PAGE FOURTHE DAILY REFLECTOR, GREENVILLE, N. C

Mnttf, 18, IttO

Monday, August L5, 1960

The Alarmists Should Be At Ease

Looking For Stragglers

We hope the people who have been making headlines over the past few years by downgrading American science and technology in the raisgWe field have been reading the newspapers , (

The stories of this past week are especially food for thought. ^

Discoverer XIII was put into orbit (no longer a big story these days) and the instrumented capole was recovered (a first such accomplishment, and an all-important step toward the man-into-space g[i^l.)

A huge balloon was next launched into orbit via rocket-carrier; and is now functioning as a communications relay. Another first for our side. The implications havent really been over-emphasized, for this initial success is but a fore-runner of things to come.

Then an experimental rocket plane 'zoomed to a new speed record; followed by a new altitude record. And here too, the experimental craft was not permitted to fulfill its potential; it can and will go faster and higher as its testing program develops.

That comprises quite a remarkable series of accomplishments for the past several days. All of them are the fruition of thousands of hours of study, work, experiments, failures and most of alllink after link of successes being joined together.

For months after the shock of Sputnik I we heard alarmists downgrading U. S. rocket technology, edu-

rour Hospitals

?or Mentally 111

By LYNN NISBET

HOSPITALS - The State of North Caolina maintains four large hospitals for the care and treatment of the mentally ill. They are the Dorothea Dix Hospital at Raleigh, the Cherry Hospital at Goldsboro, the Broughton Hospital at Morgan-ton, the James W. Murdoch Hospital at Butner. The.se four institutions have capacity for about 10,000 patients; and operate at a cost to the taxpayers of some $14 million a year.

In addition to the hospitals for treatment of the mentally ill, the State Hospitals Board of Control also has supervision over the alcoholic rehabilitation center at Butner and three training schools for the mentally defective and regardedCaswell Training School at Kinston, the James W. M7rdoch school at Butner, and the OBerry school at Goldsboro. A fourth training school at Butner. and the 0*Berry school at Goldsboro. A fourth training school for western North Carolina is under construction at Morganton. The annual operating budget of the three activated schools runs to nearly $5 million

Besides the units under control of the hospitals board of control, the State has four sanatoria for U*eatment of tuberculous patients at Chapel Hill, McCain, Black Mountain and Wilson; a cerebral palsy hospital at Durham and an orthopedic hospital at Gastonia. The State constructed and subsidizes operation of Memorial Hospital at Chapel Hill, contributes to Asheville Orthopedic, and shares construction cost of local general hospitals throughout the SUte through the Medi-oil Care Commission.

\ The full story of what the ftate of North Carolina is doing for its citizens in need of hospital care would require volumes to tell. This arttele is limited to brief summarized discussion of the mental hospitals.

* COMPOSITE Your reporter visited every one of these institutions with the Advisory Budget Commission on is biennial inspection tour. Each unit has peculiar problems and special needs for permanent improvements. aggregating more than six and a third million dollars. Because the operation is essentially unied under one board of control, discussion here will be composite, except as peculiar seeds require emphasis.

The thing that most impresses one that has made the inspection tour since 1944 is the change in atmosphere and concept. Prior to 1943 each hospital had a separate board of trusteesand Butner had not been i(cquired. The 1943 General Assembly consolidated control under one central board and since that time the State has appropriated. by legislative act and voted bonds, an aggregate sum of about $43 million for capital

improvements at the ho^pitaLs, plus some $16 million for the training schools. This has made possible conversion of the old custodial asylums to modern treatment hospitals- Result of that new idea is that while more individuals are being admitted each year, more are being released after treatment, and total population remains about the same. The vital distinction is between the old idea of permanent inmates and the new concept of patients susceptible and responsive to treatment.

Another facet of this new concept is that families of patients are willing to pay for treatment of their kinfolks, whereas tl4^y made very little contribution for asylum custodial care. Last year, for example, the hospitals collected some tw'o million dollars from patients, tanging from tw-o or three doUars to the maximum of $75 a month. Close checks on resource of patients, ability to pay all of part of the cost of treatment- by hospital authorities is reducing the overall burden on taxpayers.

MODERNIZEDGreater part of the more than six million dollars currently asked for capital improvements is earmarked for renovation and modernization of existing facilities rather than for expansion or new buildings. Electric wiring, for example, which is 30 years or more old, and originally designed only for lighting just cannot carry the current load of electrical gadgets. New treatment methods as contrasted with simple custodial care require more room and additional auxilia^ service. The soundness of investment in improvements is found in the record of rapid discharges.

The recognized therapeutic value of recreation has brought more attention to playgrounds, sw^imming pools, and organized activity programs. These things were alien to the old asylum concept, but are accepted as essential tools for the modern system.

SENTIMENTAL One thing that bothers budgeteers and some taxpayers is influence of the sentimental appeal of the mentally sick on the spending of public funds. The zeal for modernization and the proven worth of the Improvements may have resulted in more expensive buildings in some instances than the patients can appreciate or fully utilize. If such extravagances exist they are relatively insignificant in view of the almost unbelievable progress during the past 15 years in the treatment of mental illness.

One canbot compare conditions then and now without a feeling of pride in the effort North Carolina has made an accomplishment in rehabilitating victims of mental disease.

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cation, schools and training. It was freely predicted it would be many years before we could match the Soviet in the space race.

There were other voices, lost in the outcry, who were much more reassuring. In effect, they said we havent put so much emphasis on that particular field; Russia is ahead of us now, we can catch up and do a better job if we take it step by step.

So there was no crash program, merely an extra application of know-how. The experts worked oh todays successes from the ground up, and in the doing, set a pattern of space research and rocketry most of us now believe superior to all rivals. The few Russian-made satellites launched into orbit have been overwhelmed by the numbers, variety and quality of our own.

VVe still lack the lifting power of Russian rockets, but those we have are doing the jobs they are intended to do. As a matter of fact, some experts say Russia had to start with oversize rockets because that county could not miniaturize the necessary gadgetry used in space studies.,

On this side of the Iron Curtain we may never know of the failures and disappointments suffered by Russian scientists. It is safe to assume they have had them.

Meanwhile, our own rocket systems and space research program are more than matching the goals set by early, quiet optimists. And it has been done by products of the old-fashioned and backward American school system.

Were crowing; its true.

But those recent news stories of achievement have an uplifting quality; especially on recalling the voices of our gloom and doom boys.

Potential Conflict Is Averted By UN Work

Again in the Congo, as at other times in other places around the globe, the United Nations, through its international police force, has staved off the possibility of war which could have sparked another global conflict.

U.N. forces in the Congo, including those now replacing Belgian troops in Katanga Province, have eased the international tension that was rapidly building up in the chaos that has occurred in that African nation since its independence a few weeks ago. Had it not been for the United Nations and that organizations ability to send an international force into the Congo, a pitched battle between East and West over the new nation might have developed.

The United Nations, while it is still looked upon by many as merely an outlet for propaganda, has proved itself time and again a powerful force for maintaining peace in the w^orld. Particularly in recent years it has effectively put down so-called brush fire wars before they could grow into major conflicts. The action by the United Nations in the Congo is another example of its effectiveness in dealing with such situations.

Much remains to be done before conditions in the Congo will return to normal. This new nation may be the subjejct of international debates both within and outside the United Nations. In spite of this, however, the U. N. international force now in the Congo has all but eliminated the possibility of a war over the new nation and it has paved "the way for the settlement of issues involved at the conference table rather than on the battlefield.

Competition By

By GEORGE SOKOLSKY

'jttle Return To Public

Copyrifht, 1960, King Features Syndicate, Inc.

Some time ago, a number of Madison Avenue advertising men. specializing in television, were brought together by the National Broadcasting Company to talk about their business. They got into a jam session on how much public service the public is entitled to. The advertising men, not being lawyers, paid no attention whatsoever to the blatant fact that the television companies did not own their principal mechanism, namely, the air waves which are the property of the people ot the United States and are chartered to private ownership under specific conditions determined by Acts of Congreess and the regulations of the Federal Communications Commission (FCC).

Newman McEvoy, senior vice president of Cunningham and Walsh, opposed the > Doerfer Plan by which the networks agree to program at least an

hour of prime time every week, with a halt hour turned back to their affiliates for local public service shows every third week. This seems little enough in return for the free use of

policed air waves. McEvoy said, according to Broadcasting, that this plan was in response to minority groups and that it represented knuckling under. But to the citizen, it is difficult to understand what is

meant by knuckling under. For instance, if the FCC or

even Congress decides that its

facilities, chartered to others to operate, should be used occasionally for public service, what can these networks do but read their charters and discover the terms of the grant. Donald Leonard, of Fuller and Smith and Ross, said at this meeting:

. . .1 dont think TV In any way, shape or form owes anybody anything, certainly not an apology. I hat to see television, as a medium, knuckle under and sort of give in.

Other Editors Saying ... This Political Congress

Jroreign hirms

By RALPH ROBEY

To most of us foreign competition is merely a germ, and to a large number of us it is all to the good because we get a selection of articles that would not otherwise be possible. But to thousands of business firms in this nation today foreign competition is hurting profits and in many instances it is threatening the very existence of the organization.

Now American business believes in competition, and since 1890 we have had a federal law prohibiting monopoly. Why the growing concern about foreign competition? The answer is to be found in the difference between domestic and foreign competition.

In the domestic field, every business works under the same general conditions. Its raw material costs the same, it draws on the same labor supply, it pays the same transportation charges and, in general, the same freedom to devise articles which will appeal to the taste of its customers, it can advertise to any extent it can afford, and its market is identical with that of its competitors. In the case of foreign competition we find the following:

1. Wages are lower. This is true in every nation, even if one counts the fringe benefits. Taxes on business also are lower as a general rule. Raw materials may cost more or less, and administrative expenses may be either higher or lower, but us-usally are lower. Even though output per manhour is less than in this country, therefore, the total cost of production is less in most instances.

2. Foreign factories have been largely rebuilt in the past few years. This meaiis that they have just as modern and efficient machines as we have and can. if they so desire, turn out Just as good a product. In many lines, the foreign factories are even more modern on the average than oursin spite of the enormous investment we have been making in plant and equipment.

3. Foreign governments, with few cxceptioas, actively help and support exports. In some ca.ses tins is through outright and direct subsidies, and In most cases the government guarantees the exporting company against various kinds of

loss. Foreign governments also make constant surveys of our market, arrange fairs, and so forth, all of which are designed to be of specific aid to their exporter^ Our government does practically nothing along these lines, although it is moving in this directionc, but moving very slowly.

4. In most foreign nations it is a matter of exporting to survive. Until the past two or three years, as a result of the w'ar devastation, they did not have a surplus which they could ship abroad, but now they have increased their production in many lines to a volume which gives them a substantial supply for export. And the widespread over-devaluation of their currencies in 1949 and immediately thereafter has given them a competitive advantage as of today.

In spite of all these favorite factors we still are exporting more goods than we import, and this year our exports are increasing more rapidly than our imports. This Is quite amazing because in many foreign nations there are tariffs and other restrictions against our goods. In some cases these restrictions are so severe that American companies are establishing foreign branches or subsidiaries in order to be able to sell at all in the market.

Unfortunately the severity of the foreign competition is creating a demand in many quarters for us to raise tariffs. In some instances that may be desirable, or even necessary. But the only sound, real answer is for us to increase our productive efficiencyand sell more abroad,

Quoie...

We are faced today with one of the most disturbing trends that I have witnessed in my years of law enforcen>entan overzealpus pity for the criminal and an equivalejnt disregard for his victim. This dangerous tendency is inherent In the various theories ancV systems now being suggested, many of which are aimed at making sweeping changes in our established methods of dealing with the lawless.''J Edgar Hoover, Director of Federal Bureau of Investigation,

(Richmond News Leader)

It isnt the fault of President Eisenhower that Congress has come back into session this late in the heat of both August and an election year, and it isnt his fault either if some of his recommendations to Congress at this first moment after the national conventions take on a slight political coloration.

It was the failure of Congress to get through its schedule by convention time that forced its recall in the first place. And, some of the more down-to-earth are saying, the decision to call it back in any event was mostly a political machination. Harry Truman, it will be remembered, won a great deal of political warn--pum out of a post-convention session in 1948 that was unable to operate very well because of the pressure of politics on it.

As a matter of fact, the record of this Congress is pretty much made already. Aside from some obviously routine business that needs nonpartisan attention, such as, say. the creation of some 40 new Federal Judgeships that are urgently needed if everyday justice is to be served, there Isnt much that Congress needs to do now: not much, at any rate, that couldnt await the next full session under the new administration and the new Congress to be elected this November.

If the President is detected playing a little politics at this time it isnt because he has suddenly taken a deep and enthusiastic interest in politics. It is because the need to play politics has been forced on him by the leadership of a Democratic party that for aU of its majorities in both houses failed to finish up its business by the time it should have.

True, great and pressing issues face the country now, but in the main they are issues of foreign relationships and are better handled by the executive branch than the legislative. Such matters as the minimum wage level, the care of the aged ill, the Federal intrusion into education and any further consideration of civil rights wiU not spoil for waiting a few montha

If the political maneuverers in both parties of this Congress want to serve the public need they will pick and choose bills that have had full committee consideration, adopt or defeat them, and adjourn.

The election and the approval it gives to either the Democratic or the Republican programtakes precedence over what an aging Congress can do now. The new Congress, fresh with its mandates from the voters, can better handle the political issues than this one can.

This is very curious language. TV owes its existence to a law passed by Congress when Herbert Hoover was Secretary of Commerce, deciding what should be done about the air waves and about the then new device, radio. The whole thii^ might have become a government monopoly as it has been in some countries. Hoover set up the system which opened radio and TV to private enterprise but under government supervision. It was never intended that radio and TV should not be used for public service. The error made at the time was that no details were spelled out as to what was meant by public service and how much time it should require.

The televising of the Republican and Democratic conventions, for instance, was excellently done, but it was not a public service. They were sponsored programs which brought considerable profit to the networks and the local stations. Would the networks not have televised the conventions had no sponsors been available? As a matter of fact, the sponsors proved to be a boreswne interlude because the listener who stayed through it all wearied of the repetitious stuff about the same ice-box. I could repeat w'hat was being said and 1 already own ice-boxes and dont need new ones and cannot afford to have a totally electrical kitchen installed.

One day, we discussed one of the adveuisements and decided that to do as the female announcer said would require rebuilding this ancient house and as that would be too expensive, perhaps the only solution would b to divorce my wife and marry the announcer and maybe we would get it all as a wedding present. I decided to keep the old wife. Then some speaker came on and spoke against waste. It was very refreshing.

Pay television Is coming more rapidly than anybody had expected and that means that while local stations may make more money, the advertisers will face many difficulties. They may have to return to the the newspapers which will eliminate contests and quiz shows aud other illnesses of the TV industry which the advertising agencies developed. Pay television simply means that the viewer will pay for what he sees. If he wants to look at advertisements, he can see the unpaid TV or he can watch 15 minutes of nothing but advertisements. This is already beginning to develop and the ad-(Continued on page 6)

Rarents And The

1- uture

By ROGER BABSON

BABSON PARK. MASS., ^

August IS. One of the reasons given for anticipating the prosper!^ of the Golden Sixties is the constaltly increasing population, both in this country and in the world as a whole. It is true that investors must recognize population as a factor in stook prices; but it la only one of many factors.

TEENAGERS

Considering the United States alone, the age factor is now a vital force in manufacturing, buslnesss, college mirollments, investments, and other considerations. Many of todays young people will become voters for .the first time tiiis year, and may be a factor in the November elctions. The high birth rate (rf World War n is now showing up in the large number of teenagers reaching college and-or employmrat age. For a while, those dealing in baby food, clothing for youngsters, etc.. profited greatly; more re-centiy, teenagers have been a source of good business tw retailers (and of headaches to many parents)!

Now, these young people are about to be thrown on their own. to make good either In college or In the competitiva business world. This is something which should be recognized by employers, parents, and by the young people themselves. Just now there is a shortage of workers in many lin^ of in-dustry, especially M office employees. After the summer vacation is over, tiiere should be a letup in the demand for such jobs, and the stKxtage of workers might develop Into a surplus during the next year or two.

GROWTH IN FOREIGN

POPULATION

In China, with its population of over 600 million. 1.200.000 babies are born every week. The same is true proportionately of India and Pakistan, with their combined population of about 500,000,000. It is true that measures are being taken to limit the birth rate. On the other hand, new means of sanitary living, free medical supplies, and proper nutrition are causing fewer babies to die. Hence, I see no prospect at the moment of a limit to tile net growth of these nations.

The Malthusian Theory advanced in 1798 contended that the world will some day run out of arable land to feed the expanded population. Although the land surface from which to feed people is limited, (and far surpassed by the area of lakes, marshes, and oceans), yet the growing shortage of watw required to sustain life and industrial activity may be even more serious.

TWO SIDES OF THE COIN

Increase in population cannot be taken, at face value, as an optimistic factor for the future. In order to translate people Into producers and customers, we must have a social and moral environment which will generate initiative and ambition. Only as the proper environment, income, and dnand rise along with the growth In population do the greats numbers of people assure prosperity.

On the other hand, if initiative is stifled by unfair taxes or government giveway social practices or poor health, then capital formation, employment, incomes, and consumption will lag the rise in population. In that event, the growth trend in population, now considered to be bullish for the future, may work as a depressing Influence.

What does tiie above mean to parents of growing children today? It means that iMU^nts of all nations must devote attention to helping their children prepare for their future. Not only does this mean providing them with book learning, but also taking care that they acquire the fundamental habits of perseverance, industry, and thrift.

In addition, parents must above all see to it that their children develop good cha racer. good health, and a sane faith. These three things, more than anything else- will enable children to deal successfully with the problems In their future. In short, if their children possess CHARACTER. HEALTH, and a SANE FAITH they wUl be rich. Otherwise, they will be poor.

Test For Ecanomic Accelerator

By ELMER ROESSNER We are about to see a test of the accelerator of the American economy.

We have already seen a test of the brakes. They workalmost too wellalmost enough to send us into a spin.

In mid-1958, the Federal Reserve Bank discount rate, which controls the Interest rate on almost all money, was down to P* per cent. Business was booming so much that our financial experts feared the boom would run out. The Federal Reserve interest ratesand therefore all other interest rates were slowly Increased. They wre boosted to 2 per cent in September. 1958, and by September, 1959, they pushed up to 4 per cent.

This had the intended effect and more With the cast of borrowed money higher, individuis and corporations cut plans to buy on credit. The boom was slowed down. Some complained that it was deflating. Bu-si-ness was restricted too much.

they said. Cutting back of plans for expansion was throwing men out of work.

TIIE DOWNWARD TRAIL

Then, .n June, the discount rate was cut to 3a and that eased the money supply. That is, it was easier to borrow money to build a new plant or apartment house, or to establish other new enterprises that would provide more jobs, more spending.

That cut alone did not do the trick. Unemployment remained high. Public confidence was not fully restored. The stock market slipped a few notches.

Lets face it: the immediate outlook is clouded. Consumers are showing less Interest in spending. As pointed out here recently, there are surpluses of air conditioners and 1960 autos on the market, providing unusual bargains. These high inveutor-le.s were the result of special conditioni' but general con-ditioas -U'. cut aemaibd for appliance. o'he: ;*'irables.

CONSLMEt riAM OFF

Meanwhile, a survey conducted by the National Industilal Conference Board for Newsweek magazine shows a sharp drop in consumer plans for purchasing new goods, except new autos. They .survey parallels a similar one by the University of Michigan.

It is obvious, from other sources, that the 1959 dip is threatening to repeat, possibly with deeper overtones.

So the Federal Reserve, while not yet hitting the low C of another basic interest cut, Is hitting some other notes,

It has cut stock margins sharply, giving investors more money to play with. ^

It has reduced the reserve requirements of member banks, giving them more money to loan.

It has announced a number of technical changes that will make H easier for banks to lend money for fall expansions, tv changes will five banks si;it;*ional lenduif powar m *t<oM inn.ooo,-091)

ThM uoderata aaafw

amount to a stepping on the accelerator to give the economy a little more gas.

If they workthat Is. if they dissipate the fog that has been settling around business, they will show that Federal Reserve controls are effective in slowing down and speeding up the economy. If they dont, they will show that we have been placing too much confidence in the so-called "automatic controls that have been added since the early days of the Roosevelt II administration.

And if they do not work immediately, it is almost certain that the Federal Reserve will again lower the discount rate, and probably, using other devices, such as still lower stock margins, to let more prosperity ferment.

CUBA ALSO LOSING EXOTIC FRUIT REVENUES

Chiba, losing dollars in sugar sales to the United States, is *JLso losing doUars In tales of wsui-fCHM and avoeados. Bot> siarxo and avocado exports afv bout half of totals of a year.'