Looking Toward November

THE PRESIDENCY

In the course of his jocular press conference, President Johnson warned newsmen not to waste their money betting on a Republican sweep at the polls this fall. "The elections," he crowed, "are going to be fine."

Pooh-poohing pundits' predictions that the Democrats would lose dozens of House seats in November, the President allowed: "There are these people who pick these figures out of the air." He confided that "someone the other night" even talked of a G.O.P. gain of 74 to 80 House seats. "It was amusing. I wondered how much he knew about any House seat."

Johnson had kindlier words for the so far unremarkable legislative record of the 89th Congress this year. "Congressmen on both sides have done a good job," he said. "We will probably have 15 or 20 measures signed before Easter, and that is something unusual." Asked if he would campaign himself for individual Congressmen, Johnson replied archly: "I would not forgo a chance to give my advice if it was solicited in the right way, under the proper auspices, with appropriate sponsorship." Which almost certainly can be translated to mean that--Viet Nam willing--Johnson will be hustling around the hustings all he can.

Down, Down. Though he spoke off the cuff throughout most of the 40-minute conference, Johnson did just happen to have a statistics-studded memo on his desk when a reporter asked him whether he planned to ask

Congress to raise taxes. With obvious satisfaction, he quickly ticked off a series of fresh figures indicating that inflationary pressures may be easing off a bit. Retail sales were down, housing starts were down, new orders for durable goods were down, and the money supply has declined. Johnson also pointed out that medicare deductions would take $6 billion out of the economy, that the new increase in upper-income tax withholding would take some $4 billion this year, that costs of the war in Viet Nam were running under estimates so far in 1966.

Thus, it seemed that a tax rise was scarcely imminent. "We don't want to act prematurely," said Johnson. "We don't want to put on the brakes too fast, but it is something that requires study every day and we are doing that." Nevertheless, the President left the door open for a hike by reminding reporters that "Congress is adding some expenditures that we did not ask for; they may add some more."

Reply to De Gaulle. Next day Treasury Secretary Henry Fowler told a National Press Club audience that no taxhike decision was likely until late April, when first-quarter economic statistics are firm and "we will have a far clearer picture of what the revenue side of the budget--as well as the net budgetary figure itself--finally looks like."

The President declined to answer press conference questions about Charles de Gaulle's plan to pull France out of NATO. But the next day, in a speech before the Foreign Affairs Institute, Johnson offered a lofty but not unfriendly reply to De Gaulle, saying that the U.S. is "determined to join with 13 of her other allies to preserve and to strengthen the deterrent strength of NATO," but that "a place of respect and responsibility will await any ally who decides to return."

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