AGE FOUK.THE DAILY REFLECTOR, GREENVILLE, N. C.

Monday, April II, I960

Monday, April 11, 1960

If YWanna See Some Fun

As Expected, A Compromise Bill

House passage of its own civil rights bill as amended by the Senate appears virtually assured now even though it is not entirely to the liking of Southerners or the ardent civil rights advocates in either the House or Senate.

The provisions of the bill represent a compromise between no civil rights legislation and some of the more far-reaching measures offered for consideration in both the House and the Senate. While its provisions represent a new step by Congress to implement the constitutional guarantee that every eligible person should be allowed to vote, they will come to bear only in those isolated cases in which there has been a concerted effort to prevent otherwise eligible Negroes ,'from rgistering in order to be eligible to cast ballots 'in local or national elections.

From the objective point of view, the provision now before the House is about as mild a civil rights measure as the South might have hoped for in this national election year. It has been apparent since Congress convened that some sort of civil rights legislation w'ould be passed during the current session. Leadership of both major political parties was pledged to push some sort of civil rights measure through Congress in order to satisfy pressure groups in the forthcoming campaign and election.

The key provision of the bill provides for the fed-, eral courts to register qualified Negroes in areas where judges find systematic discrimination has been used to keep them from exercising their right to vote.

In spite of the fact that prevailing opinion in other parts of the nation is that such a situation exists throughout the South, the truth of the matter is that systematic discrimination to keep Negroes from voting is evident in only a few scattered places in the South. And it might well be that a similar situation exists in some scattered areas in the North as well.

While this move by the federal government to gain more control over the election macliinery of the_ nation may be viewed as a potentially dangerous step if it is followed by other measures to get more control, time will probably show that federal courts will have much less business because of the new law than is now expected. Actual cases of systematic discrimination against Negroes to keep them from voting will be far fewer than many of the civil rights advocates anticipate.

Unless the provisions of this legislation are usurped by the bureacracy which inevitably will build up around this new law, experience with it may well show* that further legislation in this field is unnecessary. Time will show that the South has been unfairly and unjustly accused of discriminating against the voting rights of a portion of its citizens.

In a year in which some sort of civil rights legislation appeared certain, the proposals now before the House probably, represent as good a compromise as the South could hope for. '

Fat Stock Show, Sale

Indicates Pitt Progress

The tenth annual Pitt County fat stock show and sale being held today and tomorrow is indicative of the progress made in gradual diversification efforts in agriculture of this county in spite of the fact that we still depend heavily on tobacco as the primary source of income.

nusual Apathy

?or Campaigns

Over the period of years in which this annual event has been held, interest in livestock production has gradually increased in Pitt County. While the increased interest in livestock among Pitt farmers cannot be attributed solely to the fact that the show and sale is held every year, it must be said that the event serves a most useful purpose in promoting interest in livestock. The event affords farmers an opportunity to show what is being done in this field of agriculture in the county. It also serves to promote greater interest 'in this one phase of agricultural diversification in Pitt.

By GEORGE E. SOKOLSKY

Old Ghosts Still Arounc.

By LVNN NISBET

APATHETIC Although activity la more pronounced in the big statewide political campaigns than it was a few years ago, there is still an unusual degree of apathy for seven weeks before primary day. The most frequently heard excuse for the dullness is that the big fellows and their managers are waiting for the cloise of filing for legislative and county offices, which comes at noon Friday, April 15.

* Another and perhaps more sig-

* nificant reason is that the several organizations are finding the cost of waging the campaign even greater than they had expected, and they are saving up money for a big splurge

during the final weeks. Up to ' now emphasis has been more on organization than on ballyhoo. This makes it difficult to appraise progress.

PLATFORMS All of the candidates for Governor have come out strongly for better

* schools, but most statements . heve been general and vague.

, None has detailed anticipated

sources for the increased money , known to be needed for school Improvement. None of them has ' gone so far as Governor Hodges In insisting that a larger share of the school burden must be borne by the counties. That . would not be a vote-getting posi- tion. Yet, the trend seems to be In that direction.. Results of elections, especially in Guilford and Richmond counties., for local ad-valorem taxes to boost teacher pay and reduce pupil load ratios are significant. These instances are cited as proof that the people are willing,to pay for essentials, although disposed to [ question some of the frills attached to the educational pro-

* gram.

. TAXES The Advisory Budget Commisslcm has not reached . the stage of serious thinking

* about the revenue or tax bill to be presented to the next General Assembly, and probably will not until late summer. The budget makers are currently engaged in getting together estimates of needs of State agencies, departments and institutions. and when these items are totaled the amount will be goal for the tax bill. AS usual, edu-cauon will take the biggest chunk out of the taxpayers dollar.

The State Board of Education passed long to the budget folks Its approval of the United For

ces for Education program calling for at least $50 million a year for public schools enrichment, in addition to the millions extra required to hold the line at current level of services. The State Board of Higher Education has tentatively approved requests of the colleges and universities for substantial expansion of programs and higher faculty^ salaries.

Demands also are mounting for more State service in health and welfare areas, and for substantial increases in appropriations for prisons.

These unusual demands coupled with the influence of inflation reducing purchasing value ot the collars already appropriated pose real tax problems. Whether or not the budget group wl recommend it, there is some show of sentiment among legislators for the soft drink and tobacco special tax levies which have been avoided in North Carolina. Advocates of these special luxury taxes argue now that since Virginia has adopted to cigarette tax. North Carolina has lost a lot of prestige in holding out against the levy.

VIRGINIA Virginia voted dcwn a general sales tax patterned after the North Carolina levy and advocated by Governor Almond, and instead levied a series of luxury taxes including three cents a pack on cigarettes. Opponents of these specialized taxes are urging Governor Almond to veto the bill or to call a special session of the Legislature to repeal the levy before its effective date July 1. Neither action Is regarded as probable.

MISSISSIPPI - While Virginias luxury levies, including much higher taxes on alcoholic beverages, may give North Carolina some advantage, especially for' border county merchants, the State of Mississippi is making a bid for industrial development by overall reduction iTi Income taxes, both Individual and corporate.

The Tarheel candidates are not specific in dealing with these tax matters. It would require a great deal of courage for a candidate for Governor to come out in favor of a luxury tax on cigarettes, and even greater courage to advocate a general land tax for schools. Yet protestations of support for better schools without suggesting source of the required money do not have much meaning.

Though livestock production in Pitt County has fluctuated from year to year because of market conditions, crop production and other factors, the base of livestock production of the county has increased in recent years. Many farmers have supplemented their income through livestock and have thus given a broader base to their farm operations.

It is doubtful that livestock production or any other supplemental source of farm income will ever replace tobacco as the mainstay of agriculture in Pitt County. Evelf so, the importance of adding to farm income through sound approaches to diversified farming is becoming increasingly evident in Pitt and other counties of Eastern North Carolina.

COPYRIGHT, I960, KING FEATURES SYNDICATE, INC..

The images of A1 Smith and Joe McCarthy rise to plague candidates for the Pr.sidency in the 1960 campaign. Al Smith Is recalled because of the Church and State issue in the 1928 campaign; Joe McCarthy, because Richard Nixon achieved his early fame as a protagonist of anti-Communiwn before Joe McCarthy seized that stage.

built an enormous reputation as a man of wisdom and probity, a successful engineer, a world food - administrator, the first really significant Secretary of Commerce this country liad ever had.

was decidedly anti-Jewish and anti-Catholic.

7hat DroD In

Al Smith was a simple man of the people who emerged from lowly environs to become a distinct personality, a Governor of the State of New York and a Democratic candidate for President. He was in many respects a remarkable man, utterly independent, devotedly religious, unrelentingly patriotic.

''nterest Rates

The Daily Reflector

INCORPORATED

Published Every Afternoon Except Sunday Established 1882 DAVID JULIAN WHICHARD, Publisher

Entered at Post Office. Greenville, N C.. as second class mall

matter.

SUBSCRIPTION RATES By Carrier Week 30e

(BY MAIL, Payable in Advance)

Three Months ........................................... $ 3.50

Six Months _____________________________________..... $ 6.5C

One Year ____________________________________________________ $11.50

MEMBER AASOriATED PRESS

The Associated Press Is exclusively entitled to use for publlcatltm all news dispatches credited to It or*not otherwise credited to this paper and alio the local oew*> published herein AH rlfhts of publication of special dispatches heq are tlso f^erved

NATIONAL ADVERTI8INO REPRFSENTATIVES*

Thomas P Clark Co, Inc.. New York. Chicago. Atlanta Member Audit Bureau of Circulation

All advertising copy must be received at least one day before publication date.

By RALPH ROBEY

Recently interest rates have declined at an amazing pace. A few weeks ago the vast majority of government bonds of more than five years maturity were selling at prices which gave a yield of above iVi per cent. Today the majority of them are selling at prices which yield less than 4V4 per cent. This 4V4 per cent is used as a reference point because that is the legal ceiling on government obligations of five years. Today It has to pay only a shade over 3 per cent on both 90-and 180-day bills, and the rate on five-year money would be about 4 per cent.

Some Causes of the Drop in Rates

This sharp decline in rates was not expected. The following have been important in bringing It about.

1. The demand for credit by business has been less than had been anticipated. Among the factors leading to this result have been less need to borrow for taxes, less volume of business than expected, less need for funds with which to carry inventories, and in many instances because of the weather less need for cash for investment In capital and equipment.

2. The Federal government currently is running a surplus. This means that it does not

have to make demands upon the money market for addition-a funds. The issue of a few days ago. Including a 25 year

bond, does not disprove this. For the next fiscal year the estimate is that the surplus will be $4.2 billion, and it is that prospect which influences interest rates.

3. There is less fear of inflation. This is one of the ele-

rrents which has caused the decline in common stock prices. As a result of the changed attitude or. Inflation investors are fore w'illing to buy fixed interest obligations. and a piotential lender does not insist upon having a normal rate of Interest plus

whatever he thinks necessary to offset the rise in prices resulting from inflation.

4. The Board of Governors 0 the Federal Reserve System is also less fearful of inflation and in consequence is leaning a little less heavily against the wind than it was a few months ago. The Reserve System his not turned to an easy money policy, but the figures kdicate that it is giving the commercial banks a bit more leeway for making loans and investments than it was a short time ago.

5. There is widespread conviction that while this will be a good year from the point of view of business in general, it will not be a boom year in terms of production, prices and wages.

This represents a rather complete shift from the thinking of a few months ago, and is all to the good.

Decline of Rates Is Temporarv

Such are the developments which have created the decline in interest rates. Equally im-j^rtant is whether the lower rates will continue, and if so, for how long.

It would be pleasant to say that we have seen the high of interest rates for the indefinite future, and it would be doubly pleasant to say this If it were based upon the fact that private saving is increasing to the point where it meets the demand at current interest rates. But there is no justification for such a statement. We have not increased saving, we have not eliminated the underlying threat of inflation. we shall have to continue to fight to protect the projected surplus of the government, and the demand for business loans soon will pick up again in, volume.

In other words, the decline of Interest rates must be regarded as temporary and there is no legitimate basis for the Congress refusing to eliminate the present 4Vi per cent ceiling on government bonds.

It is difficult to say that, in 1928, Smith might have been elected President were he not a Roman Catholic. The country was going through a heightened boom; Uie stock market was running wild; everybody was rich. The Harding and CoUidge Administrations permitted the economy of the country to give the feeling of unbelievable prosperity whereas, in fact, we were suffering from a run-away inflation. Herbert Hoover had

However, certain facts stand cut. When it was sure that Al Smith would be the Democratic candidate. Bishop James Cannon, Mr.. of the Methodist Episcopal Church, South, called a conference at Asheville, North Carolina, to organize the anti-Smith Democrats. To be elected, Governor Smith had to carry the South. Involved in this campaign was not only Smiths Catholicism but the Prohibitionist issue. Bishop Cannon was aggressively pro - Prohibition; Al Smith was anti-Prohi-bition. The Methodst Church had taken the lead in banning intoxicating liquor.

As early as the 1924 Dem-cratic Convention, the Democrats faced the problem of the Klan, the greatest strength of which was in the South. The Democrats had to have the Solid South to win. The supporters of WilUam Gibbs McAdoo for President were unwilling to have the Klan denounced and it was not denounced. The compromise candidate, John W. Davis, spoke out against the Klan.

It was during the Al Smith campaign that the Ku Klux Klan again became politically active. The Klan was started in 1866 as a movement to rescue the South from carpetbaggers and Negroes. Originally, it included all Southerners, Jews, too. if they wished to belong. When it was revived in 1921 In Atlanta, Georgia, its program

Governor Smith did not take his failure in 1924 lying down. He got Into a debate in the AUanUc Monthlj*, in April 1928, with Charles Clinton Marshall. an Episcopalian lawyer, on the basic question of a religious test for a President. It was this debate which enhanced Al Smiths stature for courage and intellectual acumen.

Other Editors Saying... Oont Disturb The C&D

(Wilson Times)

We go along with Malcolm Seawell, candidate for Governor on the stand he has taken on industry hunting and -the State Department of Conservation and Development. The old adage that nothing succeeds like success is certainly applicable here.

North CaroUna is developing industry-wise at a faster rate than is any other Southern state with the possible exception of Florida. This development can be credited to our industry seeking Governor and the commerce and industry division operating under the C & D.

One of the candidates advocates taking the department from the C & D, making it an independent agency, responsible diiectly to the Governor.

This may sound good but it is not as practical as the present program. Today all departments in the C & D department its boai'ds and committees are better able through being unified to serve all the people.'

There is no disagreement among any of the candidates on the policy of all industry standing on its feet. We are referring to the much discussed

statement the Governor made when he advocated a study on special tax* concessions to attract new industry.

No one. Including the Governor, favors any special tax concessions. But it is wise to study and find out what other states are doing so we can be prepar-ed or at least know the plan of action carried on by our competitors.

But the tax and specistl concessions have been entirely covered, and the public has been notified on that subject by all the candidates. But the equallyimportant issue of who ts to run ie commerce and industry hunting division has not received as much publicity.

We favor leaving well enough alone. Especially since the concerted efforts of the C & C are exceptionally profitable. Under the present set-up the records are available for all communities. When an industry is interested in locating in a community the entire C & D organization goes to work, and this includes the Governor. So we can see nothing to be gained and much that could be lost by taking the commerce and Industry division from the C & D.

i rying Govmt

3onds

By ROGER BABSON

Babson Park, iiau., I am often asked what are the best types of Inveatixieata icfx those whose funds are limited and who need steady income to help with their living expenses or to provide a major part of such expenses. Here is my answer to these people and to othera in similar circumstances*

U. S. GOVERNMENT BONDS ARE A BUY

Among the best investments from the point of view of safety of principal and continuity of iiMKwne are D. 8. Govern- ment Bonds. These are available in different series and ma^ turit^ to accommodate different types of investors, and ars selling not far above tieir low prices for the past years. The longer maturities now return a yield of over -4 per cent, which is more than you can get by leaving your money in a savings bank.

The full faith and credit of ths United States is behind these government bonds, and I am sure Uncle 8am will never default on these obligations. It is entirely possible, however, that the money in which you will one day be repaid may purchase less than it does now, but that if a risk which you must take with almost any invortment you make. Of course, government bonds are taxable, but there are comparatively few Investments you can make which art not taxable. '

DONT OVERLOOK MUNICIPAL BONDS

Many of the bonds of citlea and towns throughout the country pay well today and should be safe Investments. A further advantage is that income derived from these municipals la non-taxable. I suggest, however, that you choose your municipal bonds carefully. It is desirable to know something about the financial affairs and tax Income of the city or town whose bonds you buy: otherwise you should employ an Invesir ment counselor. *

Usually, the best municipal bonds are those of localities of .substantial size, though under 100,000 population. Avoid bonds issued by the larger cities. The risks involved in holding them are too great and too numerous, especially for people of moderate means and, income. I also prefer bonds of Interior cities which would probably not be bombed in case of World War m.

ADVANTAGES OF TUR*VPIKE ISSUES

Smith was violently fought not only on the religious issue but also by the Anti Saloon League on the Prohibition issue. The CathoUc Church, carefully and deliberately, stayed out of the fight. It is also to be noted that no matter how intense this quarrel became, there is no recorded notice of bloodshed.

Since 1928, this issue of a Presidential test has been dormant not dead. Various anti-Catholic and antl-Jewish organizations exist to oppose American individuals of Jewish or CathoUc persuasion. On the other hand, a number of defense organizations have come into existence to fight back against any form of discrimination, There are also Negro defense organizations.

In my opinion, the bond issues of most of the larger turnpike authorities should prove to be safe investments or those who are really dependent on their Uvlng expenses. These 1 oads provide the safest and fastest mode of auto and truck transportation we have yet developed. The medium-term future of the better turnpike bonds should be excellent as far as earnings are concerned.

Some of these turnpikes may get Into fnancial trouble because of competition with each other, or from airplane and hel-icopter facilities, but at present most of them are doing well. Of course, their Income would be adversely affected in case of war. particularly if such a conflict should force a return to gasoline rationing.

The McCarthy issue Is being dragged into this campaign by some supporters of Richard Nixon who fear that he may be regarded as too severely anti-Communist. In addition to the McCarthy issue, some of the Democratic liberals are dragging into this campaign the Helen Gahagan Douglas campaign, when she ran for United States Senator in CaUfomia and was defeated by Nixon. Iiiber-als think that they can make scmething of the Nixon-Douglas campaign. In fact, a play is being shown In New York in which Helen Gahagan Douglass husband. Melvyn Douglas, stars, which is designed to do Nixon as much harm as a play on Broadway can do.

SOME OTHER GOOD INVESTMENTS

Government, turnpike, and niunicipal bonds are not, by any means, the only Investments today which offer safety of principal plus a good return. Most Mutual Funds offer good opportunities for income. They provide diversity for those whose limited savings would not permit them to buy many different stocks. Remember, however, that these Mutual Fund* are cnly as good as the judgment of their managements.

Much of the data in this article has been checked In an extremely valuable history entitled Church and State in the United States, by Anson Phelps Stokes, formerly Secretary of Yale University.

Do not put all your investment funds into any one basket, whether it be individual Bonds. Stocks, or Mutual Funds. Also, do not forget that one of the better investments for a retired person or for one with limited income is to buy a two-family house in a good residential area and to live personally in one half while renting'the other half. This house should have a backyard with two or three trees.

Mere Look - Aheads In Business

By ELMER ROESSNER

Strength For Today

Here are more look-aheads in business, based on analyses of developing trends and a few new leaks:

By EARL L. DOUGLASS BEAUTY OR UGLINESS?

In the small seashore town we visit in the summei*., waterfront property has become very expensive. Summer residents pouring in to find sandy beaches and salt water pay high prices to buy or rent houses which look out over the ocean. Very often they think with envy of the few year-round residents who are fortunate enough to be able to enjoy the benefits of the seashore during the whole year

In one part of town, close to the beach, with a fine view, Uierc are a series of dingy, rundown buildings used as store.s, a garage, and so on. Beyond

them lie the glories of nature w'hich other people travel far to enjoy. But the Inhabitants of these buildings are scarcely Eware of the oceantheir faces are .set toward the street in front ol them and the money to be made from the people who come down it. Behind the. buildings are heaps of empty cartons, old iron, and other trash. In the midst cf great bi^uty. the.se people make an ugly blemish becaiuse they are interested only in material gain.

Unappreciative, insensitive people miss the boM things in life. Those whose physical and spiritual eyes ai^e open, who look around for beauty and pleasure, can find them anywhere.

TV press attacks. Television executives thought the press was less than kind when TV was being exposed for fixed quizzes and payola deals. Now that the heat is off, many in the TV in-dusti-y feel that it should be more outspoken in criticism of newspapers and magazines. Look for more programs reviewing the press, with no acid spared. One such program is in the making and others may follow. And in news and drama, the electronic media will be much more criti--cal of tlSe press from now on out.

Air cargo convp<*tltlon. Airlines rising competition for transoceanic freight, frequently noted here, will intensify shdrlly. A few years ago the giant air

lines readily sold obsolete planes to smaller airlines subsidized by Latin American and other governments, But the big swing to jets Is making more prop planes surplus than these lines can absorb. So many lines are being forced to convert them into cargo planes, then hustle like mad to get enough cargo to fill them: Note; Some American airlines -have been, hopeful that the new African nations might be Interested in starting airlines, but few have found the necessary capital.

GOOD STEEL YEAR

Summer steel buying. Since it looks certain that steel prices will rise when new wage increases go into e|fect December I. Industrial buyers will begin increasing stockpiles of steel soon Theyll have a double incentive to stockpile: prices cant be In-Cl eased on w'hat they buy now and the bigger their stockpiles.

the more cautious the steel companies will be in posting increases. Steel production this summer may therefore set new records.

Tougher marge-butter competition. Stocks of vegetable oils are rising and current plantings indicate huge crops of soy and corn oil. This will make ingredients of margarine cheaper, and may lead to lower prices. This will influence the price of butter.

New pay demands. For the

most part, state and local government employees are laying low with pay rise demands!, right now. Thats smart timing. If tfiey wait until Congress has acted on pay rises for Federal employees, they may have the Federal hike as a shining example. If the Federal boost does not happen, they will be in a sti-onger position since they can argue that they are .not com

peting with Federal workers for a better share of the wealthy. OLD PROMOTER PLANS' MUTUAL CAPITAL-LOSS FUNDS

There ought to be some way to do it, but I havent figured out how, the Old Promoter said today as he dropped In. scattering the floor with peanut i shells as he nibbled.

We have mutual funds that pay profits to inventors, he sld. Im trying to devise a mutual capital capital-loss fund. Instead of buying dividend-paying stock. It will buy stock in companies with past losses. It seems to me there ought to be some way for small Investors to gain the benefits of tax ^ losses as there Is for big investors to profit by buying whole corporations w'ith tax-loss situations.

Sounds reasonable, eh, Congressmen?