on —«;_,

seen here receiving a gift from Principal John Hughes on be-

throughout the region after serving for 4 yeare as in- spector of schools and six years as a teacher.

Johnson's Advisers Want

By STERLING F. GREEN WASHINGTON (AP) — Pres-

' ident Johnson's economic advis-

ers tried a mew tonic called “expansionary fiscal policy.”

Most people called it “the in- come tax cut of 1964." It worked so well the advisers want to try some thing similar again.

The U.S. Congress is im con- sultation on it right now. and this time it will be known to most people as “repeal of the exrise taxes.”

The experts say it can pump 2 $10.090.000.000 dollar stimulus mto the US. economy. just about the time the lift effect of the 1964 income tax is wearing off

As passed in the House of _ Representatives. __Preside¥ Johnson's bill calls for close to $5.000_000 908 of excise tax cuts, taking effect. for the most part, July | and next Jan 1

The figures must be approx- fmations. for the final version

of the tax legislation still is a few weeks off However. covernment econce-

mists predict privately that the Troucthly $5.000.000.000 saving to cusiomers. as it is spent and re- spent. sheuld generate at least twice that amount of new na- tienal output

They attach ene crucial “if” fe the prediction

The full stimulative effect will be* felt only if manufacturers and sellers pass the entire tax Saving on te consumers.

4

WOULD CUT PRICES

That «ould mean retail price cuts. It would amount te a pay imerease for every breadwinner The new buying power would met be visible im every” pay cheque. as was the 194 income tax reduction. It would show up im lower price tazs on new cars. toiletries. camera film. tele- phone service. washer-drvers. r . Matches and some 39 other groups of products

The excise tax reductions should serve the economy as dia the 194 personal income tax reductions. althouzh on a smaller scale and with less dent's Council of Economic Ad-

Laine has announced

other $1.000,000.090 came to c@n-; sumers from dividends, paid out of industry's higher after- tax profits. Total, $1,000,000,- Onn

As the council has foreseen, the consumer did not tuck away his windfall He set about spending it, preserving the his- teric ratio of spending to in- come—about % per cent.

EFFECT MULTIPLIED

In short. the consumer is spending upwards of $9.000,000.- oo of his $10.000.000.00 sav- ings. The effect ‘is multiplied because one consumer's spend- img becomes another's income, and is spent in turn. That gen- erates extra employment, higher payrolls and more spending.

The initia! $9.90'900.000 of di- rect stimulus thus has become an extra $12.900.000.000 worth of buying demand. or national out- put—“‘not just once but year in and vear out.” the council says.

Soon. industry stepped up its imvestment in new plants. equipment. and inventories. It was impelled to do so because Salés increased. productivity rose. profits climbed. and the Prospective after - tax earnings

*g!

FAMOUS FOR BRANDED INSPECTED

STEAKS GUT:

eeereeee

COCOCHSHEOOE

Coming Soon _.

P.L. J.

Watch for Announcement In Guardian - Patriot

Repeat Of Economic Tonic ===

of new plants had become more favorable.

Total impact:

Some $30.000,000.000 worth of

| gross national product.

Despite the obviously splen- did health of the private econ- omy, the president's advisers believe the time is approaching te employ again the tonic of

| “expansionary fiscal policy.”

Some lift will come this fall

jfrom the seven per cent in-

crease in old-age pensions pro- jected under the pending social

security bill. A lump-sum pay- | ment of benefits retroactive to— ‘Jan. 1 would add zip.

But the excise tax cut is re- lied upon to provide the major stimulus. Its impact would be about one-third as great as that of the 1964 tax cut—a_ sufficient dose, the council believes, for the need foreseen.

The Eskimo population of Greenland, 25,000 in 1955. is ex- pected to reach 50,000 in 1975.

| ST. ACHILEE. Que ‘dents in

=n DulcuTon’s WART REMOVER.

18 The Guardian, Charlottetown, Mon.. June 21, 1965. be announced by Queen Juliana’ The Protestant

Tiny Village In

Quebec

Has Annexation Quarrel

‘CP)— 10 taxpaying resi- St. Achilee,’ and they , are fighting annexation as hard ‘as any bungalow-dotted suburb. | | They have already lost the } municipal’ part of the battle to | the neighboring giant — rela- | tively—of Chateau-Richer (pop- ulation 3,063).

But the St. Achileans will not give up so easily on their Ro- jman Catholic school board, /even if there are fewer pupils— | six—attending the small but modern school than permanent Tesidents supporting it.

The board barred the press from its meeting Wednesday night in the schoolhouse, but the press covered it anyway— | by listening to the sturdy voice of its secretary, Mrs. Joseph | Barrette, through a window. | As well as the 10 taxpayers who live in St. Achilee all year round there are some 60 sum- mer cottagers, and the real an- Bexation war is hetween the

| There are

permanent and the temporary

villagers.

Two of the summer villagers were turned away from the schoolhouse door Wednesday

along with reporters.

‘FEAR HIGH TAXES

From the mecting it emerged that the permanent residents fear higher taxes and long trips to school if their children come under the Chateau-Richer au- thority, 12 miles away.

The problem in the village. 3 miles northeast of Quebec City, is an extreme case of one that Quebec's new education de- partment faces all over the Province — which canno! schools but do rot want te be absorbed into \arger units.

“It would mean the disap- Pearance of habits we've built up over a century,” said the school board chairman, Edou- ard Barrette. “ho agreed to

speak to reporters afterward at }

his home.

Engagement Expected Soon

Of Dutch Princess Beatrix

THE HAGUE (Reuters)—Red. carnations served as a clue

Bernhard. The prince, who wears a fresh

founded | the Carnation Cultural Fund, | which has just called off a; ?

scheduled ceremony June 29. The ceremony was to mark | the anniversary of the June day | in 1940 when thousands of Dutch | people spontateously laid car- | nations on the steps of the | Hague Roal Palace to protest | against the German occupation in the Second World War. Observers said the ceremony was cancelled because it would | cause embarrassment to Bea-

Amsterdam's Liberal newspa- jper Algemeen Handelsblad, ‘comments: “The cancellation of |

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