The Economy: The Continued Gold Drain

THE ECONOMY

One of the most pressing problems facing President Kennedy when he took office was the growing deficit in the U.S.'s international balance of payments. Since the deficit drains U.S. gold reserves, it threatens the stability of the dollar. By a variety of techniques, Kennedy cut the annual deficit from the $3.9 billion he inherited to $2.2 billion last year. But in the first half of 1963, the rate soared to $5.2 billion—and, to the Kennedy Administration, became one of the sorest of all subjects.

Last week New York's Governor Nelson Rockefeller hit the Administration smack on the sore spot. In a...

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