FACE FOURm DAILY REFLECTOR, GREENVILLE, N. C

Monday, Auirust 31, 1959

Monday, Au^st 81, 1959

They Talk Peace

Water Conservation Plan Is Next

With members of the new State Board of Water Resources now officially in office. North Carolina should be on its way toward developing a workable and comprehensive program for maximum use and maximum conservation of its water resources.

In recent years North Carolina has come to recognize the fact' that its bountiful water resources are among the most valuable natural assets the state possesses. It has also come to realize that for generations we have been taking our waters for granted with the mistaken idea that no matter what we did to them, they would still be usable.

As the state developed industrially it became apparent that some of our water resources were being ruined. It also became apparent that although we have vast quantities of water resources, these resources are not inexhaustable. They could be quickly ruined like the water resources of some other highly industria-' listed states unless care was taken in advance to preserve them for future use.

Over a period of several years one after another of a variety of agencies and commissioners were given specific jurisdiction over the state's water resources. The result was confusion, overlapping of authority and responsibility, and generally an ineffective program for preserving for future use our water resources.

When the 1959 General Assembly authorized the State Board of Water Resources, it afforded the state an overall agency with authority to deal effectively with the problem of both developing and conserving our water resources. How well the new board does in dealing with these problems will largely depend on

;;^oliticking Not

At All Unlikely

By LYNN NISBET CONVENTION Governor Hodges is not an active candidate for Vice President. He told newsmen the other day 1 would Uh embarrassed if any move-mefA to emlorse him fcN- that position developed at te Southern Governors Conference in Asheville iKXt m<th. He had previously v<rfced his belief that the nominee for President ought to pk^ his runnli mate.

much as the elected President ^ aelects his calnnet. He made it tlear he thinks for him to en-'" courageor permit any effort . to promote his pers<Mml political interest at the conference where he was official host, w(Hild be Impolite.

. His reficence in Utat dlrec-fion cannot be interisreted as lack of Interest in the national ticket To the contrary, he has for months shown more concern about who will be nmninated for President ttem about who will succeed him as Governor. He inade it very clear that he hopes to have big voice in selecting Tarheel delegates to Los Angeles, that he wants a strong unified delegation. As of now he wants them to go with open minds, without advance commitments. so as to be in good trading position when voting time comes.

While soft pedaling personal references, it is inconceivable that Governor Ho^es will not do a lot of politicking with his colleagues during the Asheville meeting. It is entirely possible tiiat mit 0 these conversations may develop evidence of sui-ficiei^ Ei9^rt for one candidate to justify iwe-convention an-XK>uncemei^ North Carolina l>acking. It will be surprising if ftoy such statement comes before the delegates are chosen next spring, even though decision may have been reached earlier.

BUTLER The North Carolina folks are not apt to take any part in eff<Mts to oust National Chairman Paul Butler, despite open resentment at his preslstent slaps at the South. This state would find itself in untenable position if it protested a rule requulng participants In the national nominating convention to support its mmiinees. North Carolina requires every

'candidate filing res office in a party primary to sign an affidavit pledging support to the nominees of that primary. No oath of alle^ance is required of tank and file voters, but many

Citizens recognize a moral obligation.

Governor Hodges repeated what he has said many times before that he thinks Paul Butler talks when he ought to be listen

ing, and that hi^ efforts should be devoted to unifying the party Instead of apparently trying to split it up. Butwith the prospect that he will have to deal with Butler in all pre-convention arrangments. he sees no point in playing into his hands by helping him bust up the party.

Similar attitude was express ed by John D. Larkins Jr., national committeeman, when he said he doubted the propriety of trying to oust Butler as chairman at this time. Efforts in that direction have failed before. Hodges and Larkins, who do not agree on many political issues, appear together Jn belief that the party is hooked with Butler OT some months to come, and wisdom suggests making the best of the situation.

Almost certainly these matters win be discussed among the * Governors assembled at Ashevilleand just as certainly the discussions will be private.

SPECIAL SESSION Talk about probability of a special session of the North Carolina General Assembly continues. The main reason for an extra session would be constitutional revision, with emphasis on court reform. Lately a new item of constitutional amendment has been injected, which in some quarters is taking precedence over courts.

That is the convening date of the General Assembly, in relation to the beginning of the term of the newly elected Governor^ and other State officials. The , present constiti^on says the Governors term shall begin on the first day of January, with provision that the incumbent executive shall hold office until his successor has been sworn in. TraditionaUy the inauguration of the new Governor has been staged at a joint session of the General Assembly on its second day. Now, the constitution provides for the Legislature to meet on the first Wednesday after the first Monday in February. That data can be changed either by legislative; act or by constitutional amendment. The 1959 Assembly failed to adopt a bill fixing the date for early January. Without action by a special session, the next elected Legislature wl not meet until February 8, 1961.

Whoever is elected Governor next year can demand that the oath be administered and he take over the office on January 1. That will miss the panoply of inauguration. Or he can let the incumbent stay on until February 8 or later, thus losing four to six weeks of his term. A newly elected Governor is not likely to be pleased with either alternative. _

the men who took their oaths of office last week.

A heavy responsibility rest upon their shoulders, for the effectiveness with which we develop our resources in North Carolina may well determine the future development of both agriculture and industry throughout the state.

Our Firemen Showed Invaluable Know-How

Greenvilles firemen deserve tHe highest praise for their efforts in battling one of the largest downtown fires in Greenvilles history Friday.

, The destruction of Roses Store was in itself a great loss, but the total loss might have been many times greater had it not been for the fact that firemen prevented the blaze from spreading to other buildings in the heart of the citys business district. That in itself was no easy task with the tremendous inferno licking over the walls of the building, fanned by a light wind. *

Less skill, less courage, less determination on the part of the Greenville firemen Friday and a large portion of Greenvilles business district might have been destroyed.

Fridays fire probably afforded a good many residents of Greenville their first opportunity to see local firemen battle a major blaze in the downtown area. Many of those who had previous impressions that firemen were happy, checker playing guys with the easiest job in town probably got a different impression. The firemen displayed courage and they displayed know-how as they battled the searing flames and the choking smoke that spewed from the building.

They fought the fire against hazardous and heavy odds and they prevented adjoining areas of the business district from being engulfqd by the flames.

Greenvilles Fire Department and its individual firemen are to be commended for their efforts Friday.

'V

By HAL BOYLE

4$^'./' ' ''

Interest Rates Might Never Know

"n Our Economy

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By RALPH ROBEY

Weeks ago the Administration requested the Congress to eliminate the 4*4 percent ceiling on government bonds of over five years maturity, and to authorize it to adjust the rate paid on United States Savings Bonds. For a time it appeared that the requests would be granted, but now that possibility has been eliminated by the House Ways and Means Committee.

Earlier, the committee had voted to give the President authority for two years to lift the interest i*ate when he determined that it was in the national interest. At the same time H passed a resolution stating that it was the sense of the Congress that the Federal Reserve Sj^stem should buy government bonds as well as Treasury bills and notes in its open market operations. Both the Administration and the Federal Reserve objected to this resolution, and quite properly so.

Mills Spurns Compromise Proposal

Then a new compromise was worked out which gave the President the authority to raise the interest rate for three years, and softened the resolution into fairly meaningless language. This was tentatively passed by the committee, with five Democrats joining the ten Republicans, which meant a 15 to 10 vote. But Committee Chairman Mills refused to introduce the compromise, and another argument started. Finally, Rep. Ikard (D-Tex.) proposed that the problem be tabled and this carried by a 14 to 11 vote, with all but one of the Democrats, Rep. Harrison of Virginia, voting for the motion.

This means that the Treasury can sell only obligations with less than five-year maturity, because the demand for long-term funds has already driven the interest rate above the percent level. As a. matter of fact several government bonds are now selling at such a discount from their par value that the yield is higher than 4V4 percent.

What this Means to the Economy

There are various unfavorable aspects of this necessary concentration in the short-term field.

First, it makes the management of the public debt much more difficult and means that the Treasury must go into the market ntore frequently than otherwise would be necessary. This is disturbing to the market.

Secondly, by selling only shortterm paper the rates on Treasury bills and notes will r.dvance and may well rise to above the long-term rate. This

will make the carrying charge of the public debt higher than it otherwise would be, and higher than necessary.

Thirdly, long-term obligations are attractive to savers and investors, and to the extent they are bought by these groups they represent a mere transfer of purchasing power to the government. Short-term paper is bought primarily by the banks, and is paid for by a bookkeeping entry by the banks to the credit of the government. This is an increase in the volume of money, and hence is inflationary. This point was stressed at great length by the Treasury and the Federal Reserve before the Ways and Means Committee.

Fourthly, the action Indicates that we as a nation are not willing to put our financial house in order and subject ourselves to the rather rigid discipline of a free market. With the fear of Inflation already widespread, this congressional move toward inflation could scarcely be more unfortunate or more untimely.

Finally, foreign holders of " balancs in this country will tend to withdraw their funds. That means a stepping-up of gold exports, and while we have far more gold than necessary to meet present requirements we can not be complacent about anything approaching a run from the dollar.

E and H Savings Bonds The failure to be able to adjust upward the rate of interest on E and H savings bonds is equally serious. At present the return on these obligations is 3V4 percent, or well below what a saver may obtain on other securities of equal safety and liquidity.

This is the primary reason why the redemptions of E and H bonds for the past several month* have consistently been above the new sales. The Treasury had proposed lifting the rate on these E and H bonds to 3^4 percent, and making this rate apply to all such savings bonds outstanding. Now that is not possible, and we may be sure that the savings bond program will continue to be a drain on the cash resources of the Treasury.

The strongest public statement on the action was that of Rep. Richard M, Simpson of Pennsylvania. the ranking Republican member of the Ways and Means Committee. He said it Is the height of fiscal irresponsibility and bodes evil for the confidence of the people, at home and abroad, in the soundness of our fiscal structure. That Is a correct appraisal.

NEW YORK (AP)Things a columnist might never know if he didnt open his mail:

Do you know what one of every eight adult Americans has lost? All his teeth! At 35 two out of three need some false choppers.

How hard do you work? If youre average, you probably generate about one twelfth of one horsepower of energy.

One price of the jet age: There is no longer any such thing as a distant relative.

It takes the human eye six times as long to see an object In color as it does one in black and white. Maybe thats why people no longer take the lime to watch a rainbow.

How weird can you get?. . . second-hand hearses are now in

great demand around Boston. Plumbers, carpenters and other tradesmen use the vehicles as attention-getters for new business.

How heavy is a cloud? Well, a good robust average thundercloud is said to weight 150 tons.

Figures show that the average woman spends 75 per cent of her waking hours sitting down, and her figure shows it, too!

The oak is the forest tree most damaged by lightning.

These are the good olddays note: In 1908 the

average American had to work 8G weeks to earn enough to buy an $850 car. . .'Today he earns enough to buy a car in only 26 weeks.

A taxless paradise: Bermuda is one of the few spots in the

Other Editors Saying Mr. K In Grave Danger i

modern world without tax collectors. . .It has no income tax, no capital gains tax, no excess profits tax, no estate tax. , . The governments principle revenue is from customs charges.

Theres safety in sunlight, . . Mile for mile, you are three times as likely to get killed if you drive by night instead of by day. . .You are not only more likely to get into an accident: the accident itself Is twice as likely to be fatal.

Whatever happened to flypaper?. . . .1 havent seen any in years. Have YOU?

Princess Grace of Monaco told Polly Bergen recently that her favorite song was When Day. is Done. . .Many a housewife who doesnt live in a castle knows that feeling.

(Goldsboro News-Argus)

Soviet Russis premier, Nikita Khrushchev, will be in grave danger when he comes to these United States September 15 for a visit to seven of our cities.

This will hardly be the case for President Eisenhower when he goes to Russia later. Neither will it be the case while he visits on his current trip in Germany, England and France. Aside from the hazards of strain and travel, Mr. Eisenhower Is conceivably in no personal danger. If any attempt were made on his life in Russia, it would most likely come from one whose mind ,.is unhinged.

And against men of great position in the world, the mentally confused and unbalanced do direct their venom. All American schoolboys know of the assassinations of President Lincoln, Garfield and McKinley, and the most successful attempt to assassinate Franklin Roosevelt in Miami. When one considers the small number of men who have been our president since the nation was born one sees how grave is the danger from cranks or the insane to our presidents.

For Mr. K when he comes to us, there are aggravated and special dangers. We have in the cities he will visit thousands of people who may have festering grievances against Soviet Russia and all its symbolism for cruelties. murders, banishments of loved ones.

For instance, there are in America now an estimated 3(K).-000 who escped or fled Hungary

when the Soviet put down wit)i such ruthlessness, such a bath of blood, the uprising of a few years aback. Among these there will be those who knew the torture chamber before they escaped. There will be others who lost a wife, a father, a son, a parent in as cruel a suppression of human dignity as the world has seen since Attilla the Hun.

Another great group which might harbor personal grudges and grievances is the 3,000,000 who come from or are children of the nations which have been swallowed up, or brought under subjection, by the Soviet.

Ks visit, it follows, presents special problems for the security groups of nation, state and city who must guard the life of K. Even by this date these groups probably have mapped every road, street, and route along which K will move. They know every building and every window from which a shot might be taken at K. If tension develops to an alarming extent in any one city, it is possible that the route may be suddenly changed, and somebody who looks much like K may take the route assigned while he is moved by another way. Such a device was used when eggs were hurled at Mikoyan in Detroit. The man spattered with the eggs was not Mikoyan but a standin.

The State Department even has a plan to put K in a helicopter and hop - skip and jump him around his circuit.

It would be terrible Indeed if despite all the precautions, K came to injury while among us.

American men are going In more and more for the body .beautiful. . .Each, year now they ^pend about 72 million dollars on iair tonics, 25 million for shampoos, 405 million on shaving accessories, 120 million on toothpastes and mouth washes, and 20 million on deodorants.

It was Orson Welles who observed, There are three intolerable things in lifecold coffee, lukewarm champagne, and overexcited women.

Opinions n Brief

Now, women are found In every responsible financial position of trust. From the penny-pinching housewife to the woman president of a bank, they are recognized for their good business sense. And the men dont seem to mind anymore that members of the fair sex have taken over these positions of trust.Canton (N.C.i Enterprise.

It is the big name schools which are crowdedthe Prince-tons, Harvards and Yales. Down the line just a bit are scores of fine schools with distinguished faculties. They would just love to get their hands on bright young men and women with wholesome personalities and a scholarly bent.The Charleston (W.Va.) Dally Mail.

Some mens Idea of a good town is one where its easy for the wife to find a good-paying job. Anderson (S.C.) Independent.

.xtra "ncoma Sources

By ROGER BABSON

BABSON PARK, Mass.. The Boston & Albany (New York Central > and the Boston ii Maine railroads are asking to drop scores of trains and stations. Increased fares are not the solution. People simply wUl not ride the trains if fares are increased further. I have just returned from Arizona on the swankiest train,the Santa Fes Super-chief. There were 54 passengers in eigrht beautiful cars hauled byt wo engines and a crew of ten men. The passenger business will gradually decline to almost no riders. Now the riders are 90 per cent oh people; the young people trave in automobiles, buses, and planes.

RAILROADS ARE DOING

EVERYTHING TO REDUCE COSTS

The railroads have bought new passenger cars, which art air-conditioned. But they are cutting out checking trunks on many trains and are closing express offices. This saves carry-ing baggage cars and men ts handle baggagCi both at the stations and in the trains. Even the freight business is falling off, although the railroads an running faster freight servici and adopting piggyback tram port from point of loading to final destination. Now electrical freight yards are being built and salesmen are calling on shippers for business. Freight business may again increase, although the new federal highways will be another handicap.

The railroads, however, will successfully compete with the newspapers, magazines, and billboards In selling advertising space. In dining cars, if there are any waiters, they will not bother with table linens; but will use only paper napkins and place mats. On these will be printed advertisements of the foods we are served! All stations and much right-of-way will be sold for advertising space, although this income may gradually decline as passengers become fewer. Freight cars and freight yards, however, offer some advertising possibilities for both national and local products.

WHAT MORE CAN THE

RAILROADS DO TO GET INCOME?

The railroads are the largest real estate owners in the United States. This is true not only of the Santa Fe, the Union Pacific, The Northern Pacific, and the Southern Pacific, but of every one of the 700 different railroads now operating. Land owned but not now used by the railroads could be sold to pay up all their bond issues. Selling this land would not only save them interest and taxes, but would benefit the communities ItL which these 700 railroads operate. The railroads should be allowed to consolidate and raise or lower their rates of fare and freight charges.

Railroads having large terminals will stop trains 1,000 feet further out than the present stops; hence, unless there are more red caps passengers will have to carry their bags further. This will give the railroads some wonderful property however, to rent for supermarkets, drive-in theaters, bowling allies, etc. in the hearts decrease in passengers. These, of the cities, irrespective of the moreover, could be two-story buildings, if desired, which would be readily financed by insurance companies.

RAILROADS ARE NECESSARY

We must have the railroads for heavy freight. They are the life blood of the nation. This was proved during the two World Wars. When the railroads had a monopoly, they abused the people. They are now suffering from this but this will all be changed. It will be changed by greater efficiency, fairer labor and tax laws, and by their being given freedom to run their own business as do the bus companies, trucking concerns, air-Diane companies, and taxis with which they must now compete.

Now a word in closing to investors: In most instances, you who hold railroad stocks might do well to sell them, putting the money in a bank until industrial stocks have their crash in price; then reinvest in good dividend-paying Industrial stocks. You who hold railroad bonds should probably keep them. When the railroads wake up to the advantages of getting into the real estate and advertising business, most of these railroad bonds should be paid off at par.

Strength For Today

orniture Industry Must Fight

By EARL L. DOUGLASS THE REAL THING

The Greek philosopher Plato once wrote that the unexamined life is unworthy and ineffective. We Christians would go even further and say that the uncommitted life is unworthy and ineffective. We not only have to examine our lives; after we examine them, we need to direct them toward good ends. We want to commit ourselves to something. Better still, to Somebodyand that Somebody is, for the Christian, Jesus Christ.

People often complain about the fact that their religion means little to them. There may be many reasons why they have this feeling, but certainly one very prevalent cause is the fact that Christians are often not committed Christians, They believe a few things. They meet

a few church requirements such as payment of dues and more or less regularity In church attendance. But this is far from the committed life. The committed life has spiritual potency In it, for the committed Christian takes his life and puts it in truth Into the hands of God.

Not quite surrendered. This is the diagnosis which experienced Christians often make of the people who are Indifferent to religion, who .scoff at it, or are hostile toward it.

Religion requires belief. Religion requires faith. But belief and faith together cannot give us a religion which really w'orks. In order to get a religion whlch really work.s we have to commit our lives to the object of our wor.ship and to the enterprises which our faith establishes.

By ELMER ROESSNER

The furniture indusUy will have to fight harder for sales next year and even vigorous increases in advertising and promotion may not bring-sales up to this years level.

The principal reason is that the push behind automobile sales -and the excitement of new models are sure to drain considerable consumer buying power. Furniture and autos are ooth, to a great extent, sold on time and there are limits to families credit, even in boomingest times.

Many fuimiture manufacturers are aware of the situation and the furniture shows in January and February will abound in new styling and design. But is doubtful if they can generate as much interest as the new compact cars, the ,new foreign cars, and new designs in larger An.eri-can cars.

STEEL PINCH COMING

Here are other look-aheads in

biuslness:

Steel shortages are only day.s away. So far, huge stockpiles of steel in the yards of auto manufacturers and other user.s, and in the steel warehouses of the nation, have prevented the strike from pinching all but a few users. However, the piles are shrinking and some users will be slowed down: some perhaps next week, others later in September.

Flag bonanza. Flag manufae-turers may work off their heavy Inventory of 48-star and 49-star American flags, thanks to the coming visit of Nikita Khrushchev. They are offering them at bargain rates for use along routes the Soviet Premier will take.

Booing him will be inhospitableIn fact it would be considered an affront to the President, whose guest he will be. But cities, towns and individuals can show tnelr feellng.s by heavy displays of the American flag.

Rise in interest rates. Pressures

for higher interest rates have been slowed down by the steel strike. Corporations are borrowing less for expansion until they are sure that metal will be available. But shortly after the strike is ended, spending for expansion will rise, renewing pressure for higher rates.

MORE POWER FAILURES

Black-outs in other cities coming. While the causes of the power failure that blacked out a large section of New York have not been definitively assessed, engineers say that other cities may experience similar problems. They say the great age of some power distributing systems, plus the fact that they are being overloaded with constantly increasing number of appliances and industrial machines, makes failures probable.

Cheaper vitamins. Because of Increased manufacturing efficiency. many producers have been able to cut prices of vitamins.

Efficiencies are being pushed still further, largely because of rising competition from imported vitamins, and manufaif-turers will, almost of necessity, cut prices further.

OLD PROMOTER WOULD SUBLIMATE AGGRESSIONS

There was that old gleam in the Old Promoters eye; the minute he dropped in it was obvious he had a new project

needing investment.

Youve heard about the success of the new life-size

dolls? he asked. Ive got a parallel project that will make a mUlion. I'm going to make like-size effigies, for hanging.

We can do all the unpopular political figures and well have & steady demand for Khrushchev, Mao and some other world figures. Now if you have a few spare thousand dollars

* We told him we werent Interested. Our own effigy might be the first one to be hanged.

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