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THE NEW YORK TIMES INTERNATIONAL EDITION, SATURDAY· SUNDAY, SEPTEMBER 10-11, 1966• .. ibe Nt\\l f tk,w ~imts. Pu.blisliecl, 111srz, daiJI in. th, 'JI ear &II The N · Yo,rk rimes Compa.n11 .ADQLPR OCHS,Pu'blishe, 1895-1985 ORVIL E, RYFOOS, Publisll,,,.1961•1.968 UTHUR RAYS SULZBERGER Chairma" of th• Board. ARTHUR OCHS SULZBERGER Prericlent and Publilhlr • HARDING F. BANCROFT, Ezee14tiv1 Vice President ANDREW FISHER, Vici Preaidfflt MONROE GREEN, Vic,Preaidene IVAN VEIT, Vies President FRANCIS A, cox,Se01'etaf71•7'r641'1J,fSf' • 'l'URNER CATLEDGE, Ezecutive Editor JOHN B, OAXES, Editorial Page Edito1' • LESTER MARKEL, Associate Editor JAMES RESTON, ABSociate Editor Fi cal Policy at Last T}je immediate mi.pact of President Johnson's nevr anti-inflation ry program is mainly psycho· logical. It should help to calm and reassure the - nation's financial markets, which have been undergoing convulsiolfS in recent months. During this time the matke have appeared distressed and disheartened in reacting to the Federal Reserve's increasingly tight money policy and to the uncertainties po ed by the Administration's failure to make use of i own fiscal weapoll'S. . Now Mr. J·ohnson has ended his self-imposed paralysis. In asking for a temporary suspension of both the 7 per cent investment tax credit and accelerated depreciation benefits, he is hoping to slow the boom µi business spending. He also promises to limit Federal outlays and has asked the Treasury to cut down on sales of participations in Government assets, which were origlnally designed to reduce the budget deficit but which have had the unforlf1ate effect of reinforcing the money squeez . , Th President thinks that these fiscal measures will erve to curb deman" for credit, enabling the Fed al Reserve to follow a more moderate mone.ta11' policy, one that does not car.ry the risk of tig tening credit to the point w.here it could choke off the expansion in business. To clarify his positi n he has called on the Federal Reserve as well the nation's commerdal banks to cooperate "to wer interest rates and to ease the inequitable urden of tight money." Now that monetary policy does not have to carry the whole burden of opposing inflationary pressures, there is a. good chance that the fears that have plagued the marketplace will subside. Money may still be tight, but once fiscal policy begins to play a part, however modest a.nd belated, the psychological threat of a monetary panic becomes much less a danger. But the practical effect of most of the President's program will not be felt until next year. There is no stopping the current rise in business · ve tmcnt. Ncr is th.ere an effective brake against price and wage increases. The dose of inflation that is now infecting the economy will go unimpeded. These weakneS&es stem directly from the overly xpansive fiscal a.nd monetary policies pursued by Washington long after stimulation was needed. What has been done c8.JU).ot be undone by the President's program, But by acting now, Mr. John• son may help to minimize the damage wrought by too much reliance ·o n monetary policy and too little use of fiscal policy. A Nod to Peking . Confusion now engulfs the remarks that Chen Yi made to Japanese members of Parliament on their visit to Peking, but the United States has taken the correct course in publicly welcoming the mild version originally published in Tokyo. Some of the legislators apparently thought Communist China's Foreign Minister had said his country was "not necessarily dismissing" the pos• sibility of talks with the United States about tbe war in Vietnam. This would indeed represent a sharp turn in Peking's policy. Instead of denigrating the report, the State Department .was right to respond promptly and positively t o the r emarks attributed to the Foreign Minister, a response echoed by President Johnson at his press con• ference Thursday. His response underscores Warshington's recognition that mainland China h as a legitimate stake in resolving the conflict and bringing peace to Southeast Asia. There is, of course, a more dramatic, mor e constructive, way for the Unit ed S·t ates t o demonstrarte, in the President's words, t ha,t it will use "every means available" to improve relations with China and bring that country into responsible participation in international affairs: Washington could drop its oppositipn to the a dmissi-on of Peking to the United Nations, provided a separate membership were retained for Nationalist China on Taiwan. At a time when Peking is steadily alienating · even the other Communist regimes in Asia a nd frightening most of its neighbors, the temptation for Washington to sit tight and bar · t he United Nations door for one more year will be great. But a period in which Peking is maintaining its truculence toward much of the world, while undergoing the internal convulsion of Mao's " cultural revolution," might be the best time to open the United Nations door. There must be elements in China-Foreign Minister Chen could be among them-who fear China's growing isolation. A "two-China" solution is certainly favored by a big majority of United Nations member Govern• ments, however they fi nally vote in the Assembly. And this policy would remove from the United -States the heavy onus of keeping out of the only functioning peace-keeping organization a Govern• ment that rules, however badly, more t han a four th of the human race. The Riot in Atlanta An arbificia.lly induced riot involving a few hundred susceptible Negroes shattered the calm of an Atlanta afternoon, and it may have shatt ered much more. There is no way of gauging fully i ts. effect on a Southern community that had been deservedly considered a model in race r elations. Particularly dismaying was the abusive treatment accorded Mayor Ivan Allen J r. when he rushed to the scene and tried to calm the rioters. They had been whipped to frenzy, reportedly by the so-called Student Nonviolent Coordinating Committee, which espouses the separatist and inflammatory slogan .o f "black power." Such was the mood of the mob, hastily r ecruited after a Negro suspected of stealing a car had been wounded while fleeing from the police, that Mayo·r Allen was jarred from the top of a police car and subjected to a barrage of bricks, bottles and verbal abuse as he courageously stood hi s ground and tried vainly to restore sanity. This was an ironic reward for one of the few Southern officials who supported the Civil Rights Act of 1964. To the degree that S.N.C.C., in its new militancy was responsible for this violence, it hag done a gross disservice to the evolution of racial harmony and the progress of the Negro in Atlanta and elsewhere 1n the South. 1 Ollie's Barbecue By TOM WIOKER WASHINGTON - "There Is latitude 11nough In the Constitution t o embrace within ,its fo,, corners these a dvances." Senator Eve rett Mc i.-sen, Republlca he explal e" support RIP" . hlblt dis l"' or re-,..· ti,· �