PACE FOU1I

fflB DAILY REFLECTOR, GREENVILLE, N. C

Friday, April 7, IWl

Friday, April 7, 1961

It May Seem Small Now

Mst Know About The Trogrcuns

Oil May 2, citizens of Greenville will'indicate by a straw vote whether or not the citys officials should give further consideration to the proposed urban renewal program. They wili also indicate their feeling toward the establishment of public housing in Greenville if such is needed. ^ .

It is important, we think, that citizens of the city give these matters their continued and careful consideration between now and May 2. It is important that citizens of Greenville seek out information on the urban renewal and public housing programs in order that they mayjully understand the programs and how they work.

The issues already have been shown to be controversial in this community, As is to be expected in such a situation, questions have been raised and to some of these questions conflicting answers have beeii provided. It will be up to the individual citizen in the next several weeks to weigh carefully the information presented on the issues and to come to a conclusion-regarding his own- opinion on tbo issues.

In the hope of providing the people of Greenville with a better background for understanding the pr(^ grams that have been proposed, beginning tomorrow, will carry a series of editorials for the next several days on the urban renewal and public housing programs. This series of editorials will deal purely with

Some Kind O::

Small Loan Law

By LYNN NISBET

gMATX LOANS Almost eertainly tbis 'Legislature will enact some Idiui o improvement in tbe reKU^ti< of small personal loan and finance companies. What a will be. or when tbe act will be ratified are big Queetkms. Rep. Herbert Hardy of Greene, chairman of tbe House banking committee which baa the two bilLs, said it would be weeks before his committee can report an agreed up<m bill.

The two pending proposals were introduced by Rep. Roland Braswell of Wayne and Rep. Irwin Bclk of Mecklenburg. Por common understanding the Braswell biQ is referred to as the **loan company bills,** the Belk measure as the banking commission bill." To some degree these popular designatiims are misnomers, but they will do for present purposes.

The House and Senate committees on banking met jointly last week to hear Braswell explain his bill, and again this week to hear Edwin Gill, State Treasurer and cx-officio chairman of the State Banking Commission, explain the Belk bill.

Both men noted many similarities and identicaL provisions in the two bills, but also pointed cut numerous differencessome of themVery significant. Both bills concede that many persons who need to borrow money in small am<Mints cannot deal with regular commercial banks. Both recognize necessity for other lending agencies, and recognize that costs of tbe loan must be higher because of its size and the agreed upon greater credit risk. Both bills claim for main purpose the protection of these mn borrowers from abuse at hand of the lenders. Each claims that his version offers best protection as related to service rendered.

DIFFERENCES The Bras-wcD bills puts a maximum limit of $600 on loans made by the finance companies, the Belk bill has a $000 limit. Braswell woul^ stop interest and cost charges above per cent at $300, while Belk would continue them to $500. Braswell would add - on charges of $25 for the first $100 borrowed. Belk would add - on $22. After that first item the charges for interest and service get jambled up to where nobody except an accountant can keep track. It seems that the banking bill has somewhat higher original charges, but the extra costs and penalties mount much fa.ster in the finance company bUl.

The company bill permits more Insurance, although it is

SBSSSSSSSSSSSSSiSS ..... liid

specified that one lender shall receive no commission on property insurance. The commission bill does not permit sepwirate loans to husband and wife'under any conditions: the company bill permits separate loans if the husband and wife have separate incomes.

The husband and wife business and the insurance features represent major differences in administration of the two bills. Another important difference is that when the lender deliberately violates the law, he loses all interest, costs and the principal of the loan under the bonk Mil; whUe lie loses only the Interest and costs, not the principal, under the company bill.

Braswell inasted that a* ceiling above $600 got out of the small loan class. GUI contended that the ceiling of $900 was moro realistic, and said the lower limit W8LS a device to force the borrower to ipnke two toans thus doubling the fees the lender could collect.

There is agreement amopg sponsors ,ot both bills, members of the Genfal Assmbly and the public, that the small loan business is as much in need of revision as are Inferior courts.

POTPOURRI During his presentation of his small loan bill Rep. Braswell was asked if he would object to a more severe penalty ' for deliberate obvtously intentional violation of the law. I would not," he said. My idea is if anybody sUcks his nose out and violates -the law-whack it off."

Treasurer Edwin Gill, presenting tbe bank commission bill, paused when he came to the section about husband and wife - loans. I confess Ir^^ot competent to discuss thaf point." he said. Gill is a confirmed bachelor.

Noting some of the differences In the bills and the conditioas of the small loan business. Gill said the loan companies lend their own money, or money they borrowed from banks and paid interest on, while the banks lend depositors money which they get for free. A banker in the audience quipped in a loud whisper: Darned if thats so. We even have to pay the State interest on its deposits. The banker added in a softer whisper that experience records show active checking accounts, on which the bank does not, pay interest, actually cost more than savings on time deposits on which Interest Is paid. This cost comes from bookkeeping, mailing monthly statements, furnishing free checkbooks, etc.

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the mechanics of the two* programs.

Literally volumes have been written of and about urban renewal and public housing during the period of years these programs have been in effect. This series of editorials on the mechanics of the two programs which will bgin tomorrow in The Daily Reflector of necessity can only be a summation of the manner in which the programs operate and the regu-lations~Which govem^various steps that are taken in carrying out the programs.

We do not expect that this series of editorials will provide answers to all of the questions that might be in the minds of local people about these two programs which have been proposed for Greenville. Even so,- it is our hope that the information contained in this series of editorials on the mechanics of the two programs will provide answers for some of the questions, and that our readers, will find them of interest and. of value.

Red China Looms Big In The UN Future

The matter of admitting Communist China to the United Nations obviously holds more appeal in England than it does over here.' "

Why this is so, we find difficult to understand. Presumably there are pressures from without; pressures difficult to ignore.

Nevertheless, despite Prime Minister Macmillans opinion that Great Britain would vote for such a proposal the next time it came up, there is reason to hope Peipings conditions (ouster of Nationalist China) before entering the UN, would not met.

Pressures for admitting Communist China has been growing year by year . . . growing apace with admission of dozens of small, new and underdeveloped nations, it might be added.

Those proclaiming the world could keep a closer eye, and restraint, on Red China once it was within the UN, can hardly be taken seriously*^

Conditions of membership have not been very binding on the other half of the Moscow-Peiping axis. Russia has largely gone its own way, and obligations ignored right and left. Add to that, Moscows efforts to destroy effectiveness of the world body, and multiply that by two, and we have a rough idea of what Red Chinas membership in the UN would mean.

Other governments can not be reminded too often that Red China has fought against the -United Nations and is an unrepentant and unreformed enemy-of ideals we hold honorable.

As the day of reckoning draws near it becomes more and more pressing to effect changes in the machinery of the United Nations. Adult, responsible members are being forced into distasteful postures and actions by members who share little or none of the burdens and reap many of the benefits.

They will not willingly give up the heady wine of self importance that comes with sitting as equals to the great powers. And as their numbers grow, chances of corrective measures will grow correspondingly dimmer.

Another

Costly

'McNtugbt SyndktU. Im

'ResfAMinnei

By DON SCHUENZ

The Grass Grows Green

Report irom the homefront: The old power mower still works.

Some of its luster it retained in mid-1960 has gone; the lanyard doesnt re-wind with the zest of a year ago. But the mower mows. . *

The motor never one to race or show unbounded energy putt-putts along as though resigned to a long and bard season of work to come.

There was one time when the mowers blades were inclined to beat grass into submission rather than cutting it off short. A neighbor, who apiMirently couldnt Stand the gruesome sight any longer, remedied the condition. So the blades, go through this tend* spring grass like a hot knife through butter.

When you get right down to it. this business of cultivating a lawn has its contradictions. You

Other Editors Saying The First Reform

J All Adds Ud

7o A Tough Nut

By JAMES MARLOW .

WASHINGTON (API President Kennedys administration this week released a brilliant, 36-page indictment. of Fidel Castros Cuban revolution. But what it adds up to is this: Castros tough to handle.

This Indictment, called a State Department White Paper, says Cuba is under Communist control,accuses Castro ^of betraying his revolutionary promises of freedom and social justice, and calls Cuba a menace.

Copies of the White Paper will be distributed widely in Latin America where Castro has support, particularly among the landless masses who applaud his taking land from the rich in Cuba.

But it doesnt offer any solutions for getting rid of Castro unless you want to read into it a veiled suggestion this country would help a new revolution against him.

Here are some examples of why hes tough to handle:

1. He has the active support of Russia and Red China. Last Aug. 9 Premier Khrushchev threatened to intervene with rockets if this country was responsible for an attack on Cuba.

2. Other Latin-American governmentssome of them shaky are hesitant about even criticizing Castro because of hLs popularity among left-wing groups and the masses in their qwn countires.

While there Is no talk in this country of attacking Cuba which has become a Russian spearhead In-the Western world other steps short of armed force might be used but the consequences could be unpleasant:

1. For instance, the White paper says Russia has been pouring arms Into Cuba. Suppose, because of this or for some other reason, this country Uied to blockade Cuba.

Russia might retaliate at once by trying to blockade West Ber-Im to shut It off from the Western allies with whom It has all its ties.

2. While this country broke off diplomatic relations with C^tro and put son>e restrictions on sugar dealings with him. It still has economic dealings with Cuba. Suppose this country now tried tough economic sanctions

The result might be Increased ill-will toward the United States throughout Latin America at thle very moment* when President Kennedy is trying to improve relations.

3. As for American military actionthat probably would set back this countrys relations with the rest of Latin America by many years.

The time may come when the United States feels compelled to take f&r htrs^ action than any

tried so far. If that time arrives It almost surely will be preceded by worse tensions than now and perhaps" even a crisis.

What happened last August in Costa Rica is a good exaniple of what this country Is up against in trying to win over Latin-American nations against Castros Cuba.

The thn Secretary of State Christian A. Herter, meeting in Costa Rica with the foreign ministers of 20 other Latin republics, wanted them to call on Castro to reject Communist intervention in Cuba and at thf same time blast Khrushchev for his rocket threat.

The ministers finally put together a declaration which not only didnt bang Castro but, while condemning outside intervention in this hemisphere, was so wishy-washy that the ^ ministers disagreed among thefnselves on what it meant.

Last April President Eisenhower accused Castro of betraying the ideals of freedom and equal rights in his Cuban revolution. And In Costa Rica Herter talked about Cubas coming under Red Influence.

But neither man directly called Castro a Communist himself. Neither did this weeks White Paper. But it did pile evidence upon evidence to show Cuba is run by Communists now. There Is one nice irony in all this;

If the volatile and unpredictable Castro is not a Communist, because he refuses to accept party discipline, then Its possible, though unlikely, some day he may turn on the Communists In Cuba and destroy them.

(Wan St. Jouroal)

Appropriately for April, talk of tax reform is once again in the Washington air. Unfortunately a lot of it pounds like tinkering rather than real reform.

The Administrations aim is to overhaul the* tax structure without losing any revenue in the process, admittedly a neat trick. Among other things, the tax specialists are thinking about some rate reductions on both very low and very high incomes an incentive on depreciation, and closing so-called tax loopholes.

Stated that way, the approach seems sensible enough. It is only on closer inspection that the gimmicks start appearing.

For example, one of the loopholes that would be closed is the 4 per cent tax credit on dividend income. Yet this provision was enacted as a partial amelioration of an inequitythe fact that dividends are taxed both as corporate profits and as income to shareholders. Tightening up in this case merely makes the inequity worse.

Or consider the attitude on depreciation. EveryMie recognizes that the present rules are not liberal enough to act as a spur to business. investment. Instead of a thorough-going liberalization of the rules for all concerned, however, the Administration is toying with a tax reduction for companies which increase their spending on new machinery and buil4^gs. In other words, not reform but just a device.

As for lowering some of the excessively high rates, that is all very well as far as it goes. But as some people have been pointing out. any such relief .could be temporary indeed; the 'rales could go back up fast when Congress starts adding up the bills of the Kennedy Administrations programs.

And that comes close to the central difficulty. What the country needs is not only tax reform but general tax reduction. In trying to get reform wRhout

loss of revenue, the Administration is ignoring the meaning of its own spending plans. For if those plans are pushed through, it is as clear as can be that the Government is going to need more revenue, not just the same amount, which is to say higher taxes. Or what other meaning is to be read into the red ink planned for this fiscal yeaj? and next fiscal year?

Equally plainly, the expansion is only beginning. Here is the Federal Government seeking to assume enormous new responsibilities for the peoples education, health, housing, communities. with no relinquishing of its traditional handouts to farmers and other groups. It anything is certain it is that the costs of these programs ^111 rise over the years, and that new programs will be added. That is how the Federal leviathan grows.

For this reason talk of tax reform and tax reduction is bound to seem a trifle academic at present. The philosophy of the misnamed welfare state is in the ascendant and has been given a big boost in the past couple of months. According to that philosophy the state takes the peoples substance in order to provide them welfare. Yet it IS beyond reasonable argument that the people could provide their own welfare far better if lower taxes left them more of their own income.

Some time the people are going to have to face the cost of this Federal expansion. They are going to have to decide whether it is the Federal Government which should be expanded or the area of individual freedom.

spread fertilizer to make grass grow, and you also Incidentally harvest a flourishing crop of weeds. But when the grass really does get under way, you work at keping it from growings

Back in my youthful thirties I scoffed at mowers that went putt-putt except when applTed* to estates, g(^ links, or similarly large grassy expanses. At that time my grass cutting was performed with a mower that went clutter^utter.

The accompanying drip-drlp-drip w'as my own contribution to the sound effects of a hot summers day. Sprinkling the lawn was often performed simultaneously with the trimming there-of. The moisture came from no sprinkler, but sweat glands. Looking back, it was small wonder that grass was the target of envious glances.

Time, and a larger expanse of potential grass-growing yard, have modified those earlier ideals.

A power mower which can be followed at a leisurely pace is now not only more practical but necessary. Ah, those youthful thirties!

Driving to and from the office I pass a new, smadl, modest house. Over the weeks I've developed a sort of sentimental attachment for that house, having watched it grow from the first stakes that marked out where foundations would go.

Prom the start I liked ita setting; and as it took shape, a personality developed with it.

Snug is the best word to describe the house. And a simplicity of exterior adds to the pleasant -facade fronting the street.

^Not long ago a family moved in. Again, what I could see was only that of a passerby; but the impression gained was that of a house that had the right family to make it a home.

Afternoons, when the weather was fair, one would see the whole family father and mother and young peopleworking together on the yard.

This kind of togetherness I can appreciate.

It suits the image of the kind of family Ive sort of hoped would be living in that house.

Quote...

That is the basic decision, and the crucial question for the Sixties. Only if the people choose freedom can they hope for a reasonable tax structure and reasonable tax rates. The first reform must be ip the size and scope of Governnient.

Word from Europe is that Americans are more popular now that we are having financial problems. Foreigners have always admired broke Americans, and have always tried to send them home that way." olumbia (S.C.) State.

By GEORGE E. SOKOLSKY Copyright, 1961. King Featoree Syadieate, Inc.

The ireiit t to. the United States in tl^ Korean debacle was not that we lost a war but that every nation had to reassess its relationship to the .United States and an increasing number became.neutral. Everybody likes a winner. >

If we tose in Laos or. for that matter* if we suffer any further loss anywhere, our international 'situation will degenerate with finality, A nation cannot assert leadership and not lead; It cannot assume superiority without military superiority. And if there is military superiority, it must be proved by military might which is war.

These are axioms and a nation that trios other methods only toQ_Aoon discovers that some other country -has taken its place.

Let us note the positton of President dc Gaulle of France. Laos was a part of French Indochina. French Indo-Chlna was a most important political and economic sector of Prance, the city of Saigon being for France what Hongkong was for Great Britain. The Annamites and <^ber peoples of French Indodiina rebelled, suwxwted by the Ctdncse Communists and won a great victory over France which resulted in France being eliminated from Southeast Asia.

Had Prance been suppoijed by its allies, the United States and Great Britain, It might not have lost French Indo-China. Tbe United States was tied down to a doctrine of antl-colonlalism which has fragmented Asia and is now fragmenting Africa. French Indo-Chlna was broken into North Vietnam, South Vict-r*am, Laos hd Cambodia and because of this, 'Thailand (which used to be called Slam) is in peril of falling to the might of Red China. t

The population of Red China Is variously estimated up to 600,(XX),000 persons. No census has ever been taken. When I .lived there, we used to speak of the populaticm of 450,000,0(X). Whether it has increased so much in 8 years, nobody can truthfully say because no one has counted the people.

However, whatever the figure may be it is too large for the food supi^ which is traditionally inadequate.

During the past two years, at least. Red China has suffered several famines, which is not too unusual, particularly for the southern part of* that country where the density of population IS perhaps the greatest and w(*st in the world. Density of population is best solved by the population moving where food is more plentiful. This is a rice eating people and CTiina has, for centuries, Imported rice from French Indo-C!hina and from Siam (Thailand). What is-hap-peniog in laos is that a Chinese population is pouring into that country. .The report thstt CSiinese are about to move into Laos is piffle; they have already moved.

These CJhinesc are part of CJommunist China which can well afford to lose 200,(KX),000 people and b^efit thereby. It is cheaper to send people to war or as volunteers In revoluti<Mis, to live off some other country, than to attempt to feed them.

Red China sought to solve many of Its earaomic problems by orthodox Marxism, by establishing communes, and failed. The communes did not produce an increase of food. As a matter of fact, famine pursued the communes. Red China Is pouring population into all the countr^ of East Asia.

Ind<mesia has set up resistances to the increase of Red Chinese in that country, but Laos is not geographically or militarily situated suitably for resistance to Red Qilna. In the South of China he four heavily populated provinces, Kuantung, Kuangsi, Kweichow and Yunnan. Kuantung, which Is often refers red to as Canton because of the name of the city, has intxluced most of the Chinese who live outside of China. In Kuangsi live many races of aborigines who have never engaged in any other business than war since the author!^ of Pacing weakened over them during the Taip-ing Rebellion (1850-1865). Yim-nan lies in mountainous country close to Bimna and French In-do-China and has been under the Influence of the former French city of Saigon for more (Continued on page six)

Postal Rate , Hike Has Enemies

Therefore, at this moment they may wish they could knock him to prevent any turn-around by him later, now that hes served their purpose which^was to get control.

But he is the popular hero. If he disappears, a new revolution might destroy them.

Opinions

n Brief

The federal government cannot protect the standards of boys and girls The parents have ' to do It. President Kennedy

T-

The best eradlcator for \ rumor is cando^ and fact, and the bright light of publicity. * Hertford Cdunty Herald.

If you ivant it be a short winter, just sign a 90-day note." Marsalltown '* Times-Republi-- pan.

By ELMER ROESSNER

Vigorous opposition will meet the Increases in postal rates about to be asked by the Kennedy Administration.

The Increases, if authorized by Congress, will* be the largest In history. The fight against them will be the toughest.

The proposed rates would set 5-cenl mnimums on first-class .'letters, 8 cents on air mail, and would increase rates on direct mail advertising and publications from 50 to 75 per cent.

Large users of mail are now marshaling facts and arguments against rate Increases. They will probablv have a strong ally in Sen. Olln D. Johnston (D., S. C.), chairman >f the Senate Post Office and Civil Service Committee.

ENORMOUS DEFICIT LOOMS

The Post Office faces a deficit of-$900.000.000 In the next fiscal year. In his budget mwsage to Congress on Jan. 16, President Eisenhower recommended a postal rate increase of $843.000.000 effective on April 1. Congress. qOite naturally, ,4efeiTcd action

until the new Administration was in.

The new Postmaster General, J. Edward Day, has proposed rate increases to bring in $831,-000.000. $12.000,000 less than the Eisenhower proposal, but still a. bigjer tilt than any previous one.

Four days after he' took office, Mr. Day was put on notice that Senator Johnston would oppose an increase of that size. In a letter to the Postmaster General, Mr. Johnston declared that the deficit would be nearer $300,000,000 than $900,000,000.

The Senator argued ^hat the Post Office is used to provide certain public services and to subsidize various enterprises, and that some capital Investments are erroneously charged to operating costs. These account for $580.000,000 of the annual deficit, he said.

BENEFICIARIES

Among the subsidies Mr. Johnston noted were;

$60,000,000 lost through low rates given to ^ fton-profit fraternal and religious organiza- tions.

$100,000,000 lost by the refusal of the Interstate Commerce Commission to enforce the Railway Mail Pay Act of 1916, which prohibits paying railrooda-more for carrying Second, Third and Fourth-class mail than railroads charge for express.

$100,000,000 lost by the 1951 law limiting parcel post weight and sizes, enacted to force more business to the Railway Express Agency. Mr. Johnston pointed out that despite this law, R.E.A. shipments declined from 92,000,-, 000 in 1951 to 64,000,000 a year now.

Among the public services given by the Post Office, the Senator cited the operation of Third and Fourth Class post of-fiees and of star delivery routes at losses.

The Senator, also called for more economies. Immediate

economies may well be achieved in the postal service amounting to at least .5 per cent of the annual $4 Billion operation, he said.

He suggested the use of

stamps that would canc^ themselves on use, abolishing; can-ceUaUoq and postmark operations, except when a mailer paid an extra fee to have a postnmrk Imprinted. He also auggested more automatic and faster machines; credits to Second and .Third Class maUera to murage preaorting, etc., and bettor utUia-atioo of transpMtotimi faelUtiee by the Post Office.

MORE ODD THAN SIGNIFICANT BITS OP BUSINESS NEWS Its possible for the South to .win in playing the American Heritages DvU War ^ game... New French bank notoe are Impregnated with a germ killer... French gagsters are probably making jokes right now about even a germ cant live on my salary,"...So the neighbore will know, a Pennsylvania (toaler installs three-color antenna with each color television set be sells ...Tbe worlds largest fence, S.-St miles long, is complete' except for 100 mUes, It It In Queensland. Australia, to protect aheep fr<nn dingoes, wild dega.

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