SATURDAY. MARCH 25. 1961
JFK Expects
Deficit Spending
WASHINGTON (/P)—President Kennedy labeled the last
budget of Dwight D. Eisenhower inaccurate and told Congress
yesterday to expect two more years of spending in the red.
Kennedy's special budget message to Congress—by omit-
ting defense proposals—did no
Residents Panic
As Quake Hits
Sicilian Cities
MESSINA, Sicily (fP) Mes
sina and Reggio Calabria, twin
cities in disaster, were rocked
yesterday by the worst earth
quake since the one that destroyed
them both in 1908.
Walls cracked, cornices came
crashing down, thousands fled in
panic into the streets, but after
the earth stopped heaving not a
single casualty was reported.
This city of 192,000 population,
a humming port and industrial
center, was the hardest hit by
the series of nine jolting quakes
that began before noon and lasted
more than 90 minutes.
Officials at Reggio Calabria, a
port of 60,000 on the Italian main
land seven miles away across
Messina Strait, reported less se
rious damage. But the panic there
was the same.
Many jumped into automobiles
and tried to honk their way
through streets jammed with oth
er cars and terrified pedestrians.
Capsule Hurled
715 Miles High
CAPE CANAVERAL, Fla. (/P)
—The old reliable Redstone rock
et hoisted a mock man-in-space
capsule 115 miles high yesterday,
demonstrating that apparently it
is ready to boost aloft a human
astronaut.
The success could help clear
the way for an American to ride
a Redstone on a brief suborbital
flight within six weeks. However,
officials cautioned against over
optimism on this timetable, em
phasizing the manned flight de
pends on several more tests.
Walter Williams, Project Mer
cury operations director, said the
space capsule must undergo more
helicopter drop and flotation tests.
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detail all the expected deficits
for fiscal years 1961 and 1962. But
the combined total evidently
would reach $5 billion, raising
the national debt to record
heights.
Much of the 6,000-word message
was spent criticizing the budget
estimates submitted by former
President Eisenhower in January,
Kennedy noted ::hat Eisen
hower originally predicted a
$4.2-billion surplus for 1961,
then cut his estimates to $l.l
billion, and finally to less than
$BO million.
Actually, Kennedy went on, his
administration inherited a more
than $2-billion deficit and not a
surplus of $BO million from the
Eisenhower administration.
Kennedy said the reason for
The difference was that Eisen
hower, in his message to Con
gress in January, took no ac
count of the recession and as
sumed "a much rosier econ
omy."
As a result, Kennedy said, Ei
senhower: Optimistically estimat
ed tax revenues, unrealistically
assumed Congres would vote a
postal rate increase, substantially
underestimated the normal flow
of defense spending and underes
timated spending for several other
progrr.ll^
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THE DAILY COLLEGIAN, STATE COLLEGE. PENNSYLVANIA
Kennedy Releases
SI Billion Benefits
For Unemployed
WASHINGTON (. 1 P) Presi
dent Kennedy uncorked $1 billion
in"hard-working dollars" for the
jobless yesterday and the govern
ment reported unemployment
(spreading into new areas.
The President signed a bill au
thorizing up to 13 more weeks of
unemployment pay to those who
run out of benefits.
"These dollars will be hard
working dollars," he said. "They
will be spent almost immediately
—for food, for shelter, for bare
necessities. These dollars will
flow into our stores, into our fac
tories, onto our farms."
Secretary of Labor Arthur J.
Goldberg immediately began sign
ing agreements with state offi
cials who will act as paymasters..
First checks under the emer
gency program are expected to go
out in about two weeks to 700,000
jobless workers immediately eli-i
gible. Payments under the differ-'
ent state systems vary widely, but
the checks will average $3O to $35
a week.
Within the next year, Kennedy
said, the program will provide
benefit payments to an additional
2.5 million workers who are ex
pected to exhaust their rights be
cause of prolonged unemploy
ment.
Apalachen Man Appears
BUFFALO, N.Y. (IP) James
V. La Duca, 48, of Lewiston,
Apalachin figure and one-time la
bor union officer, appeared un
expectedly yesterday and sur
rendered to answer a federal
indictment charging payoffs in
labor negotiations.
B. J. Reynolds Tobacco Co.. Winiton-Balcm, N. C.
SEATO to Strengthen
As Communists Advance
BANGKOK, Thailand (/)
'The Southeast Asia Treaty
Organization military chief
tains, faced with an explosive
crisis in Laos, vowed yester
day to strengthen the alli
lance's fighting power to halt
communism aggression i n
Southeast Asia.
President Kennedy awaited So
viet reaction to his appeal that
the Communist-backed offensive
in Laos be halted to clear the way
'for international negotiations.
Premier Khrushchee reached
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Moscow after an 18 day tour of
agricultural areas but there was
no official comment on Ken
nedy's plea. A British Foreign
Office spokesman said the So
viet Union had promised "ser
i ious and urgent" consideration
of Britain's proposal for an
im
mediate cease-fire to be fol
lowed by negotiations.
SEATO military leaders made
[an open show of solidarity, ap
parently intended to squelch re
ports there had been bickering
among the eight member nations.
Close cooperation is necessary,
their communique said, to "safe
guard the freedom of the peoples
of the non-Communist states" in
Southeast Asia.
PAGE THREE