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#AGE FOUR

Monday, June 1, 1959

THE DAILY REFLECTOR, GREENVILLE, N. C

Monday, June 1. 1^59

State, Local C3ovmts Growing

He Always Wants A Head Start

Compared with the sprawling federal government with millions of employes on its payrolls, most taxpayers consider state and local governments as a mere drop in the bucket of this big business of government which seems to get bigger each year.

Truth of the matter is that government does get bigger every year; but all the blame for government getting bigger cannot be placed at the door of Uncle Sam.

The rate of growth of local and state governments in recent years ha.s outpaced that of the federal government, at least in terms of employes.

A? recently as 1952 there were some 4.2 million worker.s on the payrolls of state and local governments throughout the United States. By 1957, statistics show, employment of state and local governments averaged 5,4 millions and by early 1959 had reached 5.7 million. The same report says total number of state and local government employes now is approaching the six million mark.

While this rise in focal and state government has been moving upward at a rapid rate, Uncle Sam apparently has Jiot been adding employes at nearly so fact a pace. The number of,federal employes has remained fairly stable in the past five year.s.

These figure.s would indicate that local and state governments are being forced, either^by growth or by the demand for greater services, to expand their operations which reipjire more jobs and more people. And as every taxpayer knows, it also takes more money to operate state and local governments in such a period of expansion.

As communities, counties and states grow in popu-

Raise HoDe's Of

Early Quitting

By LYNN MSBET

ADJOURNMBtNT - Accrp-tance by the full Joint approprla* tiorw committee of the subcom mittee rpcommendation without chatiKft raijsed hopes of earlier adjournment of the 1959 Legislature. The bill fitill ha to he acted upon by both the House and Senate, and notice had been given that further attempts will be made to increa/ie education and welfare amounta. Odds are these efforts will fall and that the big-gegt appropriation bill is Slate history will he enacted into law this week.

The joint finance committee still has some work on the revenue bill, but since the appropriations did not exceed estimates already Included in the tax schedules no serious trouble Is anticipated. The appropriations hill can he passed In a lew minutes, but a minimum of five legislative days are required for ptmclment of the tax measure. Tlip five days can be packed into a few minutes more than three, by the device of holding sessions Just btdore and after midnight. That has been done sometimes In the past.

With the money bills out of the Way there will be no impassable barriers to adjournment, It is apparent that the constitutional revision will lake a lot more tune, unless more Important features are abandoned. The Senate committee struck from the docqment all references to s court of appeals, action which the House group declined to follow. The House committee on the other hand knocked out the proviso for waiver of jury Irlai In criminal cases. Thejie atjd other differences In committee versions will be debated at length on the floor. Biven committee members have served notice they will oppose some features when the issue comes up for final action.

PHKMATUHK The Hern In this corner last week about the 1959 Legislature tielng reluctant to authorize study commUsslons seems to have been premature. Joint resolutions Introduced during the week would authorize at least five study commissions.

The Commission on Government Reorganization, first set up in 195.1 and renewed with newly appolided personnel by the past two sesslotus, will be on the job again.

So will the Tax Study Commission. this time R.sslgned the special tax of studying withholding and application of advance payments to corporations. The 1955 tax groiip re<iommendcd the changes In allocation formula for coi*porate Income taxes, and the 1057 commission gave main at

tention to county and municipal financing.

A commission will study ways and means of obtaining facilities for grain storage, Another will look into the problem of extended coverage Insurance In coastal counties where difficulty has been experienced In getting insurance.

Still another group will study the piohlem of school teacher pay, with special attention to merit-rating features.

These resolutions have not been ralified, but there is reasonable certainty they will sail through the enactment process without delay. They all contain provisions for recommendations to be made to the 1961 General Assembly for implementing legislation. Such recommendations usually are accompanied by bills, and some memliers have objected Ui the prestige claimed for them on that account.

LOOKING AHEAD Woodrow Jones, chairman of the State Democratic committee, spent a day or two In Raleigh last week checking up on routine activities In state headquarlers and discussing advance plans for next year's campaign and convention. The Democratic organization maintains a permanent office In the Sir Waller Hotel, staffed by a very efficient office manager In the person of Mrs, FlHzabeth (W P. Jolinston, but top brass party offlcitUs give very little time to It except during the biennial campaign periods or when state and national conventions are In the offing, Next year Is the time for conventions l both levels, as well as nominating and electing campaigns for IMe.sldent and Vice President. Governor and Lieutenant Governor, a United Stales Senator and other State and local officers, The primary for nomination of State and local officers and date of the Stale convention for selecting delegates to the national eonventlnn for nomination of presidential candldalea Is less than one year away.

Chairman Jones thinks it Is not t(M) early to tiegln planning for these projects even though details cannot l>e worked out until next spring. Because of Ids official position Jones Is taking no part In personal candidacies or revalrles for any position In the party. Other party leaders are not so rellceneni and already campaigns are underway for this or that person as a delegate to the national convention. The convention will he held In Los Angeles and delegates will travel at their own expen.'.e -but the delrgale badge will be a big asset in the convention City.

lation and as they must provide greater services for a greater number of people, it is only reasonable that a greater number of employes are required at such levels of government. Even in view of this, however, an increase of 40 to 60 per cent in local and state government employes across the nation in the past seven years poses an important situation for citizens .to consider.

Will the number of local and state government employes continue to move upward at the same rapid rate for another seven or ten years?

If so, where will local and state governments look to find sufficient revenues to support such rapidly expanding operations?

These, of course, are problems which must be solved individually by state and local governments according to their needs for services and needs for revenues. At the same time, it may will be a problem particularly on the revenue sidewhich state and local governments may decide collectively with the federal government in order to continue to support expanding operations.

Because of its size in a single unit, federal operations and federal needs have far over .shadowed the growth and needs of individual stats and local governments. But the day is at hand when more consideration mu.st be given state and local governments.

Plenty On His Mind, Now Add The Bridge

Someone stole a bridge in Indiana's Pike County the other night.

According to the sheriff of the county, the 30-foot bridge was converted into three tons of high grade steel with a cutting torch, and then hauled away. The theft was discovered by a coal miner, just in time to keep from driving into the unbridged stream.

At first glance, the whole thing seems ridiculously funny. We can see, in our minds eye, a midnight Hcs.sion with a cutting torch to dismantle a bridge located on a public road, and then the early morning scene of a man driving to work and slamming on brakes to avoid plunging into the emptiness.

On second thought, however, it isnt funny at all, e.specially the part about the coal miner discovering the theft.

In our minds eye, on second thought, we can .see the poor guy rolling down the road to work. No doubt, he has his worries about inflation, labor trou-ble.s in other coal fields, lessening demands for coal in this modern world, family problems and how long his car is going to keep running.

Then, on top of all those things, he suddenly discovers that the bridge which he crosses to get to work has disappeared under the cover of darkness, and he has no way to get across the stream without detouring.

A man ha.s enough to worry about without somebody taking his bridge away from him.

Why U.S. Gold '^s Goina Abroac.

By RELMAN MORIN

Too Much Peace, Quie

The Daily Reflector

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By RALPH ROBEY

La.st year the United States shipped about $2 3 bUlion of gold to foi elgn nations. At the atari of 19.59 the export was at a much power rate, but recently the outflow has Increased subatantlally. I*or the year to date the total export has been jiwt below $3.50 mtlllun Among the queatlons being raised are what la causing the export and Is there any leal Uanger to our monetary posiUoti as a result of this loss?

As to reasons for tha ItMis of gold, the first thing that should be noted la our changlttg Interna-tlonal balance of payments. This is the total of all goods and services entering into International trade, Including personal remittances, traveling, and everything else. Five and ten years ago this lialnnce was strongly in our favor, and there was considerable dis-cu.s.slon about the so-called dollar-gap meaning that foreign nations were buying, or at least receiving more, In terms of dollars, than they were able to sell this nation.

ThLs Ls no longer true. Our exports have declined sharply. Foreign nations have recovered from the war devastation. Today they are producing more and are surce-ssfuUy reaching for sales in this and other natlbns Not only

I.x there no longer a dollar gap, but In the case of many nations tljere is a surplus of payments due them front the United Rtnte.x. It Is nalitial to take this in the fornt of gold, which improves the backing of their ctur-rency and gives them a better sliindliig In the Internatioral Held,

A .second factor of Itnportance Is that we have .succeeded In getting International money and capital markets largely re e.stab-

II.shed. There Is not yet compleie-ly free converllblUty of lo<nl cur lencle* Into foreign exchange, but enough progre.ss has bien

made in this direction to make large foreign credit operations a reality, both long and short term loans. Iltich operations are not routine, and never can be because of national differences, but there is no longer any worry over whether or not funds can be received from many of the important foreign nations.

Third.x, in recent months, there has been a sharp increase in foreign investments. Both Institutional investors and individuals have turned more and more to the securities of other nations. An important consideration in this case has been that good foreign stock.x api>ear relatively cheap as compared with American securities. The total volume of such Investment is a small Item In our balance of payments, but it Is one that can influence gold exports.

On the question of whether or not the loss of gold poses a danger to our monetary system, several points need emphasis.

First, we stlU hold more than $20 billion of gold, and that Is one-half of the known monetary gold stock in the entire world outside of Russia. (No one knows how much Russia either holds or produces.) This la far In excess of the amount necessary to meet present reserve requirements against our currency and bank deposits.

Second, It has long been contended that a better distribution ot the existing gold stuck was desirable for the purpose of enhancing world economic stability and Impn^vlng International trade. The trouble has been that no one could devise a system for bringing about such better distribution. Now that it Is taking place it would be unthinkable anything should l>e done to slop U. Incidentally, It could be .stopped at any time by the United States Treasur.v under existing law, but llu're is no chance that H will C'onttnued On Pag* t

NEW YORK (AP) A current trend in the book-writing trade, as you may have noticed, concerns the decade often described as the era of wonderful nonsense, the 1920s,

Books about P. Scott Fitzgerald and Aimee Semple McPherson. the great stock market crash, millions praying for Charles Lindbergh on the night he flew to Paris.

Prohibition, the gangster em-piiTS, the St. Valentines Day massacre In Chicago, the Char-lejston, the Black Bottom, flappers with knee-length skirts and a fringe of beads around the equator, raccoon coats and hip flasks. Joke: I always show up late at a party ao that the gin'U have time to age,

The clrcus-horse beauties of

the Selgfeld Follies, Hollywood on Its ear over an invention known as the talkies. The Green Hat, Desire Under the Elms, . . . Peaches* Browning , Great reporters writing about murder trials, and the Tennessee monkey trial in

volving schoolmaster Scopes.

The Golden Age of sports, mil-lion-doUar gates, the long count at Chicago, Brick Muller's 65-yard forward pass (or was it 75 yards?) in the Rose Bowl, the unparalleled athletes. Jack Dempsey and Gene Tunney, B1 Tilden and Walter Hagen. Babe Ruth, Lou Gehrig and Walter Johnson. The four horsemen in the Notre Dame backfield and murderers row in the Yankee batting lineup. Oh sure, the Yankees used to be right up there in the first division in those days.

Well, when you put it all together in one chunk; it does sound like a pretty heady time.

But the 1S20S, It aeema to me. were unique for a wholly different reason.

There were years of security.

The sense of security, of course, was more shadow than substance, as events were soon to show. At the time, however. Americans found no reason for fear or anxiety. The future seemed to stretch ahead, serene

Other Editors Saying .., What $800,000 Can Do

(Henderson Dispatch)

It has been estimated that It Is costing the State of North Carolina about $28,000 per week to keep units of the National Guard here to preserve order In connection with the textile strike. That's about $112.000 per month, and If the soldiers remain until the end of June, which marks the close of the present State fiscal year, the otitlay would be very close to $200,000.

In the Legislature, the Joint appropriations subcommittee tp* proved the addition of $750,000 to the contingency and emergency fund of the Stale for the next biennium, beginning July 1. Information Is that the money is to be earmarked solely for expenses of the Guardsmen on duty In Henderson.

Surely the soldiers will not be needed here long enough to necessitate expenditure of nearly a mllUon dollars. This presence, together with the firmness of a superior court Judge during a special term of court, is credited with curbing violent outbreaks. Whether serious disorders would recur U they left Is something that can only be guessed.

Hut It Is a sobering thought to conlen^plale the amount of good that could be dune with this laon.tXH) or more of State funds If iitiliaed for constructive purposes instead of necessity for de

terring efforts toward destruc-,^ tion by a lawless element. Moreover, there is a stigma attached to the community in general by reason of the fact that this enormous sum of money Is earmarked to restrain some groups among a peace-loving and law-abiding people. The vast majority of citizens are not responsible for nor have they knowingly contributed to nor condoned violence. They deplore and detest it. But it is In their town that huge sums are being sent to maintain the peace.

This $800,000 to $1.000.000 could account for new schools and countless other improvements in Henderson and Vance county if it were Available for such uses. It would' not be. of course, even if not applied in preserving the peace, since it is not ours to spend- But U is a staggering, sobering thought that this amount of cash has to be used, or made available for use If required, to provide security for life and limb, and property in our midst.

Contemplation of this necessity reminds of the billions of dollars the nation as a whole Is compelled to spend to protect itself against aggression from foreign enemies. Who would ever have thought the Henderson and Vance county area would have to be included in a classification of this character? To say that U is a tragedy is stated the case mildly.

and unclouded.

No war threatened. Barring minor disturbances in some parts of the world, no bullets were flying, Moreover, in the Kellogg-Briand Pact and a whole tissue of threatles ton>4rall, alas the great powers pledged themselves never to use war as an instrument of policy. Can you picture a warless world?

Airpower did not exist. The two oceans were sUU mighty barriers protecting America. No one dreamed of the.A-bomb or the H-bon4), much less intercontinental missiles. Fallout would have been dismissed as the wildest science fiction.

That was the political and military scene In that decade.

On the economic side, the skies seemed equally cloudless. A college senior looked forward to selling stocks and bonds, getting into the market in a few years, becoming a millionaire at 35. Why not? It was happening often.

Whats more, you could keep your money then. The income tax was negligible. Everybody had Jobs. Everybody had money. Everybody had prospects. A chicken in every pot. Two cars In every garage.

It was a fine, mellow champagne era.

At the very end of the decade, beginning with the stock market crash in the fall of 1929, all this ended. Security fanished overnight.

The 1930s brought the depression. economic disaster, then the dictators and militarists.

The 1940s were war and cold war years.

The 1950s? Well, you could characterize this period as the learning to live on the brink decade.

Yes, there was a lot of nonsense in the l^Os. It probably was the natural by-product of too much peace and quiet.

Opinions In Brief

Nothing In life is so exhiler-atlng as to be shot at without result." Winston Churchill.

'Tnflation Is a state of affain when you liever had It so4iood or parted with It so fiSt." Industrial News Review.

in Lona Stocks

By ROGER BABSON BABSON PARK, Mass., The best hedge against inflation should be good land stocks, that is stocks of companies with large land holdings. The Federal Government can print all the Government Bonds and all the money it wishes. Any corporation can print more stock certificates when it so desires. But land I say this reverently) only God can make more land. (This may be increased a total of perhaps 1-X006 per cent by realtors who do so by pumping up sand from the adjidning water but this Is not real land.)

But, why'do I advise buying stock of a land company instead of buying acreage In fee? The answer is very simple. If you yourself buy the acreage, you must pay the taxes and watch the property personally. If, however, you buy the stock of a good company, the taxes are paid by the company and you have' no details to watch. Furthermore, such listed land stock Is easy to sell; while con siderable red- tape and looking up of titles are necessary if the property is In your own name. Hence, I prefer certain land stocks to acreage.

RELATION TO POPULATION Readers hear much about the business boom which is supposed to come in the 1960's due to the Increased marriageable population. Although the birth rate is falling slightly, (It Is now 24.5 per thousand), and the marriage rate dropped last year to 8.3 per thousand, and deaths in 1958 were only 1,674,000, yet those who are approaching marriageable age are constantly increasing due to the baby boom of 20 years ago. The Investor is most Interested in those who are reaching marriage age. The experts expect 5 million babies in 1960 and 6 million in 1965. The great majority of stocks are not directly affected by marriages: but the demand for houses Slid furnishings definitely increases as the marriage rate rises. , '

As more people retire on pensions. more attention is being given to the most healthful states the Southeast including Florida, the Southwest Including New Mexico, Colorado , and Arizona, together with parts of the Pacific Coast. Such states offer the climate for which older people are hungering. A dry climate, with normal variations of temperatures, is now recognized as giving the most relief to those suffering from bursitis, arthritis, and various forms of rheumatism. Therefore, a first requirement is that the land be in a state which can guarantee* a long and healthful life. Personally, I like New Mexico or Arizona as health resorts, but all states are different and each has some advantages over the others. What climate is best for me, may be poison to you.

FREEDOM FROM LABOR TROUBLES Of all the stocks listed on the New York exchanges, the land company stocks are freest from labor troubles. Such companies employ very few people. In fact,

I have heard of one land company, listed on the American Stock Exchange, which Is said to have only thr.ee employees. Even those railroads like the Canadian Pacific, the Union Pacific, and the Northern Pacific, which have great knd holdings, are practically free from strikes. Even during a strike on <me of the railroads its land holdings are increasing in value.

Although much western land is now good only for grazing, yet the income from such land should expand with the national Increase in babies. This grazing should pay taxes and other expenses. But the i^eat gamble about any acreage Is that at any time minerals such as uranium may be found, or fuels such as oils or gases, or other underground products. This especiaUy applies to timber land, which U constantly becoming more valuable. Land companies which have not yet diseovered their underground resources are not Investments for income. But at any time discoveries may be made which could double the market prices of the stocks. The day a house is completed, it usually begins to deteriorate and the house becomes worth less, but the land should become worth more each year. Therefore, put more money Into land and less Into the house when

Con.lBoed Om Page i

^Lfect Of Generous Housing Bil.

Strength For Today

llv KARL L. DOLGl AS.S

HKTIKKMKNT IS NOT DKATM

Have you retlreil voluulvullv UI Ihmmi letlreJ b.v your cum-panv? If .so. IKe now prufrfuljiv a uliule new- set of clrcum.stanees.

One of the iiuwl amazing things atvuui retlrrnient is that almost everybody finds hlinselt almost as busy In rptlremenl as he was In the height of his career Of cour.se. hLs type of activity has now ehrtiiRed. There are some things which old men are so incapable of doing that young men have to take over.

Hut It is also true and never let us forget thts-lhal there arc some Wli.vs In whtcli people In the later years of tlielr lives ran he more useful than they were at middle pge. Certainly most people know more with the pa.sslng of time. Millions upon millions of

yood experiences have crowded into their minds And with these experiences there should have come now In.sights- and usually these Insights are really valuable. The ancleuUs Ixrdleved that the elderly mim in thetr *t>cul order were the wiLse.vt And they hud something there, dpi they not? If the elder.s were not wise, they had lived In vain For they had had more time to get!- wisdom than had the young and middle aged men One of the giTat discoveries Ui the coming decades will be the utilization of ,lhe capacities of retired n>en and women. Don't think for a moment that you can throw iMHvple on tha scrap heap beeausf they have passed sixty-five. Some of the world's best anility may be right there tf thase who manage human affalr.s havt the sense to investigate.

By ELMER KOESSNKR

If ('ongress enacts a generoua housing bill which was predicted here a week ago and then pa.vses It over a threaten* lug veto, U will have multiple impacts on the economy.

For one thing. It will make much more money available for public- and governmcnl as.sisled hoiustng

For a ^econd. it tends to stiffen piicps for building materials. Most ot these have been rising, hut. In recent week.s. many have shown signs of leveling off

Third. Uie bill may slow down private home purchases which, so far this year, have shown con.Hiderable stability. The higher prices Inherent In government underwriting will cause many marginal prospecta to back otf

OTHER FREDU'TIONS

Here are more look aheads on the husincsS acme:

Mare waali w***'. A tharp

rise In waah-aud-wear clothing in women'a apparel is slowing liown; many women are returning to clothes that reflect the freshness of hot Irons.

Gas tax realstaaee. Despite White House urgtngs of higher gas taxes, the Democratic majority is likely to balk. Many leaders prefer transferrtng money from the general fund to keep the highway program going and many Republicana will go along.

CeatHer-thaa-ever aalmea. Abo-liUon of fLsh traps In Alaskan waters, ordered by Alaskan and f ederal authorlUes. is likelv to cut the salmon catch heavily this year Some authorities say U may be reduced by half. That will make salmon scarcer and costlier ~ than ever NEW PROBLEM: DELIVERIES

Slower deliveries. Industrial users are complaining about slow-er deliverlea and their problems

will multiply. Rising number of orders is the reason. And if a steel strike happens, deliveries of other commodities, as well as steel, will be slower than ever.

Three-bttttanera a hit. Men wearing two-button sports coats this fall will be out of the nm-ning. Retailers advance orders are about 90 per cent in favor of three-buttonera.

Pan-American Highway prea-aure. Despite United States encouragement and help, the Pan-American Highway beyond Mexico City is a mess Construction difficuiqos and graft have wasted most of the local appropriations, which is a tragedy for many areas because theh Ighvay might be bringing tourist dollar* tc them. However, because the highway is important to hemla-pherlcal defense, the U.S. Oov-for men Lx expected through summer and fall Men like the convenieocc. However, demand

ernment will probably renew Im-portunlngs to Central American countries.

DISTRIBITION COSTS EVERYBODY, IT SAYS HERE

A note from the Old Promoter:

I dont know why farmers complain that distribution costs take so much of the consumer dollar I just ordered a 10-cent pamphlet fr<wn the government, which accepts only checks or money orders.

My bank charges me 10 cents a pheck, the envelope cost me one cent, and postage was four cents. I spent a total ol 25 cents; the government get* only 10 cents. In other words, the government gets only 40 cents of my pamphlet dollar.

PS* I have Jtist thought up (he perfect slogan for General Vacuum Corp il there l.x such a company u Nothing is our buaine&si'