Thyrsd^y, May 26; 1966 ' .

An Even Greater Future Potential

North Carolinas phosphate potential becomes ver brighter.

Already Texas Gulf Sulphur is mining this mineral^which is largely used for fertilizerat its Lee Creek site. The company is investing more than $70,000,000 in this operation. Other companies have options on land in Beaufort County and it is expected that operations similar to Texas Gulfs will eventually get under way.

Will A Million Vote Saturday?

COMBAT VETERANS!

Bv WILLIAM A. SHIRES PRIMARIES - Maybe a million North Carolina voters more or less will go to the polls Saturday to nominate and in most cases virtually elect scores of public officeholders.

A million more eligible voters probably wont bother to vote. These are so - called **off - year elections which with a few exceptions have ftirrcd very little grassroots political interest.

Most of the contests involve local or district elections, some of them hot and some lukewarm. Only a few have attracted keen interest and attention beyond their boundaries.

The May 28 primaries, both Democrat and Republican, are for the purpose of choosing party candidates for offices ranging from sheriffs, solicitors, county clerks and commissioners and school beard members to state legislators and members of Congress.

CONTESTS In addition, the primary ballots will be marked in at least one statewide contest, that for the Democratic nominee for a U. S. Senate seat now held by Sen. B. Everett Jordan Jr. of Saxa-pahaw.

Jordan, running for another term, is heavily favored to swamp his tone opponent, Hubert E. Seymour Jr. of Greensboro. TTie Jordan - Seymour contest has been lackluster and largely ignored.

Meanwhile, the statewide Democratic primary ballot includes the names of the chief justice and four associate Justices of the state Supreme Court, all without primary opposition. There hi a lengthy list of candidates for places on the Superior Court bench and for district solicitor, with all the judges opposed and only 10 contests for solicitor.

INTEREST Real political interest in Saturdays primaries is centered on several of the states 11 Congressional districts and on quite a few legislative contests.

There is a new look to many of the legislative races particularly the House contests because of recent legislative redistricting under the one man-one vote edict of the U. S. Supreme Court.

Congressional redistricting

also look place last January and the reshuffling of these lines also adds interest and uxu known quantities to several of these contests.

There also will be primary elections for the first time for nominees for newly-created district judgships under the states new and far-reaching court reform plan.

CONGRESS - Most political observers put Saturdays spotlight on two Congressional primaries those of Democrats in the Fourth and Fifth districts.

In the Fourth, veteran Rep-Harold Cooley of Nashville is being challenged by W. A. (Bill) Creech of Raleigh and Smithfild and Columbus M. Tart of Orange County. Creech has waged a busy, door - to-door, precinct by precinct campaign in hopes of upsetting (Cooleys long domination of the district which includes the rapidly-growing state capital city of Raleigh.

Most observers give Cooley the edge, however, on the strength of his soft sell campaign that experience and tenure counts greatly in Washington. Cooley is chairman of the highly important House Agriculture committee.

FIFTH It is easy to predict a run-off among the two top Democrats seeking the nomination for (ingress in the Fifth district, a seat being vacated by retiring Rep. Ralph J. Scott of Danbury.

Consensus favorites for a run - off among the four contenders in the Fifth are State Rep. Nick Galifianakis of Durham and wealthy Reynolds tobacco heir Smith Bagley of Winston-Salem, perhaps representing the opposite ends of the political spectrum in this four-way campaign.

Bagley has strong conservative views and has the endorsement of at least one major conservative Democratic group, the Lake Peioples Association.

Galifianakis, a liberal -minded public figure cut on the John F. Kennedy mold, has waged an aggressive and colorful campaign. He counts on strong support in populous Durham County and on liberal, progressive votes including the Negro vote in other counties in the district. Bag-leys home county strength in Forsyth, most populous county in the district, apparently will be cut because the other two candidates, State Sen. William Z. (Bill) Wood and former Scott aide Harold Tho-merson, both are from Winston-Salem. And both Wood and Thomerson have substantial support across most of the newly carved district. Neither can be overlooked.

Now Duke Universitys research vessel has discovered a vast deposit-of phosphate rock, at least 20 miles square, 30 miles off the North Carolina coast.

Dr. Orrin H. Pilkey, marine geologist, who made the discovery, said the deposit is located between Cape Fear and Cape Lookout.

Phosphate is being shipped more and more around the world as the use of fertilizer increases. It is also used in detergents and baking soda.

There are those who expressed considerable doubt when many far sighted persons predicted Eastern North Carolina might become a chemical industry center for the nation.

More and more, however, it is beginning to look as if these predictions might come true. If phosphate can be mined form its bed beneath the seas, it is highly likely that the ore will be brought to North Carolinas shores where great plants would be constructed for processing.

An entirely new North Carolina industry is developing before our very eyes. It could mean employment for many and millions of additional dollars for the states treasury in future years.

Eastern North Carolinas phosphate deposits may mean an era of prosperty and development such as this area has never known.

Did Morse Get Word From Oregon Voters?

Results of the Oregon Democratic primary confirm what we have long felt to be the case : most people have a measure of confidence in the present U.S. Asian policy.

The rivals for the Senate nomination in Oregon were alike insofar as local platforms were concerned; and at opposite poles when it came to the national position on Viet Nam.

The voters verdict is just a little more surprising (and upsetting?) because Oregon is the stamping ground of the Senate's great dissenter, Wayne Morse.

We would not expet Senator Morse to change his position on Viet Nam as a result of this weeks primary; but perhaps as he eyes his own political future he may become a shade less vociferous.

A maverick can be a valuable asset in the scheme of things; but even so, mavericks sometimes press their image beyond the patience level.

By ART BUCHWALD

Avoiding Dropout Lobe.,

.niorcing Of Stability

Sro

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By JAMES MARLOW WASHINGTON (AP)-T h e one hope for stability in South Viet Nam at this time seems to be iron-fisted toughness, not democracy, and it m a y long remain that way.

The American ideal of the good society in Viet Nam should be a democratic one. But events over the years particularly recent events throw doubt on the readiness of the Vietnamese for democracy. They never had it.

One government after another was swept out by p 1 o ts, ambitions, and protests, especially by Buddhist leaders, until th present group of generals took over under Premier Nguyen Cao Ky.

He promised elections and a constitutional governm e n t within a year. This d i d nt satisfy the Buddhist leaders. In trying to throw him out, they revolted at Da Nang.

This revolt, judging from what happened, was poor 1 y planned and badly organized. Although Buddhists make up 80 per cent of the population, in the showdown they lacked mass support. Ky used the army to crush the u p r i s-ing.

This Date-40 Years Ago Today

By JOHN G. DUNCAN Seek To Test Constitutionally Of Inheritance Tax TALLAHASSEE, Fla. -Gov. J. W. Morton today authorized Attorney - General Johnson to institute proceedings in the United States Supreme Court to test consiti-tutionality of the Federal In-heritence Tax Law.

Unrest continues In the northern city of Hue and, to some extent, among Buddhists in the capital of Saigon. But Ky, according to reports from Saigon, is confident that he can squelch this kind of opposition.

Richard Critchfield of t h e Washington Evening Star, writing out of Viet Nam, has presented a disgusting p i c-ture of the Da Nang Buddhists who wanted a hand, and no doubt eventual control, in running the government.

He describes them as a bunch of callous, cold-blooded, merciless opportunists who exploited the dead and wounded for their own ends. He writes of their incred i b 1 e cynicism toward human life.

JAMEB

MARLOW

Its probably a very unfair thing to say, but many students are staying in college these days to avoid the draft. No one will admit it, but these students will take any subject if it means staying out of the army.

I discovered this the other day when I was on the campus of one of our larg e r universities and started talking to a student in the cafeteria.

He said, I think its very important that America have educated students and while Im willing to do my service, as well as the next pers o n, I think I will be able to serve my country better if I have a well-rounded education. How old are you sir?

Im fifty one years old. But when did you start going to college?

In 1942, the semester right after Pearl Harbor. I felt we were going to be in a long war with the Japanese and there would be a big demand for college graduates. So I got a deferment and studied pre-medicine. But after four years I switched my maj o r to agriculture because I decided what America would really need was farmers. I studied farmings for three years, and then switched to law because I heard there was a shortage of lawyers in the armed forces.

But apparently I was mis-inforimed, so I then decided to study chemical engineer-

Other Editors Saying Some Imponderables

Captures Five Stills In Past Two Weeks

Deputy Sheriff W. B. Para-more and officer Hodges have, during the past two weeks, conducted five successful raids and captured five stills in the Pactolus and Chicod Townships.

Entertain Married Members Of The ECTC Faculty Mr. and Mrs. E. L. Henderson, and Mr. and Mrs. R. J . Slay were hosts to the married members of the Faculty of East Carolina Teachers College on Wednesday evening at the home of Mr. and Mrs. Henderson.

The parly was given especially for Mr. and Mrs. ('. L, Adams and Mr. and Mrs. A. D. Frank, who will be temporarily abscent from the College pursuing study courses for lhe<' next few months

His story of how the Buddhists enticed newsmen into their pagoda and then tried to use them as hostages against attack by Kys troops reveals how the Budd hist rebels lost their zeal for revolt under fire.

For days, he said, Buddhists had shot into neighb o r h o od houses and then coll ected wounded and killed and paraded them before the press as victims of govern m e n t repression.

Yet, these are the samq men who have been demanding constitutional government. Their performance was irresponsible and cruel. It is still not clear whether they are in league with the North Vietnamese Communists.

If Ky goes through with his plans for a democratic governmeit, the Buddh i s t leaders will want a large and no doubt dominant role in it. But it hardly seems possible after the disclosures at Da Nang^that they want a democratic government or any kind of government but a Buddhist dictatorship.

Thereforoit^ould not be surprising if Ky^nd the generals refuse to let the elections occur within a year or for some time afterward because the Buddhist lead e r s project a vision not of order but of anarchy.

One thing is sure: the U.S. war against (he Viet ( o n g and Nurlli Vietnamese Com-Tminlsts cannot continue if Soulli Viet Nam disintegrates much further info the kind of brainless disorder the Buddhist leaders sought.

(Washington Daily News)

Last February 5 in the special election for a congressman to succeed the late Herbert Bonner, Walter Jones polled 21,775 votes and Dr. John East polled 14,308 votes, or a total vote of 36,063.

The margin for Mr. Jones was three to two. Beauf o r t and Washington counties actually gave majorities to Dr. East.

Now looking at the figures, we find that the total registration in the district at the time of the election was slightly more than 108,000. Thus only one-third of those registered to vote went to the polls to cast ballots.

What would have happened had two-thirds of the registered voters cast ballots? Of course, we can only guess, but it is rather tragic that such a small percentage of the eligible voters went to the polls.

Now on next November 8 the same two candidates will be facing each other again. With the addition of more counties to the First Congressional district and with added names on the registration books, we can expect a total registration of about 150,000 people. If only one - third of that number vote, we will have 50,000 votes. But what would be the feeling of the

100,000 not voting? Again we can only speculate, but speculation right now could help make sure that 100,000 people do not stay away from the polls in November.

The very fact that on last February 5 Dr. East p o 11 ed almost 40 percent of the vqte cast has caused much conversation in the area. Heretofore it was just considered Herbert Bonner territory and that meant Democratic territory by a very large margin.

We want to make one point clear. It is not the smaller than usual majority gathered by Mr. Jones that c o n-cerns us most. It is the 72,-000 citizens who did not vote last February.

There are those who say that had the 72,000 voted, the percentages would have remained about the same. Others argue according to their own political beliefs. Regardless of all the arguments, it is not a compliment to democracy that so many sta y e d away from the polls. Since only one-thitd of the registered voters cast ballots, the election of Mr. Jones meant that only 20 percent of the total voter registration elected our congressman. It, of course, represented a good showing for Mr. Jones even then but a mighty bad showing for democracy.

iiant

mg

And all this time you were deferred from military service?

Yes. I would have g o ne any time they asked me, but the draft board was very kind about it, especially when I explained my only reason for staying in college was to become a teacher. Of course, when Korea started I was in a bad position, so I went to see my faculty advisor and he told me I ought to study to become a veterinarian, as the army was short on veterinarians and they would defer me for that. I studied to be a veterinarian during most of the Korean war but then the army announced it had too many veterinarians, so I switched to architecture.

Youve really had a ^ell-rounded education, Usaid.

I think Ive gotten a lot out of s c h 0 0 1, he said, though sometimes my father complains about my tuition. In the last 26 years its cost him $67,405 in tuition fees, not counting what it costs at my fraternity house and to take girls out. But my mother says she would still rather have me in college than in the service.

And shes right, I said. What are you taking now?

Well, I seem to have taken every course in the school, so Im taking pre- med again.

Have you ever gotten a degree in anything?

Oh, no. Ive thought about it many times but if I got one I think it would take the fun out of college. Besides, if I got a degree my draft board might not let me stay in school.

Have you ever toyed with the idea of just giving up school some time and taking a job

I have once in awh i 1 e. But I dont want people to say Im a drop out.

Youve got a point. How much longer do you think youll go to school?

Im not sure. I was about to get out a few years ago, but then Viet Nam came along, and my mother said I should stay, at least until I finished my education.

Money

?uzzie

By JOHN CHAMBERLAIN .

Copyright, 1966, King Featijirea Syndicate, Inc.

It has become an article of faith that there is a money squeeze in the economy. Senator Vance Hartke of Indiana talks about it and worries about it. And, if you are looking for mortgage money to buy a house, you will quickly discover that the money shortage can be a grim reality. The hank wont deal with you unless you are prepared to put up twenty-five per cent of the purchase price and are willing to pay 6.5 per cent interest on the borrowed remainder.

Yet, strangely enough, the Federal Reserve Bank of St. Louis reports in its monthly review for May, 1966, that monetary expansion continues. We are told that federal reserve credit member bank reserves and the money supply have increased at extremely rapid rates since last summer.** The accompanying tablet printed in the bank letter show the money supply rising from 160 billion dollars in January of 1965 to 171.1 billion in April of 1966. So as the St Louis Federal Reserve says, the impression of restriction (in the money supply) may prove to be an illusion.**

i^hy, then, should interest rates be rising? On the surface it doesnt make sense to an economic layman. One explanation could be that, with new money being constantly injected into the econo my, the percentage of its going into the purchase of consumption goods in order to b e a t coming price increases is depriving the lending mark e t of liquid funds for inv e s t-ment. Another explanat i o n might be that lenders expect money to be worth less a year or so from now. and are therefore insistir | on higher interest rates in order to protect themselves against the depreciation of their lending capital.

Whatever the explanation may be, the fact that the money supply is constant 1 y increasing pinpoints government responsibility for both the inflation of prices and the high borrowing rates that are presumably the reas o n for the illusion of a money squeeze. The cure would seem to be the classical one: let the government cease inflating the money s u p p ly. Then the extra money would not be there to chase a limited supply of goods. Prices would consequently fall, and interest rates would c o m down.

What the Federal Reserve Bank of St. Louis Review suggests is that Pres i d e n t Johnsons economic advisers are prolific with cart-bcfore-the-horse thinking. Everything gets turned upside down along the Potomac. High prices are condemned as the cause of inflation, not accepted as the result.

And the effort to take soma of the steam out of the boom by asking businessmen to make voluntary cuts in capital spending is just as misplaced as the attempt to halt the price rise by appealing (Continued On Page 5)

Lots Of Money, But A Shortage

By ELMER ROESSNER

One of the strangest things in the American economy is that with so much money floating around there is a shortage of money.

Theres plenty of money because corporate earnings are higher than they ever have been, government spending has topped World W a r JI peaks, wages are higher than at sny point in history, and total personal income is at an unsurpassed level.

Yet theres a shortage. The shortage is so great that banks are paying up to 5^/2 per cent interest on some savings, the government has jacked up the interest on Savings Bunds, and builders are crying in their brandy business has slowed . down becau.se mortgage money is not available.

WHAT ITS ALL ABOUT

Thats a paradox wrapped up in a conundrum.

But its no mystery.

There are two reasons for this strange, equivocal situation.

ROBMNER

They are these: The economy, already expanding, is under forced draft to expand even more to satisfy (lie demands of the Viet Nam war an ttie Great Society, And Uiere is inflation.

The two .cannot be separated.

The government itself is creating a paradox. It is asking industry to supply more material for the war and, at the same time, is asking it to reduce spending for plant and equipment.

Business is largely taking a common-sense view of the situation. It is filling government orders, which are profitable, and at the same time is trimming expansion plans to a limited degree.

WHERE THE MONEY GOES

Consequently, business expenditures for new facilities are rising.

Meanwhile, the increase in consumer income, from dividends and higher wages, is stimulating demand fur consumer goods. People who have never afforded them before are buying boats, swimming pools, fur coats and larger au-tosjC They arent putting their

extra money into savings. Savings rates are diminishing.

This introduces another element: Because sales are so easy to make, manufacturers of consumer goods are expanding too. They are bidding against military suppliers for available funds, pushing up the price, known to us yokels as interest rates.

Another factor may be although this is yet to be proved that families, relying on social security, medic^e, home relief, the Qreat Society and Big Brotherism arc less inclined to save and more tempted to spend not only current dollars but future dollars on comforts, including color television, Batman costumes, hi-fi sets, Paris fashions and wide paisley neckties. They spend future dollars by buying on the instalment plan.

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