PAGE FOim

THE DAILY REFLECTOR. GREENVILLE, N. C

Monday, March 28, 1960

When The Break Comes

Positive Approach At The Summit

It could be near disastrous for the United States and the free world if the Western Allies approach the Paris summit conference without clear-cut plans and proposals for what they expect the conference to accomplish.

If President Eisenhower and ^cretary of State Heter have not already set about formulating such plans in conjunction with the other Western heads of government, it is high time they did so.

The American people indeed should be alarmed by the inference in Secretary Herters statement that he is not optimistic that the summit meeting will produce great results. The American people should be gravely concerned about what seems a lack of planning by the West for proposals to present to the Soviets whtn the conference convenes.

We can understand Secretary Herters desire for the people not to be too disappointed if the long-talk-ed-of summit conference does not produce momentous results. Nevertheless, that feeling on the part of high officials should not prevent our presenting sound, positive proposals for easing international tension.

If President Eisenhower is going to the summit conference without any positive proposals, he may as well stay in Washington. There is little use merely going through the motions of a summit conference if the West has nothing to offer in the way of positive proposalsdown to the last detailwith which to confront the Western representatives. If the West has no

World Rule O:: ^ nw Concepts

By GRAHAM JONES

LAW CENTERTo exchange the battlefield for the courtroom in the settlement of International conflicts is the goal of the World Rule of Law Center at Duke University.

The center, opened in 1958, is headed by Arthur Larson, form-tT Chief of the United States InformaUon Agency and special assistant to President Eisenhower. Larson brought with him to the center training as a student, practicioner and teacba* of the law.

Groundwork for the center was laid a couple years' ago by Charles S. Rhyne, a Duke alumnus and Washington. D.C. attorney. When he was president of the American Bar Assn., Rhyne made world rule of law

* the chief aim of his adminlstra-' ti(.

* The rule of Law Center is . hot campaigning for world government. On the contrary. It seeks rather to leave the legislative function of the United Nations and world government to others.

SUMMARYWhat the Rule of Law Center Is striving for has heen summarized by Larson as

f<^ows:

^ 1. Reorganization of the

Wwld Court at the Hague and

> establishment of regional bran-2* ches of that court.

^ 2. Agreement by all nations

't; to submit to the World Court all justiciable disputes.

8. Creation of a workable ewe ri- of accepted rules of international Justice.

4. CreatioQ of conditions that will give enforceability to w World Court decision. Including International public opinion and 2* economic sanctions.

That program is a large or-dcr and it runs against many centuries of settling international differences by the sword and the gun.

PRECEDENTBut the setUe-meat of conflicts by negltiaUon ^ and arbitration is nor without precedent, Larson points out.

The . S. setUed its Northwest boundary dispute with England without resorting to force despite the famed 54 - 40 or fight slogan. Larson notes with a grin, that this nation neither ..... ot its 54-40 nor fought.

Norway and Denmark submitted to an arbitration commission the question of which was legal owner of Greenland.

Larson sees a large legal common denominator between , the basic court systems of ma-^ Jor nations. He rejects the no-tion that the cwnmon law, civil law, Islamic law. Chinese law, Japanese law. Hindu law. Jewish law and African law are altogether alien to one another.

CONCEPTS He cites these legal principles that arc com-

JSm

mon among the different systems: /

The concept that nations live under a rul of law rather than under a rule)of men.

The co^pt that conflicts must be suled by an impartial third pe^y who hears both sides fairly. J The Concept that sovereignty is not at^olute but, instead, is under the law.

The concept that agreements must be honored.

The concept that a mans acts must be Judged by others according to their reasonableness.

Says Larson: The law Is a common concept of civilized peoples, a largely untapped reservoir of possible common understanding. Our big problem is getting it down out of the stratosphere.

In getting It down out of the clouds. Larson and his colleagues at the Rule of Law Center are seeking first to gain recognition for, and the utilization of, the already established volumes of existing international law such as treaties.

Secondly, Larson proposer establishing an international system of Justice acceptable to most nations.

The third point of the program is gaining acceptance of world law and a world court system.

REALITIES On this point. Larson notes that the U. C. could lead the way. Only 31 of the 81 members of the United Nations accept the Jurisdiction of the International Court of Justice. And about half of those 31 nations which do recognize the court do so with strong reservations. The . S. reserves for itself the right to say whether an issue in which it is involved is within the jurisdiction of the court.

This is comparable to a citizen being able to decide whether or not a traffic court had jurisdiction over him.

The last, and most difficult, point of the program is obtaining compliance with world court judgments.

For this, Larson would rely on the weight of world opinion, diplomatic pressures and economic sanctions.

The whole idea of the center might sound unrealistic. But faced with the harsh realities of the destructive power of atomic weapons and intercontinental missiles, the rule of law con-,cept is gaining popularity.

Such practical politicians as Dwight Elsenhower, Harold MacMillan Winston Churchill and Thomas Dewey have advocated it.

The President summed it up this way in a letter to Larson: To depose the rule of force, and to enthrone the rule of law in the disposition of international difference is imperative.

proposals of its own, it will merely assume the position of reacting negatively to whatever Russia offers.

The conference would immediately turn into a prime source of propaganda for the Soviets. The West would be where it too long has been: on the defensive.

No nation or group of nations can maintain a position of world leadership by always being on the defensive. If they are to justify their position of leadership, they must provide that leadership through sound, positive proposals for filling the needs the world faces.

For the United States and the West to go to a summit conference without positive proposals they have carefully formulated would be to relinquish, in the eyes of many people, the position of leadership to the Soviet Union.

If President Eisenhower and Secretary Hertei approach the conference with a negative attitude, they may expect the conference to produce negative resulta for the people and the nations they represent.

Yesterday, Spring Walked In The Door

Spring has come at last to Eastern North Carolina and it is welcome indeed after one of the coldest months of March on record in this part of the state.

The warming days that normally develop a gradual case of spring fever hereabout in the later days of February and build up through March were not the case this year. Old man winter held the temperatures down even as the calendar said it was Spring. Then suddenly yesterday, it was Spring.

Maybe the weather yesterday and today doesnt suit everybody in Pitt County, but it is a good bet that 99.44 per cent of the people are as happy over the warm temperatures and clear skies yesterday as the kids were about the snow a couple of weeks ago.

One ribbon doesnt make a Spring, the old saying goes, but that one beautiful day yesterday seemed to make official the arrival of Spring for Pitt County this year, even though it is a belated arrival.

Farmers, hampered by wet, cold weather, can begin to catch up on the backlog of work that piled up during the bad days of March. Construction work, at a virtual standstill for more than a month, will move back to peak operations if the pretty weather hoMs. And it will be only a matter of days before the men^o-ries of shoveling snow will be pushed aside by thoughts of getting the old lawn mower ready for cutting grass.

Yep, Spring is here at last, and we're mighty giad to see it.

-SCyvVBONE'S 60MNA BE KURT.

By GEORGE SOKOLSKY

Attempted Book-Murder

Copyrifht, 190, Kiaf Features Syndicate, Inc.

When publishers aubmit books for review, they usually set a publication date and it has long been customary not to violate that date. There is no logic about the matter, the publisher sending the book at hi* own risk. But as there are these days newsletters about everything, there are newsletters about books. Such a newsletter ii apparently not required to

Growth Of The Money Supply

abide by the publication date. It is free to discuss in February what others are not to say anything about until April.

Such a newsletter is issued by Virginia Kirkus and she is given tUs advantage because it is assumed that she informs only the trade and that bookstores make their advance purchases based upon her short paragraph digests of books which tip bookstores as to what they should buy. So fau* as I am concerned, if Virginia

Other Editors Saying It Makes A Difference

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By RALPH ROBEY

Every now and then we get into an extensive public discussion on how fast the money supply should increase. We are now in one of those periods.

Back of the argtunent is the belief that a more rapid growth of the money supply would mean faster economic growth for the economy as a whole. This clearly is the viewpoint of the Democratic majority of the Joint Economic Committee under the chairmanship of Senator Paul Doublas. The issue is nothing like as simple as that.

What Money Supply* Denotes

The money supply usually is meant to Include the checking accounts, or demand deposits, of commercial banks and the money . and currency held outside banks. This is the most restricted definition of money supply. Some persons insist upon including time deposits as well as demand deposits. That gives a much larger total and also shows a much more rapid increase.

The reason for not including time deposits is that under the law one may be required to give notice before withdrawal. In consequence time deposits are quite distinct from demand deposits. In the case of a demand deposit one may write a check transferring an Indicated amount to anyone else. With a time deposit the most that ode may do is write a check which the bank will cash for the depositor. Savings deposits, of course, are identical in this respect with time deposits.

Velocity of Money Supply

Another confusing element is the rate of turnover, or velocity of the money supply. The data on this are collected by the Federal Reserve Board. An Increase in the rate of turnover is the equivalent of an increase In the total money supply from the point of view of the work done.

At the end of 1957 the total of demand deposits and currency outside the banks * was $138.6 billion. By the end of 1958 it.had risen to $144.2 billion. And by the end of 1959 it stood at $144.9 billion. Turnover of demand deposits increased 5 per cent during 1959.

One further preliminary point needs emphasis. This is that only the Federal government and the commercial banks can increase the money supply. The Federal government can do it by running at a deficit; the commercial banks, by increasing their loans and thereby increasing deposits. The Federal Reserve System can Influence mercial banks through increas-the lending power of the coming or decreasing their legal reserves, but it cannot make the commercial banks grant loans. Sfivings banks only lend what someone has deposited with them and hence do not have the power to enlarge the money supply.

Greater Growth or Inflation?

Now, would a more rapid increase in the money supply and its turnover in 1959 have given us a greater economic growth, or would it have resulted merely in more inflation?

It is my judgment that it would have given us more inflation. There were individuals and business concerns that did not get all the credit they wanted in 1959. or who had to pay a higher rate than they liked, butt his was primarily because of a lack of savings. The way to get more rapid economic growth Is not to have the Federal government operate at a deficit, nor to increase the money supply through generous bank loans. The only sound method for obtaining economic growth at a more rapid rate is to have policies which will increase the volume of savings, and encourage their investment.

(Washington Daily News)

We read about the terrible rioting in South Africa, and the news causes us here to be a little sick at the stomach. When race Issues become death calls, then mankind has lost his very soul.

Yet, it is so easy for us to stand thousands of miles away from the scene and deplore such incidents- It is easy for newspapers in Brooklyn Chicago to look at race incidents in our Southland and deplore them with all the words at their command. The very fact that distance separates the newspaper from the locale around which the story is developed seems to make a great deal of difference.

Here in our own South it seems so much easier for us to point an accusing finger at people of Brooklyn and Chicago about their racial disturbances than it is for us to be objective in the stories which happen at home.

The truth in some instances for all ccmcemed seems to be a lost art. Northern liberals see us In the South as a degenerate people who will try to operate under a social code handed to us a hundred years ago. That is no more true than it is for us in the South to accuse the Northern reformers of completely ignoring our problems. It is not our problems they Ignore so much as it is our solutions.

The truth of the matter is that racial troubles are not confined to the South, nor to America, but they are happening In many parts of the world. And if we are to believe what we read in the newspapers, troubles in America are much less serious in many ways than they are In South Africa.

When we read in South Africa*

that 66 Negroes were felled by machine gun fire in a demon-straUon and that 143 other were woulded, it knocks most of us out of the niche called complacency.

The best observation of race relations we have read in a long time was made recently by a spokesman for the Negro baseball players In the big leagues. It was noted that in recent years scores of colored players have taken their places in major learue baseball. The observation was made that they tend to stick together on and off the field. But this Negro baseball spokesman said, We are treated much better by White Southern boys than we are by any group up here.

Thaf is a real tribute to Southern decency and Southern attitudes. Before this ball player made that statement, people over America just seemed to conclude that if Negro baseball players had troubles In the big leagues, these troubles just had to be fomented by radical Southerners. It is refreshing to hear a respected Negro baseball player tell the full truth as he sees It and believes it to be. And Southerners of both races can take pride in this knowlelge.

It is the type of truth many Northern liberals would like to forget. In fact, is is the type of truth they would like to ignore or even dcn.v. But It didnt come from either Southern radicals or Northern reformers. It came from a man whose skin is black who plays baseball for a living.

Distance makes a considerable difference at times, but Southerners are not afraid of the truth. When the truth is spoken, both races in the Soqth look far better than the half-truth boys would have us believe.

Kirkus may refer to a book some months prior to its publication date, so may I and I, shall do it.

My particular interest is a book by Ralph de Toledano, entitled Lament for Generation, to which the Kirkus circular refers In this manner:

The author of the controversial ' 'eeds of Treason and Nixon plots his twenty year voyage from Columbia University Stalinism to the New Conser-vativism of current times. It is an unpleasant trip, and one which makes about as strong a polnic against Liberalism as one can find nowadays. The first ten year* . break with the Party, concern over the murders of Trotsky and Carlo Tresca create a classic of the Thirties intellectual bumbling out of Communism, into the purgation of War, and on to a final acceptance of God. But this pendulum swings much farther right than most of of the contemporaries he laments. Working for Newsweek he discovers new saints in Hoover, Nixon and Chambers. He idealizes them, though like many of his friends from National Review he steps around the McCarthy issue by characterizing that sinister ghost as just a country boy who hated Communism. Written in that self-conscious, overwrought style reminiscent of Mr. Chambers books, this little autobiography will enlist a few more souls for the Far Right camp, but will probably only alienate or disgust a far greater number of readers. First of all. I cannot Imagine why de Toledano should be called upon to write an autobiographical book. He is too young for that. Nevertheless. Vincent Sheean wrote Personal History, when he was very young and made a reputation thereby.

I have read the de Toledano book and must say that I was very annoyed at some of it. particularly the references to Joe McCarthy and Roy Cohn which I regarded as very wrong indeed. I also thought it stupid of Richard Nixon, a Presidential candidate, to write a foreword in a style which nobody will recognize as Richard Nixons.

Having got that off my chest. I return to Virginia Kirkus, She first of all gives the Impression that de Toledano was once a Communist. 'This Is untrue. In no place in his book does he say so and I happen to know that it never was true. What appears is a paragraph written by an ignoramus who does not begin to (Continued on Pagt 6)

Monday, March 28, 1961

And The Investor

By ROGER BABSON BABSON PARK. Mass.The railroad stocks have not been ting well recently- The Dow-jones rails. which sold at an average high of 135 at the beginning of the year, now sell at 145. The main point of this weeks column is to emphasize that it is a mistake to think of the railroads as a whole. There are four distinct groups and these ahould be recognized by every Investor.

COMMUVTER AND SHORT-HAUL RAILROADS Practically all rallroada art losing money on passenger business; but the socaHed commuter roadswhich haul passengers from the suburbs to the big cities in the morning and take them home again at night, with their employees and equipment idle a good part of the dayare very unfortunate. A campaign is now on to eliminate this business and switch it to buses, giving the buses preferred terminal facilities and certain traffic preferences in order to increase their speed.

The second group consists of roads which operate less than two hundred miles of track. These are losing both passenger and freight business. The shipper can load his goods on trucks at his factory door and these trucks will deliver at the dealers or customers door. For this reason the securities of these short-haul roads are not attractive to investors with certain exceptions such as the coal roads of West Virginia. These I like to call the gravity roads because tbs loads from the mine, go downhill to the seacoast with great sav ing in the use of power, and In fact some of them generate electric power en route which helps the return of the empty cars.

These are roads operating from Chicago to the Pacifle Coast and. as yet, they are not affected by compeUtion from trucks. Recently, on the Santa Fe Super Chief, I was a passenger on a beautiful train hav-ing eleven cars and two diesel engines and a total of only aev-enty-six passengers. The piggy-back expenments are successful in certain localities, while the automatic switching yards art helping such roads as the St, Louis-San Francisco. The transcontinental rails appear to be about the best holdings.

My favorite group of railroads, in fact, are those trans-continentais which also own large acreages containing forests and minerals. This especially is true of the UnAn Pacific, the Northern Pacific, the Canadian Pacific, and the Atchlnson. Topeka and Santa Fe. I have been told by the president of one of these roA that all passenger business sad a proportion of the freight business could be eliminated gnd the road could continue to Sy its present dividend from oil, mining, and forest royalties FUTURE OF THE RAILROADS I have not discussed competition from airplanes, which are a factor in the decline in long-haul paasenger business. It will be a long time, however, before freight - carrying aliviane. will be severe competitors. The ^ weather, moreover, is a factor and a great friend of the railroads. This means that comparatively few railroads wUl be given up, because of the fact that they are able to operate, while airplane travel is undcpon-dable. However, much duplicate track and some competing rail lines will be eliminated.

All of the above means that a large percentage of the railroads will become government owned and operated under the Department of Defense. I believe that the railroad bonds will be indirectly assumed by the government and that the preferred stocks will b treated fairly. As to the common stocks: The government will

ba*e prices for these on their average quotations during the preceding year.

I close by calling readers aU tention to my opening paragraph. . .that railroads should not be considered as a whole, but that each railroad should be considered separately when deciding whether its stock* should be sold, or merely held for further developments, or. in a few cases, actually bought.

Cold Cuts Into The Vegetables

Strength For Today

By EARL L. DOUGLASS MILLIONS AND BILLIONS What is the largest number you have ever seen? How about this one: 1,000,000,OOO.OOO.UOU.-

OO.OOO.O.OOO.OO - one thousand billion billion billion. Radio astronomers have recently discovered a source of radio energy in outer space that is trans-fitting radio waves at the rate of that many megawatts. (One megawatt makes a very high-powered transmitter on earth.)

They believe that this energy is produced by the head-on collision of two galaxies are so vast that it will take millions of years for them to pass througii each other. And while there are billions of stars involved, the distances between them are so enormous that probably no two stars will actually collide.

Well may we exclaim with the pKalmist,

When I consider they heav-vens, the work of thy fingers,

The moon and the stars which thou hast ordained: What is man that thou are mindful of him.

And the son of man that thou visitest him?

Yet this is precisely the miraculous fact of Gods love. In this unimaginably vast universe. He Is able to hear the prayers of each of his individual childrenand each one of us is valuable in his sight.

Quote...

*Tf any post office service should pay its own way In every particular, parcel post Is the one. Unlike other post office functions, it is a purely commercial service, operating in direct competition with taxpaying private enterprise. There is no sound reason whatever why the taxpayers at large should support it. Poet Tex.) Chronicle.

By ELMER ROESSNER Higher prices for both fresh and frozen vegetables are certain this spring. Late February storms In the Southeastern states and buffeting March weather in most parts of the country have destroyed a large part of the early vegetable crop.

Scarcities and higher prices are already turning more housewives to frozen vegetables, increasing demand and, hence, prices.

Rough weather has not only cut back vegetable production in the South, but It is also slashing the potato crop in the north. Many spring and summer vegetables appear smaller than expected. Prices are higher than they were a year ago.

However, some produce is improving In supply. Some of it comes from areas that escaped damage; some from the farthest South where replantings are successful, and some from short distances from markets, where early produce is beginning to be ready. Some, too. comes from Puerto Rico, Chiba, Mexico and other hot-weather countries In general, quality is under that of a year ago.

Housewives should watch for sudden increases in supplies and simultaneous dips In prices. While few vegetables of freezing quality wUl be avaUable. there will be a lot of good buys in medium grades to give tha family occasional treats. SALMON COSTLIER, TOO

Here are more look-aheads in business, based on analy.ses of current conditions and developing trends:

Salmon higher. Most grades of canned salmon have been sold out by ,wholesalers; only some Japanese pink salmon is generally available. Prices, already high, will go higher until the next pack is ready late this year. The scarcity of salmon will probably prevent a decline in tuna prices.

No, U.S. bond hike. The Treasury suggestion that it be allowed to lift the 4' per cent Interest ceiling on Federal bonds will be ignored in Congress. Market prices on most Federal bonds are below that yield now, 50 pressure on Congre.ss to act Is off.

New Puerto Rican boom. The Island has been flourishing moderately with the tax benefits

largely advertised: freedom

from U.S. Income taxes and exemption from many local taxes. Now, Its been demonstrated that with a little legal ledgerdemaln, Puerto Rico can also be a tax haven, just as Panama and 39 other countries have. It will be ideal for many tax-avoiding corporations; the Island has a pleasant climate and is only hours from Florida and New York. SLOW-DOWN. IN ROAD BUILDING Le.ss highway construction, Piinds for highway construction will be down this year, unlc.ss theres an unexpected upturn in state and Federal spending. Construction will be further slowed by other considerations: Con

gressional suspicion of road-building graft is causing many states to go slow to make sure their skirts (and access roads) are clean: Congressional insistence that Federal conditions be honored is causing many state. to review their plan.. Some are afraid of losing Federal contribution. if they shave Federal requirements tno closely.

OLD PROMOTER JOINS IN FORECASTING As long as you are making

predictions. the Old Promoter said. Id like to add one. He had walked into the office un-anounced and was reading over our shoulder.

Id like to predict an Increase In daUy trade publications, he said. One for the medical profession is now being developed. There are already daily papers In womens wear, home furnishings, shoes, supermarkets and entertainment,

The BritLsh have a dally pub-owners newspaper. and there may be more Ive never heard of.

Since tliL L the age of specialization. why shouldnt there be more dailies? A daily newspaper of new stories for bartenders to tell customers, a daily for mutual fund investors.'a dally for motel and roadside business operators, a daily for cops, a daily for robbers,

Theres one you forgot," we said. "A dally for publishers of daily trade papers

The old one gave us a withering look, put on hLs hat and walked out. I dont care If he can walk Into my act, I can walk into hisl