U.S. Business: Vanishing Prospect

The Administration had been promising for months that this year would at last bring an end to the nation's chronic balance-of-payments deficit. Last week that prospect virtually vanished—a victim of the rising cost of the Viet Nam war and, strange as it seems, surging prosperity at home.

Treasury Secretary Fowler still insisted that "equilibrium"—an equal balance, give or take $250 million, between surplus and deficit—"remains our goal for 1966, and we mean to reach it." However, he hedged his confident earlier forecasts that the target would actually be met, calling both the price of the war and the nation's normally large trade...