J

Monday, Deeomber IS, 1961

A Stronger Feeling Of Friendship

,

In spite of whatever missrivings, demonstrations States to give greater assistance to its neighbors of and embarrassment that occurred along with the visit >the Western Hemisphere. It shows clearly the im-of President and Mrs. Kennedy to Venezuela and Co- portance the President attaches to strengthening the lombia. the long-range effect of the visit,' we think, relations among the countries of the two Americas.* will be a strengthening .of the feeling of friendship x j u

between the people of those countries and the United Whatever the immediate impressions created by States. reactions of some persons in the two host countries,

there can be no doubt that in the long run Latin Amer-,

As the people of Venezuela, Colombia and other icans will recognize this visit of the President as a Latin American countries evaluate the visit trom the new high point of U.S. interest in their well being, distante of a few weeks, a few months or a year from This long-range impression will far overshadow any now, it is probable that they will appreciate more fully effort by a relatively small group to discredit the visit than at this moment the determination of the President of President Kennedy,

of the United States to help them with their problems,

and the sincerity of purpose which prompted him to make the trip.

There can be no doubt that the visit was made under adverse circumstances. In contrast with usual visits of heads of states to other countries. President Kennedy knew he was going into places where concerted efforts were being made to embarrass his country and his host governments. While every effort was made to insure his safety and a pleasant reception for him, there was the element of danger. As has been the case in many instances in the past, the trip could have been called off at the last minute in the face of the circumstances, and the business at hand handled through more normal governmental channels.

The very fact that President Kennedy elected to expense may have been exagerated as is often the

Enough to Give a Guy a Complex!

W THE FREE ENTERPRISE IPAV ALL THE LL5, THE WAGES, THE TAXE5 ANl> THE M\/H>ENl>^

INf>TEAt>OF BEING LOVED AND honored, '^A OOVNNGRADED, CR\TICIZED /vMUNDERSTOOD AND APOLOGIZED FOR.'

Careful Due In

Attention Is The Future

Gov. Sanford's assertion that there has been no abuse of travel allowance by officials of North Carolina can be taken at face value, we are confident; but it seems to us that careful attention in the future should be given this kind of expense by officials of various departments and agencies of the state.

- Earlier suggestions that state officials were using a great deal of money attending conventions at state

make the trip is indicative of his desire for the United

111 Will Causee.

By

!i^ower I

igh

By LYNN NISBET

ILIrWILL The scrap over the question of whether Nanta-hala Power Company may be allowed to sell its distribution facilities in five western counties to Duke Power Company has developed into much more than a legal contest between big corporations. From the beginning of the case tlj^re was some confusion between purely legal problems and sociological Ideas. Because the sale to Duke was opposed by two coops, which wanted to buy the distribution system and transmit TVA power, the question of private power against public power was Inevitable. Even though the Utilities Commission was asked to outlaw use of those terms in the open hearings, it has been obvious that was a prime factor In the controversy.

As the hearings were drawn out before the Utilities Commission, first on the matter of rates to be charged by Nantahala and then on the issue of sale to Duke, sentiment in communities throughout the affected area crystalized and citizens were virtually forced to choose sides. These differences of opinion progressed to where In many Instances they have become personal. and friendships of long standing are Jeopardized.

Its worse than the Kennedy-Nlxon campaign over religion, said one man who says he has tried diligently to remain neutral.

The cases may not be good for the community but they are proving highly profitable to the legal profession. A quorum of the 30th division bar association could have been assembled In Raleigh almost any working day during the past two weeks-

IN COURT When Raymond Maxwell, executive secretary of the State Board of Elections, refused to accept the application and $21 filing fee proffered by Sen. Max Thomas of Union county as a candidate for Lieutenant Governor, the question of whether an election for that office can be held next year was headed for the courts.

The refusal of the State Board to accept the filing was based on an opinion by Attorney General Wade Bruton, who held that there is no constitutional provision for an interim or midterm election of a Lieutenant Governor. He ruled that the vacancy which occurred upon the death of Cloyd Phllpott would continue until the Lieutenant Governor elected in 1964 took office in January of 1965.

Many politicians, supported by opinion of numerous eminent lawy^, have questioned that SSSSSSSSSSSSSab^mmmSm^al^Smm

interpretation. For weeks there have been jockeying for position among prospective candidates to see who would break the ice to challenge the ruling. Republican leaders said they would certainly offer a candidate. Democrats didnt want that, because if the courts should sustain the right of a candidate to file, the Republicans could claim they had protested that right of the peopleeven though their party candidate had virtually no hope of election.

Now that a Democrat has broken the ice a number of other Democrats and Republicans are watching progress of the matter through the courts with great Interest. It isnt likely that anybody else will tender a filing fee until the courts give final controlling decision. But there are several fellows holding $21 earmarked for the filing fee if the election is authorized. Senator Thomas promises each and every one of them a good fight for the Democratic nomination.

UNORGANIZED? - Despite ail the publicity lately about the Democrats rewriting their plaji of organization, and about party integrity and party discipline, the facts seem to Indicate that the Democrats in North Carolina are Just about as unorganized as they ever have been. (Subtle distinction in meaning suggests use of the word "unorginlzed rather than disorganized to explain the status-)

The already much overworked bond election must be referred to at least one more time as an Instance of lack of organization. The state'Chairman said after the debacle that he had not known about any opposition to the bonds. For weeks there has been consider^ able publicity about the Republican challenge to enter a candidate In the primary next spring for Lieutenant Governor, and about the concern of some -Democrats over that prospect. It had many of the qualities of a partisan advantage issue. If the Republicans proffered a filing first, they could claim credit for saving the right of election. Old time Democrats didnt want that. Yet when news broke that Senator Max Thomas of Union planned to tender filing as a Democrat, the state chairman Is quoted as saying he knew nothing about it except what he read in the newspapers. Evidently the party organization as such had no Interest In the matter, and the prospective candidate was not. con-. cerned about working with the party organization. Oldtimers will tell you that la not the way elections are won.

The Daily Reflector

INCORPORATED

Published Every Afternoon Except Sunday BaUblished 1882 DAVID JUUAtl WHICHARO, Publiataw

filtered at Post Office, OreeovlUe, N. as second cIsm maf matter.

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case when one official undertakes to make generalizations without sufficient specific information. On the other hand Gov. Sanford elected not to make public the full report which has been compiled on the situation in spite of the fact he offered to answer any specific questions concerning convention expenses of officials.

This decision by the governor, in our opinion, tended to heighten public concern over officials travel expenses rather than to allay them.

Certainly this particular category of expense should not be ignored in the undertaking of the San- By GEORGE SOKOLSKY ford administration to reduce waste of public funds in ^ state operations. While savings from unnecessary travel expenses of state officials might amount to a great deal of money, if there is waste in this field it should be cut out. Every tax dollar that can be saved is important to the people of the state. Several hundred thousand dollars doesnt have to be involved to make the elimination of government waste worthwhile to the taxpayer.

Keeping Show On Roac

Copyright. 1961, King Features Syndicate, Inc. Herodotus wrote a great deal but one of his most used sentences is:

Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.

This is used by the Post Office to advertise its function. Of travel and the benefits which the state is realizing course, these days of high costs.

Most people recognize the necessity of officials doing considerable traveling in conducting the business of the A^ate, but at the same time they are entitled from tlffe to time to a full report on the cost of such

from conventions and the like.

rwo Changes In ?ast Week

ine

the Post Office is not perfect in carrying out this task and we sometimes wait for mail longer than we should, but then we are growing accustomed to inefficiencies. In fact, we tend for forgive inefficiencies and even to become increasingly less efficient ourselves.

If we apply what Herodotus had to say to government, using current dialect, we might say that one of the tasks of the day is to keep the show on the road.

The Depression made the government too large an institution and employed too many persons at favorable salaries with rou-tinized fringe benefits which had the effect of rewarding the inefficient as well as the efficient, the well-trained equally with the less-trained and making a job permanent by what is called tenure.

The theory during the Depression was that because a person was born, he or she, whichever it might be, was entitled to two things: a government guaranteed livelihood and a vote. Then

By RALPH ROBEY

We have had two noteworthy changes in our money and bamk-ing system within one week. First was the order of President Kennedy stopping the sale of silver by the Treasury DeparU ment and the promise to request the Congress to permit the Federal Reserve Banks to print one and two dollar paper bills. Second is the ruling of the Federal Reserve Board and the Federal Deposit Insurance Corporation authorizing commercial banks to pay up to 4 percent Interest on time deposits.

As everyone knows there are Important differences between demand and time deposits. Almost all loans private or governmental result In a demand deposit, although of course ordinary checks or cash also may be used to create a demand deposit. And such funds, as the name indicates, are payable upon demand by means of a check.

In contrast, time deposits, or savings deposits, never result from a loan. They represent funds which the owners prefer to put away for later use. One never gets a loan and deposits the proceeds in a time deposit for the simple reason that the Interest he would have to pay on the loan would be more than he can receive on the deposit. Further, a time or savings deposit can not be transferred by checks. One has to appear at the bank himself, or have a duly authorized agent appear, and present a withdrawal form. Finally, time and saving deposits, under the law, may not be withdrawn except by previous notice. In practice It no longer is necessary to give such notice, but the banks have the authority to demajHl this notice if they so desire.

These differences have many ramifications on the operations of the banks and the regvilatory agencies. Demand deposits must be Invested only in selMlquldat-Ing loans or short-term paper for which there is an Immediate market: time and saving deposits may be Invested, and

Other Editors Saying...

usually are, in long-term paper, ^ 71 TN

such as bonds and mortgages. SOTTlP A fP nPlTirr JPTIlPr

The legal reserves which a bank

must hold are always much higher for demand than for time deposits.

In the old days it was customary for commercial banks to pay Interest on demand deposits. In the early part of President Rioosevelts administration this was prohibited by law, and since then a bank could pay only on time deposits. The rate which may be paid is determined by the Federal Reserve Bogrd for its members and by the Federal Deposit Insurance Corporation for other banking Institutions. The maximum rate was 2H percent from 1935 until 1957, when it was raised to 3 percent. It has now been lifted to 4 percent.

We use the term, maximum rate, because not only does it represent the highest that a bank may pay, but also it means that the deposit must be for at least one year. For shorter durations the rate is lower.

The Federal Reserve Board said that there were three reasons for making the changer To enable commercial banks to compete more effectively with saving and loan associations (many of these have been paying 4*4 percent): to help prevent the shifting of funds to foreign countries where interest rates are higher; and to encourage saving and thereby help provide more capital for the growth of the nation.

The authorization for the higher rate is next January 1. It is not to be expected that all banks by any means will Immediately raLse their rates. But those that want to can now do so, and for the first time In many years our commercial banks will be In a position to >mpete through interest rates ^Ith savings banks and other Institutions.

For the millions upon mil-lton.s of savers in the country this Is an important change. It will mean that the money they put away for future use will yield them a better Income.

(Washington Daily News)

One of North Carolinas outstanding educators, in a very friendly fashion, has asked this editor a question which needs a clear-cut answer.

Sometimes ago in an editorial we observed that now and In the future many of our boys and girls right here in North Carolina could be denied the opportunity for a college education because standards are so high and costs so great that many of them will not be able to enroll.

The educator asks do you know of a single case where a boy or a girl in North Carolina has been denied the opportunity of a college education? Frankly, we cannot name names, and we cannot point to a single boy or girl who has been turned down because of low grades in high sch9bl. But we feel certain that there are some, and one day we are going to have a long list, we believe.

It is not only what is taking place right at this moment that Ls so Important to all of us. It Ls also what is going to take place on the many tomorrows ahead. If we watch an ever rising standard creep over educational opportunities in North Carolina, then we are going to see more 'and more boys and girls denied their rightful opportunities because they cannot meet the standards.

We feel that right nowtoday a student making an average of 75 in high school knows that he cannot meet" the requirements and as a result he or she conditions the mind to the point of realizing that a college education is out of reach. That boy or that girl right now is not thinking of a college education.

But let us look to the future.

When we are told that college standards are to become so high that only the top one-third of a class can hope to enter, and we must remember that educators are telling us that very thing, then we ask ourselves a question. We ask what is to happen to the other two-thirds of the graduates? Are they to be doomed to going through life with only a secondary education when many of them really desire to go to college?

We are satisfied right now that many boys and girls cannot go to college because their parents just do not have the money to send them. After all, the economic condition of the parents c4oes not necessarily determine the academic standing of the children. We have youngsters right here in Beaufort county whose parents just cannot afford to send them to college. Some of these students are of the A variety.

If we eliminate some on account of finances and others on account of low high school grades, then is it not practical to look at the future and say quite frankly that one day only the rich and the smart can go to college? We wonder about this thing. We wonder If our sense of values is not misplaced slightly in many cases.

If we now say that what we cannot prove conclusively now is a matter of common knowledge, we would seem to be speaking out of weakness in our position. But we are certain in our mind that many boys and girls who want to go to college today find It impossible to do so.

And the truth is that we wish we were wrong.

came World War n and milUou of young people, male and female. were withdrawn from the population and put to work in some kind of soldiering. Of course, both the males and the females felt that they were performing beneficially and nobly for their country.

I have often wondered why the public took World War n more seriously than the first war of this kind, except perhaps that few knew what they were fighting for and still fewer know today what it was all about and who won the war. Be that as It may, many were killed, more were wounded, cities were blasted and hearts were broken.

The task, during the War and since, has been to keep government functioning and that has proved a most difficult task, because many governments collapsed, empires fell, colonies were set free, new governments came into existence and those who managed states were novices and amateurs who were caught with responsibilities beyond their ken and abilities.

Attempts at establishing a world state, or a world union, or a world organization were proposed in many forms but out of it all came the United Nations which started with 51 members and has now grown to 103 members and the growth has not yet come to an end. Every inch of the Earth Is permitted to assert that U Is a state except Katanga which is forbidden self-determination. If Mongolia may be a free state, why not Katanga? This puzzle has not been solved by anyone nor can It be understood wlyr American Jets and Irish troops are used to keep Katanga a part of the Congo but only Russian tanks were used to kill the people of Hungary. If the United Nations is to go in for promiscuous killings, it might kill some of those whom the Russians want to keep alive. It seems as though the United Nations specializes in fighting those whom the Russians hate.

Keeping government on the road is a very difficult task in these days when a program is hard to keep fixed for more than a few moments. Our Secretary of State, Dean Rusk, rushes off to Europe to compose such a program with our allies whom we have helped to remain alive, but they have programs of their own. Let us not be too excited about that, for In the end. they will know that we shall either stand together or (all together and that if the United States is unable to maintain a program, the whole Western World will collapse. Good (Continued on page six)

Seven

Crueid.

AsDects

By ROGER BABSON

BABSON PARK. Mass., In any review of tis sort, I must mention the Federal Reserve Index of Industrial Production. This Index averaged 108 for 1960, and according to my estimate

1961 should average higher, around 109. This barometer measures only physical volume of dollar values and includes ervlcea and miscellaneous businesses as well as factory output. This figure, the Gross National Product, averaged $504 bUlion In 1960, and I estimate It will average around $S2Z\ billion for 1961. \

PERSONAL INCOMl^ j Notwithstanding the recession which extended into early 1961, personal income not only held up very well this year, but Advanced above 1960, This figure concerns every reader of this column, and recognizes what was lost by the automobile work-' ers and others affected by strikes. The more strikes, the less personal Income.

EMPLOYMENT Beginning In February of

1%1, employment rose steadily, except for the auto strike period. With gradually rising em-plojrment' and wages, 1961 will wind UP with a good record for

1962 to shoot^at. We hope this will mean an increase in advertising, which should benefit newspapers as well as retailers.

RETAIL TRADE Retail trade has been fairly good during 1961, even though sales did not rise commensurate with the climb in personal income. What houseivives did not spend they used to build up savings accounts or reduce installment loans. Therefore, consumers should enter 1962 with a good foundation.

NEW BUILDLNG New building increased through most of the first half of 1961, but lost steam later in the year. This lack of follow-up strength was due to Increasing vacancies of houses for rent and sale, plus the fundamental downward trend in the cyde of family formation. Unlike food or gasoline, new houses are not consumed: hence they' accumulate in case of overbuilding.

COMMODITY MARKET The Bureau of Labors Wholesale Price Index has been narrowly irregular all during 1961. Prices for agricultural and primary commodities have moved <mly moderately upward. Hence, farmers and producers of raw materials have not fared so well, profitwise, in 1961 as have manufacturers. A stronger upturn in commodity prices must occur in 1962, if the business uptrend is to be extended.

STOCK MARKET As we have heretofore explained, there are three Dow-Jones Averages. The first, which most people watch, is the Industrial Stock Average. This started 1961 at 610, Its low for the year, and at this writing is around 730. The second D-J Average is that of railroad stocks. This Rail Average was indecisive until the (^losing months of the year when it worked moderately higher. There are comparatively fewer shares of railroad stocks in this Average and comparatively fewer shares of of stock outstanding. Hence manipulators have a better chance of plaj^ their game with the rail stocks. This Average opened 1961 at 131 and at this writing is 147. The third of the Dow-Jones Averages is the Utility Average: this has gone up almost steadily. GOVERNMENT SPENDING

Unfortunately, all of these seven aspects of the economy are very dependent upon government spending. This has been primarily for defense, and it seems indirectly to affect every reader of this column. Government spending for goods and services should average around $109 bUlion for 1961, which exceeds that of World War I. World War n, or the Korean War. I doubt if any reader of this column will ever witness total disarmament: but I do believe

that there will be some international foolproof agreement against the use of nuclear weapons. This could cause a sudden decline in the income of manufacturers, retailers, employees, and of almost every reader of this column.

Consumers Debts Are Going Up

Strength For Today

By EARL L. DOUGLASS WHAT ABOUT IT?

Are jrou building a shelter? P*raonaily I do net care to survive in A world that hu had Its life bombed out. but that is neither here nor there. If shel-tert need to be bulH ss a public gesture of preparedneas against possiblt evil, then let us build shelters.

Someone told me last night

of s man who J^diog a shelter and among other equipment has a rifle and several revolvers. He swears that if anyone

other than his wife and child

tries to get in he will kill him. What do you think of that for savagery? But, by the way.

what attitude wouM you take if you had a shelter and your neighbors who did not have one

should rush over and ask to be takes In? Personally I feel that the door of every shelter would have to be open to any human being who wanted to come la. That may be going too far the other way from the chap who stocks up with firearms, but It would be hard to soo how there could be any middle ground.

Think of itIn the moat enlightened and sophisticated age in human history we are burrowing in the ground like animals. What has our vaunted civilization brought us to anyway? Have we really learned anything at all. or are we just as savage as our forbearers were two thousand years ago in . forest, and jungle'*

Arc you going to build a shd* ter or arc you not?

^ By ELMER ROESSNER

At the end of this month American consumers will owe more money than they have ever owed before. The total may be close to $58 billion.

The previous high was at the end of 1960, when the total tab was $56 billion.

Totals owned >on instalments and charges always zoom in December, mostly because ot Christmas shopping. Last jrtar the December rise was almost 11.5 billion. American buyers ended October owing $55 bUlion, so it is likely that the November and December rise will bring the total above tS7 billion

In 1952, when total personal income was $273.1 bUlion. total outstanding consumer credit at the end of the year was 127.5 biUion. or just about 10 per cent.. In September, this j-ear. total persona] Income was $421.1 billion and consumer Indebtedness was $54.9 billion, or around 19 per cent.

Purihermore. because carrying charges are higher now than they were in Jie consumer is getting less for his doUar. OTHER LOOK-AHEADS

Larger fiscal deficit: Washington reports Indicate a budget for the year beginning July 1, 1962, will be $100 billion, with fond, faint hop>es that tax revenues wiU rise enough to meet IL

Thats wishful financing and its more inflation. Even liberal non-govemment estimates see no more than $86 bU-Uon in tax coUectlons, which would mean a $15 billion deficit The only alternative would be a new rise In income taxes. Congress would prefer a deficit however.

Higher aiste taxes: Statea.

getting deeper into fall-out shelters, larger welfare payments and other services, will slso need more revenues. The total will be swelled by the trend toward paying officials higher salaries, Increasing Judges pay, building more public buUdlnga (with fallout shelters) and increasing services generally. This will lead to.higher taxes, natch.

Higher municipal taxes: Tlis , trend of higher pay for offlclala at the municipal level Is even greater than at the aute. And

expansion of other services (to keep officials in higher paid Jobs) is rising rapidly, indicating higher municipal taxes too. BIGGEST CONGRESSIONAL BATTLE

Tough fight over free trade: Rooms will be hard to get in Washington after Congress reconvenes in January. There will be a rush of lobbyists, representing almost every American industry, to pressure Congressmen on proposals to relax tariffs, to establish working ar-rangameots with the customs unions of Europe, and to strengthen Japanese and Southeast Asia eoonomies.

The second circle of lobbyists will consists of union leaders, fighting to keep tariffs up to protect high wages.

Since the adjournment of Congress. the Kennedy Administration has been generously propagandising the public to accept lower tariffs in the interest of more foreign trade, coincidentally building up our allies against Communist economic pressure.

Ho*vever. the sc-;.'ptsn.-- built up will be seriously and aav-' agely challenged by those with*

interests in high tariffs.

OLD PROMOTER PROPOSES TOMATO RED PAINTS

There was a sly smile on the puss of the Old Promoter when he arrived today. I see by the papers, he said, that Hunt Foods is planning to merge with the W. P. Puller paint com-pany,.^Theee two California companies ought to strike It off.

I winced because I could see the pitch coming.

What bou ndless opportunities!" the old one said. Hunt-Fuller can put out paints In tomato-paste red, spinach green, off-potato white,' rhubarb pink and such special shades as artichoke heart, summer squash, mushroom and fermented cabbage.

At the same time. It can offer sprputs Picasso, pumpkto vimber. eggplant Della Robbia and burnt sienna. Cant you imagine a new minestrone, with 29 Hunt vegetables in 91 Puller tinu?

I concluded the old fellow waa eggin me on. so I gave him a 24-rent cigar and bade him da-part for fresher audleooea.