Thorsdmy, January 18, 1962

Changing Emphasis In New Budget

Nine Lives

Of significance, aside from the huge figures in the President's budget proposals to Congress, is the apparent change of emphasis among the broad fields of intefest to the federal government.

The budget proposals reflect reductions during the coming fiscal year in expenditures for the farm proirram (down 500 million) an anticipated reduc* tion in the postal deficit (brought about by increased postal rates) and a reduction of federal expenditures for the tempbrary extension of unemployment benefits. In the place of these reductions, according to the budget proposal, there will be increases in spending for education, health hous^g and natural resources program without raising significantly total expenditures for domestic civil functions . . .

A year ago the new Kennedy administration placed its emphasis on extending unemployment benefits for person^? rendered jobless by the recession, and for agriculture which was suffering

Uniformity In Traffic Contro'.

By LYNN NISBET

SIGNS Recently publicity has made North Carolina "sign conscious." Taking advantage of that aroused interest Governor Baniord is urging all local gov-. mment officials to adopt and use the recommendations of the "Manual on Uniform traffic C(Hitrol Devices. The State Highway Patrol has adopted these provisions, as have a number of <^r states. There remains a wide diversity of signs and rules for traffic in the municipalities.

Traffic signs, including center-lining 0 pavement and signal lights, have assumed tremendous importance in the past few years. Not so long ago there was no uniformity in shape or color of stationary signs or In the arrangement of signal lights. These varied from state to state and among communities within one state..

One of the first steps toward uniformity came when the national association of highway officials which designates routes to bear the U. S. numbers made mandatory for every state that shield shape sign with name o the state at top and number of the road below. Now every motorist knows when he is on that class of highway regardless of what state he may be in.

The shape and size of numeral signs designating numbers of State highways varies from the diamond in North Carolina, to the outline maps of Tennessee, Virginia and other states, to the almost illegible narrow strips used elsewhere.

It took a long time to achieve It, but It appears now that every state uses the same size and shape of license tab on automobiles a 6x12 Inch rectangle. Some years ago North Carolina adopted the black and srellow color scheme for its automobile signs and practically all of the municipalities have followed suit.

, UNIPORMITY Por a long time there was as much con-fusicm in the diverse and completely unreastmable arrangement of traffic lights as in any other directional devices. There BtUl is confusion In most towns, Including Raleigh, where on the same street one intersection will have traffic lights suspended above the middle of the traffic lane and another will have them on the comers. But notable advance in safety was made when the legislatures of North Carolina and a number of other ^tes enacted laws fixing the position of the green (range and red lights at these Signal posts. One aiwnent used to get this legislation through was the plight of the color blind driver. He could tell w'hethcr

the light was on at the top,

the middle or bottom of the

sign but he could not tell the color. In North Carolina

now, and it is understood the same is true for nearly sdl the states, the red light is at the

top, the orange light in the middle, and the green at the bottom.

Uniformity has been obtained in the shape of other roadside signs. An octagon sign means stop, a round sign means a railroad or dangerous highway crossing, a triangle means to yield ^ right of way to traffic in other lanes. A doubl line in the middle of the pavement means no passing. These signs can be read" by the utterly illiterate and the words on or about them are not important. Most other signs must be read to be understood, but even here the shape of the sign conveys a message. The diamond means hazards ahead, the square or rectangle has Information about speed or distance, the long narrow board gives directions and distances.

After all of the sizes and shapes and colors of the signs have been made uniform, there remains the Important Job of uniformity in placement of the signs along the highways and streets.

SELECTED Many of the news stories about the fact that U. S. Senator Sam J. Ervin. Jr.. Is up for re-election this year emphasize the point that he was appointed to the Senate by Governor Umstead upon the death of Senator Qyde Hocy. That, of course, is true. But it is also true that he was nominated by the Democratic committee and duly elected In the general election of 1964 to fill out that term, entered the primary in 1956 and won the nomination and subsequent election for the full term ending next January. Although first appointed, he has been twice elected by the people.

Similar conditions surround the two Supreme Court Justices up for election this year. Justice William H. Bobbitt was appointed to the high bench by Governor Umstead in early 1954, was nominated by the Democratic committee both for the unexpired term to which Justice M. V .Barnhill had been elected and for the full eight-year term following. He was duly elected and has served cm the high court ^ever since.

Justlc William B. Rodman was appointed to the court m the summer of 1956 upon resignation of Justice Jeff Johnson, was nominated by the committee and duly elected that fall for the remainder of the term expiring December 31, this year. Although had no opposition in the election he received 733,169 w'hich was 142,000 more than Adlai Stev-enscm got for President.

Although Senator Enin and Justices Bobbitt and Rcxlman first came to office by appointment, they are not running now as appointees. They have been elected by vote of the people and hold their present positions under that title.

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1-.:

simiiar effects of a sagging economic situation. This year the emphasis has moved from these particular problems on the domestic front to education, housing and health programs which appear to be moving up so far as federal expenditures are concerned.

In the field of foreign affairs, the emphasis of federal spending propos|ils appears to have shined from military assistance to friendly nations' to economic aid which is expected to put those nations into a stronger position, less vulnerable to communist take-overs. ^

It is important to-fiote these changes in the budget compared with the past, not so much from the standpoint of the millions involved, but ratlTer from the standpoint of the administration thinking behind them. They represent a departurefrom the past, and indicate, perhaps a theme which will be followed, at least by the Kennedy administration, in the future.

In an era in which red figures at the end of each fiscal year have been the rule rather than the exception of federal budgets, it is significant to note that the current budget anticipates a surplus of some $500 millions in June, 1963. This is in spite of the fact that the budget proposals total some $3.4 billions more than the budget for the current year. To offset this increase in expenditures, the administration is forecasting an increase of $10.9 billions in federal revenues, reaching a total of $93 billiops in the coming fiscal year.

It is also significant, perhaps, that the administration which in recent months has been urging both management and labor organizations in major industries to hold prices and wages in line to prevent inflation, is now calling on Congress for a new salary schedule for all federal employes to enable the government to obtain and keep high quality personnel.

By the time the budget is finally adopted by Congress, it will doubtlessly be changd considerably. It is, nevertheless, important for the citizens of the nation to note not only the figures involved, but likewise the apparent changes of emphasis within the administration which are reflected in the new budget proposals.

Surprising Decision By District Solicitor

The decision of Fifth District Solicitor Robert D. Rouse, Jr. of Farmville not to seek re-election this year to the post he has held for the past seven years apparently (taught political leaders and citizens alike by surprise.

He was re-elected for his current term without opposition in 1958 after having won in an initial five-man field for the post when he first sought the office in 1952. In view^ of his outstanding record in the office of District Solicitor, and no previous indication from him that he would not seek re-election, most citizens, we believe, had assumed he would be a candidate for the post again in the May primary. Coupled with this, there has been no talk in the district of any candidates who might be seriously considering contesting with Rouse for the po.st.

During his two terms in office. Rouse has made for himself an outstanding record as solicitor. He has proved himself not only a capable and hardworking prosecutor for the state, but he has likewise proved himself a devoted public servant in the po.st to which he was elected.

His service to the court and to the six counties which comnrise. this solicitorial district is desennng of commendation.

3ig Budget In Two Volumes

living

McXtught Syndictte. loa

iiy ALVIN TAYLOR

Js Almgnoc Time Again

Turners Almanac is back again. Thats not really surprising, for Turners Almanac has been appearing in Eastern North Carolina since the early

days of this nation.

Actually Turners Almanac is now published by another companyBlums which John Christian Blum began in 1828

Other Editors Saying... ?rice Of Protectionism

By JAMES MARI.OW WASHINGTON <AP> One of the most awful things about the federal budget and it Is awful if you're not good at arithmetic is that it will monopolize Washington conversation for quite a while.

In two plump volumes President Kennedy at noon today unfolds for Congress the national budget, his estimate on the cost of running the government another year.

One of the most delightful things''about Kennedys budget, Li a gruesome kind of way. is that it is supposed to be more simplified and streamlined than any budget of the past.

The only one likely to think so is the superintendent of a digit factory. Nobody could enjoy this budget; or any other budget, except an accountant. Having to read it is like being sentenced to frustration.

Many people in government, thousands, have been putting this estimate together since last summer.

The all-time peak for budget spcmdlng in any one year $98.416,000.000 was reached in 1945. That was the big. climatic year of World War 11.'^ Kennedys budget is expected to be around $92.5 billion, the highest of any peacetime year. It is for the fiscal year beginning next July 1 and end

ing June 30, 1963.

If this seems like a shocker, it needn't be. The cost of running the government has been going up. In the fiscal year ending next June 30 spending will probably top $89 billion.

The budget trend under President Dwight D. Eisenhower was up, too. although it dipped a couple of times. It had been that way ever since President Harry S. Trumans time when, after a postwar 1 o w point of $32,955,000,000 in 1948. there was an almost steady march up.

In the various departments and agencies of government, beginning last summer, officials began estimating their next fi.scal year cost. Department heads went over the figures. They are supposed to cut where they can.

When all that Is done, the figures go to the Budget Bureau, which not only is supposed to reduce dollars to pennies but insist that department heads justify every dime they say they need.

After that the President and his advisers go over ^he estimates. The ilnal, finished bundle. covering everything from pencils to missiles, is what Kennedy hands Congress.

Then the fun begins. Some members of Congress have (Continued on page 11)

(Wall Street Journal)

Let us suppose that the U.S. decides to end its reliance on foreign coffee. A tariff Is imposed at such a high level that It is prohibitive. No more coffee is imported, and an enormous incentive is given to American coffee growers.

Coffee thrives only in warmer climes, so the pro-tariff American coffee growers were few, operating chiefly in such areas as Hawaii and Puerto Rico. These growers immediately rush out to buy more land, much of it less suited to coffee cultivation than the land they are now working. Higher wages woo workers from other activities in the islands and even draw some from the continental U.S. Large amounts of capital are invested in new machinery and warehouses.

The maricet looks so attractive that some entrepreneurs on the Southern fringes of the U.S. are encouraged to run the risks of recurring frosts; some producers elsewhere even put up greenhouses to stimulate tropical temperatures. Again, massive amounts of capital and labor are diverted from other activities. The average cost of producing coffee is high and the retail price shoots up to around $10 a pound.

This exaggerated example Illustrates the Impact of tariffs and other trade restrictions, for it differs only in degree from the real world of today. It thus helps to explain why President Kennedy, in his State of the Union message, promised to ask Congress for new and broader powers to dispose of these artificial restraints on trade.

Any tariff, whether levied on British automobiles, Japanese textiles or Swiss watches, is In effect of subsidy to American producers of such products. As such, it has a significant effect on the policies and practices of those producers.

Behind a tariff wall, companies in a protected industry may and often do compete fiercely among themselves. But the tariff makes it possible for the Industry to maintain a higher

level of prices than world otherwise be feasible. Its incentive to modernize its plants and Improve its products is

less.

Producers become accustomed to relying on the artificial fence that has been erected around their market. When foreign producers threaten to scale the existing fence, the domestic companies incline toward building it higher, rather than fighting to get their costs down.

And who finances the fence? Its the consumer, of course. He pays the bill through higher prices, whether he buys domestic products or such foreign goods as can get in. The burden of this consumer tax isnt lessened one whit by the fact that its a hidden levy.

But the worst aspect of tariffs is not that they Impose hidden taxes and award hidden subsidies. It is that they dangerously distort and debilitate the whole domestic economy.

A protected industry is able to bid capital and labor away from industries where they could be more efficiently employed. Its higher prices restrict its markets both at home and abroad; this is reflected by the problems of U.S. agriculture. which enjoys the questionable benefits both of complex direct subsidies and tariff protection. Some American farm products can be marketed abroad only after the Goveni-ment pays still other subsidies to exporters to permit them to lower their prices.

With the sales of protected Industries thus limited and with much of the nations resources employed inefficiently, the inevitable result is a severe restriction on the growth of the economy. Both- national output and national income are held well below levels they might otherwise attain.

Admittedly, elimination of tariffs would lead to temporary economic problems in some industries. Because of this, an argument can be made for gradual removal. But however its handled, the future health of the economy demands that a new beginning be made.

at Salem.

About the same time the Turner family - founded their almanac in Raleigh. The Turner almanac struggled along through the years, at one time asking a subsidy from the N. C. General Assembly to continue operating.

In 1921, its publishers sold out to Blums. Now Turners carries much the same material as Blums but with the different cover which is so familiar in this area east of Raleigh.

The almanac company is now operated by the Goslen family with J. B. Goslin Jr. handling circulation and advertising and his father, J. B. Sr., gathering material for its pages.

In the next few weeks, more than 250,000 copies of the 1962 almanac will be placed on sale at newsstands in 12 states and by mail throughout the world.

Like almanacs have historically, Turners devotes much of its space to forecasting the weather and along with this, gives recommendations for planting.

For instance the almanac forecasts for Jan. 16-19 which includes today local storms. Warmer in the Mississippi Valley, becoming unsettled, fair weather further east.

How about last Friday when it snowed? Well, the almanac had this to say about that period. Clearing time. Rain in the southeast.

If Turners is right you can look out for Jan. 28-31. The forecast for this period is: Cold spell. Frosts in the lower Atlantic states.

As for planting, Turner's says January is a month for making plans for the years operations.

"Very little work can be done in the garden beyond securing a supply of seeds and manure and preparing compost heaps and hot beds for next month, getting poles, brush and sticks for beans, peas and tomatoes. Clean up the garden.

Turners has jokes, too, just as any good almanac should. Heres one:

Doctor: Well nurse, how

is the patient?

Nurse: T gave him the figs you ordered, doctor, but he keeps asking for dates.

And there are the household hints, such as; To remove stains caused by a leaky faucet, use cream of tartar and a few drops of hydrogen peroxide.

Of course there is farming (Continued on page 11)

In ine Presen

By GEORGE E. SOKOLSKY Copyright. 1962, King Features Syndicate, Inc.

One of the exciting evidences of public response to ever^ these days is the reaction to President John F. Kennedy. Many conservatives are annoyed over the fact that they have to recognize that he will be in that position for at least three more years and possibly seven; that the Constitution gives him certain powers and that others come to him by virtue of his office and by the fact that he grows increasingly popular and Influential.

What they can do about It, they do not know but they do get excited over Cuba and Katanga and say of those who favor Kennedy that they have sold out. I was so bold as to ask one such person where and what Is Katanga and apparently upset the apple-cart becaiise the place is only a name and it is difficult to explain w'hat the excitement is about.

No man. not Khrushchev or De Gaulle or Kennedy, is a-free master in our very complex world! Events move swiftly and become interrelated and the course of events moves more swiftly than anyone can estimate in advance. According to Lenins estimate, the capitalist system should by now be collapsing. As a matter of fact, It is gaining strength, particularly in Europe and Japan where the production of new goods has altered the economy of nations. According to Communist calculations the United States and Great Britain should have destroyed each other In an economic competition; instead, the United States poured billions of dollars into the British, French, West German and Italian economies, making those countries stronger than they were prior to World War n and saving them from collapse at the risk of collapsing Itself.

'In fact, most calculations w'ere incorrect because it was difficult for small minds to foresee the capacity of the American mind to respond generously to historic misfortunes. It is the same lack of prescience which makes it difficult for us to grasp what we are liable to do that is broad and generous in critical periods.

For Instance, President Kennedy was elected by a small majority after a fairly popular presidency of President Eisenhower who had no particular program but who moved along as events would premit. Kennedys program was not particularly clear. In fact, it seems that his proposals were stronger than his actions. Nevertheless, a year of activity indicat-^ es that he has maintained peace without compromise, that he has strengthened the economy of the United States without conceding to foreign powers, that he has safeguarded the dollar without imperilling its value.

President Kennedy tripped over Cuba, but It is becoming clear that Castro has failed to achieve anything beneficial to Cuba by his cupidity. It was believed that Kennedys Dominican program was incorrect; but it is w'orking out. The Russians attempted to bog us down In Cuba, Laos, Vietnam, the Congo and other places but failed. We have prepared to meet the future but we have not been tricked into being required to accept .their battlefield.

There is much to say about Kennedy that is encouraging but most of all, he has apparently set before himself a program which might be called America First. This is wholly unexpected and he, himself never quite defined it.

There are those who violently oppose the Presidents domestic policy, suggesting that he is throwing our wealth down the drain. They despair of the future. They are frightened by his enormous proposed expenditures. But his basic task Is to provide jobs for our workers. This Is no easy task at the present time because of the export of jobs to Europe and Japan during the past Administration. In his speech on the State of the Union, the President recpgnizes that jobs Is our problem, that so-called automation must not mean the destruction of jobs, but the creation of new jobs by abolishing (Continued on page 11)

Tightening Grip On The Cities

Strenath For Todav

By EARL L. DOUGLASS THE SCROLLS OF HEAVEN

How much are you worth? None of your business. you reply angrily. Ill take up matters of that sort with my banker and with the income tax man when he comes to check my turn.

No, brother, youll take It up with me, and with the people who live on either side of you. and with the people who live in your owm house. In dead eamestne.ss we ask, How much are you worth?

You may keep your lips sealed ai:d glnre back in anger, but in doing so you have at least half answered the question already. You may declare to whom you consider the proper persons Uiat you are worth ten

thousand dollars, or one hundred thousand, or a million. But to whom are you worth that? You have a house, a life insurance policy, and two cars so what? The question of Importance is. How faithful are you in carrying your share of the load? Of pulling your oar? How much do you add to the happiness of your home, to the richness of life along your street? You are worth just as much as you serve and love. That mechanism of life we call government has to be concerned about your ledger and will continue to be concerned about it until your estate is settled. But .voi>T-how much are you really worth?

You kiiow partly., I know partly. The full truth is on the* scrolls of heaven.

By ELMER ROESSNER

Creation of a Federal Department of Urban Affairs would result in tightening Washington's grip on American cities.

It would give the Federal government as much control over the cities as it now exercises over the farmer. Its impact would be greater. Farmers no longer swing Presidential elections. Big cities do.

The Administration Is seriously proposing a new Cabinet position, that of Secretary of Urban Affairs. At the start, it would administer Federal public housing, Federal slum clearance and Federal urban renewal. As it grew and bureaus and departments always grow it would probably take over direction of more and more local activities and might possibly get Into such areas as desegregation, utility rates, zoning, expansion plans and other areas of civic responsibility.

Every time a city has accepted a Federal aid program, ot has lost some of Its rights to central government bur-cau.s. stated the Chaml)er of Commerce of the United States. A department of Urban Affairs, it added, would lead to Pcderal control over projects Involv

ing new factories, new stores, new streets, new water mains, new' sewers you name It.

Spokesmen for an Urban Affairs Depaitment are urging its creation despite the barren results that can be seen in almost every city with a Federal renewal program. Buildings have been razed. Brilliant construction plans have been announced and on the empty, silent acres in the hearts of many cities weeds flourish.

In ten years only 5 per cent of urban renewal programs have been completed.

The chamber might have added that of the housing projects completed, many will be the ugly, packing-case-deslgn slums of tomorrow. Some, in fact, are already slums.

DICTATES LOCAI. LAWS

Even without an Urban Affairs Department, the govem-mcnt is already forcing cities to alter laws to please bureaucrats.

When a community applies to the Housing and Home Finance Agency for urban renewal as.slstance, its building code Is compared with lour model codes. Local requirements which fall short of the mni

mums In the codes must be changed to conform, or Federal funds will be withheld.

To be sure, many local building codes stink. They have been shaped by pressures of politically powerful contractors, suppliers and labor unions. Satisfactory products have been barred or approved after cash contributions while products of Insiders have been approved.

At the present time, the chemical Industry Is trying to gain Federal approval of plastic pipes in houses financed by the Federal Housing Agency. Vent and drainage pipe of acrylonitrlle - butadiene styrene has already been approved and hopes are high that pipes of that plastic and of polyvinyl chloride will be approved for Interior use. Cities would then be forced to change codes or lose new FHA-financed construction.

In this situation, building costs might be lowered, since many cities require more expensive copper, brass and steel. But in many other situations, FHA specifications ex.-ce<'(1 local regulations, adding to building costs.

And from that point on, there Is no limit. The Federal government could conceivable withhold Federal funds if it did not approve of the protection offered by the local police and fire departments, if it did not approve of the school system and teachers pay, or if It did not like the city council or the mayor. There is almost no limit.

WARNS OF ABUSES OF STOCK OPTIONS

Corporations were warned to-day that unless they cooperate with Congress and the Treasury on regulation of employee'stock options, the use of options will be sharply curtailed or eliminated by law. Te warning comes from V. Henry Roths- * child, 2d, a tax attorney, in a talk scheduled for delivery to-day at the 419tli meeting of the National Industrial Conference Board.

He said stock options perform h.-a useful function and are essential to proper compensation. . But criticism is rising, he said, against the sales of option*-shares to finance the purcha.se of other shares, and the redo-tlon of option prices when the market price oi the stock drops.