Thursday, October 13, 1966

CAILEDI

An Acceptance Of Responsibilities

The United States involvement in Viet Nam is becoming less and less of a campaign issue, and this is as it should be.

It is not that the average American relishes seeing the countrys troops sent to that little country. It is simply that Americans have come to accept their world responsibilities.

No one could quarrel with the argument that wars should be an archaic way of settling international disagreements. In a world armed with nuclear might this is obvious.

Sadly enough, however, there are still countries whose leaders have not accepted the principal of negotiation and debate to solve world problems.

evelled Off A Record Plateau

By WILLIAM A. SHIRES

ECONOMY Stetis c s and reports from a number of sources indicate the brakes have been on North Carolina's spurting economy since last June.

It is now generally agreed that the unprecedented rate of economic growth experienced in a 12 - months period of 1956-66 has levelled off at record high plateau.

It is no longer gaining by the leaps and bounds not e d earlier, but as yet from an overall standpoint it isnt losing ground either. There wa.s, however, a definite summer slump in certain areas of the economy.

How the economy will fare during the remainder of the year usually the period of briskest business activity remains to be seen. Economists say it may crank up again, or remain at a fairly steady high level or the slowdown may mean the be ginning of a decline.

WILLIAM

SHIRES

RECORDS Some of the records set during the period of unprecedented growth include total non-agricult u r a i and non-manufacturing em-employraent, manufacturing and non-manufacturing employment, construction, industrial growth, employe earnings, per capita income and state tax revenues.

Most of these construction is a notable exception have continued to gain since June, but most gains have been fractional.

Here are some facts about the states economy reported by high state officials;

Through June, 1966, North Carolina led all Sout hern states in pers o n a 1 income gain up 11.9 per cent in June alone and ranked fifth in the national in rale of gain, 11 per cent, for the first six montrs of 1966.

INDUSTRIAL More than 300 new plants and plant expansions were announced in North Carolina during the first six months of the year.

These represented capital Irtvestment in industrial de

velopment totaling $244 million and an increase of 35.9 per cent over the figure for the corresponding period in 1965.

The announced industrial expansion will add nearly 20,-000 jobs and more than $74 million annually to industrial payrolls.

BUSINESS - In August, according to Wachovia Bank-and Trust Co.s index, business and personal spending measured by bank debits inched upward but was at a level of 12.7 per cent higher than in August, 1965.

The Wachovia business index in August actually rose less than a tenth of one per cent. However, in the second quarter it slowed to only .5 per cent.

REVENUES These facts and factors were kept in mind the other day when the states Revenue Commissioner, I. L. Clayton, sent his September report to Gov. Dan K. Moore.

It was encouraging, to say the least, from the states fiscal standpoint.

General fund revenues for September were up by exactly $5 million from the same month a year ago, $41.8 million compared to $36.8 million, for a 13.74 per cent gain. For the first three months of the current fiscal year, general fund collections have increased by $17.3 million, or 13.80 per cent.

FATAL A Raleigh newspaperman, Bernard C. West, left work the other night and was driving home. He approached the intersection of Glenwood Avenue (U.S. 70) and Blue Ridge Road just west of the busy Raleigh belt-line and was to make a left turn onto Blue Ridge road.

He never made it. Another vehicle struck Wests car and the 40 year old newspaperman was killed in a fir-ey collision. His car smashed into a gasoline pump at a service station at the intersection.

Ironically, a couple of days earlier the State Highwav Commission had called for bids on the first stage of a project to relocate the Blue Ridge Road intersect i o n. The intersection itself, while not listed on the Highway Commissions computer-select e d high hazard locations, is perhaps one of the busiest in the Raleigh area. It is marked with double banks of traffic control, lights and signals from both sides of the four-lane divided highway, U. S. 70.

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We can only hope that with the passing of years and a^qmpanying maturity all nations will come to seoihe wisdom of outlawing wars.

Until that time the United Statesand other responsible countrieswill have to bear the burden of being prepared for wars like Viet Nam.

It is a dirty business, but it appears to be the only way that an even bigger nuclear war can be avoided. We believe that even warlike nations are coming to realize that this would be unthinkable.

Not everyone knows how many agreements the United States has with nations throughout the world. These agreements pledge this countrys armed might for the protection of these friendly nations. This country could be pulled into armed struggle around the globe.

A pullout in Viet Nam today would virtually nullify these military agreements. They would be worth no more to our friends, nor mean more to our enemies, than the paper on which they are written.

Viet Nam will be settled someday. The price we pay there is high but the time we buy may well save the human race.

Protests Assured On Both Sides Of Issue

Howls of protest from North Carolina automobile owners over the increase in liability insurance rates that became effective this week probably will be surpassed only by the howls of insurance companies who decry the rate as far below what it should be.

The state Automobile Rate Administration office had requested an 8.1 per cent hike in auto liability rates for most drivers. There was also the proposal that rates for assigned risk policies be increased 10 per cent more than rates on other policies.

Insurance Commissioner Lanier, after considering the proposals, authorized a 4.2 per cent increase in liability rates, including assigned risk rates. For about two-thirds of the states auto owners, this will mean an increase of $2 per year in auto liability insurance costs.

Even though the dollar cost per automoble is not large, the total increase of the cost of auto liability insurance in North Carolina has been hiked considerable by even ths relatvely small increase.

Before motorists raise the roof about the rate increase, however, they should give some consideration to the sharp rise in automobile accidents and the resulting property damages. These have gone up much more sharply that rates on liability insurance policies. And in spite of a great deal of talk about hghway safety, nothing much is really being done to bring down the traffic accident rate in North Carolina.

Two Countries Still Far Apart

By JAMES KILPATRICK

^i^esearch And Jellyfish

By LEWIS GUUCK

WASHINGTON AP)- A seeming Soviet willingness to do business with the United States may be due in part to Red Chinas setbacks in the struggle for leadership of the Communist world.

This opinion comes from some U. S. diplomats after

This Date-40 Years Ago Today

By FOY H. DUNCAN

Oct. 13, 1926 North Carolina ranks seventh in gasoline tax

RALEIGH Oct. 13-North Carolina ranked seventh in the collection of tax on gasoline used in motor vehicles during the past six months, according to figures made public here today. The state showed a total collection for that period of $3,598,412 as compared with total for the 44 states imposing such a tax of $84,-939,373 . . . .The figures which were compiled by experts with the United States Department of Agriculture indicated that there are only four states in the union not levying a gas tax. They are New York, New Jersey, Illinois, and Massachusetts. . . .

Exhibits at Pitt County Fair Best ever Shown Opening day crowds express delight at exhibits and attractions offered ,by fair.

Birth Announcement

Mr. and Mrs. Curtis Perkins announce the birth of a son, Curtis Perkins, Jr. Tuesday, October 12th, 1926.

Junior Kings Daughters meet The Junior Kings Daughters will meet tomorrow afternoon at four oclock with Miss Katherine Smith.

Miss Owens to stand tate Examination Miss Peggy Owens of Pitt Community hospital left this morning for Raleigh to stand the nurses examination before the State Board.

four exploratory sessions with Soviet Fo-eign Minister Andrei A. Gromykothree with Secretary of State Dean Rusk and Gromykos call on Presi-dest Johnson.

A year ago Gromyko stayed away from Washington, though he was in New York for the U.N. General Assembly opening. U. S. forces were then going Into Viet Nam in a big way, and a seemingly potent Peking was accusing the Soviet Union of conniving with the imperialist enemy.

This fall Gromyko agreed to final talks aimed at starting direct U.S-Soviet commercial air service, he abandoned some earlier objections to a treaty to preserve outer space for peaceful use and he showed interest in a pact to outlaw the spread of nuclear weapons.

U, S. Kremlinologists who see in this a warming-up of U.S-Soviet relations are inclined to give some credit to Mao Tse-tungfor the Chinese leader's Red Guard rampage which has tumbled Pekings prestige inside as well as outside of the Communist camp.

According to this theory, Moscow has forged so far ahead in the Sino-Soviet rivalry that the Kremlin can shurg off Chinas charges and feel free to pursue its own foreign policy ends.

There is another school of thought among Washington experts which fails to find any marked improvement in Mosco w-Washington relations at this time.

They say the Krelin leadership has kept the door open right along for East-West accords which might suit the Soviets. They note Gromyko continued to brand America as the aggressor in Viet Nam, voice support for Hanoi and rebuff peace approaches.

This analysis sees Kremlin policy as partly harsh, partly accommodating toward the West, and pragmatic in dealing with any specific item. So what looks like a smile from Moscow today on one issue could turn to a frown tomorrow on another.

But the differing interpretations do come to one common Conclusion: That a wide gulf still separates Washington from Moscow and bridging it will not be easy.

A little bill, known as the jellyfish bill, is floating gently through the House and Senate. If it is approvedas it probably will be the measure will make no great impact m the budget; it will have no social importance; it is just sufficiently insignificant that it merits passing comment. Governmentally speaking, whither are we drifting?

Residents of the land-locked portions of the country, more fortunate in this respect than their coastal cousins, may not be acquainted with the jellyfish. In its common, or most detestable form, the thing appears as a floating blob of translucent glup, with a dome from two to eight inches in diameter. Trailing from this dome are a number of whitish tentacles, maybe two or three feet long. Each of the tentacles is equipped with clusters of cells that sting like fury. The swimmer who encounters a jellyfish is usually though for the day.

So far as is known, these

nettles are not really good for anything. They are 95 per cent water; there is nothing much to them but protein and venom; they are unmitigated pests, and they seem to be increasing along the Eastern Coast. Parts of the Chesapeake Bay are badly infested. So now it is proposed, under the jelly-fish bill, to see what can be done about them.

Sponsored chiefly by Marylands spokesmen, the measure would authorize a three-year appropriation of $2,250,-000 for research. Grants to participating States would be made on a 50-50 matching basis. The Department of the Interior would head up the program. The bill has the sympathetic support of many Midwestern members of Congress, who know how greatly their region benefited from Federal funds invested in attacking the Great Lakes lamprey. What is good for the lamprey is good for the jellyfish. Without objection, as they say, the bill will be passed.

Other Editors Saying 4-H Clubs For Migrants

Now, an arguable case can be made for the bill. Ques-tic of constitutionality to one side (and that is where most questions of constitutiona li t y repose these days), the Congress may have power to assail the jellyfish in the name of interstate commerce If not in the name of the general welfare. When one recalls the amount of money frittered away oq, such Federal studies as The Social Role of the Aging Ungulate, the relatively modest sums proposed for jellyfish research may be justified.

Yet one has doubts all the same. While 22 States are affected by jellyfish infestations in some degree, the problem is serious in only three or four. Is there any valid reason why these States should not finance a research program on their own? The jellyfish has been around for mille n i a. Is there any valid reason to appropriate even $500,000 for this venture in the curr e n t fiscal year, when the Federal budget is running heavily In the red^

(Christian Science Monitor)

Four - H Club work enrolls 2,500,000 boys and girls in the United States. But until recently, so far as we know, this vast movement did not include any groups of migrant farm children. It seemed impossible to establish clubs for children so much on the move.

We salute the people of little Milford, 111. (pop. 1,600), for proving that it Is not impossible. 'The Milford Texas 4-H Club, composed of dark - skinned youth of Texas-Mexican ancestry, is thriving.

It was formed six years ago when the Milford Migrants Council, a nondenominational group with representatives of many of the areas's churches, teamed up with the county extension service to bring 4-H Club work to the child vegetable pickers. TTie organizers believed club work could be carried on with those who returned year after year. And

they thought that by holding meetings at night they could fit club wo"k into the program of children who worked in the fields by day. They were right.

The Milford, Texas 4-H Club has thrived. Over six years, some 170 young people have joined and carried out projects. Especially popular are those which teach American ways of cooking and other home arts.

It has taken some money to conduct this special activity, but not much as antipoverty programs go. We wonder if there arc not many other communities which could find ways to bring migrant children and those of other socially isolated families into the going organizations of youth.

It is up to the local people to provide the support in both funds and services. Community enthusiasm, an ingredient often lacking in antipoverty programs, has made the Milford effort work.

JAMES J.

KILPATRICK

More to the point, is there any valid reason for funding one mor^ separate program of Federal res'arch? Back in 19-40, as Congressman John B. Anderson of Illinois recently/ observed. Federal appropriations for research amounted to only $74 million a year. Today they approach $16 billion a year. Three years ago, when a special House committee surveyed the field of Federal research, it was found out that seven agencies were performing research in oceanography, and eight in water.

The 1963 survey is long since outdated. A year ago, the House Committee on Merchant Marine and Fisher i e s discovered that Federal programs in oceanography were (Continued On Page 5)

Ohios

Bobby

Boom

Bv ROWLAND EVANS and ROBERT NOVAK

COLUMBUS, OHIO - Just why Ohio Democratic leaders are rapturous over Sen. Robert F. Kennedy these days has less to do with what he did and said on a visit to Columbus last Saturday (Oct. 8) than how he came to be here in the first place.

Its treasury empty after years of factional feuding, the Ohio Democratic Party last summer began casting about for a speaker sure to sell tickets for a $50 - a - plate campaign dinner. The first choice was not Kennedy but Vice President Hubert Humphrey.

However, Democratic National Committee officials informed the Ohioans that at any function where Humphrey appears, half the proceeds must return with him to the national committee. The desperate financial straits of tne Ohio party did not warrant any exception to this rule.

Only then did Ohio invite Kennedy, who promptly accepted without dictating the disposition of the dinner s proceeds (which turned out to be in excess of $100,(X)0). Humphrey was victim rather than author of the national committees rule, the incident hurt his standingjust as it helped Kennedys among Ohio party leaders.

Indeed, Kennedys remarkable strength among party leaders in pivotal Industrial states such as Ohio is in great part the reverse function of President Johnsons and Vica President Humphreys weakness among them.

JOHNSON - HUMPHREY SLIPPING

Moreover, this helps explain the phenomenal popularity of Bobby Kennedy among rank-and-file voters. The Bobby boom simply could not have happened had the Johnson-Humphrey team not been slipping.

There was a decided anti-

Johnson aura to Kennedys five - hour visit here. Few speakers invoked Mr. Johnsons name during the dinner at the state fairgrounds. Kennedys own address attacked the you never had - it so -good campaign theme of the President.

The shaggy haired teenagers who turned up at the airport for Kennedy two hour in advance carried homemade signs saying RFK in 68, Lets put Robert Kennedy to work as President, and Let us begin (again.)

To be sure, Democratic politicians here have no such taste for any Kennedy presidential attempt against Mr. Johnson in 1968. But they are uncharacteristically open in proclaiming themselves for any Kennedy presidential attempt against Mr. Johnson in 1968. But they are uncharacteristically open In proclaiming themselves for Kennedy for the time when there is no incumbent Democrat in t h e White House. At the dinner. Sen. Stephen Young evoked boisterous cheers when, turning to Kennedy, he declared: We welcome you here tonight as a future President of the United States.

The party leaders here who so fully share Youngs sentiments are turning to Kennedy in reaction to massive indifference from the Johnson run Democratic Naonal Committee. They complain privately that no help comes from Washington these days. Speclfical-(Continued On Page B)

Markets Drop Is Deflationary

By ELMER ROESSNER

An Interesting and important fact about the stock market drop is that it is deflationary, one of the flrit large deflationary happenings in several years.

The decline in stock and bond prices in the current dip represents a loss estimates as high as many billion dollars. The pessimists say that it is a loss of wealth because it has impoverished many people. The optimists say it is 8 no loss at all, since the things stocks and ^nds represent are still there, st i 11 earning money, still yielding dividends and interest.

However, the decline does represent a deflation of the stuff with which the economy does business.

It is in error to thing of the money in circulation, which is about $38 billion, as the total currency of the economy.

The Federal Reserve System, adding demand and time

deposits, puts total currency at $170 billion.

But, in practice, there is more. There are such items as the total value of stocks and bonds, which is an asset almost as liquid as demand deposits because it can be converted into business credit; the total value of mortgages, which can be sold; the total value of consumer indebtedness, which can be sold or factored, and the total value of other debts. Combined, they run into the trillions.

clmer

ROESSNER

It is easy to see how securities and credit add to the supply f currency. Joe Doak-

es has $4,000 in stock. He wants a new car. He sells the stock and buys the car. Thus his lock was the equivalent to $4,000 in cash.

Mrs. Doakes has no cash.

She sees a $1,000 furniture suite she wants. So she draws $1,000 out of the bank, or borrows that sum from the bank, Qr charges that much furniture at the local store.

Thus her bank deposit or her credit are equivalent to currency.

And thus thd drop in stock market prices is just as deflationary as a tax say a 10 pw cent increase in income taies that would mop up billions In spending power. Values of stocks, bonds, savings and credit are spending power just as much as dollar bills are.

AMERICAN AIRLINES PACT INFLATIONARYSO WHAT?

Now that the Johnson administration has denounced the American Airlines labor con

tract with the Transport Workers Union as clearly inflationary, the question remains of what the administration will do about it.

Gardner Ackley, chairman of the Presidents Council of Economic Advisers, said the 6.5 per cent wage boost was inflaonary and that it contributed to the rise in the cost of living.

Now will ITcsident Johnson iDstruct government employees not to trgvel with this inflation-breeding alriine? Will Secretary of Dtfenw McNa-mara direct that only other, more patriotic lirlines get mil-it^y business? WUl members of the Johnson family use only other airlines? Will George Hamilton fly only United?

Dont be obtuse, readers. American Airlines and the

Transport Workers Union have

been tapped on the wrist with an LB Jawbone, and things will go on as before, which was inflationary.