Friday, December 8, 1961 ., . . ' ' '

Kennedy Sets Stage For New Test

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President Kennedy has set the stage for another major test of his leadership ability and political strcrtgth with his proposal that broad new authority be given the administration next year to reduce tariff barriers and effect new trade agreements between the United States and other nations.

^ In recent months many elements of organized labor and industrial management have pushed for higher rather than lower tariff barriers to protect American industry from the,influx of cheaper, competitive goods produced in other nations. Many leaders, both from organized labor and from industry have declared that inadequate tariff barriers now existing are largely responsible for''a high rate of unemployment in this country and grave economic straits in which some industries find themselves.

President Kennedy's new proposalwhile it has not yet been spelled out in detailenvisions a lowering ol tariff barriers in order to stimulate trade with other nations, opening up new markets for American products in return for making it easier for other nations to sell their products in the United States. It also

Governor Isnt Really Crushec.

Can't Shake Off His Nuclear Cloud

By LYNN NISBET

P AND AT EMIt is quite obvious even to the casuai ob> server that Governor Terry Sanford was somewhat chastened by result of the bond issue vote. He was first to adroit that he had taken a Ikying, and be accepted large part of the responsibility for the failure of the bonds. Many people think he may be assuming too much blame, because he didnt have much help in promoting the ls-' sue.

A number of things have happened since November 7 indicat ing that the Governor is giving more thought to public reaction than he did before. He has declined several invitations for out of state trips which previously he had indicated he might accept. He is not fUliog, at this time, a high salaried vacancy In his office occasioned by transfer of Hugh Cannon to the Department of Administration.

Butanybody who thinks that Terry Sanford is cowed or beaten down need only to look at the rest of the record. It was his prerogative under the law to ap-I>oint a director for the Department of Administration, the overall supervising agency of State government , Instituted at instance of Governor Hodges some three years ago. It is the agency through which the Governor acts In most of hls routkie and detail executive duties. He named to that position Ids former law partner and later assistant In Uve Governors office, Hugh Cannon.

Cannon adhnittedly Is one of the most biiUiant young men ever to be identified with State government, and Ids scholastic attainments are far above the average for most scholars of twice .his age. Buthe is just 30 years old. and his only training or tutelage In government has been given by Sanford. As the final voice, next to the Governor. on mattera ot fiscal and personnel policy. Cannon has tremendous authority. In his In-auigural statement he committed himself to carry forward the Governors program.

COLTRANEThen the Governor announced that David Col-trane. who was being replaced a.s Director of Administration by Hugh Cannon, would be retained on the State payroll as a member of his personal staff and also would be appointed to the Advisory Budget Commission with request that he be made chairman. The suggestion was protested by some members of ^ihe budget commission and questioned by a mhnber of clti-rens. Question had to do with the propriety of the Governor XMuning a tax-paid State employee, especially one from his own personal staff to the"advisory commission designed to recommend appropriations and taxes, and to exercise some control over expenditures of tax collected funds throughout the year.

The Governor met these pro

tests head-on at his news conference this week. He reminded it is his prerogative to ap-poliil two members of the advisory commissionas well as. the Director of Administration and the chief budget officer in that department and he believes Coltrane is well qualified to serve oo the oommiasion. IT qualified for the comnvlssion be should be recognized as quail-' fied for chairman. Any member ought to be qualified to serve as chairman, he sald.*^

The Governor said he would not press his recommendation for the chalmvanship, but would not withdraw it. And very definitely he will appoint Coltrane as a member of the commission. Never before has a full-time salaried State envjrfoyee served on the Advisory Budget Commission. There will be one as soon as the Governor executes the commission for Coltrane. Whether he will be chairman Is up to the other memters, but as of now the odds are about 100 to one he will be.

MISSIONARIES - When the Department <rf Conservation and Development and the Travel Council of North Carolina first approved the program as a missionary tour to Europe to promote travel business In this state It was expected that Governor Sanford would head the mission. Later developments have made It unlikely the Governor can go and the mission will be headed by Charles B. Wade, Jr., vice president of R. j. Reynolds and chairman of the advertising committee of the CAD board, the Governor announced at his news ccniierence this week.

Members of the party, pres- ^ ently scheduled to go to Europe early In February, will be invited by the Governor and commissioned as ambassadors of North Carolina. EUu:h member of the party will go at his own personal or company expense. The State will contribute service of its advertising division and other promotional agencies, but no tax moneys will be spent for any purpose that Is not Included in the departmental, budget allocations, and no travel expenses will be paid by the State.

This proposed mission is different from most such jaunts.

It may be unique. North Carolina sponsored a mission to Europe several years ago to promote kndustxy. Many other states have done the same. The textile Industry has sent out missionaries. and the furniture people around Hickory are now planning a mission for February. So far as can be learned, this proposed mission Is the first to be devoted mainly to selling the travel attractions of the state. That in Itself is effective comment on the growing recognition of travel as a major part of the total industrial program.

envisions an increased demand fortJ.S. goods to handle new export trade and more jobs for American workers.

llie proposed new policy would allow the President to reduce tariff barriers on the basis of broad categories of goods rather than through the item-by-item method now in effect

Although the President's new plan appears to offer an opportunity to increase American exports, it also will afford foreign producers easier access to U.S. markets. In many cases, leaders in both industry and organized labor will view the new proposal as a serious threat to' certain segments of American industry. They will not be convinced that the long-range advantages offered 1^ the proposals will outweigh the adverse effects of^a.greater influx of foreign goods' into the American market.

The President will find his new program a/difficult one to sell in many parts of the country . . . and particularly on Capitol Hill where Congress will have the final word in his proposals.

Coming Requests For Capital Improvements

North Carolina will face in the next few years a 'severe capital improvements problem at its institutions of higher learning and other state institutions as a result of the loss of bond funds in the November referendum.

It is already evident, we think, that the 1963 legislature will receive capital improvement requests from these institutions that are unprecedented in state history. In all probability, the legislature will not be able to fill all the reque.ts, and it is quite likely that the legi.slature will not feel tliat it is in the position to fill even all of^the moat urgently needed capital improvements.

Whether some of the institutions, will seek to fill some of their moat pressing needs^such as dormitories and the likethrough federal loans to be repaid from student fees, remains to be seen. It appears to us that this would be a logical course which could at least make it possible for more of the increasing number of college-minded young people in North Carolina to gain admission to colleges in this state. At the same time, such methods of financing new facilities should not be carried to the extent that it will put the price of a college education out of the reach of young people of the estate.

. There is also the possibility that by the end of the biennium in June of 1963 the state will find that its current tax schedules have produced more revenue than was anticipated when the budget was adopted earlier this year. If that is the case, state officials might seriously consider applying whatever surplus of state funds evist at that time to meeting some of the capital improvement needs of the states institutions.

In spite of the outcome of the bond referendum, we do not believe the people of North Carolina intend to ignore the needs of its mental, health and educational institutions. Feasible alternate methods of financing these needs over the next few years will, in our 'opinion, meet with approval from the people of North Carolina.

Whos Winning The Cold War?

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NWORLl>-Wll>E *

DISTRUST

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By PATRICIA MOORE

Script Adhered To Story

Wednesday night Oscar Wilde greeted TV* viewers with "The Picture of Dorian Gray. We will hold, in spite of some heated opposition, that this hour-long program was the best single one we have viewed on TV this fall.

Perhaps we were swayed by the fact that for once the script writers stuck to a plot and didnt try to make the ending "come out right. by changing It.

The main opposition ^ to the production was that Dori'an Gray was not sinister enough; that in his acting, the main character did not betray the evil that he really was. However, we would challenge this criticism on the' basis that the character was a mirror of a painting and thus not supposed to change and show evil and murderous tendencies.

This was the premiere of the

"Golden Showcase series. It Is ^oped here that more such programs. whether liked or not liked because they suit individual tastes, will be put before the screens because they are at least interesting. Anything that provokes criticism and Interest Is worth seeing. It beats by far some of the hum-drum episodes we witness day after day, with the public complaining, because the limited number of existing plots are just plain being exhausted by different characters in different costumes.

Our only legitimate complaint about Dorian Gray was that In the end. the man looked so hideous-more like some of the Halloween masks we buy In the dime storethan perhaps like an .'vil thing. It was overdone. But, referring to the end of the actual novel. It may not have

Other Editors Saying... Strength Enemy On The Move For Today

The Daily Reflector

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By JAMES MARLOW

WASHINGTON (AP)-Today. 20 years after the United States got into World War II, optimists like to think this country is winning the third world war, the cold one. Plenty disagree.

American self-examination Increasesas the years of struggle with communism stretch out with no end in slght^but always from a single starting point.

How did communism, which could claim only 170 million people In Russia 20 years ago. manage to gather in one billion now extending from Eastern Europe, through Russia, and Into Red China and Southeast Asia?

There is no single fnd no easy answer. Nor is there one to many other questions about this war which is deadly without shooting. For Instance: How it started or how It could have been stopped?

In some cases communism < was a response to wretched conditions. in some to intrigue, treachery, and military power. It is questionable any single action or series of actions could have choked it off.

Communism is more than Just a political or economic system. It is a challenging idea and. like capitalLsm, almost Inevitably would have had to find some way to-run its course.

Discontented men. perhaps for C(nturle.s. would have discussed it and perhaps tried it again If tomorrow it were crushed by an outside force Instead of evolving into something quite different under its own power.

Capitalistic and communistic dogmatists tend to think of their pel beliefs in absolute terms as if they were unchanging.

Perhap.H nearer the truth is the thought capitalism'or coni-irunism, if tomorrow' it niied the world without oppasltlon. would in time evolve into something unrecognizable today.

And for a simple rea.son: The history of man is evolutionary and the one predictable thread running through it is that there will be change, subtle or sudden, because of new ideas, r.ew anibltioxvK, or new coiv dltlons,,

From the moment communism emerged in Russia 44 years ago the most realistic reaction to it might have been not how to lop It but how to channel It in a direction more reasonable for the' West to live with.

That is exactly what the Western powers are trying to do today. No one today in a responsible position is Ulklng of destroying communism. The emtfliasls is on how to get it to live as a good neighbor.

Books have been written on how the great chance to overwhelm communls'm was lost at Yalta, or after the war when Ahls country still had a monopoly oa the atomic bomb, or

when this country demobilized too fast.

The handwringing could go further back: To American isolation between the two world wars which helped make Hitler possible and. as a result after his destruction, made communist expansion possible.

But the isolationism was only evidence that this country, which emerged as the world leader after World War I, was too unprepared, too unimaginative and too unsophisticated for its role.

The same thing could have been said of It again after World War II when, once more it emerged as world leader and, falling to understand its problems and responsibilities, demobilized too fast.

But this is an endless story. The success of communism today could be blamed on the failure of the capitalistic West to unite and crush the Bobihe-vik takeover In Russia In 1917.

Beyond that, too, was the failure of the West to try to compel the czar to establish for his people conditions which would have made communism unthinkable.

But the West, except for the United States, was made up of colonial powers who were in no pasltlon to preach good treatment of backward people. The West had too learn the hard way and give up its colonies.

And now, by one of the great Irpnies of history. Communist Russia and Red China, proclaiming their concern for mankind. have become the new colonial piasters. They, too.* will have to learn the hard way.

(Richmond Newt-Leader)

In a good many ways, both the Eisenhower and Kennedy Administrations have breached the classic commandment which says: "Never underestimate the enemy.

The most recent infringement on this rule (following big mistakes in misjudging Russias airpower, space and subversive capabilities) is the idea that the USSR is resting upon its ill-got gains in Europe. The theory goes that with the possible exception of Berlin, the Soviet Union is merely sparring on such European questions as NATO and the Common Market, and does not intend to hit hard enough to make the West angry.

This concept. Inferential In many Administration moves and statements, does not take into account either the tactical or strategic actions of the enemy.

If past performance of European dictatorships tells anything at all. Russia already is making the initial swoops for a large encircling plan. One plncher has reached north into Finland. Despite Administration tenden-cies to look the other way, and .say that nothing is happening, or can be prevented from happening, the Kremlin has now arranged for a one-party, pro-Soviet election next February in Finland. President Kekonnen is already In Khrushchevs pocket: he cannot lose the one-candidate election, and there is increasing reason to suppose that the local Communists wl soon control the Helsinki government.

Hardly was the Finnish pinch-er in place, when a southern

claw showed in Austria. Pravda has warned Austria that to join the Common Market would be to compromise the Austrian neutrality which is guaranteed by Russia and the West. But if Austria is forbidden by Russia to Join the Common Market then .Austria can hardly fail to gravitate in the other directiontoward the Soviet bloc.

These moves are tactical; they put Russia into position for a much bi^er move. Strategically, Russia is maneuvering in Europe on a broad psychological front that is clearly labelled "Beware the Germans, Bearing Arms. The propaganda carries enough truth to be deadly effective all over Europe where Germans are still a hated race. To this day German license tags In the Lowlands will cause parking lot attendants to wave the car on, and cause children to call "German swine! The experiment this past summer of training Panzer units in the British Isles achieved political acceptance but caused emotional revulsion.

All this makes the arrangement for West Germany t buy $700 million of American military goods in 1961-62 a very dubious deal. Yes, we need the money in the balance of payments, and we cannot force the Germans to endure the humiliation of paying straight occupation costa of American forces there. But Just the same, it is doubtful wisdom for American munitions makers to sell weapons to Germans who are cast by Communist propaganda in the r<^e of villaina role that fils, much to .our disadvantage, all too well. N

By EARL L. DOUGLASS SUCCESS AND FAILURE

The great composer Handel started out to write operas and was. to put it mild^, unsuccessful. Then he turned to writing oratories and became the greatest writer of oratories In t.he world.

How often God lets us fail in something by way of signalling to us that we should be walking in another pathway! Poor Abraham Lincoln failed at almost everything he did. He set his heart on being a United Senator from Illinois and Stephen A. Douglas ran past him at the voting booth. As the election of 1864 approached it looked very decidedly as if Lincoln would leave the White House. Perhaps it was that shadow of defeat which caused him and his associates to put renewed energy into their political efforts.

In other words, failure is very often the prelude to success. There are types of success which are nothing but failure at their core. There art also types of failure which at their center are really successes.' Nothing is more unfortunate than for a person to go through life apparently having everything his or her own way. We need a few failures to keep us bumble to arouse our faith, to atimiuate our energy, to heighten our determination. Being turned back is just as much a part of success as being pushed forward.

Dont think you arc a failure because you have failed in one particular thing. This may be the prelud^ to a greater success than you ever dreamed of having.

been overdone. ^

The play was Interesting because of the writer. Oscar Wilde. To this writer, Dorian Gray personified Otscar Wilde as he was supposed to have been.

A critic of Oscar Wilde (in case you are Interested), Richard Aldington, has said that Lord Henry was Wilde as he hoped to remain, and Dorian Gray as he feared he might become.

Wildes life In England evoked a storm of criticism, gossip and the end result of scandal, court trial and conviction of some not - so pleajsant accusations. Generally, these things are not disputed.

But reviewing them and having viewed "Dorian Gray on television makes us more interested in reading some of Wildt again.

School. ?unds, Scarce

By GEORGE E. SOKOLSKT

Copyiigiit. 1961. King Features Syndicate,^ inc.

Governor* find tbetnselvei In financial dlfficultiea because of the continued faulty *tat finan-cing since the glorioua days of the D^jreaaiwi when the New Deal evolved the Keyneam doctrine that if private enterprise or private individual* cannot provide for tbemeelve*. the ati^ must dip. into the tiU and grab tome oi the available money to be used for any purpose as long as it la caUed welfare.

Now. in theI960*, they find that money ia not so available. ' Taxes have become too high and the state govermnenta cannot compete with the Federal ad-xnihistratioa in depriving the citizen of bla eamlngs. So educational institution* are being deprived of revenue. One of the worst examples of faulty educational revalue Is the State of Michigan which Is very short of funds. The State of Bfontana is considering closing its famous School of Mines.

One of the major problems that faces this country Is that too many students are permitted to fill their schedules with "easy courses which make it possible for them to get a degree without doing much work. One meets a student who majored in English and speaks and writes the language like an alien, or who has majored in history and knows about as much history as used to be acceptable for an eighth grader. That is not education; it is using time.

The student is Intellectually impoverished and has little 'to show for four years of time spent in Ivy Halls.

Our national problem, however. is that we need more eo-.^ glneers, more i^siciana, more mining engineers, more scientists if we are to bold our own in a world when science is essential to the rebuilding of the civilization which has been damaged by war and revolution. The closing of a soho(^ of mines can only be justified by a lack of competent students. What seems to be essential is that students be encouraged to take the tough courses, particularly those heavy with mathematics, which are so essential for knowledge of the new sciences and for the safeguarding of this country.

The Montana School of Mines has special value because it lies close to some of the most important mining industrie* in the country. Technical schools need to be establisbed where the student* can find tbeir work. For instance, H would not make much sense to establish an agricultural school in New York City, but Ames, Iowa, is an excellent place for just such a school. Similarly, medical schools situated where there are no hospitals do not serve the students well, but big cities like Boston, New York and Chicago attract medical students because it is practical to associate a medical school with big hospital.

A School of Minea In^ Montana, at Butte, which is the center of the copper industry, makes sense. To close down such a school because the state may be abort of money is stupid. The state ought to find the money. In the old days, the rich contributed such money out (tf the profits of their business. Today, Income taxes and the limitations upon charitable contributions make it very difficult even' for the very rich to contribute to charities or to ed-ucatioo.

Nevertheless, there are men who assume the responsibility to share their earnings with beneficial institutions. They refuse to permit a brutal system of taxation to lower the moral and cultural standards of the nation.

Similarly, states must cut down on non-essential expenditures. on political expenditures and keep tiieir educatl<ial institutions up to scratch. When the nation was young and weak and money was scarce, we developed one of the finest educational systems in the world.

We somehow found the men and women who were willing to keep schools" going.

What has happened to us in the middle of the Twentieth Century that we are ready to close down important technical abhools In the face of Russian, (Continued on Page 6)

Opinions In Bnei

'Elfects Of New Silver Policies

"If you live within your income you will gel along without worry, among other thlng.s. Augusta (Kan.sax) Gazette.

"For years the people have heard Congress talk about revising the federal tax system, but the only result is more and more complicaied laws and ad-mlntstralive ruling.^ by the In-, ternal Revenue Service. E^'en a small buMnes.s and many individuals require a lawyer or public b-Tountant to make out federal income tax returns. This amounts to an addition to the tax load.*Industrial News Review.

"The Idea of giving an experi-(iiced budget expert waste-huntlhi iicenae over the whole lange of atate activities ia a good one. No governor or legla-latlve committee can hope with-(ut expert guidance to draw the line correctly between fat and Iran In money mattera.The Charlotta Newt.

By ELMER ROES.SNER

Higher prices for photographic film, silverware and certain electric equipment will follow the governments action in getting out of the silver market.

Other applications affected by higher silver prices Include certain missile uses, batteries employing silver along with cadmium. chemical processes using silver as a catalyst, and as a bactericide in making ice.

Prices have already atarted up. But they wont shoot up so much that silver coins will begin to disappear.

AUTOMATIC CEILING Before the government stcp-selling silver, it was getting 9l' cents an ounce from anybody who had a Treasury license to buy. Silver on the New York iMrket was 91% cents an ounce. When the Treasury btop-)ed sales, the New York price jumped to 100% cents an ounce-Silver producers wishfully predict the price will go higher-but as Simon D- Strauss, vice president of American Smelting and Refining, pointed out, a

price of $1.10 an ounce would bring out quantities of hoarded silver and would stimulate exploration and new production. Other Industry leaders think that $1.10 will be the ceiling on any price rises.

But it would not be profitable for holders of silver certificates (in $1. $2. $5 and $10 bills) to turn them In for silver until the price reached $1.20 an ounce, and it would not pay to risk arrest for defacing United States coins by melting Jpwn silver dollars until the price got well above $1.38 an ounce.

HOW IT HAPPENED

"How did we get into this mess? some people are asking, relating our shortage of silver to our shortage of gold-

There is no connection- Current developmenia aimply mark the end of another government ej^periment in price fixing.

Silver is produced In about IS Western States. Mine and re-finesy owners are fat sources of political contributions. Western Congressmen constantly battle. to give them better break*.

For a century, Federal laws have favored the silver man.

In 1933, when silver was selling for 44 cent* an ounce in New York, President Roosevelt ordered the Treaaury to buy domestically mined* silver for 64-64 cents an ounce. In 1939 Congress fixed the price at 71.11 cents and in 1946 at 90.S cents. So everybody In his light mind with a claim or .a mill started producing silver. 'The iaws also provided the sale of silver at 9' cents an ounce In San Francisco and slightly higher in Denver and New York, but only to persons licensed by the Trea- sury.

LARGEST HOLDING EVER

By June 30. 1999. the Treasury held % billion ounces of silver, the ^ost ever accumulated by any nation in history. However, all but 212 million ounces was frozen as backing for the silver certificates used as money, or was in silver coins.

Since then, silver has been going up in the world market. A higher standard of living in western nations has called for more silverware. MUsiles and

other weapons have required greater amounts. Movie and still photo film demands have been soaring. Uneasy citizens of new nations have been hiding silver. Speculation in foreign markets is tying up more. Prance and Italy are returning to silver coins. World prices were rising.

And because American users had to pay premium prices abroad, they bought Treasury sliver until, by the end of November. only 22 million ounces obove the currency requirements remained.

SHELVES ALMOvST BARE

'The Administration had no choice. No one Aiould sell silver to It at 91 cents an ounce. It had so little "free silver left it had to stop selling it.

President Kennedy has said he will ask Coligress to repeal all the silver laws, leaving silver just another commodity, and to use Federal Reserve pledges instead of silver as backing for ( urrency under $20.

The silver-state CongreMmeo will fight like hell. Nobody likes being kicked out of a warm bed-