Martin Favors Tax Bid: No Outright 'Deal' Suggested Lessening of Demand Pressures
Federal Reserve Board Chairman William McChesney Martin yesterday put his stamp of -approval on President JohnsonÛªs request for-a 6 per cent surtax. ÛÏIt has my full support,Û Martin told the Overseas Bankers Club in London.</br></br>In doing so, Martin for the first time officially took note that the Fed has been following an easier money policy sipce late last year.</br></br>And while, as is custom, he did not predict the future course of Fed policy, there ÐÊwas every implication inÛª his remarks that the current easier money posture would continue in effect for a while.</br></br>Administration officials have made clear that in deciding to ask for the tax increase that Martin yesterday labeled ÛÏprudent,Û there has been full consultation with the Fed.</br></br>fro one suggests an outright ÛÏdeal,Û in which the Fed agreed to an easier money policy, in exchange for long-delayed tax Action on the part of the President.