Monday, October_16, 1961

Board Recognizes Hazard In Delays

Wooing the Divorcee

Greenvilles Board of Education is to be com-meded for moving ahead with its plns for providing needed school facilities without delaying longer'fo see whether the state or federal governments are going to provide funds for school construction.

It is evident to the school board, as it is to most other citizens, that the need for adcfctional classrooms and otlien'school facilities is becoming more serious with each passing year. It is also evident that it may be^considerable time yet before it is known whether, state funds or federal funds for school construction will be available. If local school officials hold off any action on their own to provide for local needs, the need for additional school facilities may become critical before any new facilities can be provided.

At the state level in North Carolina, the matter of issuing bonds for construction of public schools was postponed to wait and see if the proposed federal aid to education program advanced by President Kennedy would be approved by Congress. The program was rejected by Congress during its recent session, and the odds are heavily against approval of a similar program after Congress convenes in Januar>\

Whether the state will undertake any sort of program for school construction is still a moot question, and at best will not be answered foi^ another year or two. ^

The Greenville Board of Education has chosen the right course by deciding to go ahead with its preparation of plans for providing needed school facilities, without waiting longer to see what the state or fed

eral governnielits are going to do. The School Board, we,trust will follow through with the preparations- of those plans with all deliberate speed, and formally present them to the people of the school district.

The people of Greenville, we believe, share with school officials the concern fr the need of additional facilities. The citizens of the city, we believe, are anxious that these additional facilities be provided, and will be willing to approve additional school bonds necessary to provide for local school construction needs.

The responsibility for providing school facilities has rested ^primarily with the local government, and we trust it will continue to do so in the future. The community which fails to shoulder this responsibility penalizes its young people by failing to provide them with the educational facilities they should have, and at the same time increases the pressure for transfering the responsibility for schools to another level of government.

Behind the leadership of its Board of Education and Its school officials, Greenville has always striven to provide its young people with the best possible public schools. It should be gratifying to every citizen to see that this leadership is continuing to point the way by refusing to sit back and allow local school facilities to become inadequate while waiting to see if someone else is going to do the job.

?actors Affect

Potential Opportunity In The N.C. Trade Fair

Political Scene

By LYNN NISBET

POLITICS Oldtimers recall another instance when political activity was as much in evidence at comparable stage as it is now. Ordinarly the fall of the first year of state and national administrations is a rather dull , time. With no Governor or President to be elected the next year politicians usually manifest only token interest.

It is different now and there Is evidence of as much interest as usually maintains in the fall preceding a Governors race. A number of reasons for this active interest might be cited. Although it is an olff-year for Governor, there ill be a United States Senator elected in 1962. The term of Sen. Sam Ervin runs out in January, 1963. So far there is no indication that he will have serious opposition, but he and his friends are already campaigning.

The death of Lieutenant Governor Cloyd Philpott has focused attention on the selection of a president of the Senate next time, and there is earlier than usual activity in a race for Speaker of the House. These elections will be confined to members of the respective branches of the Legislature, but there is general Interest in them.

Chief reason for the aroused Interest may be found in the greatly Increased Republican strength manifested in the 1960 election. Republicans elected more members of the Legislature than at any time since 1928, and cut the majority of the Democratic Governor to the lowest point in more than 30 years. The result of this was to spur the Republicans to more vigorous action in hope of winning next time, and to convince the Democrats that they would have to fight harder than ever before to retain control of State government. That brought about more activity in both camps.

Another contributing factor, perhaps almost as significant as the Republican gains, is the new congressional district lines. In reducing the number of districts to eleven from the present twelve, lines of every district except the sixth were changed. In most instances the new lines did not seriously jeopardize the position of incumbent congressmen, although the change does mean working in new areas. In at least three instances the effect of redlstrict-Ing was so seriously endanger incumbents. Either Charles Rap-er Jonas of the present 10th district or Paul Kltchln of the present 8th will be left out, since they haye been put in the same new district. Political ob

servers generally agree that Hugh Alexander of the present 9th had his Republican troubles greatly Increased, and Roy Taylor of the present 12th was given new Republican worries.

ACTIVITY Partly because of the reasons outlined but perhaps mainly because Terry Sanford is an organization man. the Democratic executive committee excercised the heretofore unused authority to name a full time executive secretary. For nearly a year Dr. Wallace Hyde has devoted his energies to perfecting the Democratic party organization in countries and precincts. He has staged local and regional rallies of party workers, a red letter occasion being the Aycock-Vance ;Jtatewide dinner scheduled for Asheville the latter part .of this month. Young Democratic Clubs and womens organizations have also been more active than usual.

At a recent meeting of the Democratic Women of Mecklenburg cownty when volunteers were called for to go with the president to demand that the county chairman comply with the Plan of Organization more than half the 100 women raised their hands.

Meantime, reports from all over Eastern North Carolina tell of enthusiastic Republican rallies attended often by more people than go to comparable Democratic meetings. And these reports come from areas where Just a few years ago a Republican was almost like a sideshow freak which people would pay money to look at.

North Carolinas Trade Fair in Charlotte is affording the state an unprecedented potential for showing its products to .buyers from all over the country and from many foreign nations. It is an undertaking that has cost the state considerable time, effort and money, but one which should pay dividends for the economic development of North * Carolina.

By attracting an estimated 3,000 or more buyers, the Trade Fair should bring about the opening of new markets for North Carolina products, and at the same time stimulate the consumption of Tar Heel products in markets in which they already are established.

Already the fair has attracted considerable attention of publications throughout the country and has garnered for the state *and its development program a great quantity of favorable publicity.

The Trade Fair represents a new tool for North Carolina in furthering its economic development, but it is one which apparently will be effective.

obless

?igures

Still Up

McNkufM SyMiMte. Tne.

By GEORGE SOKOLSKY ,

Gritic On Poor Grounds

, ittle Progress-Cutting Ranks

GIVE AWAYS Madison county i.s having trouble with surplus property bought for almost nothing for use in the public school system. Misappropriation is charged against school officials. Mecklenburg county is having trouble with the distribution of free surplus foodstuffs. Charges there are inefficiency rather than malfeasance. Madison and Mecklenburg are not the only counties which have experienced with these particular projects and with numerous other phases of the overall welfare program.

Which recalls the observation by a wise rich man once upon a time that it is much easier to make money than it is to give it awayintelligently. Men like Buck Duke. Andrew Carnegie, John D. Rockefeller, Russell Sage and other made hundreds of millions mostly by their own efforts. When they got ready to give it away they required the help of foundations and commissions and what have you.

The Daily Reflector

INCORPORATED

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By RALPH ROBEY

Everyone agrees that the total of unemployment is too high and that the number of long-term workers without Job.s is one of the really serious problems facing the nation. The report for September, which has Just been released, shows that no appreciable progress is being made in getting either total reduced to a reasonable level.

According to the report, the volume of unemployment declined only to 6.8 percent of the civilian labor force. This was a drop of one-tenth of one percent. Now it is true that ther normally Is a lag in the decrease of unemployment behind business improvement, but there is no reason to hope that this will solve the problem of long-term unemployment.

What are the causes of such unemployment and what can be done to eliminate it? There are many causes. Among these are:

The changing character of production, and the need for more highly skilled workers. This is a process which has been going on for a long time, but in recent years the tempo of the change has increased. The im-, portance of this is shown by the large number of unskilled who are among the long-term unemployment.

The ability to meet the market demand for a product with a smaller labor force. This has been true in automobiles, in steel, in coal mining, and In variou.s other Industries. In fact the total number of workers in all manufacturing is no greater today than it wa.s ten years ago. but the volume of goods produced has increased sharply in the period.

The movement of producers from "one section of the country to another. Textiles are the per-fpcT example of thls.'^When they moved from New England to the south there were many employees who could not, or would not, make the change. This is understandable becau.se such a shift of employment would nec-e.s.silate. not only liquidating the old home, but as well leaving behind neighbors and friends of many years* standing.

The constant development of new products which, because of their supcrlonty, destroy the market for the items they replace. Refrigerators, f o r instance, have eliminated the need

for home delivery of Ice, and there are literally hundreds of other cases-

The incessant rise of the cost of labor, which has created an

enormous pressure on producers

It takes no courage to attack J. Edgar Hoover, particularly if one accuses the director of the FBI of not engaging in activities which the law does not make his realm. John Crosby, a writer for the New York Herald Tribune, does precisely that in an arcle enUtled, The FBIs Commercial.

Crosby takes offense at Hoov-> eri statement that the onslaught of crime is today at an aU-time high. This is part of a paragraph by the FBI chief over the radio. The FBI is charged by law with the compilation of crime statistics but neither the FBI npr the federal government is permitted to engage in all forms of crime suppression, ours not being a national but a federal government, controlled by Constitutional limitations, acts of Congress and decisions of the Courts.

Por Instance, John Crosby says:

Gambling, narcotics and industrial rackets are now among the biggest businesses in this country, and hoodlum money is now infiltrating all sorts of respectable businesses."

By what law is the FBI charged with police supervision of gambling, narcotics and industrial rackets? Gambling is, by law, none of the FBIs business except as a statistical item in uniform crime reporting. Gambling may or may not be an offense, depending- upon local law. For Instance, in New York State, roulette is forbidden but in Nevada it is permitted. The government of the United States collects an excise on gambling but does not permit gambling on army posts.

Narcotics are under the Jurisdiction of the Bureau of Narcotics, a small agency of the federal government which performs miracles on a small appropriation. The FBI is not charged with the

to replace woreers with machines. Some of this rise has been through collective bargaining, but some of it, of which minimum wage increases have been most important, also has come from legislation. The basic problem here is in edcess of what the worker produces, and when the law lifts the minimum to above that level it necessarily creates unemployment.

What can be done to reduce the volume of long-term unemployment?

Probably the answer which most frequently is given is: retain the workers. Much along that line is being done, but it obviously can not solve the whole problem.. First is the question of Just what the worker is to be retained for. Then there is the further difficulty that some persons are neither especially adept, nor perhaps much interested, in learning a new Job.

Another answer is to move the unemployed from where they are to places where Jobs are available. The shortcoming in this is that the worker may not want to move, and he might not be able to do the work in any event.

Still another answer is to improve our educational system. That Is all to the good, but' it cannot reduce the present number of l<Mig-term unemployed. All it can accomplish is to help prevent such unemployment in the future.

There are about one million long-term unemployed at present, and fotunately the number will decline somewhat as the business curve continues upward, It is regrettable that this appears to be the nearest thing to a solution that anyone can devise.

Other Editors Saying

Rural South Is Far Behind

(Hertford County Herald)

At the 1950-59 rate of growth, the per capita income of North Carolina citizens will not reach the naUonal average within the next 100 years.

This is one the conclusions reached in a study of southern incomes by Lee R. Martin, professor of agricultural economics at the University of Arkansas.

Prof. Martin reported on his study at an agricultural policy insUtute in Raleigh. N. C. State College was host for the institute.

In general, Martin said that southern incomes compare more favorably with the national average now than they did in 1940.

He points out, however, that the South did more to narrow the gap between 1940 and 1945 than it has since.

In North Carolina, for example, the per capita income in 194b was 55 percent of the national average. By 1945, it had reached 66 percent of the national average.

By 1950, North Carolinas per-capita income had reached 68 percent of the national average. But by 1959, it had ortly reached 69 percent; a one percent rise in nine years.

Generally, other southern states have followed the same pattern followed by North Carolina: rapid progress during World War n and slow progress since.

In 1959, Florida had the highest per capita income in the South 91 percent of the national average. Mississippi had the lowest 54 percent.

The differences in per capita

income by counties were even greater. In 1958, the citizens of Wake County, N. C-. had a per capita income 82 percent of the notional average. On the other hand, the per capita Income in Newton County, Ark., was only 17 percent of the national average.

, In general, rural counties have a much lower per capita income than urban counties.

Martin also found a consider-able difference in the income by race and sex. In 1949, for example, the white southern male averaged earning $2,065. The nonwhite male averaged $1,033. Tlie white southern female averaged $947, and the nonwhite female averaged $440.

Martin discounted the argument that the people in the South are just as well off as people elsewhere" because they produce more of their own food and have lotyer costs.

He reported that from 1940 to 1958 farm items produced for home ccmsumptlon declined 37 percent. He also cited studies which show that regional differences in consumer prices are not large enough to compensate for the differences in incomes.

In summarizing his study, Martin said no other region in the country has as much stake in a high rate of national growth as the South.

He also said that No group in America would be more likely to benefit from increased expenditures on their education, training and health than rural farm families, especiaUy in the South."

suppression of either the impor* tatioQ, sale or consumption of narcotics. The Importation is watched by the Bureau of Narcotics and the Customs; the sale and consumption' are matters handled by local police forces. Crosby knows this, for he says: Ours is the only country in the world with organized crime on such a huge scale, and we are one of the few countries without a national police force."

True, J. Edgar Hoover is opposed to a national police force which easily becomes a militia. Should Congress pass an act organizing such a force, the Supreme Court would, beyond doubt, reject it as an invasion of the authority of the states.

Originally, the FBI wras not designed for police enforcement .^t all; its very title explains mS^Federal Bureau of Investigation. Over the years. Congress has assigned to this agency specific police activities, but Congress has also assigned po-lice activities to other agencies, for instance, the work of the Secret Service which is in the Treasury.

Crosby asks:

How many big shots of or-gauiized crime has the FBI arrested in the last five or ten years? Are they looking for any? Has the FBI any program for trapping any of those well-organized and enormously rich racketeers. Mr. Kennedy talks about?"

Under what laws does Oosby expect the FBI to make these arrests? For instance, it is no crime to be a rich racketeer," unless one specifically defines what is meant by racketeer. If a man commits a felony under state law. he may. if convicted, be called a racketeer which is a general term for certain types of criminals. The FBI is an agency of no state and may not enforce state laws, although it is permitted to assist state and municipal police agencies to enforce the law by prowlding fingerprint and other identification information. In fact, often when the FBI has investigated a felony, it turns the data over to local police for processing and &r-rest. ^ ^

I do not know what John Crosby knows about what he calls the crime syndicate. Actually, most gangs of criminals engage in felonies and misdemeanors which are not covered by federal law at all. For instance, prostitution is a local offense, but the transportation of a female for immoral purposes across atate lines is a federal offense under the Mann Act. The FBI may not go into a city and close houses or prostitution. That is the function of local police. It may, however, step into a situation involving kidnapping under the Lindbergh Act.

By kOGER BABSON BABSON PARK. Mass:, Many people are puzzled when they see unemployment riding along a^ a high 7 percent of the lab<M force while employment keep reaching one new peak ' after another. They see in this situation an indication that there is really the germ of a depression underlying the present recovery boom in business. The reasons for high unemployment In a time of top employment ^ are, however, not that menacing. They are due to the natural population expansi<m and other related factors.

WHY UNEMPLOYMENT For onz thing, some producers and retailers are pricing themselves out of business. Many Investors are of the opinion that labor is chiefly to blame here. But actually, each group in the economy wants more and tries to take in additional money by raising prices or wages, "ie result: Consumers buy fewer goods; merchants lay off clerks; manufacturers fire production workers.. It is a vicious circle, with all groups helping to keep the spiral going.

Taxes, too, can cause unemployment in a roundabout way. The levies for defense, social security, old-age pensions, foreign aid, farm subsidies, and roadbuildlng are never-endingly heavy. Such taxes make many employers so angry they take it out on labor by reducing staffs.

Foreign Imports are another issue. Lower pay in Japan, .Italy, Germany, and other naUons permits those countries to export to us all types of products at prices that our manufacturers cannot meet, even after Import duties. But if we were to raise such* duties; the nations would be alienated and would turn to Russia. Hence, almost every store is canring some imported goods. Wh^n you purchase them, you are actually putting some American wageworkers out of a Job.

Finally, many of our manufacturers are either building plants abroad in low-wage countries or are adopting automation. Retailers construct huge supermarkets, Install self-service. These changes, of course, throw more wageworkers out of employ-

CURBING LABOR COSTS

Labor costs are one of the biggest headaches for management. When they go soaring year after year, it becomes necessary for employers to cut back personnel totals in order to keep a safe margin of profit. Chiefly responsible for the exorbitant advances in wage rates are union leaders, who have to win big raises for their members in or- der to keep their own Jobs (many union leaders make $20,0(K) or more). Such leaders can force the workers they represent to agree to unwanted strikes and unreasonable pay demands by a atanding vote. Hence, Congress could help workers and consumersand basice mploymentby passing a law making all strike votes subject to secret' ballot.

The U. S. Department of Justice should be urged to prevent monopolies in advance by discouraging unnecessary consolations. Such combines, usually to raise prices or cut production costs, nearly always mean layoffs for some. Would it not be fair for stockholders to allow a period of timeagreed on in advanceafter a consolidation before raising prices or discharging any employees?

It would seem simple to cut bawik unemployment by reducing the work-week to 35 hours, but here we have the danger of encouraging m<M*e foreign imports. It would help the employment situation greatly if more workers took advantage of social security and retired at 65. This would apply, too, for older employers and company offl-clals. There might be a substantial reduction in unemployment in the younger age bracket if more young men and women were sent to college.

In conclusion, it is my feeling that the fundamental difficulty lies in the fact that both our employers and our workers are at war" with those of other nations. Until the pay rates and working conditions of foreign workers are brought up to healthy and reasonable level, the economic battle wl be an uneven one. Meanwhile, wt must all abide by the Golden Rule and avoid economic violence on the home front; strikes are too often only legalized wars.

Bottomless Well Of Money

cViftniri K#* madp more elastic

Our economist* say money .should be made more elastic Id like to see it made more adhesive.Oskaloosa (la.) Tribune.

Strength For Today

By EARL I.. DOUGLA.S.S . THINK IT OVER Why squabble? ,

There are iamllies which souabble through the years. There are bu.sine.ss associates whose Uve.s are made unhappy over the lact that every day they .squabble with ,si)meonewith an underling or with an associate. Seldom, if ever, do they squabble with a superior, el.se they would soon b listed with the unemployed.

There is the squabbling type of neighbor w ho - Is always at enmity with somebody across the street or across the property lines. Th/ere are young people who cannot get along either with members of their own or the opposite s^x.

The danger today of world catastrophe is grest, but the fear of it does not cause ss much poignant suffering eVery

day as Is caused by intermin-able squabbles between people who ought to be at peace with one. another. The ImmedUte cause of divorce is squabbling. Drinking. InfideUty. quarrels over money enter in, but these things bring contention, bitter words, squabbling.

Cut it out,! It takes only a little self-control to master a situation of that sort. We squabble becau.se we let ourselves go. We squabble because we say the first thing that comes Into our minds: We squabble because we fall to think. We squabble because we havf not eaten properly or had sufficient sleep.

Squabbling is one of those little-regarded realities which as a matter of fact is affecting the peace of the world more than the policies or actions of statesmen.

Cut It out. won't you?

By ELMER ROESSNER John E. Horne, Small Businessv Administrator, is to tell the American Bankers Association meeting in San Francisco later today that, with their help, there need no longer be any shortage of equity capit^ for sound small businesses. '

Note that word sound." Despite Congressional largess and the loans by bankers them*

, selves there is no bottomless well of money for the little fellow. He must first show that he ha.s a bit of capital and a lot of know-how himself; he must then show he has a responsible and needed operation and, most of all. he must convince his townspeoplenotably the town bankcr-lhat his business has the smell of profit.

. The little fellow with only an idea is still sorely putand so he will be at the end of time. There hu to be more than imagination: assets, integrity, stability, and large portions of know-how and hard work.

NO PEANUT VENDORS ThereS no money for those who would sell peanute and write poetry between customers;

theres no money for the couple who Just know they could run a successful gift shoppe without experience: theres no money

tor the fellow who plans to make a million dollars with a new play.

But there is. Mr. Horne will assure the bankers, a reasonable suppy of equity capital to those who meet the basics of fret* enterprise.

Fortunately for small businesses and for the national economy, many tyjie.s of Iinan-cial instuUons are activity engaged in supplying them' with funds. he will tell the bankers. These institutions include your own; commercial banks, investment banking firms; Insurance companies, the new small business investment companies, and the SBA itself.

The SBA has for years been lending equity capital to small businesses who met the test for soundness (although some of them later were found to be unsound).

The SBA has also fostered the Organization of .small buslneaa investment companies, in which the government participates in

capiUl stability. Almost 375 of these companies have been formed, making millions of dollars available to small business.

BANK AID

The SBA is also pushing a plan whereby banks can participate in loans to small business. In this plan, the bank puts up part of the money, the SBA the rest. The more the bank puts up, the further can the government share be extended.

This plan has been eased, Mr. Home wiU explain, by the adoption of simplified procedurein which every form is printed on a single page. Even banks who may not want to go along with hte loan plan may want to swipe this simplification.

There are a few other aids the SBA offers: it grants disaster loans when needed; it grants loans in areas of labor surplus, it grants loans for area redevelopment, it grants loans to dislocated businesses, it helps finance foreign trade exporters, and it helps local development programs, lending up to 20 per cent of the money to expand or rehabilitate local economies.

. Dont let me give you the impression that a man wanting ho go into business can get all the money he wants from the government and the bankers participating in these plans, Mr. Horne told me in his gentle Alabama drawl. There probably will never be enough money to finance every man who wants to go into business for himself. But I do think that if Congress continues its present interest In the small businessman. there will be adequate equity capital for the businessman with a sound enterprise-sound, that is."

SHORT AND POSSIBLY SIGNIFICANT BUSll^ESS NEWS

Because of reports of crop * failure, belladonna leaves have gone up 3 cents a pound to 32 cents. . .Uva urso leaves dropped in price to 14 and 15 cents a pound. . .Digitalis leaves were down 10 cents to $1.05 a pound . . Rut balsam tolu, cascara bark Juniper berries and crude pa plan are firm on the New York market. Thought youd like to know.