Masonry Magazine January 1971 Page.92
Washington Wire
(Continued from page 29)
AID to minority-owned companies. The Small Business Administration is easing loan requirements substantially. And Congress is being asked to appropriate $100 million during fiscal 1972-with most of the money to be used to provide technical and management help.
PRESSURE IS BUILDING TO ERECT QUOTA WALLS against a number of goods. Many industries are renewing the fight with the Administration and Congress. They are encouraged about their prospects by several recent developments:
• The 10% import surcharge, and the switch in philosophy it implies.
• White House pressure on Japan to limit textile imports "voluntarily".
• The imminent 3-year extension of an agreement to limit steel imports.
• Sentiment within labor for trade restrictions-an important factor.
But the Ways and Means Committee will resist protectionism. Chairman Mills strongly opposes any restrictive measures now. It's also doubtful that the President would support new U.S. action when sensitive monetary talks are under way.
AN INTERIM AGREEMENT ON REALIGNING WORLD CURRENCIES is expected soon, although much tough bargaining remains before the crisis will be resolved. U.S. experts think sagging trade may force a preliminary deal before year-end. How big a turn will there be in this nation's balance of payments? This country wants currency changes that will produce a $13 billion shift, from red to black. Other countries are prepared to accept only $8 billion.
A DEVALUATION IN THE DOLLAR MAY WELL BE A PART of a final settlement. The President has so far opposed devaluation. But his stance could change. The step may be required to coax other nations to revalue their currencies. U.S. devaluation would have only a modest impact on the domestic economy on the prices Americans pay for U.S. goods. But it may hurt our prestige. To the extent that devaluation hastens new currency rates, it will be a plus for U.S. business. The new rates will make American exports cheaper.
EMPLOYERS MAY SOON BE FORCED TO PAY FOR HEALTH INSURANCE for workers under provisions of a White House bill to regulate health insurance firms. Under this bill, employers would be required to pay 65% of insurance costs. Over a period of years, the percentage would increase until it reached 75%. The White House measure would also create insurance pools in every state open to small employers and the self-employed who are not covered by plans.
There is opposition to the Administration scheme from labor. It wants national health insurance financed entirely by the Federal government. The AFL-CIO charges that private firms have failed to meet the public's need. But the cost of that plan-about $60 billion annually-smothers its prospects.
STATE GOVERNMENTS ARE BEGINNING TO REGULATE the franchise industry. They are taking steps because they are tired of waiting for Federal action. Regulatory bills have been pending in Congress for years, without approval. Six states already have passed laws, and 15 others are considering them. Some are aimed at giving the franchise purchaser more detailed information. Others would regulate the business relationship between a buyer and seller.
Certain state legislatures may yet hold up action on these franchrise bills because the Federal Trade Commission is adopting rules governing the franchise industry. The rules will require prior disclosure of information by franchisors.
RECORD HARVESTS ARE LOWERING FARMERS' PRICES and incomes this fall. A combination of big plantings, near-perfect weather, and a virtual absence of the expected corn blight have lifted the harvest by about 12% over 1970. As a result, corn prices have declined by some 50 cents a bushel since June. And in some sections of the Midwest the price decline has been even greater. Wheat farmers aren't as bad off. Wheat prices are off by 10 cents a bushel.
That's good news for consumers. It could well fore-Shadow lower meat prices. But farm income will be trimmed to $15.5 billion this year-down by about $200 million from last year. Businessmen in rural areas will suffer, too, because of the failure of farm income and purchasing power to expand.
YOU DON'T HAVE TO WORRY ABOUT BEING CAUGHT with excess accumulations of profits because Nixon's verbal "freeze" on dividends holds down pay-outs, An IRS ruling is aiding firms caught between the tax laws and the hold-down. It allows companies to pay only the tax they'd have owed without the freeze.
A corporation normally has to pay a tax on earnings it has accumulated. The current tax rate is 2712% after the first $100,000 and 382% on accumulated earnings above that amount.
New Officers Elected by MCAM
Louis Fabbri (front row, left), MCA of Massachusetts state chairman, presents plaque to outgoing president Morris Brodie at the organization's annual election of officers held October 28 at Sidney Hill Country Club, Newton, Mass. Newly elected officers standing in the background (from left) are: Ralph Salvucci, recording secretary; Arnold Brodie, treasurer; Charles Velardo, regional vice president; Jack Kratz, president, and Orlando Grande, vice president. Not pictured is Hugo Fabbri, Jr., who has held the office of corresponding secretary for nine years.
masonry
• Nov./Dec., 1971