(The following Reuters article was published in the New York Times online edition)
WASHINGTON — Wealthy industrialist John Snow won Senate Finance Committee approval on Thursday to become the nation’s 73rd treasury secretary, sending his nomination to the full Senate for a confirmation vote.four-hour hearing on Tuesday endorsed him for the post. It would make Snow the Bush administration’s principal spokesman on economic issues ranging from the $674-billion, 10-year tax cut program to currency policy.
The full Senate must first confirm Snow, perhaps as early as later on Thursday, before President Bush can swear him in. Bush named the 63-year-old railroad executive last month as his choice to replace former Treasury Secretary Paul O’Neill, who resigned under pressure late last year.
Two Democratic senators — Richard Durbin of Illinois and Tom Harkin of Iowa — were trying to link Snow’s confirmation to their bid to prevent changes to current pension regulations. A Durbin spokesman said they were not at this point threatening to delay Snow’s confirmation, but noted “there certainly are steps senators can take to make sure a nominee is well aware of our concerns.”
Snow is chairman of regional freight giant CSX Corp., based in Richmond, Virginia, a job that he pledged to give up if made treasury secretary.
He told lawmakers at his hearing that he would be surrendering tens of millions of dollars worth of stock options and other corporate perks in the process, but sources close to Snow say his estimated net worth is about $100 million.
At his nomination hearing, Snow expressed his support for a strong U.S. dollar and also said he would do everything he could to spur a sluggish recovery and create jobs.
“I favor a strong dollar,” Snow said. “A strong dollar is in the national interest.” He added a strong dollar stemmed from “sound, pro-growth economic policies” and open markets.
Snow was cautious about the economy’s condition, saying it was recovering but the pace was “slower” and “less certain” than was preferable — a position he must adopt since he is expected to champion the Bush administration economic stimulus program.
He said the program’s centerpiece proposal — eliminating dividend taxes — would not only benefit wealthy Americans. He said it also would boost the stock market’s performance and said higher budget deficits were not worrisome when considered in relation to total national output.
“They matter when they’re built into the fabric of the financial structure of the economy, when they’re large relative to the GDP, when debt’s large relative to the national output,” Snow conceded, but added: “We’re not there yet.”