June 4, 1999
• Sequence Number: 19
• Publication Date: April 15, 1966
• Content Type: MAGAZINE

TIME MAGAZINE 15 April 1966
force in public education (Time, cover, the current inflationary surge may Caper
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porarily cut off federal school aid to paychecks in May and, together with
Chicago and threatened the same for last January's boost in social security
other cities that had been slow to into- taxes and recent reimposition of tole-
grate. Henry's resignation was accepted phone and automobile excises, should
effective May 1, while Keppel's lay for put a crimp in consumer demand. Bank
the time being in Johnson's In basket. credit has been slowing, and industry's
Tots Teeth. At week's end, arriving heavy investment in capital growth over
exuberantly in Texas for the Easter hol- recent expansion. yeaw will permit lower rate of
iday, Johnson announced new plans to plant Preliminary figures expand the Great Society. At a bill- the first quarter of this year point to a
signing ceremony to celebrate a two- slight slowdown in the economy's fever-
month extension of the medicare regis- ish rate of growth:
tration deadline-held characteristically "Healthy Warmth." More important
at a federally financed home for the for the near future is a leveling off of
aged in San Antonio-Johnson said he food prices, which have accounted for
would ask Congress next year for "in- most of the inflationary push in the last
creased insurance benefits, across the year. Figures released last week showed
board, for 21 million beneficiaries" of that the Wholesale Price Index, con-
social security, plus free dental services sidered the most reliable gauge of in-
under medicare for children up to the flation, held firm last month for the first
age of six. time since October. "At the moment,"
After some politicking, the Johnsons says Ackley, "I would describe the sit-
then accompanied Daughter Luci and uation as one of healthy warmth. But I
Fiance Pat Nugent at a Good Friday would also immediately add that it's
service in San Antonio's Roman Catho- necessary to keep a careful eye on it,
lie San Fernando Cathedral, later flew to watch for too high a temperature or
to the L.B.J. Ranch for a long Easter too fast a rise."
weekend. There they were joined by A significant, though statistically un-
Daughter Lynda, looking as radiant as measurable, factor in Ackley's optimism
her father and sporting a jeweled gold must be the Canute-like figure of Lyn
ring on the third finger of her left hand. don Johnson, who more than any other
A gift from her current beau, Actor President has thrown the full force of his
George Hamilton, who had also joined office and his own mighty powers of
the family for the weekend, the ring, persuasion against the tide of inflation.
White House aides averred, stood for Though Ackley is less of an innovator
"friendship," not connubial intent. than Heller, whom he succeeded a year
d h if u ~o and is the temperarnen-
a
L.L.J. HONORING COST CUTTERS
Escape for the nonce.
THE PRESIDENCY
Effulgent Interlude
For all the gnawing uncertainties of
the situation in Viet Nam, Washington's
least harassed man last week seemed to
be Lyndon Johnson. In and out of the
White House, the President was trading
quips with visitors, tugging elbows, wad-
ing into crowds for handshaking and
n..hrazos. The President's prose matched
effulgent mood.
';ailing the Boat. Presenting a gold
medal to Teacher of the Year Mona
D tvton. in the Cabinet Room, Johnson
expressed his delight in escaping for the
none from "battles and soldiers and the
bitterness of war," praised the Tucson
first-grade teacher for having "taken the
treat outdoors as her classroom and the
great desert as her desk."' At an Agri-
culture Department ceremony honoring
cost-cutting employees, Skipper Johnson
likened the Administration's campaign
against waste to "bailing a boat-you
have to keep at it; there is no time to
rest." Mockingly, he scolded the Agri-
culture men for not equaling the White
tlouse's 100% participation in a sav-
ings-bond drive: "Maybe i was a little
lrMorc persuasive with them than I can be
wviiii you."
With Congress in recess, among the
few items of business to cross the Pres-
ident's desk were the resignations of
federal Communications Commission
Chairman E. William Henry and Assist-
ant }IEW Secretary Francis Keppel,.
Memphis Lawyer Henry, who as FCC
chief since 1963 has stung A. T. & T.
with a still-in-progress study of its rate
setup but soft-pedaled his predecessors'
criticism of the TV industry, is anxious
to return to private practice. In three
years at IIEW, Keppel made its Office of
Education the nation's most innovative
THE
ADMINISTRATION
Councilor to Canute
"To say that we have no need for a
tax increase is becoming easier and
easier," declared a White House econo-
mist last week. His remark reflects a
growing confidence within the Adminis-
tration that it can avert serious inflation
without boosting taxes, that President
Johnson's stubborn refusal to do so will
prove in coming months to have been
not only politically astute, but economi-
cally wise as well. If this confidence is
borne out-in the face of mounting war
costs and the free-spending mood of
Congress-the nation can thank Gard-
ner Ackley, the self-effacing former Uni-
versity of Michigan economist who de-
vised the President's anti-inflationary
strategy last January.
"More Information." Ackley, 50, and
his two colleagues on the President's
Council of Economic Advisers have, in
fact, been in a very lonely minority.
Nearly every leading economist-not
excluding Walter Heller, Ackley's bril-
liant predecessor as council chairman-
as well as influential members of the
banking and business communities, has
backed a tax boost as the surest way to
keep the boom in balance. "We have,"
Ackley insists, "better and more com-
plete information than they do."
Ackley's information indicates that
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an
tal opposite of the President, he is by
economic instinct perhaps even more in
the Johnson mold. Be has made the coun-
cil an even more zealous watchdog of
the economic guidelines, pushed it into
an ever more active role as a shaper of
the economy. If Ackley's council proves
to have been right about inflation, that
role will be more active yet.
ECONOMIC ADVISER ACKLEY
Alone in the mold.
TIME, APRIL 15, 1966
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Approved For Release 1999/10/1 3 CIA-ROP72-0045OR000100260019-4