Thursday, September 28, 1967

Congress Must First Trim The Fat

Congress should make no move to adopt a surchrge on the present individual and corporate income tax structure- until it has exhausted every reasonable effort to reduce the exorbitant wasteful and unnecessary spending in federal operations.

^ While pressure increases from the White House to adopt the Presidents proposals, there appears increasing concern at home that Congress is not as diligent as it might be in reducing federal expenditures.

Every dollar which can be cut from federal appropriations means one less dollar that has to be collected in taxes to bring the government closer to a balanced budget. And certainly there are many dollars probably many millions of dollars which could be squeezed out of the federal budget without adversely affecting the nation's welfare.

The job of Congress and its individual members in the next few months should be to remove llie-e unnecessary items from the federal budget. Particularly those members who make up the North Carolina Democratic delegation in Washington should redouble their efforts to have Congress take a more realistic view of the wasteful practices being followed in many federal programs. They should expand their energies and exert their influence to bring about sounder fiscal policies in federal operations.

By doing so they will be making a genuine

3usiness Trenc. Signs Hopefu.

By WILLIAM A. SHIRES Reflector Ralei^ Bureau RALEIGH Econwnists who keep an especially close tyt on r^onal trends are jM'edicting a pickup in business conditions whidi Ifliey expect to contim into 1968.

At the s^ne time, they feel, iutt inflation and fai^ interest rates will continue to pose serious proUems requiring combativ* actian by the gov-mment One such forecast oomes from Stanley F. Forester, head of tiie investment department of Wadiovia Bank and Trust Co., who addressed a Southeastern Gas Assn. convention in Raleigh last weekend. He noted business c(mdi-tions began iq)swing to late summer largely b^ause df expansion of the money supply, more consumer confidence and increased activity in the residentisd construction field.

Continued Spurt The official predicted a ci-tinued spurt throu^ the next

rfl nxMiths and cited a *fav-erafole tax climate, growth in di^wsable personal income, a low fmemployment rate and odal security programs. ifo, be said Federal Re-erve credit to the commer-al baiddng system had increased at a 1S.7 per c^t adjusted rate during the past itot monttis.

'This is a tremendous expansion of the money suj^ly end while there is a time lag for its effect on the economy, It seems to me tiiat it cannot help but he stimulating

from this point on, Forester said.

Evidence Reported

Some evidence of the business pickiq) is contained in latest statistical reports by Dun and Bradstreet, the U. S. Census Bureau asd other sources.

Nationally, depart m e n t store sales have been up 11 per cent from a year ago. In retail sales, percentage increases for the week ended Sept. 20 from a year ago ranged from three to seven per cent in ttie South Atlantic states, five to nine per cent in west South Central states and one to five per cent in the East South Central region.

Problems Ahead

Forester supported the preslents call fwr a federal surtax, calling it extrenoely important to the capital markets and without it we face the distinct possibility of another financial crisis.

I believe it is absolutely essential that, onerous as the tax increase may be, some effort be made to reduce the huge federal <Hicit facing us.

He added that inflation pro-lbly would force some change in the recent easy money policy. And he said the key to any relief from current high interest rates lies directly in the lap of the-federal autiiories in exercising some financial discipline and restraint in the handling of its own fiscal affairs. iDvostment Picture

In the investment picture. Forester said he exp^ted continued record high yields on long term securities and still h^ier short term rates, for the foreseeable fu-hire.

He reasoned this way if the predicted expanding economy devele^, business loans will increase and this in turn result in short term interest rates going up.

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contribution to the betterment of the nation and its government. From the political standpoint, they will also be making a contribution to strengthening the Democratic Party in North Carolina, which is under serious attack because of fiscal policies of the present national administration.

Growing Concern Over Attacks On Tobacco

It is with growing concern that we see the U. S. Surgeon General and other federal agencies and officials step up their campaign to outlaw tobacco and smoking.

Obviously official policy of Washington agencies and others has now taken the line that cigarette smoking is responsible for cancer and perhaps other diseases as well. It is evident from the statements of the Surgeon General in Raleigh this week that so far as the policy is concerned, no further information will be considered. The verdict has been written by the bureaucrats and it is to be imposed by the means at their disposal.

Tobacco should not be made the whipping boy for all the ills that beset the American society and claim lives among its people. Such seems now to be the case.

There is still much research to be done concerning tobacco and its possible connection with cancer and other diseases. Research is likewise needed so far as other products are concerned. Tobacco should not be made to bear the brunt of official frustrations at trying to establish the causes and cures of many diseases.

Same Conflict Since Beginning

By JAMES MARLOW

WASHINGTON (AP)-Pres-idento aB the way back got tiieir lumps for someti:^ they did in foreign affairs, even though it looked dandy at the tftne. Peq)le and politicians turned sour later.

Good examples are Presidents Johnson and Harry S. Truman.

Truman neither a^ed nw got congressional authorization for going into the Korean War. But Congress fully backed him by voting what he needed for the war.

Frustration set in as the war dragged <m and debt increased. Clubbing Truman then became a hobby, particularly in Ckmgress where Republican Sen. Robert A. Taft complained Truman had no right under the Constitution to do vdiat he did.

Now Johnson is getting the Truman treatment fo!r the war in Vietnam although, unlike Truman, he asked and got congressional approval ahead of time for using troops there to stop aggression.

The Constitution is not only silent on what a president can do in those situations, but is blank on practically everything else in foreign affairs except for saying a president can make a treaty if two-tiiirds the Senate approve.

From toe earliest days pres-

Strength For Today

By EARL L. DOUGLASS SUN WILL SHINE AGAIN

Life is full of loss and disappointment, and we are all saddened as we think of it in our own lives and in the lives of others.

Yet loss is almost never Irreplaceable loss. Disappointment is almost never a permanent calamity. The heavens are overcast at one time, but they clear at last and often with a refreshing downpour which gives the whole W(H*ld a new tone.

Reflections such as these are not much comfort when we are going through loss and disappointment, but at least they get down to the basics of the matter and so enable us to see things as they really are. Certainly for those of us vi live to a free and democratically administered nation life always contains more hope than discouragement. There may be riots. There may be police actions which take human life. Yet compared with former ages and conditions in other parts of the world, we can count ourselves fortunate indeed.

It may be hard under such conflicting circumstances to maintain a happy attitude of mind and certatoly hard to to> so all the time. We should bear in mind, however that with all the disadvantages we have we are more fortunate to be living where we are and to the age we are than people have ever been in previous ages.

Let us look up and be convinced that the sun will shine again with renewed glory and the whole landscape take on a new beauty.

The end of human life to meant to be triumph, not defeat

idento have submitted 1,427 treaties to the Senate which approved 1,247 and flatly rejected 16. Another 141 were witodrawn because they couldnt get a two-thirds vot or for other reasons. Anoto-er 2S treaties are pemitog.

S<ne of those rejects, like the Versailles Tre^y after World War I, changed history. But, since trying to get major treaties through is a tortuous journey and the Constitution does not say presidents cant fry other devices, presidents have.

They turned early to executive agrreements. President George Washington was the first to take this road with a postal agreement. Most agreements later had congressional a^roval, but by a simple majority vote since they were not treafies, avoiding the painful two-^rds process.

And presidents have tried something else: national

commitments or promises which became American foreign policy. The first big one of its kind was President James Monroes doctrine.

Buried deep in a few para-(Continued on Page 6)

This Date--

40 Years Ago Today

By FOY H. DUNGAN Sept. 28, 1927 Two Women Prepare For Ocean Flight New York, Sept. 28 Women headed the two remaining expeditions in the frans-Atlantic air field today after Captain Rene Fonchs definite abandonment of his imposed flight to Paris and his announcement that he would sail Saturday for France. . . With the withdrawal of Fonch, Miss Ruth Elder, Dixie pilot of the monoplane American Girl, and Miss Frances Grayson, heading the projected European flight of her Sikorsky Amphibian plane, were left at the Curtiss Field to complete preparations for take - off which have been set back from day to day by test flights and adverse weather conditions...

ButHold onThis One Ma v Be a Peaee Feeler^

By JAMES KILPATRICK

District School of Bhieberry Comers At Stokes Friday Evening

Greenville talent will present a play, Ihe District School of Blueberry Comers," at Stokes School, Sept 30, 8:00 p.m. Admission 35 and 20.

Cupid Continues To Hovo* Around lliis Territory

The spirit of Cupid continues to hover around this section. This statement was amply borne out yesterday with five couples applying for licenses at the office of the register of deeds of Pitt County. They were:

Lany Jones to Miss Letha Norris of Ayden.

Hubert Smith to Miss Pat-tic Elena Wayne, both of Wil-liamston.

J. Scott to Miss Lizzie Overton, both of Chicod township.

J. S. Oandall Carolina township to Miss Hattie Hardee of Martin (bounty.

Colored Willie Highsmith to Bessie Savage, both of Bethel (Community.

deduced To Guessing

(3et toe facts! said the authoritative voice wi the bod) tobe. A quarter of a million extra heart conditions. A million cases of bronchitis and emphysema. Elevai million cases long - term illness. Write fw yoiH* free copy of Smoking and Illness.

This free government leaflet, if youre curious, purports to present the highlights of a study released in May by the Public Health Service, Cigarette Sm(Aii^ and Health Characteristics. If toe really curious viewer pursues the matter, and also obtains a copy of this parent study, he may discover at first hand what is meant by a credibility gap.

In plain words, both the free leaflet and the larger study on which it is based, in terms of

the impression they seek deliberately to convey, are frauds. Prevaricators, it is said, are divided anng three classes liars, damn liars, and th(^ who misuse statistics. By picking and choosing among some figures that are shaky to begin with, by glossing over necessary qualifications, and by mixing reasoned inference with pure surmise, the authors of these publications have perpetrated a shabby piece of propaganda.

The PHS study, conducted over 52 weeks in 1964-65, was intended to discover the relationship, if any, between smoking and a variety of chronic and acute illnesses. The raw figures were derived from interviews in a random sample of 42,000 households.

So far, so good. But the key

Other Editors Saying Bgyond Ivied Walls

(Cfaristan Science Monitor)

We are impressed by the news concerning a world boom in higher education. Everywhere, it seems, more people are seeking opportunities to earn college degrees. It is very encouraging.

We sympathize, however, with King Hassan II of Morocco who is concerned that his 14 million subjects will neglect farming in their pursuit of higher education. A practical man, he sees need for training that will produce more good farmers. His warning: If we all become intel-luctuals, we should all have to eat pencils.

Britain is taking a chance on the overproduction of degree holders by planning a university - for - everybody to be in full swing by 1970. By means of radio, television, correspondence courses and audio-visual centers it will open

the road to degrees to thousands who canm^ afford conventional university education. The University of the Air will receive grants from the Department of Education and Science. It is a bold and worthy undertaking.

In the United States bi^er education for all is under debate in California which has long enjoyed tuition - free university education. But local communities all over the country are showing the widespread devotion to toe ideal by establishing public community junior colleges. Each year there are many new ones 12 percent more tois year than last. They are filling a need and are a credit to toe cities that support them.

The world, requiring more and more educated personnel, seems waiting for these graduates. We dont thitoc many countries will be eating pencils because of an over-supply of degree . hold^s.

figures, on which aU toe conclusions are based, are the figures covering smoking habits. How many cigarettes per day? Did the respondent ever smoke? If so, how many cigarettes did he smoke? What was his heaviest rate of smoking? If these figures are not solid, the whole study begini to fall apart. And the astounding fact, glossed over in tl report, is that data on 60 per cent of the males who had ever siiioked were obtained from other persons. The interviewers simply accepted answers from whoever li^peiied to be at home at the time.

This is a study of smoking and illness. To get toe figures, the interviewers presented a list of chronic and acute conditions, and asked the householder to check appropriate boxes. Bronchitis, sinusitis, upper respiratory infection, emphysema, heart trouble, liver trouble, chronic nervous trouble, hypertension without heart involvement. 'The typical lay m a n may be able to answer some of these questions generally; it to unbelievable that he could answer them precisely; but to this study the diagnoses of any 19-year-old who happened to be at home are given the impressive we i g h t, down to two decimal places, of laboratory findings.

The authors of this study kept tripping over the inadequacy of their own data. They were thus reduced to guessing: It could well be toat... Had data been available, it might have been found that... This could indicate that...This could be affected by. . .This could result from. . In a moment of candor, they confess the truth: Tlieir figures do not establish any cause - and-effect relationship be t w e e n smoking and illness.

Still, their job was to leave precisely that to^ession that cigarette nncddng does result to illness and lost time.

By ROWLAND EVANS Ml ROBERT NOVAK

WASHINGTON - A closed-door meettog last Thursd a y (Sept 21) of House Republi-can leaders all but decided ( a sfrat^ to cQDfroDt Presi-dent Johnson with a dreary choice: siffrender real control over the Federal purse strings or get no tax increase.

CiBTeiitly being perfected by outside economic advisers to the House R^ublicans, the scheme offers sow alternatives to Mr. Johnson. To win es-setoial R^nfblican support for hto 10 percent surtax on in-e<ne, be must accept a guaranty written into the tax bill of substffliUal cuts at least ^ i^on in current spending.

Nor will the Republicans be satisfied with any vague injunction against s]nding. They are now drafting an amendment to the tax bill flatly {n*(toibiting the Treasunf from spendmg above a certain level each quarter of the year, thereby reasserting Congres-si<mal control over Federal spending.

Herein lies the real Presidential - Ckmgressional clash over fiscal polky, transcending toe shmn battle toat has been waged inside the House Ways and Means Committee.

In that connnittees da i 1 y sessions behind closed doors, Administration officials led by Budget Director (toarles Schidtze stoutly maintain that Congress should tocreasc taxes before toe President cuts spending.

In private sessions with sailor Ways and Means members, lieutenants of the President urge (Congress to te 11 them specifically where q>en-ding should be reduced. In reply, Ways and Means members of both parties in^st tl spending cuts must be detailed by the Administration immediately.

But the impasse is more apparent than real. As we reported earlier, the President last June ordered all dq;>artments to show how each could cut current apoiding by 15 percent and has had this inf(ina-tion since mid - July. Moreover, it is highly probable that the President will issue a statement of reduced expenditures perhaps as early as the end of this week, more likely a bit later.

That toal reduction is expected to be around $7 billion. Of that, $2 billion probab 1 y will consist of the Johnson administrations favwite fiscal gimmick: selling so - called participation certificates or Federal LO.U.s, whose sale is credited as an asset in topsyturvy Federal bookkeep i n g. The other $5 billion are expected to be actual reductions in expenditures, mainly consisting of postponeable public works (including highway construction).

Republicans, however, arc understandably leery of such pledges. Consider Mr. Johnsons highly publicized pn>-mise last November to slash 1967 Federal expenditures by $3 billion. Of that $3 bUoi most has now been restored; the ultimate saving will be less than $300 million.

The scheme to prevent this from recurring came unsolicited from a respected private economist who fears like many Republicans the Administration would use higher taxes as a lever to actually increase spending. H i s suggestion to Reiu'esentatlvc Melvin Laird of Wisconsin, chairman of the House Republican Conference, was tc (Continued on Page )

iquor Tempts The Lawmakers

By ELMER ROESSNER

Thoe is something about liquor that makes lawmakers want to pass laws about it. And practically no industry is hampered by as many as the liquor industry, the Bourb o n Institute declares.

Here are some it has rounded up:

It is against the law in Chicago to give a dog a drink.

Bars are not allowed to have swinging doors in Maine.

A tavern owner in Current, Neb., can be fined if his bartender wears a soiled coat.

A drink can be bought any hour of the day or night in Nevada.

Maine and Washington states require drinkers to be sealed while drinking. In both states this leads to waiting lines for bar stools. And if a drinker moves to join friends,

he cannot carry his own drink. A waiter must do it.

A Break For The Girls In Boston, men-only taverns may not open on Sunday. For a drink that day, a man must go to a cocktail lounge to a t also admits women.

No two of the 50 states have the same regulations, and there are still different regulations by the federal government and the District of Columbia.

Advertising restrictions vary so much that an advertising agency must prepare 27 different versions (rf a national liquor ad.

Santa Cllaus may not appear in advertising in 20 states.

Fathers Day may not be mentioned in liquor advertising in Kansas.

Trouble, Trouble A liquor advertiser may ad

vertise the price of his product in 13 states. He is prohibited from mentioning it in 13 states, and one state requires tiiat the price be shown.

In one state it is illegal to use color advertising and there is a limit to advertising sizes.

And it is illegal to drink from a bottle in Coolidge, Ariz.

The urge to regulate exists overseas, too. In Belgium it is forbidden to buy or sell spirits in any quantities less than two liters, and cafes, bars and hotels are fwbidden to sell spirits of any kind.

In France, beverages made from grain may not be advertised, but beverages made * from fruit alcohol may be advertised without limit.

Census Bureau Prints 53 Volumes On Business

The Census Bineau has published 58 volumes of ^'County Business Pattemi, 1966. One volume has been published for each state, toe District of Columbia, Puerto Rico and a U.S. Summary. Prices range from

25 cents to $1.50, and the prices and volumes are available from the Superintendent of Documents, Washington, D. C. 20402, or from offices of the Department of Com* merce.