 It's time for the Lawn Jean Chronoscope, a television journal of the important issues of the hour brought to you every Monday, Wednesday, and Friday, a presentation of the Lawn Jean Wittner Watch Company, maker of Lawn Jean, the world's most honored watch, and Wittner Distinguished Companion to the World Honored Lawn Jean. Good evening. This is Frank Knight. May I introduce our co-editors for this edition of the Lawn Jean Chronoscope? From the CBS television news staff, Larry Lesser and Winston Burdett. Our distinguished guest for this evening is the Honorable Robert Kane, representative from New Jersey. Last month, the President sent a message to Congress. It was about increasing foreign trade, both ways, imports and exports. The President proposed an extension and amplification of the Reciprocal Trade Act for three years, and in each one of these three years, he would reduce tariffs by five percent. Now, this is the first Republican administration in memory that has called for a reduction in tariffs, and Representative Kane, you're a veteran Republican congressman, and yet you've introduced a bill that would implement the President's proposals. Now, isn't this practically revolutionary for a Republican? No, I don't think it's revolutionary. In the bills that we've had for carrying on Reciprocal Trade, I think the majority of Republicans lately have voted for them. Now, I'm in favor of more foreign trade. I think that it's very important with the position we find ourselves in the world. If we don't have more foreign trade, I don't think we're ever going to get these foreign nations off our necks. Well, why do you think it would be in the interest of the country, sir, to reduce these tariffs? Because if these nations are not able to sell us their goods, they can't buy our goods, and that's essential in order that we keep full employment in this country. Well, Representative Kane, to get down to dollars and cents, under the Tariff Bill, if this bill is passed and implemented reasonably by the President, how substantial benefit, how great a benefit would it afford to European industry that is seeking an American market? Not very great, but it's a step in the right direction, and it will encourage them to feel that this country isn't going to set up an iron wall or a stone wall and try to prevent any of their goods coming into this country. It's only a small step, and in this step, we will are going to try to protect the interests of the American producers and not try to put anybody out of business. Representative Kane, if the bill will not give too great a benefit to foreign producers, nevertheless, do you think you can get all the Republicans in Congress to back your proposal? No, I don't think so. I think that there's a great deal of opposition to any step in the direction of free of trade. In fact, they've been bills introduced, and there's a good deal of feeling that perhaps we ought to raise tariffs rather than laws. Well, sir, in view of that, could you give a realistic answer to this question, and that is, how far do you expect your tariff proposals to get this year at this session? Not too far this year. I think what probably will happen will be a straight extension of the Reciprocal Trade Act for one year. That's my guess. Do you think it's possible that your bill would just be set on in committee by Representative Reid? Well, I think that it being an administration proposal, we will have probably have some hearings, but I do not think that it's very probable that the bill will be reported out in the form that I've introduced it, though I wish it would be. Well, speaking of administration proposals, as a prominent member of the House Ways and Means Committee, you have this proposal now for tax revision, and the Democrats are against that, as I understand it. Especially in the case of the lowering of taxes on dividends, they would propose a reduction or an upping in the tax exemption. Now, wouldn't this actually benefit more consumers than those who have stock investments from which they get dividends, sir? Well, yes, consumers' purchasing power would be bettered by an increase in exemptions, but you've got to remember that we already have put a tremendous amount of money in consumers' hands by the other tax reduction bills which have been passed. First place, the 10% cut in income taxes generally, then there was the $1 billion excise tax reduction, which went into effect on April 1st, and then in this very tax revision bill, there is about $750 million of benefits to consumers. In this bill, there is only approximately $600 million, which is business aid, and that is only 10% of the entire tax reduction program, and all the hollering and all the shouting that the opponents have been making has been about this 10% of business aid. Well, sir, out of all the tax relief that is provided under the administration's tax program for this year, how much, would you say, can fairly be said to be tax relief for the individual consumer? About $4,500 million goes to the consumer, and then we have the, for business, we have in the tax revision bill approximately $600 million, and then there was the repeal of the excess profits tax, which was approved by both Democrats and Republicans alike for the benefit of business. Of course, representative Kane, you talk in round figures, but the Democrats are proposing that the exemption be raised by at least $100 now. Isn't that going to be pretty hard to combat when you're talking about these round figures about helping corporations? Well, of course, the $100 reduction in the exemption would cost the Treasury $2 billion, $400 million. You add that to the deficit that we already had of probably around $5 billion, and you have $7 billion, $400 million deficit, which is pretty hard to handle. It's not quite honorable to, for us, and I think it's cowardly to pass on to future generations to our children and grandchildren the result of our follies. I think we ought to get right to work and try to come as close as we possibly can to balancing the budget. Well, sir, Senator George is proposing that individual exemptions be raised by $200. That would be $4,800 million this year, and next year he proposed that it would be $400, which would be almost $10 billion, and to me is a completely irresponsible proposal. Well, sir, with Senator George making that proposal for a $200 rise in the individual exemption, it's conceivable that the Senate may approve a $100 rise in the exemption, and then what kind of a fight would ensue on the floor of the House if that gets into the bill? It would go to conference, of course, and I think the House conferees would turn it down. Now, when the bill came to the House before, the Democrats made that proposal, and in that proposal was the $100 reduction, and that was beaten by a vote of 210 to 204. It was a close vote. I wish we could raise the exemptions. I wish we could raise them to $1,000. In fact, I was the author in the tax bill in 1946 of the amendment which raised the exemptions from $500 to $600, but you just can't do it with the present circumstance. Yes, but the Democrats do charge that your proposals do give so many benefits to corporations like in these rapid write-offs. Now, isn't it true that the consumer is the person that buys these goods and he doesn't have the money? How are we going to keep the economy on a stable plan? Well, of course, the consumer makes money if he's employed, and the only way to get him employed is to provide jobs. If you don't have successful employers, you don't have any employees, you don't have any payrolls, you don't have any jobs. The employer must be successful. Well, the final question I'd like to ask you, Representative Cain, how much possibility do you think there is of the President's proposals going through, his program going through at this session of Congress? He's made a great many proposals now from Taft-Hartley revision to taxes. Well, I think that we'll have more of the President's program adopted than any President's program since World War II. Now, the tax program I think as a whole will be approved. We have gone a little further than he's asked by the excise tax revision bill. I think the Social Security bill, in which I'm very much interested, will go through very closely in the form to which it was recommended. Taft-Hartley is doubtful. Again, more things have been put in by the committees than what the President wants and whether anything will be done, I don't know. The appropriation bills have gone through very much along the line of what the President wants. I think there's a good chance that the President's program for the St. Lawrence Seaway will at long last go through. I think the health and welfare program of the President will probably go through. Hawaiian statehood went through the House, but it's been bogged up in the Senate by the attachment of Alaska, which has practically no population and therefore great many people are opposed to that. In other words, you're pretty optimistic about the President's program. I think so. Thank you very much, Representative Cain. We're pleased to have you here tonight. Enjoy. The opinions expressed on the Launcine Chronoscope were those of the speakers. The editorial board for this edition of the Launcine Chronoscope was Larry Lusser and Winston Burdette. Our distinguished guest was the Honorable Robert Cain, Representative from New Jersey. 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World-honored indeed, for only Launcine watches have won ten World's Fair Grand Prizes, twenty-eight gold medal awards, and so many official honors for accuracy from government observatories. And yet, you may buy and own or proudly give a Launcine watch for as little as seventy-one fifty. Launcine, the world's most honored watch, the world's most honored gift. Premier product of the Launcine Wittnor Watch Company, since 1866, maker of watches of the highest character. We invite you to join us every Monday, Wednesday, and Friday evening at this same time for the Launcine Chronoscope, a television journal of the important issues of the hour. Broadcast on behalf of Launcine, the world's most honored watch, and Wittnor, distinguished companion to the world-honored Launcine. This is Frank Knight, reminding you that Launcine and Wittnor watches are sold and serviced from coast to coast. I'm more than 4,000 leading jurors who proudly display this emblem, Agency for Launcine Wittnor Watches.