Hodges Hails Upturn In Capital Spending: Hodges Hails Upturn In Capital Spending
H.	Hodges yesterday hailed an expected 10 per cent jump in capital spending this year as a harbinger of further economic expansion but discounted fears of a superboom leading to recession in 1965.</br></br>A new controversy over the NationÛªs economic future has broken out in recent weeks. Some Republican legislators argue that concentration of the bulk of the recent tax cut in 1964 coupled with an already high level of business activity raises the specter of ÛÏboom and bust.Û</br></br>Hodges reaffirmed this view yesterday in announcing that business expenditures for plant and equipment are expected to reach a record S43.2 billion in 1964, up S4 billion from last year.</br></br>Without giving figures, President Johnson announced the big gain in capital spending at his news conference Saturday. The Washington Post reported the 10 per cent rise from other sources.</br></br>panded East-West trade but mg, 14 per cent for durable said a major increase cannot goods makers, 12 per cent for be expected until political is- non-durable and 6 per cent sues are removed from the for utilities, discussion. This appeared to According to the survey, be an oblique dig at the re- manufacturers predict a 6 per cently settled boycott by mar- cent gain in sales this year itime unions of Russian wheat against 4 per cent in 1963.