Monday, February 5, 1962

Acreage Increase Move Justified

, Ai^culture Secretary Freeman should not let the deadline for Increasing flue-cured tobacco acreage allotments for the 1962 season pass without taking action which will be of both immediate t>nd long-term benefit to the entire tobacco industry.

On the basis of information which has been compiled and presented the Secretary of Agriculture, there is ample justification for the proposed five per cent increase in flue-cured tobacco acreage tobacco allotments for the current year. If such a step is*^ not taken, the American tobacco industry, from the farmer all the way up the line, will likely find itself more severely hurt in the world market where approximately one-third of the flue-cured production has been sold in past years.

.ess Confusion Demo Ranks

So Early In The Journey, Too

By LYNN NTSBET - DEMOCRATS - Whether the Democrats of North Carolina .. are better organized and operate with cohesiveness and harmony all through the ranks may be questitmed. Certainly there is less confusion about who has authority to speak for tte party organizaticH) than prevailed a few years ago. Casual check in newspaper files ctf stories about arrangements for the Jefferstm-Jackson Diu-, ner two years ago disclose ccm-fusicm bout date and speaker for the occasion. That was a presidential and gubernatorial election year, and politicians were more acutely ctmsciais of little things affecting their prestige or protocol standing.

SOTMrthing <rf the same conflict an^ared b^een State Chairman Woodrow Jones and National Committeeman John ..Larkins over representation at a conference called by Gov. Fritz HolUngs of South Carolina to discuss possibility of COTcerted action by Southern States against the national party organization. Wten Committeeman Larkins found he could not go he designated Harman Moore, former secretary of the State committee, to represent him. Chairman Jones was quick to announce that Moore had DO authority to speak for the Democratic party of North Carolina.

The Columbia conference amounted to very little, there was no recurrence of secession or civil war, and ttere were no bloody noses among the North Carolina combatants. The episode did point up the differences between state and national organizations.

This year there is closest harra(Miy between them. President Kennedy and Governor Sanford see eye to eye m most major issues. With a Democratic administratiai in the White House the natiraal committee has much more prestige than it did two years ago when a Republican regime was in office.

CONTROLThere was never any really serious open break between Governor Hodges, Chairman Jones and Committeeman Larkins, but there was obvious lack of cordial-Ity among them. The situation now is different. Governor Terry Sanfords headship of the Democratic party organization Is undisputed. Chaliman Bert Bennett and Natimial Committeeman W. W. Staton are good personal friends and as alike In political philosophy as two peas In a pod. Chiff Benson, Raleigh business man who is serving as treasurer of the State Democratic party, is a Sanford appointee on the highway commission. Tom Davis, Selma newspaperman, who is executive secretary of the party organizatiMi fits well into the scheme. There is no doubt now about who is in control of the Democratic party and who has authority to speak for it.

There may be from time to time discordant notes sounded by rank and file members of the partyand certainly a good

111 recent years foreign customers for American flue-cured tobacco have found themselves increasingly hard-pressed to get the kind and quantities of tobacco they have desired from the United States. With the acreage allotments and production estimates as they now stand for 1962, production of flue-cured tobacco in the United States will not provide sufficient tobacco" of the desired quality to meet the demand for foreign customers. It will mean many of these customers will have to turn to other producers to fill their needs, and if they do, the change in their purchasing habit is more likely to be permanent than temporary.

The major stumbling block in the path of the proposed modest acreage thcrease appears to be the quantity of discounted TaVieties of tobacco from half a decade ago that is still>eing held by Stabilization, and for which there is no market. If the Secretary of Agriculture would authorize disposal of this tobacco at discount prices, there is little doubt aniong experts in the tobacco industry that the stocks could be moved out quickly.

These particular stocks in question cannot be used by foreign manufacturers to provide the normal

manv Democrats do not Uke normally e.xpect from Ameri-

the leftward swing of<*the party can tobaccos that go into their blends. They are but their protests are-individ- good only for filler and therefore we cannot ex-auth^fv organizational foreign customers to purchase them at

^J-J^^DINNER-This situaon present premium prices when tobaccos pro-

was illustrated by develop- duced in other countries will fill the same purpose ^nts in the ^erson-Jack^ and can be bought at considerable lower prices. th*r^w?c^n was*^*seiected extremely unlikely that there will be a

weeks ago, but news" of it market for this particular tobacco at their list price leaked out late last w^. Up even if they are held for another three or five years, to last Thursday the North meantime the cost of storing them continues

to rise, and the time is rapidly approaching when the stock will bc^in to deteriorate even from its present level of q'aality.

By providing for the sale of this particular stock of tobacco at a redr.ced price, the Secretary of Agri-

Carolina folks had ntrt coofirm-ed the invitation and acceptance. but Robert F. Wagner, mayor of New York, said wln asked by newsmen that he had been invited and has accepted. His selection emphasizes again

the liberal trend of the present culture could pave the way for this tobacco to be

moved from Stabilization into the world market.

It would also pave the way for a production increase which could help the American producers to provide its foreign customers with the kind of tobacco in the world market.

It will enable American farmers to keep foreign By GEORGE SOKOLSKY customers w hich otherwise may be permanently lost.

Selling this particular tobacco now in storage at a lower price would, obviously, cost the govern ment several million dollars. But in the long run,

FOiANC^ The Jeffer^n- ^he cost in terms of storage costs, lost farm income foTthe SLig mod- because of lost foreign markets, loss of interna-

ey for the naticwial party cam- tional trade and other factors would be much more paign fund. Custom has been expensive for the government.

adininistration. Rivalrj' between the conservative Md liberal elements in the party has been going on for years. It is recalled that as much as 25 years ago when Sen. Millard Tydings of Marjland. a conservative. made t J-J Dinner speech, a group of liberals staged another dinner at which Harold Ickes, then secretary of the interior, was the big orator.

Ed Valtman In the Hartford Times

; Claims Beyond Reason

Syndicate, Inc.

I have a circular which asks

tn Vll tirkPij; hi it tn in vit#> nn- - - ^------- .........Contribute money. It

ly guests Whohave contributed , Secretary Freeman will be choosing the wise

as much as $50 to the war long-range course if he provides for the sale of this

dst. In the past quotas have inferior tobacco now in storage and increases acre- which it cannot, of cour^ dl'

Xeynes 'ineory As Now AoDliec.

been assigned each county and ^ge allotments for <8e current vear. a finance director appointed to see that the counties came through with their alk^ted amountg. That system is being slightly changed this year. 'The national committeeman and the state treasurer are handling the allocation assessments and ticket distribution.

The money-minded bo3^ conceived the idea this time of selling (?) advertising (?) space in the dinner program. Information from state headquarters is to the effect that the finance director was intended to be a salesman fort his project, rather than to supervise the distribution of dinner tickets.

That puts a slightly different coloring on the story of why Edwin Pou declined to serve as finance director, but still leaves emphasis on the conservative-liberal division in the party membership. Some weeks ago Clhairman Bennett asked Edwin Pou, Raleigh insurance man. to help with t finances for the dinner. Pou understood he was to be a finance director comparable to those who have served in that capacity before. He said he would accept if a conservative speaker were chosen. He named five or six men of the type he wanted. He was told that the speaker had already been chosenand Pou removed himself from the scene.

The dinner is not until March 31 and a 1(^ of planning and changing of plans can take place in the next two months.

As of now it looks like the bfe-gest attendance ever will be at the 1962 dinner, that the Democratsboth conservative and liberalwill have a good time.

The Daily Reflector

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

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By RALPH ROBEY

John Maynard Keynes, the most influential of modem day English economists. Is generally credited with convincing President Roosevelt that the way to end the great depression and bring back prosperity was manipulation of federal finances, including a large deficit until the proper level of recovery had been obtained. The theory, and there were many ramifications to it, was tried and proved highly unsuccessful. But from that time on the handling of (Hir fiscal policies has never been completely free of this early Keynesian preaching, Although Eisenhower revealed less adherence to the theory than either Truman or Roosevelt.

Now President Kennedy has once again accepted Keynes with few if any reservations. This is showTi in his recommendations to the Congress and the arguments he uses in his Economic Report,

The President maintains, for example, that the deficit for this fiscal year of $7 billion is desirable. Had it been smaller it could not have got the nation moving forward in the way that was necessary; had it been much larger it would have created an inflationary danger. Now that recovery is doing well it is time for a balanced budget, but not a substantial surplus, Government spending, of course, must go up because of the many things that need to be done and can be handled, so it is said, only by federal help. Scores of items are included in this list, some costing, at the .start, only a few million dollars. and others that begins with spending hundreds of millions of dollars and will co.st in the billions before they are through.

It i.s anticipated by the Ad* minl.stration foreca.sters that t h e recovery will continue throughout 19i>3 'many private economists are less optimi.stic). but that in time we fhall have another downturn. To pre

pare for this we must have, It is claimed, some ready economic weapons with which to counter the decline. This also 5 a fairly long list but three proposals are especially worthy of emphasis.

First, the President wants stand-by authority to reduce personal Income tax rates by five percentage points across the board. It is estimated that this would lower personal income tax receipts by $5 billion for a six months period, and the reduction could be extended If business conditions war-ranted it. Such extension could be made either by the President or by a joint resolution of the Congress.

Second, the President asks for stand-by authority to accelerate and inititate up to $2 billion of public works when the unemployment rate has risen by an indicated amount. Such spending is to be for projects already authorized by the Congress, for grants-in-aid to state and local governments, and so forth. The authority to initiate new projects under this program would terminate at the end of twelve-lonths but spending, of course, could go on and on for many, many months.

Third, the President recommends that the Unemployment Compensation System be extended in coverage and duration of payments. To pay for this, the wage base for the payroll tax should be increased from $3,000 to $4.800. The un-employment compensation should be equal to at least half of the average weekly wage.

Now Lord Keynes in his heyday never went farther than the.se three proposals In the manipulation of the economic trend through government action, and remember these are only a part of the Kennedy program. No one any longer maintains that government spending does not have an Influence upon the busines,s curve. With the

(Continued on page five)

Whether we shall have peace or war depends upon many forces and personalities, upon the effects of many errors of judgement in Soviet Russia and the Un%d States. In Great Britain and France and among the 104 nations that constitute the United Nations.

The circular asking me for money starts thus:

Will you save my life???? Since I may not mean anything to you. . .

Will you save your life?????

Will you save your childrens lives?????

Humanity Guild, pro

vides you with your o^rtunity to act now to avoid the catastrophe which faces you and your family.

This strikes me as silly talk by someone w^ho writes emotional prose. The fellow wants me to save his life when I do not know that his particular life is In danger. The lives of some of the members of my family may be in danger or soon will be, for they are or will be in the armed service f their country. I do not expect that a few dollars will serve to rescue them from the cowardice that the writer of the frantic circular wishes them to display.

Other E(ditors Saying... Sigger Crop Hazards

(Henderson Dispatch)

No man in Congress, or perhaps anywhere else, has shown greater interest in the fortunes of the flue-cured tobacco grower than Congressman Harold Cooley. Moreover, the fourth district representative Is highly informed and speaks with the facts at his fingertips.

Mr. Cooley now is proposing that the Federal government subsidize the sale, at whatever loss may be necessary, of surpluses of the undesirable crops of 1955 and 1956 still held by the Stabilization Corporation, That tobacco has been hanging over the mai'ket for several years, and if it could be moved the way would be paved for a five percent Increase in acreage allotments, the House Ag-rkculture Committee chairman claims.

Whether existence of these surpluses has reduced consignments to Stabilization by growers at auction sales is a good question. Probably it has not been much of a disturbing factor. But if it were not there and at a loss to the Commodity Credit Corporation, would the inclination be to turn over larger quantities of leaf for storage?

Consignments by producers last fall were among the smallest for any recent season. Moreover, much of the leaf acquired by Stabilization was of better quality than that still in storage from the 1955-56 crops, and hence should be sold with less effort.

Every grower would like to have a lai*ger acreage allotment. Five percent is rather modest, but it could mean additional dollars in the pockets

of farmers and that much additional lifeblood for the over-all economy.

One wonders, however, if larger Inventories would build up after the two old crops were disposed of, and eventually return Stabilization to another status of a glut such as has plagued it in recent years. Little would be gained by the sale, except that the tobacco could be gotten rid of before it becomes almost wholly unsalable. As undesirable as it may be, some value Is still left, but may not be in another season or two.

The tobacco program has been less costly to the Federal government than that of any other price-supported commodity. It had alw'ays been hoped that this would continue to be ti-ue. But if a few millions of dollars went down the drain under the system, it would still be less expensive than some others, and tobacco would even then have a record it need not be ashamed of.

If a subsidized sale did not result in a further glut later, the move would be sound. Whether that would develop remains to be seen.

In any event, with pressure from the agriculture committee chairman and his supporters, chances are better than even that the Department of Agriculture will go along with the proposal. Farmers, therefore, face the very real prospect of some increase in acreage for 1962, even at this late date. Although allotments have been proclaimed already, the law permits an Increase but not curtailment after that action has been taken.

invest n Our

trees

The circular says:

The only immediate solution for peace on earth now is total disarmament which should Include the elimination of all stockpiles of atom bombs at once from all countries which possess its capabilities for destruction of the world and mankind.

PrecLsely how does its writer plan to achieve total disarmament? The United States has been in negotiation with Soviet Russia on this subject since about 1945 and has got nowhere. In fact, the United Nations was organized to achieve this end. But Soviet Russia has vetoed every measure for peace. Are we to crawl on our knees before the big bosses in the Kremlin? Are we to lie on our bellies and have their tanks roll over us as they rolled over the Hungarians and the Tibetans?

Presumably there are all sorts of circulars being issued which are designed to weaken our resistance to our enemy. This particular circular is frightening:

What if a nuclear attack Is coupled with a gas or bacteria

What If the H-bomb jackets are made of cobalt, which would increase fallout immeasurably?

What if Instead of ground bursts the bombs are exploded at high altitude?

Fritz Kreisler, who died a few days ago, was hit by a truck and became blind and deaf. Shall we therefore aboUsh trucks? Shall we murder all truck-drivers? I loved Fritz, but I am sure that because a truck brought misery to the last years of his life, I do not want to return to an ox-cart or a camel or a mule.

Nor do I want to become a slave of the Kremlin. Why do not these lovers of peace go to Moscow and Issue their circulars on the Red Square? Why do they not get the miserable peasant, Khrushchev, to agree to a world program of unself-Lsh peace? It would seem that their solution to the problems that face the United States today Is to lie down and die while the Russians march over our bodies.

No! I shall not contribute a nickel to Humanity Guild. Inc. Instead, I shall pay my taxes for arms to be ready to fight Soviet Russia.

The last line of the circular says: Humanity Guild. Inc. is a non-profit organization.

I have grown tired of so-called non-profit organizations. In fact when a non-profit organization hereafter sends me a circular asking for money, I am going to ask for a detailed (Continued on page five)

By ROGER BABSON

^ BABSON PARK. Mass.. Feb. 1. I have always loved trees, and have Invested In forests. Natural reserves such as oil. Iron, copper, etc., do not reproduce themselves; forests are the only natural resource which does. Moreover, most forest land is now-c^protecited against fire by watchtowera and other means. Of course, you must pay taxes on individually owned forest land; hence you may prefer to hold stock in companies which own large forests. Among such companies I would mention Crown Zel-lerbach, Rayonier, Georgia-Pacific, and Weyerhaeuser.

PERSONAL HOLDINGS I once had a large interest in the APW Paper Company of Albany, New York. This company had considerable forest acreage and a pulp mill in Sheet Harbour, Nova Scotia. Against the advice of the managers, Mr. Francis Dougherty and his brother of Old Town, Maine, I sold this Canadian acreage to William Randolph Hearst. 1 shall always regret this sale, especially as It resulted in my selling the paper mill at Albany.

I later Invested the money in seven thousand acres of woodland in New Hampshire. This consists of various kinds: Not much spruce, but some very valuable pine and much second-crop hardwood. I am obliged to pay taxes on this acreage and do not expect to get much profit, but it should be a good inflation hedge and I love to see the trees grow summer and winter, holidays and Sundays, whatever the weather. and without any labor unions to supervise.

STUDYING THE STATE OF MAINE Two years ago I was Invited by Mr. W. G, Robertson, president of the Bangor and Aroostock RaUroad and his Board of Directors,- to see the states natural resources. (Let me insert that I consider this railroad the best operated east of the Ohio River, due to Mr. Robertson.) Maines natural resources contain the woodlands of the Great Northern Paper Company and the profitable potato fields which supply much of the railroads freight. These woodlands and potato fields have the same kind of soil, same rainfall, .same sunshine, same temperature,yet yield distinct products (newsprint and potatoes).

For my column this week let me ask why humans cannot eat wood as well as potatoes? Termites and other animals are able to do this. I believe the time will come when we humans w'ill eat Wood, though not in the form of sawdust. We cannot dissolve the cellulose in our stomachs, as certain animals are able to do. We humans must dissolve the cellulose before we put it into our stomachs.

WHAT DUPONT HAS DONE The duPont Company of Wilmington, Delaware is making nylon from air. water, and coal. DuPont is making rayon and other products from cellulose by passing a solution of it through spinnerets to fonn threads ready for weaving. Its latest development is the making of synthetic leather for the uppers of shoes. Artificial leather for soles is still made by the rubber interests and is very satisfactory.

I understand that the American Visco.se Corporation is now using the cellulose of trees and dissolving same into a chemical and selling th product to manufacturers of non-iatten-ing foods. Later, newspapers may be used; but I believe this will be sometime in the future as newspapers are now used for making corrugated paper cartons and need not be de-inked before being made into these pasteboard cartons. I, however, do believe that sometime we will cook our Sunday newspaper after it has been deinked and dissolved! This seems ridiculous at the pre.sent time, but it is less wonderful than what the DuPonts have already done; and others have accomplished in radio and television. DE-INKING AND OTHER DETAIUS Instead of burning old newspapers, Boy Scouts and others coUect them for purposes above described. After the papers are chopped up and treated with chemicals, they are used for attractive jpackaglng of all kinds of foods. This Is becoming so Important that the best commercial artists are being employed to design these packages.

(Continued on page fiv*)

Strenpth For TodayForevef Guarantee By Tailor

Bv EAK. L. IH)IGLAS.S BUT WE WONDER

Tomorrow a mo.st unusual astronomical occurrence will take place. Five planets (Mercury. Venus. Mars. Jupiter, and Sat-nm will be in conjunction that Is. on a straight line out from the sun. At the same tin a .solar eclipse will take plac' ob.servable In certain parts of the w'orld. Conjunctions are mot Infrequent, but this is the first time in 26.000 years that these five planets have conjoined and that an eclipse ha.s also taken place.

What will happen as the result of this conjunction? There Is a wide variety of opinion. The a.strologers are In a dith er. Some claim dire happenings such as the change of our planet's polarity. Others say that it will be the beginning of a golden age and that a great new

teacher will emerge.' Some .say it will inaugurate an era of prosperity. Still others the op-po.'Ite,

It seems rea.sonable to believe that tna.mnich a.s heavenly bodies do exert powerful in-, fluences upon ear h other there may an increase of earih-quake.s during 3962

Recently I talked with a prominent a.sirononier. He claim.*? it will make no dlffet ence whaLsoever.

So there you have it. If one group is right it might mean practically the washing up of everything. If the astronomer Is right, it will make no difference what.soever. But certainly It Is almost unu.*iual astronomical pattern - once in 26,000 year.'^.

As to results You pays your money and you takes your choice.

B.>VELMER ROE.SSNER

American businessmen might learn something from the British. Perhaps they wont, but here is a story that contains elements of things that could be learned:

In 1941. Weldon James, now an editorial writer for the Loul.s-vllle Curier-.Journal, bought a suit with vest from John Morgan k Co.. 15 Sackville St.. London. When t|je United States cot into the war. James joined the Mo l ines, putting the suit aside. Whn ti war was over. the suit no longer spanned Jamess Marine-type muscles.

La.st .vear James wa.s awarded a grant for study in Europe. When he arrived, he discovered his wife had packed the suit. He phoned the Morgan company and said he had purchased a suit there .some time ago and wondered if It could be altered to fit Ills present fig

ure. The Morgan tailor. King Wilson, asked for the number on the label. There was a long wait. Then the tailor said, It was QUITE .some time ago, November 1(>, 1941. Please

bring in the suit.

James asked if a suit that old would be proper in England today. A well-tailored suit never goe.s out of .style, Wilson .said with some authority.

James underwent three fittings before Wilson would release the .suit to him. When James asked for his bill, Wll-.son said, A suit purchased here is guaranteed to fit forever,

has won judicial support. Federal Judge Reynier J. Worten-dyke, Jr., in loss of appetite, insomnia, restoration of appetite, under-development of children and a long list of other maladies.

WANT A xMINE? GET INTO ADVERTISING The San Jose Mercury and News is offering a California gold mine as a top prize in a contest to estimate the total 1961 retail sales in the San Jose market. The contest, however, Is open only to employees of advertising agencies and others in the advertising field.

Tokyo to speed traffic. Some signs observed: May parking. May stopping. Section for sound of horn, and Right turn toward Immediate outsides.

The Japanese should know they have done no worse than some American cities that have put up signs reading, Parking 30 minutes only,'* and No stopping, side by side on the same street. And not far from where I live Is a sign, Keep right for right turn, and a few feet behind, No right turn.

( OURT TAKES .STING OUT OF ROYAL JELLY The Food & Drug Administration. which has long challenged health claims for royal jelly, the^stulf queen bees feed on.

JAPANESE MAKE DRIVING SEE.M LIKE HOME The nfagazine of the National Aijtomobile Dealers Association reports that the Japanese police are putting up English signs in

HERES AUTOMATION THATS REAL AUTOMATION!

If you think America is having troubles with automation, consider Italy. An Italian firm has perfected an automatic spaghetti-m a k 1 n g - machine which It says will produce a ton of pasta an hour, with only one operator.