r AGE FOURTHE DAILY REFLECTOR, GREENVILLE, N. C.

Mcmday, Oatobar SI, liW

Monday, October 81, 1960

At The Verv Least

Communitiei Need A Better Way

The increasing number of youngsters who must be provided a sound educational background by our public schools is recognized as one of the most Important problems facing the communities of this state in the next decade.

Each year the number of youngsters in our public schools increases. Each year the demand for more classrooms and physical facilities as well as the need for mere teachers becomes more apparent.

In North Carolina, where the primary responsibility for providing school buildings rests with the individual community, it is becoming more imperative that the communities project long-range plans for constructing and financing these school buildings. Otherwise the need for classrooms reaches far beyond those which are available, make-shift school programs become necessary in order to accommodate the students, and the level of instruction pro\ided the youngsters drops appreciably.

Recently there has been considerable discussion in North Carolina about using the existing school buildings longer periods during the year in order to take up part of the requirements for new classrooms. While this may provide a partial answer to the prob-

!!)emo Decision !3y Spencer Love

By LYNN NISBET

LOVE Governw Luther Bodies collected the flrat big dividend on his investment of time and energy In the current Section campaign when Spencer ; Lova announced his full support to John Kennedy, Lyndon John-aon, Terry Sanfordand the entire Democratic ticket.

Love Is chairman of the board ef Burlington Industries, Inc.. the biggest textile manufacturing in the world. Hodges is chairman t a special committee named . by Senat<Mr Kennedy to wcH-k with * business and irofessional ' miwith special attention to textilesin behalf of the Democratic ticket.

The mnnounc^zi^t was made in tiM dramatic setting of a luncheon given by Love at OreensbiH^s Starmount Ckmatry , Club honwing Goemor Hodges, Guests Included a number of atate and local political leaders and more than 100 business men a number of them believed to be sympathetic to the Nix-on-Lodge slate.

Love ssld his peisonal friendship for both Nixon and Kennedy had led him to hope he might **sit out tiis electiim.* As the . campaign progressed he became convinced that a good citizen could not sit by idle, and it was his duty to take a stand and let it be known.

After careful consideration he decided that the best interests . of the country, including indus-; try, would be served by the election of Kennedy and Johnson. wlUi a Democratic congress. He credited Governor Hodges with considerable influence im his decision.

IMPACT State Democratic leaders think the development will have Nation-wide impact. It

Lknown that top Nixon men i tentatiely mmted Love in tbtr comw*. Guilford leaders aid flie announcment would be ef great help locally. And Guil-Ibrd has been recognized for weeks as a place where Democrats were desperately in need f help.

There were not enough individual votes in the luncheon ro<Hn to carry a medium size precinct. One man estimated that the business men tiiere control more than half a billion dol-3ars. Burlington Industries Just reported over ^12,000,000 sales last year.

Sen. Henry M. Jackson, latlonal chairman, said in Raleigh last week that the money situation was easing up a Utile for the cami^ign treasury. It is expected that news of Love's endorsement will accelerate the trend toward more liberal contributionsas well as to more votes for the Democrats.

DIVIDED Big textile man-tfacturers like big labor leaders re divided in support of the two major parties. Robert Stevens. head of the giant J. P. Stevens Co. almost as big as Burlington, Is for Nixon.

George Meany and James Carey, a top of APL-CIO, are supporting Kennedy. James Hof-fa of the powerful Teamsters

and Harry Bridges of the west coast long-shoremen are for Nixon and Lodge. Similar division is found in the field of electronics and other lines.

POROOTTEN The fM-got-ten man in this election campaign is Luther E. Earnhardt, who will retire as Lieutenant Governor next January.

During the entire administration of Governor Hodges he has given more prominence to the office of Lieutenant Governor than any previous chief executive. Even before Earnhardt was elected to the second place of-flce. but was serving as president of the senate while Hodges filled out the term of Governor WilUam Umstead. he was invited to sit in on Council of State meetings and other important conferences. On occasions when the Goemor was out of the state, Earnhardt often presided over Council of State meetings. He has been very litflc in evidence since the primary in which Cloyd Philpott was nominated to succeed him.

He has not attended the Democratic rallieswas recognized at bis own ninth district rally but was not there.

By contrast Governor Hodges has not lessened his face as the end of his term approaches. In fact, he is doing more strenuous travel in the campaign than ever. It is not expected of defeated primary candidates that they will be as zealous as those who won the nominatlcm (and Earnhardt was not defeated he was not a candidate for wiy office. Malcolm Seawell, John Larkins, Beverly Lake, C. V. Henkel, Dave McConneU and other losers have been active in varying degrees in the fall campaign.

POTPOURRI Spencer Love was so zealous to keep business and poUtics completely separate that the publU; relations division of Burlington Industries did not know about his luncheon party for Governor Hodges at which he announced support of Kennedy until they read about it in the newspapers.

The party on the Democratic bus was talking about somebody throwing liquor in Nixons face. Edwin Gill, the mjdite and dignified state treasurer, was asked what he would do if that happened to him. Id Uck it!" re-pUed Mr. OUL

Mrs. Elraest Ives, sister of Adlai Stevwison, who has a home at Southern Pines but legal residence in Illinois, got a big hand at the Statesville rally the other night when she said she and her husband were so much Interested in helping theli- Carolina kin folks In the election they would for the first time vote absentee.

Most enthusiastic demonstration of the whole campaign was put on by the Democrats of Alexander county at the ninth district rally, A hundred or more of them paraded the hall with banners and noise makers reminiscent of the big convention.

lem if a satisfactory program is ever devised. It clearly will not obviate the necessity of continuing to construct new school facilities. As the number of school-age youngsters increases, the need for more classrooms will continue to increase.

Communities throughout the state must give greater attention to its individual needs for classrooms in 1964, 1966, 1970, and likewise work out in advance a sound method by which these building needs may be financed. For the most part, communities up to now have relied on voter approval of bond issues from time to time for particular building projects. Usually the proposed facilities are sorely needed before steps are undertaken to get voter approval to borrow the necessary money for their construction. Even under this more or less standard procedure there is a time lag of one to two years between the time funds for the construction are approved and the time the facilities are actually ready for use.

A number of communities, following this method of operation, have found that voters have turned down the proposed bond issues, resulting in further delays in obtaining facilities that are sorely needed. The school program, already a couple of years behind in its building needs, is thrown another year or two behind.

In view of the building needs for public schools in the years immediately ahead, it seems to us a more comprehensive and better organized program for financing school construction must be found by individual communities of North Carolina. Otherwise we will find our school building programs lagging badly, and the educational program of our public schools suffering because of the lack of adequately physical facilities.

No One Measures Up To Nobel Peace Prize?

Its a wee bit disturbing to realize the Nobel committee of the Norwegian Parliament could not see its way clear to award a Peace Prize.

Aside from the annual mild taste of excitement attendant upon bestowing sizeable sums for contributions to society, people of all nations have found comfort and pride in the symbolism of the Nobel Peace Prize.

The fact that the committee did not make such an award this year might be interpreted as meaning they were unable to find agreement on the nominees, that they wished to avoid an impression of favoritism or pressures, that there simply was no candidate of sufficient stature in the field of working for peace that measured up to the prize.

It will be remembered that news agencies reported several months ago, a rumor that Nikita Khrushchev had sought to have his name placed in nomination, The reason is perfectly clear; for the Nobel Peace Prize is, in exalted circles, a status symbol beyond compare.

Nonetheless we find its absence in 1960 vaguely disturbing.

At a time in history when peace is the most precious prize of human kind; at a time when presumably so many people are working for peace as their road to survival ... at such a time as this, to find no worthy hand to hold the olive branch . . . speaks poorly for the worlds chances of finding that peace so desperately sought.

The world needs a Peace Prize winner, just to keep its morale up.

Production Anc.

'Business Trend.

By GEORGE SOKOLSKY

Gold And Fiat Money

Copyiiaht, 1960 King Feature!

Syndicate, Inc.

For several years now, the subject of gold has been discussed in this column. As far back as 1933, I have been writing about the peril of fiat money, anu what interested me most about the London Economic Conference held in that year was that whereas it was called with the hope of stabilizing the currencies of the world, Franklin D. Roosevelt, by personal fiat, in company with Henry Morgen-thau, Jr., wrecked the Conference, and forced the nations of

the world to abandon hope for a stabilized currency. Since then, fiat money has been current and whereas the dollar grew in confidence throughout the world, it was supported mostly by confidence in the American economy and therefore had to fluctuate accordingly.

The gold stock of the United States in 1932 was $4.226,(X)0.-000. Gold at that time was valued ai $20.67 per flne ounce. In January 1934, the private ownership of gold was forbidden except for certain manufacturing and commercial purposes. So, by 1935,

Other Editors Saying ... Hard Pressed For Money

The Daily Reflector

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By RALPH ROBEY

Not long ago this space w as devoted to a discussion of production as measured by the Federal Reserve Board index. The .latest figxire at the time was that for August and it was a preliminary estimate. We said that when the final data were in the estimate might be revised either up or down, but that the revision would be honest. The final data are now in and the revision was downward one point, or from 109 to 108. Even more important is the fact that the preliminary estimate for September is 107. That Is four per cent below the all-time high reached last January.

What is going on? Is this the beginning of a recession or merely a rolling readjustment?

Before answering these questions there is one preliminary point that needs to be made. It is technical but by analogy it can be made simple.

If you are counting your money and want to round it out, that Is not give it to the exact penny, you consider anything of qfty cents or more as a dollar. Conversely anything below fifty cents is ignored. Thas $4.43 is counted as $4. and $4 .53 is counted as $5. The same practice can be followed regardless of the sums involved, or whether the amounts are money or just figures.

Such rounding out Is common in many government statistics. This Is the reason so many gov

ernment statistical tables have a footnote saying that the totals may not check because of rounding. But most government indexes are not rounded. T*^ Consumer Price Index, for exrmple, always is published in tenths of a percentage point, as 126.5 or 126.6, and so forth. But even though most government indexes follow this practice, the Federal Reserve Board does not. It deals only in whole numbers in so far as its indexes are concerned.

Now if one is going to round out his money supply he obviously must first count it. If he is going to round out a column of figures it must first be added. And if an Index is going to be rounded out it must first be calculatedcalculated not just in whole numbers, but down to the tenths of a point and perhaps further.

The Federal Reserve Board make.s these exact calculations and always has. But until recently these exact calculations were not published. They were not secret or confidential and one always could telephone a friend at the Board and get the detailed figure, but that was not done except in special circumstances. Fortunately, a few months ago the Board started to publish the details in its pre.'^s release, so they are now available to anyone who L interest-fd. But in the Federal Reserve Bulletin, and the government (Continued on page five)

(Washington Daily News)

Towns and cities of North .Carolina are finding it ever more difficult to meet their budget requirements from the existing tax sources available to them.

And with more and more people demanding more and more services, the only way a municipal government can grant these services is to find additional tax monies.

Because of increasing demands, the League of Municipalities is asking the next legislature of North Carolina to authorize a payroll or occupational tax to be levied on communities desiring to have such a levy.

All so often those making demands for additional services are also making demands that the tax burden be decreased. Anc it just cannot be done today The day might be fast approaching when the people of any given town or city must decide one questiondo we want additional taxationor do we want to work on economy in government so that taxes will not be ircreased? That sounds very simple in words, but in practical application, it is not as simple as it sounds.

The average citizen of North Carolina feels today that he Is already overtaxed. To place a pavroll or occupational tax on hin would be but another burden he must bear. At the same time we certainly realize that if acditional services are to be expected, then additional money must be available. Where is it to come from? >

There seems to be a great game prevalent when an individual says, Im in favor of this extra service provided Im not the one hit when it comes tc extra taxes. Somebody must

be hit, and that cannot possibly be avoided.

It Is rather strange today that politicians talk in terms of econ-cmy at election time, but once in office they seem all so of-ter to yield to those asking for additional services. Why dont we think a little more on the matter of affecting economies in government? If we could realize some economies, then we perhaps could also realize a few additional services.

To get back to this matter of an occupational or payroll tax, if the legislature should approve, then one of the biggest howls ever heard in North Carolina is bound to go up as taxes go up on those who must pay the extra tax. While the pajToll or occupational tax will be a set sum, it still is not going to set well with those affected.

Government seems to be growing larger and larger on all levels. And the larger it glows, the more money it takes to run it. When extra taxes are considered, the professional man doesnt want his right to cost more, the bottlers dont want a crown tax imposed, the newspapers dont want an extra tax imposed upon them, the farmers dont want a tobacco tax, this group or that group doesnt want to bear the extra burden.

If the legislature gives the request of the League of Municipalities serious consideration, then very likely a big legislative fight will ensue. There is no easy answer today. The people must either stop asking for additional services or be willing to pay the extra taxes needed for these extra services. It is the people who must be the real deciders of this matter.

Census

the gold stock of the United States rose to $10,125,000,000 and gold was legally valued at $35 per fine ounce. In 1941, when the United States went into World War n. the gold stock had risen to $22.737.000.000. On October 23 1930, the gold stock was $18.-.581.383.570. From 1940 to 1958, the gold stock of the United States was never under $20.000,-00(,000: usually, it was in a range of $21 billion to $24 billion. . The earmarked gold during this period fluctuiited from $1 billion to $6 billion. By earmarked gold is meant gold which is in the possession of the Treas-ur./ of the United States but is actually the property of someone elsis and which may be withdrawn under certain circumstances. At present, the earmarked gold in the United States Treasury Is for all practical purposes about equal to the gold stocks. Granted that arrangements have been made to avoid the withdrawal of earmarked gold, such arrange-irents are always dependent upon confidence in the Administration and in the general economy of the country.

The Russians announced last spring that they would Issue a gold rouble for commercial purposes in October. Other reports gave next January as the date. Soviet Russia unquestionably possesses between $9 billions and $10 billions of gold.

Pranz Pick, an Important authority on the subject of gold, early this year, indicated that the gol position of the dollar is rather uneasy. He said this when Treasury officials and Wall Street bankers were giving the public to believe that everything was all right. Actually, gold has remained the only International measuring rod for currency stability. Other countriea were building their gold reserves and were deeply concerned that the Uniited States continued to buy gold at $35 an ounce which Is a wrong price from two standpoints: (1) That other nations were willing to pay more; and (2) That American gold miners could not afford to Bne the metal at that price and were actually put out ol businbte by thiir own government. Meanwhile, Soviet Russia continued to mine gold.

In the United States, the price of gold is fixed at $35 an ounce. In London, Zurich and Amsterdam. free gold markets exist where trading occurs without restriction. During the past fortnight the price of gold has been rising In the London market until it reached $41 for a fine ounce of gold. The buyers who are \(Cuntinued on page five)

J: laures

Imoact

By ROGER BABSON

BABSON PARK, Mass.,The following rough analysis of the I960 Census figures is intensely interesting to me. The figures show thaX the total population of the United States, including Hawaii and Alaska, is now aboit 180 million. This is 30 mil-licHi over 1950.

LARGE CITIES SUFFER For the first time since the original federal decennial census in 1790. all of our largest cities except one now show a decline. By large cities, I mean those with 1,000,000 or more population forming the core of larger metropolitan areas. Considering that the U-S. has been taking censuses for 170 years, this is an cxtraiWdlnary event.

The above-mentioned one exception' is Los Angeles, which shows a gain of over 20 per cent. This is due to several reasons. Los Angeles found oil within its borders. It is also a center of the fruit industry, or at least it was until the inhabitants began to uproot trees In order to build subdivisions. Until the smog trouble developed, the Los Angeles climate was also superb.

BOSTON AMONG WORST DECLINES

Of all large cities In the U.

S. Boston has suffered one of the greatest losses. My first job after graduating from M.I.T. wa3 in Boston, which then had a pbpulation of 500,000. This increased to 750,000 in 1940 when the Boston Chamber of Commerce was forecasting a population of 1.000,000 for the city. Bostoon proper did reach 800,-(XK in 1950: but the number has since dwindled to 677,000.

Boston has lacked natural resources, wjth the possible exception of tiie fishing industry. Education institutions and small factories have been its chief as- , sets Boston may still claim to be a great educational center, but it is rapitfly losing its fc-tories and mls. -The New England shoe industry has moved to the Central West where hides are plentiful; the. texte mills are moving to the South where they are nearer the cotton and sheep. However, Southern California and Eastern Massachusetts ride at the head of the electronics parade. Union wages and restrictions are a handicap but the quality of New England workmanship Is very high.

THE RISE OF SUBURBU

The most revealing statistics of the 1960 Census concern the mighty force and growth of suburbia. Most people who have left the large cities have not moved to other states. Rather, they have moved primarily to new suburbs some fifteen to twenty-five miles distant. This not only idves them better living conditions, but provides an entirely new social life.

Major factiM-s causing this change are automobiles, telephones, and television. These factors, plus airplanes, have raised havoc with the railroads as well as the large cities. The railroads now employ only 800,-000 workers compared with 1.-200,000 in 1950. Trucks are carrying the le&S - than - carload freight, while supermarkets and shopping centers are distributing the merchandise. Use of nat-tiral gas has doubled, while coal has suffered tremendously. The number of miners working In some areas of West Virginia is now only half those In 1950.

THE BOOM IN HOUSING

Since the census of 1950 thi S. population has increased by 2f per cent; housing by 70 per cent And almost haU the expenditure for total new construction is now going into housing practically all In the suburbs, and built mostly on credit amountli^ to $100 bUlimi or more.

The most unfortunate figure In this 1960^Clensus is the amount being spent bfl hbrrowed money. These great moshroomlng suburbs are built <m bonrowed moneynot only the new houses, but also borrowed, since the 1950 census, over $100 billion for roads, sidewalks, wato*. gas, etc. One dollar out of every eight of take-hmne pay is apiMir-ently obligated for appliances and other things useful but not necessary. What would happen to these suburbs la case oi a severe depression makes me shudder.

More Estimates Orx The Future

Strength For Today

By EARL L. DOUGLASS

ACCEPTING THE UNIVERSE

*T accept the universe Is a f-.tmoit saying of the New England transcendentalist Margaret F'uller Her statement, on the face of it, tends to make us smilewe are amused at the independence, even arrogance, it implies, a.s if the universe were something which could be accepted or rejected according to one's wush.

And yet, many people never do accept the universe. They put up with life. They gd along with It reluctantly, participating be-causi they are here and must take part, but not because they want to. They obey the laws of life more or less, but they do so as an unpleasant duty which

must be performed.

Happiness never comes this way People who live by making the worst of things, not making the best of them, cannot enjoy life. To get Jo> out of living, we mtust put joy in -joy enthusiasm, energy, eager-nes. . activity. If we wish to make our own little world a happy one. we must embrace It heartily and find the best in it. Jus rememnei that life Is basically bigger and better than we an inclined* to regard it.

Tritely religious people find this happiness in living becaiuse they cannot feel that living in God s world and serving Him Is a burden. They do not .submit to life-they welcome it with en-fhasiasm. This is the only way tc be really alive.

By ELMER ROESSNER

Here are more estimates of the future of businesses, based on aralyses of developing

trends

Worine stock dips: Many investors want to realize losses to offset capital gains, so they will sell holdings and buy similar .itocks during stock declines from now ntl the end of the year. This will tend to extend the declines.

Scrambler boom: Interest is

rising in a coming device that will scramble telephone conversations so that they cannot be understood by anyone not having a keyed uiiscranibler. Every politician, government hol-uer. di.:trict attorney and racketeer is a prospect

Exhaust cantro! ! . 1: Fifty

companie. a e try in U oduce a device tha' will eliminate carbon monoxide and smog-pro-ducini chemicals from auto exhausts. as will be required by California law The first lew devices will share a $700,000.-000 annual market in California. Other .irafe.s are certain to follow, providing billions of dollars iu sales.

EQUIPMENT BUY-NOW Profitless equipment boom:.

'The current decline in the economy is cutting prices for many kinds of office, factory and highway equipment. Companies with reserves can get fine bargains. However, while this may help clear sellers inventories, few sales will yield more than normal profits Cheaper copper: Recent cut in copper prices to. 30 cents a pound has failed to develop new markf-Ls and portends still further p.ice shaving- In fact, un-oercounter deals at less tl^an 30 cents are noi possible.

Hobbled steel boom: The com-irg rise in steel prices to pay the c(ist of union raises in De* cember .should be sparking a boom right now But i.s resiric ted because many u ?t> have built up their own invent ries. and because many more want to see how the eDcilsn cnmes out before firming future plans. S< RAMBLE FOR .SCRAMBLERS Scrambled signatures coining: Two new devices have been developed for scrambWng bank de-po&ltora slgnatuies. making

them illegible until inserted into a decoding machine. They will practically eliminate check forgeries. Banks are not outbidding each other to be first with the scramblers. Note: They can afford to bid high because savings on forgeries will eventually pay tor the machines.

British bank rate entt The Bank of England may soon cut Its rediscount rate. Despite the current gold manipulations, imports are exceeding exports and steps are necessary to accelerate business in Britain.

No inventory buying boom;. Inventories other than steel, noted above, arc in moderate to good shap, so buying for inventory will be slack fw the re 4 of the year. However, the si:; .on is not so slack as to cause heavy inventory liquida-lo .1.

coal market will continue in Its current dull state. While fuel demands are rising, most of the increase Ls being taken up by natural w and residual fuel oils.

More Roverninent job: De-splc Administration assurances, Federal Jobs have been cut but litUe. Now state aud local

ffovtmmeni pajroHi ar increasing. Pirt Is sMuonal; part is in response to d^and for more government servtoes, and part is improving employmnt conditions for the p<^tlctll9 iaithiul.

BRAND X BECOMES KAMI FOR OTHER PRODUCTS

The Old Promoter droiH>ed in last week to brag tb&t he had suggested Brand X kng before those I$!w xtork leilowB decided t& hfing out Br and X arettes. He was baek agaii this week.

1 see a new wintSow elean-er is being brought out as Brand X. he said. And I have also found out that JwR a year ago a Hartford. Conn., quor atoro renamed its private brand Brand X,* be said.

As I said several yean ago, with all the plugs given without co...t on television, every manth facturer ought to have his owi 'Brand X to take advantage o( the free comparisons."

I have laughed at the Oid Pro* moter many times, but Pve gol to admit that he was ahead with this Brand X idea.