Monday, August 21, 1961

Il* No Show Window

Reminded: Government Is Costly

The cost of operating government at any level aeems to be brought most keenly to' the attention of the average citizen when it is time for him to consider what he owes the government as his proportionate share of the cost for the opfato.

In the case of the state and federal governments most citizens are' more aware of the cost of govern-^ ment at income tax time than at any other time during the year. As far as local governments are concerned, the citizen is*most aware of the cost of his government when he receives the notice of what his years tax

bill is. , ^

For most Tar Heels, this is the time of the year \%hen they begin getting reminders from their local governments of their tax bills for the year.

In Pitt, the county-wide tax is set at $1.25 but in addition to this amount, the county collects the various school district tax rates which range from 10c per $100 valuation in Arthur district to 66c in the Greenville and Grifton school districts. Thus for the people of Pitt, the tax bills they receive from the county are figures on total tax rates ranging from $1.35 per $100 valuation in Arthur school district to a high of $1.91 in Greenville and Grifton school districts.

Municipal governments also levy taxes for support of their operations and in Pitt County these range from 75c per $100 in Grimesland to $1.70 in Grifton.

People who live within the corporate limits of municipalities, of course, pay the county and school

Concerned Over nek Of Backina

By LYNN NISBET

SCHCMDL SUPPORTState officials admittedly are cgscemed about the lack of enthusiasm manifested by country commissioners in assuming what is con-fiidered to be their full share of support of the public schools. Reports are omlng in that some boards of county commissioners are reluctant to levy taxes, even to the extent they have levied them in the past, to employ extra teachers and otherwise enrich the program in view of the fact the State has greatly increased taxes and appropriations for the schools.

It is an old story, dating back to the post Civil War reconstruction period,, but g:reatly enhanced by legislative acts in 1933 and 1949. Although the constitution of 1868 required the State to maintain a uniform system of public schools, actually most of the iunds of support the schools were derived from local adval<'em taxes until 1933. That year the State general sales tax was enacted and the State assumed prime responsibility for operating the schools. The idea of State uniformity of support went to the extent of forbidding the levy of local taxes in any community to improve the schools. That mandate of minimum uniformity did not last very long. Within two years certain communities demanded and exercised the right to levy additional taxes to raise their schools above minimum standard, and It was not long before there were many schools above the minimum, even above the average, because the people voted taxes to make them better.

By 1949 the discrepancy in advantages was so obvious there was demand for State aid in school buildings to bring the less fcMtunatc communities up to near standard level in equipment as well as in teaching.

BUILDINGSThe 1949 General Assembly appropriated out of war time accumulated surplus $2$ million for State aid to counties for school buildings, and authorized an election of $25 million bonds for the same purposewhich the people voted. This WM the first time the State had ventured into the school building program. Another bond Issue for this purpose was voted in 1953 in the amount of $50 million.

Prom the first appropriation In 1949 until 1959, when last of the State bond money had been spent, the counties and districts throughout the State had added some $360 million to the State

construction money, making a 10-year total of about $460 million. Within the past two years the counties have spent between $75 million and $100 million (best information is a bit more than $80 million) for school buildings.

Meantime, counties and districts had voted taxes ior supplementing teacher salaries, enriching: the curriculum and

otherwise raising the standard of school operations. The fact is, the public school project is a joint venture of State and local units, both as to buildings and day by day operation. It is obvious that efficiency require full cooperation at ail levels. It is equally obvious that standards established and maintained by the State should be regarded as minimum requirements, rather than as maximum or even average. For the State to say, as it did in 1933, that no community can go above this minimum would tend to destroy local initiative and violate the basic concepts of democratic government. The general idea is that no community can fall below the minimum level, but there is no limit to how high above it the people can goif they are willing to pay the bilk

EQUITY There is serious question whether the State standards are high enough, and whether the State is acting in complete equity and honesty in permitting higher standards by vote of the people in certain favored economic areas, the economic prestige of which Is due to contributions from neighboring sections.

It is of record that eight or ten counties collect and transmit to the State treasury more than half of all the tax money required for the State. It Is not true that the residents of these counties actually pay these taxes, They are paid by customers from all over, many of whom live in the so^alled less privileged counties. For example, the Federal government collects nearly five million dollars a day in cigarette taxes from Durham. Forsyth and Rockingham counties in North Carolinabut these taxes are actually paid by smokers in California, New York, and the other 48 states.

What the State school folks insist upon is that while the big counties which collect most of the State taxes perhaps should do more to support the State school system, that does not excuse the other counties from obligation to carry their part of the loadand does not justify ducking obligation by passing the buck to the State.

district taxes m well as thejr municipal taxes. Those who live outside corporate limits of one of the muni-cii^lities of the county pay only the county-wide and school district levy, ,

Throughout the county, these tax rates of local governments compare yfavorably with those of the majority of the other local governments of comparable size throughout the state. Although there is considerable variation between the rates of the various school districts, and also the tax rates of the various municipalities, each must be related to the particular situation of the area involved. Each has its own problems, its own needs, its own capabilities for meeting these needs either through current budgets or through long-range capital outlay programs. To some extent, at least, these factors are reflected in the different tax rates.

At tax-notice time most citizens should find a few minutes to reflect upon not only the cost of local government, but likewise upon the quality of services being rendered by his own local governments, and the reasonable needs of the community which are not being met by the local government.

Air Of Excitement On Eve Of The Big Day

It isnt difficult to understand the air of excitement that vibrates throughout Pitt County today on the eve of the opening of another tobacco auction season."

* For many people of Pitt, this iMhe time they have waited for since the first of the year. In the next few weeks the prices they get for their tobacco crop will represent the result of a years labor. In spite of diversification in agriculture in Pitt County in recent years, tobacco still remains the mainstay of most farmers of the area. It is still the crop which produces the lions share of his income from year to year.

And in spite of the industries which have come Into this area of Eastern Carolina in recent years, agriculture still forms the backbone of the economy.

During the next few mQ^jfhs literally millions of dollars will be pumped into the economy of this region from the tobacco auctions held on the warehouse floors. Tobacco redrying and processing plants which have been idle for many months will move into full production * giving employment to several thousand people. It is the season in which the economy of the area hits its peak of activity for the year . . . the period which makes the difference between a good and bad year for most of the businesses throughout this and neighboring counties.

This year the picture is encouraging from an economic standpoint in spite of the fact that the tobacco crop in this area is considered by the experts to be smaller in total pounds than was the bumper crop a year ago. Prices paid on the Georgia-Florida and Border markets point to higher prices on the Eastern Belt when markets open tomorrow and a higher average price for farmers throughout the season. There is the suggestion that the take-home pay of farmers as a whole may be better than it was a year ago.

Tomorrow the chant of the auctioneers will ring through the huge warehouses; the piles of golden weed will be fingered by buyers, and the long awaited Opening Day for the tobacco market will have officially arrived.

By GEORGE SOKOLSKY.

CorruDtible Worth Little

Copyright. 1961, King Feature!

Syndicate, Inc.

In the days of Joe McCarthy, those who saw any justice in hi! effort were accused of improper partisanship. Those who became wildly irate over a kind or humane reference to McCarthy did not recognize that they were almost psychopathical-ly partl&an themselves. They failed to recognize that McCarthy had uncovered a Soviet procedure which was then being employed in every country. Today the procedures are different and there is no McCarthy to deal with them; actually, we are Just beginning to uncover what McCarthy did not know existed.

Most of those who supported McCarthy have been silenced into sullen inactivity. The man is dead but the opposition needonly short McCarthyism! and men rush to the bomb-shelters. One of the most tricky ways of suppression of the truth is the libel suit for large sums.

During much of the Eisenhower Administration, partisanship ceased to be startling. Eisenhower succeeded in establishing a posture which made opposition to him too personal, too non-political. Perhaps the essential reason for this was not Eisenhowers charming personality but rather his inactivity. It became increasingly difficult to discuss political questions without appearing to dislike Eisenhower as a negative personalitythe kind of man one just likes ftw* no particular reason.

Political discussion during the Eisenhower Administration was reduced almost to banality. The Republicans were led into the absurd position of being a secondary party while they had a President in office. Were it not for Lyndon Johnson, the Eisen-rower Administration might have found itself totally unable to proceed with its legislative necessities.

Now, a curious attitude has ap-

Other Editors Saying..

?rivate Foreign influence wm Last "nvestors Note

The Daily Reflector

INCORPORATED

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

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By RALPH ROBEY

It has Just been announced by the U. S. Department of Commerce, the government agency which makes such official forecasts, that private foreign investment this year will be $4.5 billion, and will remain at this figure for next year. This is the highest total since 1957, and It is certain to renew the continuous controversy that surrounds this Item.

Three main points are Involved:

1. It is charged that such investment increases our international deficit. This is true only when an exceptionally large outlay is made, such as the purchase by Ford of the British Automobile Company, and then the influence upon the deficit is temporary. Total fweign private investment amounts to roughly $50 billion, and the earnings upon this that are returned to the United States more than offset the outflow in any one year. Only by carefully picking dates can one get statistics which appear to show that private foreign investment increases our international deficit.

2. Another contention is that this Investment is an export of American jobs. Overall this is false. Much of the investment is made to get Into new markets. Great progress has been accomplished In recent years in getting foreign nations to ease their restrictions on the importation of American goods, but the European common market and the so-called outer seven, still give a relative advantage to their own producers. To offset this our companies find it

advantageous to set up producing units within these areas. This is not an export of American jobs; it is production that otherwise would not, or could not, take place.

3. Finally, it is maintained that foreign private investment is a means for avoiding taxes. Some such tax avoidance unquestionably takes place, but It is a minor factor in the total. President Kennedy suggests that eueh avoidance xhould be eliminated by putting an end to the difference between foreign and domestic earnings in so far as taxes are concerned, except in under-developed nations. This Is an unsound Idea, and the Congress has made clear that it will do no such thing. The only proper way for eliminating tax avoidance in foreign Investment is to make a reduction of corporate tax rates.

It may be argued that for such tax reduction to be effective it would be necessary to lower the rate to zero. That definitely is not so, even though none of us likes to pay taxes. But business, just as everyone else, is willing to pay what it considers a fair levy. What it dislikes is to-take all the risk and then have the government force it to hand over more than half52 percent of any profits that are made. This, is what leads to tax avoid*, ance, and the searching for tax havens.

Ls production more economical abroad than In the United States?

There l.s no single general an.swer to that question. Straight time wages are lower in most (Continued on Page 6)

(Kinston Free Press)

The death from a heart attack ol Judge Learned Hand of New York at the age of 89 takes from America and the Free Wcnrld an exponent of Justice and liberty whose contributions to the American ideal will last for generations to come. He served ably and well on the U.S. Circuit Court of Appeals for over half a century. He retired in 1951, but continued to serve m an emergency capacity as needed.

Judge Hand was appointed to the federal bench in 1909 by president WlUlam Howard Taft, fiie fact that he was never e^vated to the U.S. Supreme Court was a matter of disappointment to his friends and admirers throughout the Nation. He was often referred to as the 10th Justice, because his opinions were so widely quoted and relied upon by the judiciary and the attorneys of the Nation,

The eminent jurist tempered his judgments with a sense of humor, but he was never flippant about the courts business. He believed that no jurist should ever strike down a law, no matter how much he lacked sympathy with it, so long as reasonable men could bclieye that the law was in the public Interest. His opinions never ranked as conservative or liberal In a political sense.

He sought justice, fairness and equity. He once stated in a speech that the spirit of liberty Is the spirit that is not too sure it is right.

His philosophy is capsuled In sis excerpt from one of his addresses:

The spirit of liberty is the spirit which seeks to understand the minds of other men and women. The spirit of liberty Is the spirit which weighs their interest along-side its own, without bias. The spirit of liberty remembers that not even a sparrow fall to earth unheeded. The spirit of liberty is the Spirit of jPUm, who, nearly 2,000 years agb, taughi mankind that lesson it has never learned, but has never quite forgotten; that there may be a kingdom where the least shall be heard and considered side by side with the greatest.

While he never served on the Supreme Court of this great free Republic, he in a very real sense served with it and with all those jurists down through U.S. history who have linked true liberty with justice and mercy. His life and service today stand as beacons in a world torn between conscience and force. His service is a reminder that the eternal values are not preserved by force but are ingrained in our character as Ood-iearing individuals by the way we treat fellow member^ of the human race.

peared. One Is regarded as excessively partisan who believes that President Kennedy is ,President of the United States and that the problems which now face the American people are serious and not contrived to give the impression that President Kenndey is scaring the American people into supporting him.

For instance,toe Cuban situation is not a Kennedy contrivance. He found it when he became President, just as he inherited the Berlin problem from Yalta and Potsdam; that is, from Roosevelt and Truman. Any President is entitled to at least 1(X) days before we Jump all over him. When the 100 days were over, the United States was faced with the peril or war. Khrushchev assumed that Kennedy was young, inexpert and that he could not hold the respect of the American people. Therefore, he began to push him around even before, under our system, the President accustomed himself to his office. And It was a touch pushing around that Khrushchev has given Kennedy who had to make an Instant decision regarding war or peace.

The t^ponents of Kennedy rejoiced. But their rejoicing is ridiculous, because when a President of the United States is being pushed around, it is the United States fliat is being hit at and humiliated. After Vienna, it was impossible not to stand by the President, recognizing tiiat we are as close to war as we have been since Pearl Harbor. The only way to keep Khrushchev at arms length is to show him a solidarity among the American people which he does not believe exists and which he cannot ^ understand any more than the Kaiser or Hitler understood it.

If the President ^ants uch support from the people, he must not be more partisan than he wants his adversaries to be. If we are to operate the two party system with all Its operational antagonisms, then the President must expect the kind of juvenUe antagonin which says that anyone named Kenne-day cannot be right. If, <m the other hand, the President recognizes, as Woodrow WUson did, that In time of war there are no partisans, there are only Americans, and he is their leader, he WU find a fuller support than he imagines poesible or than Khrushchev imagines possible.

Because Joe Kennedy, the Presidents father is an exceptionally rich man, the assumption is that if a Republican" speaks well of his President, he must have been corrupted by Joe. I have known Joe Kennedy for at least 20 years ajw I have (Continued on Page 6)"n Our^

aSeniors

By ROGER BABSON BABSON PARK. Mass.,The latest census show that

the number of peoi>le over 55 years of age has increased aboiA 25 percent compared with the head count taken ten years i*e-viously. While this gain is not robust as the 50 percent increase in the number of teen-agers, it is substantially ahead of the middle age group between 25 and 55 years old, which just held its own.

UPTREND IN OLDER AGS POPUI-ATI(i The combination of growth in total population agd lengthening life span means that tlw ninnber of people over 55' yeacs of age is likely to continue to increase. More important even is the progress of medical smd biological science. ^ ^

m the above connection, let me say that IBM. Is wwking on the theory that, if arterlo- . eclerosls and eancer can ba controlled, older people ndgh* live to 120 years or morel Sev-ral dnig compcmies. art working on polymera, D. N. A.'a ara R. N. A.s (the latter Inltiaa are need in idace of Involved ebemloal terms) which have a close relationship to fife. I wlu write further of tWs In some later week. ^

1NCEAMNG PURCHASING POWER The growth of this segment of the potation mean# that in the future this group will exert a greater influence upon the nations economy, and, I might add, upon the political picture also. Thus, even though thedr per capita spending has not risen commensurate their growth in numbers, tl^aggregate spending of older people will rise.

Because of the long prosperity of the past two decades, older folks today have more of A backlog of purchasing power. Savings in the fonn of insurance, annuities, securities, and pension funds are at all-tims highs. To tbeso can be added the more liberal social security payments and other forma of transfer payments. The trend of legislation would seom to indicate more public old-agt assistance In the future.

SENIOR CITIZENS AND

GENERAL BUSINESS Unlike the teen-agers, the necessaries of life required by older people ar more moderate. Nevertheless, certain food c(npaniee are tailoring a num-btf (xf produces to the needs of tl^ geriatrics. Older pc<vle do consume large quantities of soft drinks, fruits, stnd fruit juices. Perhaps their biggest needs are for medical and dental euppli^ eye glasses, hearing aids, arkl inexpensive kiformal clothing. Spirting goods lines (including bowling, golf, and fishing) ai^ hobby suppes., should experience higher demand. Tourist and vacatioi regions, and businesses tocidental thereto, win ijoy their trade.

P^le quickly become bored with rettrement. Therefore, I forecast that bxwinesses supplying Do-itryouraeli tools, seeds and gardening implements, smd cameras sid photographic equipment should find a good market hi these senior citizens. Also, demand for radios, phonographs and records, and television sets will benefit; as win sales of greeting cards. OPPORTUNITY FOR SERVICE AS WELL AS PROFIT Profits from the older age group will oome largely through nursing homes. Builders tell me that the greatest increase in their business is in the building of nursing homes. At present, some large houses are coming onto the market for possible use as such, but under present laws it is cheaper to build a new nms-ing hcune ttian to remodel a fine old house. A singls room and bath, wkh an tbs usual facilities, can run as high as $150 a week; but fhers is a tax con-sideratkxn which hslps nut thoss who art supporting aged parents in tbess institutions. Nursing homes surely provide a needed servlet.

Tbe abovt dtoousaioin should rtceivt oareful attention on the IMUi of bankers, buttnesamen, investors, and even tbs average reader of my column. Qns thing should be remembered, however. Namely, that although President Kenne<iy and others are seeking more funds for the aged. I rei^ tiat the middle group of psoidt (between 25 and 55 yesrs of age) must, for the next few years, not only pay dip (Contnmed on Page )

ncrease In Labor Day Promotion

Strength For Today

By EARL L. DOUGLASS AN HOUR A DAY

On a hot summers day recently, we heard through the open window the not unpleasant sounds of a young man practicing on the French horn. For more than twelve years he has been studying this Instrument. He tells me that during this time he has averaged more than an hour per day of practice.

Hearing him playing a difficult piece with apparent ease, I could not help thinking how it would change the world if every member of a Christian church would consciously as well as earnestly practice his Chrsanlty for one hour every day. One hour out of twenty-fourit does not sound like

much, perhaps. Yet how few people actually try consciously and sincerely to be completely Christian for even that much time.

One result, of course, would be that everyone who tried It would soon become a better Christian. Most difficult things take practice. Just as the French horn player could not blow a note when he started but does very well now. so people who have never really tried to practice Christian living find it hard, perhaps impossible, at first, but will Improve if they keep trying.

The other result would be even mwe exiciting. Those who truly succeeded for even an hour a day would find it such, a wonderful way of life that they would never want to stop!

By ELMER ROESSNER The traditional after-Labor Day step-up'' in production and advertising will be much greater than average this year.

The mild increase in business that has blessed the economy since spring will continue, and most industries step up merchandising efforts on the upturns. (Some theorists Insist that business should Increase merchandi-ing campaigns when bu&iaess tarts to slip, holding that such action would tend to level off the dips. However, In practice most businesses cut promotloo just when they need it mot.)

The Increase in defense spending will tend to stimulate business, thereby encouraging more promoUonal activities. Except in a few instances, defense spending will Involve no craah pr<K grams The build-up will be gradual. This will tend to make the rise In business sower but sounder.

CONFUSING. PROSPEROUS AUTO YEAR Here are more look-aheads in business?

ExrDinr car yean With/ new

models a monUi away, the auto industry is radiating enthusiasm, some perhaps synthetic.

However, the new car year will be fairly prosperous, better than the currently fswling year. The general rise in the economy will benefit the Industry, However, there are several disturbing (actors.

Labor is restiye. Strikes or higher wages can cut profits.

The rising popularity of the >aompacts will mean fewer sales of smaller imported cars. However, it may also hnean fewer sales of the larger American cars. It Is possible that in some companies more cars will be sold for smaller total receipts.

The proliferation of sizes and models, while stimulating initial interest, may hurt manufacturers in the end. There will be 26 car lines, compared with 18 five years ago; the models, colors and packages of accessories in each line will be incountable.

By that time more cautious pro.spects decide which car thc^ like beat, they may decide lo wait for the 1963 models. With so many lines it Is certain that

some will be unprofitable. RISE IN CONSUMER CREDIT

New Cmisunier credit peak:

With the Improvement in business and employment, consume credit has risen to almost $55 billion outstanding. With continuing economic improvements, aided by the Christmas buying push, the year end total will be more than $57 billion, a billion more than it was last December.

Bom to taxpayers. Filing in-corpe tax forms will be easier for many taxpayers next year, even if paying the total wcmt. Internal Revenue Service la working on a new Form 1040, shortened to fill both sides of a single sheet of paper.

OLD PROMOTER DEVISES

BACKYARD COOLER

It was hot when the Old Promoter walked in, and the gleam in his eye was hot, too.

This will make us a fortune, son. he said He spread plans and diagrams on my desk. This is a backyard cooling device. he explained, Ita t iO-by-lO foot canopy of canvas, supported by a central pole and four smal-

er ones at each corner. Tov attach the noozle of a garden hose at this connection near the pole and out through the circular spray on top. Just a trickle ol water will keep the canopy damp and the evaporation will cool the 100 square feet underneath It. Now, if you have a few thousand dollars not wM-king for you Its almost hot enouidi to tempt me to Invest, 1 said. But not that hot.

ICE ON PARLE FRANCAIS This will be news to miUi(ms of readerswell, a dozen or so who wrote in complaining because in a recent column I called the Ole Promoter ma vieiUe. "Dope, they said, thats feminine. The Old Promoter ^ould have been called 'mon vieux.*. Sorry to upset the first-year French students, but in France one man frequently calls another ma vlelUe, meaning ray old woman. Its a smile-when-you-say-that expression, usualfr used as a chiding among friends. I know, because when I was in France that's what they called me.